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SRG Global's Irapuato, Mexico, facility will get a new expansion in a project that more than doubles its size. The expansion is expected to be operational in 2015, according to Dave Prater, SRG Global President and CEO, who made the announcement. The SRG facility is located east of Guadalajara and northwest of Mexico City, in the state of Guanajuato.

Clare Goldsberry

April 25, 2014

3 Min Read
SRG Global breaks ground on production facility expansion in Mexico

The expansion will add 215,000 square feet to the existing 205,000-square-foot facility, providing complete part production capability including injection molding, chrome plating, and assembly. According to Prater, the larger facility will also provide the necessary capacity to offer new products at the site, such as interior trip components, rocker panels, and fog lamp bezels, among others.

Headquartered near Warren, MI, SRG Global Inc., a Guardian company, is one of the world's largest manufacturers of chrome-plated plastic parts for the automotive, commercial truck, and household appliance industries, with a manufacturing presence in major world markets including North America, Western and Central Europe, and China, said the company's information.

"The expansion will provide the capacity needed to maintain current volumes, while offering customers additional global product innovations that leverage our existing core competencies. This action effectively builds upon the long-term vision of the company to create value for its core customers," said Prater. "Our business is very healthy, attested to by the fact that we are beginning this expansion a full 18 months ahead of our original three-year plan. This is proof of our commitment to this objective here and to servicing our customers."

The expansion will incorporate state-of-the-art tooling and equipment, and include benchmarked, best-in-class wastewater treatment technology. It will also create an estimated 230 new jobs, including the addition of technical staff to support the company's round-the-clock engineering capabilities.

Prater told PlasticsToday that the state of Guanajuato was initially chosen as the location for SRG Global's Mexico operations because of its centralized location and proximity to the company's core customer base, which are also expanding operations there.

"Nissan and Honda are expanding, as are GM, Ford, and Chrysler which are our five largest customers," said Prater. "All of these companies are close, which is why we chose this region - to provide value to our customers."

The increasing demand on the supply chain from automotive OEMs as they project greater vehicle numbers is pushing a lot of the expansion in Guanajuato, noted Prater. "It is a booming area here," he said. "Our expansion is just one of many you can see as you drive through the area. As the OEMs expand in Mexico and continue to increase their rate of production, a lot of suppliers are locating to the region and expanding to ramp up supply and service the growth. Of the areas we serve, we see production increasing faster than other North American regions."

However, the availability of a highly skilled workforce in the surrounding region has also proven to be a primary factor in the plant's success, earning it recognition from GM as an award finalist, and earning a Best Recovery Award from Nissan only two years after it launched its operations. "The focus on education in Guanajuato creates an excellent workforce," Prater noted. "There are 17 universities here in Guanajuato, and they're expanding training programs and developing technicians, engineers, and other skills to meet the demand of the manufacturers in the region."

"The success we've had so far is the result of our talented and dedicated employees, of which 90 percent come from the state of Guanajuato," added Jorge Vicuna, Plant Manager. "In fact, since we first began operations, over 80 people have been promoted to new positions."

The addition to the Mexico facility is part of SRG Global's overall business strategy, designed to provide global technological advancements and ensure consistent quality in every region served, while maintaining local and regional productions capabilities.

"We have a very good team here, many good people to work with," stated Prater. "I'm excited to reward them with this expansion."

About the Author(s)

Clare Goldsberry

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."

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