Nissei boosts global production capabilities with new U.S. molding machinery assembly plantNissei boosts global production capabilities with new U.S. molding machinery assembly plant

San Antonio, TX, will be the location of a new injection molding machinery assembly plant, launched as a fully-owned subsidiary called Nissei Plastic Machinery America Inc. The new subsidiary will manufacture injection molding machines as part of Nissei’s global production network.

The new 114,234-square-foot production facility will be located on a nearly 400,000-square-foot building site at Brooks City Base in San Antonio. Construction starts this month and is scheduled to be completed in November 2017, with production expected to commence in February 2018. The facility initially will be used for the machining and assembly of medium to large-scale hybrid injection molding machines, with clamping forces from 500 to 1,440 U.S. tons. The main components will be supplied by Nissei plants in Japan, China and Thailand; local procurement from American suppliers will gradually increase over time.

The new plant will include a technical center equipped with demonstration machines for molds and materials.

The facility will “proudly supply the U.S. domestic market with machines manufactured locally to the highest quality and reliability standards and branded as made in USA and made by Nissei,” said the company. Other important benefits of the new plant include lower transportation costs; faster delivery and improved response times when modifications are required; improved customer service thanks to on-site inventory; and shorter lead times.

"With the manufacturing sector in the United States increasingly reverting to local production, we can expect to see growing demand for medium to large-scale production equipment in key categories such as automobiles, household appliances, packaging and consumer goods. We believe there is a market for competitively-priced injection molding machines made locally by Nissei,” said Nissei’s press release.

The San Antonio plant will supply markets throughout South and Central America as well as the United States and Canada; in the future, it may supply European markets, as well.

Situated to supply expanding demand in North America, the plant represents a key part of Nissei’s plans for a global production and distribution network. The three main factors that led to the choice of Brooks City Base include the fact that Texas is roughly in the middle of the North and South American continents and close to the Midwest, where the auto industry is concentrated. (San Antonio has recently attracted a number of automakers, as well.) The region also boasts ready access to Mexico, with its own rapidly growing auto industry.

Additionally, Nissei noted that Texas has a very attractive tax rate, including zero corporate and personal income taxes, and that San Antonio is “relatively” less affected by natural disasters compared with other parts of Texas.

The San Antonio plant will be Nissei’s third production facility outside Japan, joining the Taicang subsidiary in China (opened in 2009) and the Rayong subsidiary in Thailand (2012).