The Lindal Group, a German-based aerosol packaging provider, is seeing plenty of opportunity in Mexico. As a result, the company has positioned itself for future market growth in Mexico - and shortened supply chains for customers in Mexico that serve both the home and export markets.
The first initiative involves Lindal de Mexico, now solely owned by the Lindal Group, after the company bought out the 49 percent held by the previous ownership. Next, the company invested more than $3.5 million to support a new actuator project for a large multinational's leading brand of antiperspirants and deodorants, in both regular and compressed formulas. The high annual volume actuator project involves multiple Mexican production cells, which will supply both the home market and the rest of North America. Production started this year and a second phase of production capacity expansion for 2015 has been initiated.
In addition, the company started Mexican valve production, further shortening supply chains and increasing efficiencies for Lindal customers.
Mexico is one of the biggest markets for personal care products in Latin America, and the country's projected growth in aerosol demand for household products, paints, medical products and insecticides is also appealing, according to Philip Brand, global Mmrketing director of the Lindal Group, who cited metrics published by the Instituto Mexicano del Aerosol, A.C. Mexico's economy is rated 14th globally.
The company anticipated the increasing desire of Mexico-based customers to partner in proximity with suppliers, to better serve both the domestic market and exports throughout North America.
"The quest for product differentiation continues to drive innovation, and our aerosol solutions help customers achieve distinction and enhance perceived value in a highly competitive retail environment, in Mexico and throughout the hemisphere," Brand said.
The trend to near-shoring is significant, he said, noting a shift back to North American production, and away from China, for example, as Pacific Rim labor costs rise and transportation issues mount. "Our automation here in Mexico, and proximity to customers and fillers, reduces cost and time and is a highly attractive alternative to Pacific Rim manufacturing, once all costs are tallied," Brand said.
Lindal's capabilities in design, injection molding and assembly appeal to both multinationals and regional customers, he added. "And now, we create the actuators and valves, right here in Mexico, further speeding time to market," said Brand.
"Our strategy is to align with customers to enhance supply chain efficiency. Why transport actuators all the way from China, when we can be right here in our customers' back yards?" he said.
Brand stated that Lindal Group will continue to support its Mexico-based production, in anticipation of further demand from multinationals and local customers selling domestically, as well as for export to the U.S. and throughout the Americas.