As Mexico's automotive and aerospace industries continue to see rapid growth, suppliers are encouraged to locate plants near these OEM and Tier 1 facilities to help reduce cost and time. Many OEMs have been manufacturing in Mexico for decades, bringing in parts and components 
from suppliers in the United States and Canada. That is primarily because there has been a reluctance on the part of smaller, Tier 2 suppliers, such as molders and moldmakers, to site manufacturing plants in Mexico. But those who have gone there are seeing their growth pace in line with their customers.

As a testament to just how fast the automotive manufacturing industry
 has expanded in Mexico, in the last two years, MGS has been visited by automotive companies from Germany, Italy, Japan, Australia, South America, and the United States as they prepare for new platforms for their respective vehicle OEMs. "Several key prospective customers are currently discussing production opportunities for our facility," stated Alvarez. "MGS is also developing strategic alliances within our automotive customer base, and I can only see this trend increasing, as new announcements are made of new assembly plants moving into Mexico."

GW Plastics has been in business 
since 1955. Headquartered in Bethel, VT, the company made the move to put molding in Queretaro, Mexico 
in 2006, a site that was strategically located to serve its customers throughout Mexico, according to Justino Barrientos, Mexico sales manager for GW. "Following our customers and expanding our footprint in Queretaro meant greater opportunities for us as a supplier," Barrientos said. "The cities on the border were our first targets, but it was not as centrally located, so we went to central Mexico instead. It's strategically located and allows us to reach most 
of the primary automotive facilities within three hours. For JIT automotive programs, it's ideal. Being close to our customers is key."

The new Generation 5 range of Haitian moulding machines will be hitting UK shores in the coming weeks. Veronica Edmunds, head of the UK sales team, shares what we can expect from one of the world’s largest manufacturer of moulding machines.

Savings of these magnitudes offer moulders the opportunity to pay off their brand-new Haitian Generation 5 machine, with the savings they make on energy, in months rather than years.

Until she retired in September 2021, Clare Goldsberry reported on the plastics industry for more than 30 years. In addition to the 10,000+ articles she has written, by her own estimation, she is the author of several books, including The Business of Injection Molding: How to succeed as a custom molder and Purchasing Injection Molds: A buyers guide. Goldsberry is a member of the Plastics Pioneers Association. She reflected on her long career in "Time to Say Good-Bye."

Because of the tremendous growth of the automotive industry in Mexico - both among OEMs and Tier 1 suppliers - GW and MGS sited their respective plants in strategic locations.

The HT X-tend software is available on all Generation 5 and is included as a standard option in the purchase price.  Charging customers extra for features that are included on their machines is a policy that has backfired on those suppliers who have tried it.  Customers remember when car companies tried to charge to use heated seats that were already fitted in their vehicles, and the same reaction is commonplace in our sector when manufacturers will “switch on features for a price”.  Our system is free of charge and can be turned on and off, by our customers, whenever they require it. This software has been tested on over 1000 machines pre-launch and the improvements achieved when processing recycled material are of particular benefit.

The “Generation 5” range continues Haitian’s philosophy of sharing the advantages that their economies of scale produce, with our customers.  This time the step change is higher than previously seen, and that is because technological improvements are happening so quickly.  We have over 700 people working in R&D, in a constant quest to innovate and improve. There has been a massive increase in investment by Haitian to improve their manufacturing excellence and infrastructure, including a new site in Serbia to manufacture up to 3000 machines a year for the European market.

Whilst the centre is certainly an impressive facility from which to showcase our technology,  it is also available to support customers in their machinery selection processes.  We have already run multiple tool trials, energy comparisons and training sessions.  This investment in our UK infrastructure extends to the provision of a full-quality office to enable our customers' teams to fully investigate their own tools' performance in our machines. Our engineering team work alongside our customers to ensure that the best possible outcomes can be achieved.  We have also been able to assist customers with some small production runs when needed.

GW's Barientos sees close proximity to the automotive companies as
 one more advantage over some of the European Tier 1 or Tier 2 suppliers. "The automotive companies have very challenging [delivery] targets, and moving parts from Europe means they bring all these parts in by ship and rail every day," Barrientos explained. "If something goes wrong or if a shipment needs to be replaced, then you are talking about air-freighting parts," he says. Everyone strives for perfection, Barrientos adds, "but sometimes that is
 not the case, so it's ideal to be close to the customer so that if something goes wrong, we can ship parts in a few hours by truck."

While energy savings and a quick return on investment are often enough of an incentive to add to our rapidly expanding customer base, we believe the new HT-X tend software will further set us apart from our European and Asian competitors.

The intelligent control system will optimise the entire moulding process to ensure repeatability, efficiency and lowest energy consumption, this reduces wear and tear on the machine and tooling.  It’s as though your most considerate technician has set each machine.

The aim for us, in a commercial sense, is to provide the best machine price-performance ratio, coupled with such a high level of customer service that our customers do not consider using another supplier. It’s proved to be a successful formula so far and we are sure that the introduction of Generation 5 will X-Tend this advantage.

MGS Plastics Chihuahua has obtained numerous certifications that include ISO 9001:2008, ISO/TS 16949- 2009 and ISO 14001:2004. Other investments include installation of new manufacturing systems and equipment, and personnel training, all of which has paid off in existing-customer retention and significant growth in new customer acquisitions.

While Mexico may be considered
 a low-cost location, suppliers like GW have to have high-tech, state-of-the-
art plants to meet the requirements of today's automotive OEMs. The 51,500 sq-ft plant is ISO 14001 and ISO/TS 16949 certified. Today, with 20 injection molding presses ranging from 50 to 650 tons, GW Queretaro serves some 
of the major global automotive Tier 1 suppliers that deliver final assemblies to OEMs including Honda, BMW, Audi, GM, Ford, Chrysler, VW, and more. "All these OEMs are expanding and opening new operations, and the Tier 1 suppliers are following them. We work with the Tier 1 [suppliers] to accommodate this increased business," said Barrientos. "We are growing organically and taking advantage of the location-investing in additional capacity to face these challenges."

MGS's Alvarez agrees. "The delivery expectations and quality standards of the auto industry are high, so it is imperative that the production team is well trained and supported," he said. "Our Chihuahua team has responded successfully. On April 8 of 2014, the employees of MGS Chihuahua received the Delphi Automotive 2013 Pinnacle Award for Supplier Excellence. Delphi is a long-time MGS customer, going back well before the Mexico acquisition. Their production management and quality teams worked very closely with ours to develop the systems and procedures needed by Delphi."

Features which were previously available as additional options are now included as standard specifications, including new energy-saving technology, both hardware and software.  It’s fair to say that these options would have cost thousands of Euros previously, but our economies of scale make it more cost-effective to upgrade the whole range. So, for example, Haitian Generation 5 Servo hydraulic machines will now offer Electric Screw Motors as standard, at no extra cost. Thus, enabling a more precise and reliable process with reduced energy consumption, not to mention that they are a lot quieter too.

Well, as you know, we have been very vocal about the need for the UK Plastics Sector to invest in modern technology so that it can improve competitiveness and produce a rapid return on investment.  According to the PMMDA, the UK has the oldest fleet of machinery in Europe, outside of Romania, and at the current rate will take more than 20 years to upgrade.  In the meantime, European moulding companies are racing ahead, with governments offering financial assistance to their manufacturers to help reduce their carbon footprint and improve efficiencies.  Generation 5 offers energy savings of between 20% and 40% on our previously already impressive figures.  This is showing circa 80% energy savings vs. fixed or variable pump machines, which still make up the bulk of the UK market.

We aim to provide the highest level of customer support alongside the best machinery available at a price which is affordable for all.  In particular, I would also like to give credit to our own engineering team whom our customers continually praise for the excellent levels of service they provide.  Whilst it may be the sales team who sells the first machine to a new customer, it is the engineers who sell the rest.  Time and time again, we hear how important it is to be supported by a team who have the customers' best interests at the forefront of what we do.  Haitian UK have a policy of not using our engineering support as a revenue stream which enables a strong working relationship with our customer base.

MGS Mfg Group, headquartered in Germantown, WI, has been operating in Mexico for six years. MGS Plastics Chihuahua S.A. de C.V. has benefitted from the exploding growth of automotive OEMs in that region, expanding several times since MGS bought an existing, 20-press molding operation in 2008, adding to the overall square footage and increasing the number and range of the injection molding machines. Within the first two years, MGS added two 770-
ton presses, and today MGS Plastics Chihuahua has a total of 48 presses ranging from 50 to 770 tons. MGS Plastics Chihuahua also integrated the company's Universal Multishot Systems portable injection units and rotary platens to enable two-component molding. The company has since added continuous extrusion shuttle blowmolding capabilities. Today, MGS Plastics Chihuahua operates three 40,000-sq-ft production facilities and a 50,000-sq-ft warehouse with offices that total 135,000 sq-ft.

Premier Moulding Machinery has been the Haitian distributor in the UK for almost 20 years, so obviously we have seen huge changes in technology over that time.  I guess it shouldn’t come as a surprise to any of us that this fifth generation from the market-leading manufacturer is so impactful.  Haitian have always positioned themselves as a high-quality brand, for whom the customer’s experience is paramount.  Unlike some suppliers, we are not in a race to deliver the cheapest functioning machine or, conversely, to use customers as revenue streams post-purchase.

Barrientos commented that GW Queretaro is "at the top of the supplier pyramid" for its technical capabilities, which include the ability to mold complex, tight-tolerance, functional parts and to provide overmolding and a variety of secondary operations, specifically assembly. "We're looking forward to expanding our assembly capabilities to grow our business scope," added Barrientos. "The types of parts we supply include automotive electronics, electrical drives, panel systems, and other tight-tolerance components. We have many years of experience in manufacturing these parts."

To support the launch of the new Generation 5 machines, Haitian UK has recently opened a new Technical Centre in Buckinghamshire.  Onsite, we have a selection of machines from our Haitian and Zhafir ranges plus our Hilectro automation, ranging from 90 to 550 tonnes.  All are available for sale and quick delivery if required.

As Mexico's automotive and aerospace industries continue to see rapid growth, suppliers are encouraged to locate plants near these OEM and Tier 1 facilities to help reduce cost and time. Many OEMs have been manufacturing in Mexico for decades, bringing in parts and components 
from suppliers in the United States and Canada. That is primarily because there has been a reluctance on the part of smaller, Tier 2 suppliers, such as molders and moldmakers, to site manufacturing plants in Mexico. But those who have gone there are seeing their growth pace in line with their customers.

Supply chain concerns, JIT deliveries for critical components, and local problem solving is driving vehicle manufacturers to want their suppliers close-even building "supplier parks" to make relocation easy for smaller Tier 2 companies. Long-distance shipping can be fraught with problems.

As Mexico's automotive and aerospace industries continue to see rapid growth, suppliers are encouraged to locate plants near these OEM and Tier 1 facilities to help reduce cost and time. Many OEMs have been manufacturing in Mexico for decades, bringing in parts and components 
from suppliers in the United States and Canada. That is primarily because there has been a reluctance on the part of smaller, Tier 2 suppliers, such as molders and moldmakers, to site manufacturing plants in Mexico. But those who have gone there are seeing their growth pace in line with their customers.

According to Marcel Alvarez, director of sales for Mexico, when MGS acquired the facility in 2008, the customer base was primarily electronics, industrial, and appliance OEMs, with very little automotive. "In less than six years, revenues have increased from an average of $500,000 per month to the current $2.5 million per month, with the automotive industry responsible for approximately 40% of those sales," Alvarez told PlasticsToday. "Automotive is the fastest growing industry of our interests in Mexico." Sales for fiscal 2013 totaled $26.9 million.