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SRG to open new Mexican molding site

SRG Global Inc. has broken ground on an injection molding, top coat, chrome-plating, and assembly plant in Irapuato, Mexico. The company estimates that the initial phase of the project will cost between $25 and $35 million, with the facility expected to be completed by the first quarter of 2012.

PlasticsToday Staff

February 22, 2011

3 Min Read
SRG to open new Mexican molding site

SRG Global Inc. has broken ground on an injection molding, top coat, chrome-plating, and assembly plant in Irapuato, Mexico. The company estimates that the initial phase of the project will cost between $25 and $35 million, with the facility expected to be completed by the first quarter of 2012.

Kevin Baird, president and CEO of SRG Global (left), and Juan Manuel Oliva, governor of Guanajuato.

Tom Schneider, SRG's director of marketing, told PlasticsToday that at this point in time the facility's final size and machine count are to be determined, with the build-out expected to last one year. The company expects to install injection molding machines ranging from 250 to 3000 tons, but that also could be subject to change. Schneider said that SRG currently supplies "many" of the OEMs that are Mexico, shipping product from its sites in Kentucky, Indiana, Georgia, Tennessee, and Missouri.

Irapuato is east of Guadalajara and northwest of Mexico City in the Mexican state of Guanjuato. The site will serve a variety of automotive and non-automotive OEMs and customers, according to SRG Global, with initial plans to staff up with 220 direct employees, and the potential to bring on an additional 220 indirect employees.

SRG Global said in a release that construction of the Mexico facility is part of its business strategy to maintain local and regional production capabilities. SRG Global's other recent investments include its Advanced Development Center (Taylor MI), opened in 2010, and a production facility in Boleslawiec, Poland, that was opened in 2009.

Within the automotive sector, SRG supplies front and rear end components (grilles, emblems/nameplates, liftgates, deck lids, spoilers); body side parts (rocker panels, body side moldings, fuel filler caps, wheel flares, door handles, wheel covers/caps); and a variety of interior components, including pillars, window surround moldings, cowls, and door belt moldings, as well as parts for door panels, center consoles, instrument panels, and steering wheels. 

The current company was formed by the former Guardian's acquisition of Siegel-Robert Automotive in 2008. Created in 2009, SRG Global combined the two company's trim operations, with headquarters in Warren, MI. Later that year, SRG breaks ground on the aforementioned manufacturing facility in Bolesławiec, Poland.

In a 2008 presentation, Bill Conwell, VP of planning and strategic initiatives at Tier One supplier, Lear, noted that there were 13 OEM plants in Mexico spread among 10 states, including Baja, Sonora, Coahuila, Aguascalientes, Jalisco, Guanajuato, Puebla, Morelos, and San Luis Potosi. OEMs operating in the country at that time included GM, Ford, Chrysler, Toyota, Nissan, Honda, and Volkswagen. By 2011, Conwell forecast that there would be 12 OEMs in the country spread among 18 plants, with an influx of Chinese carmakers, including Geely, Chery, and ZhongXing, in addition to Fiat. —Tony Deligio

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