Cardinal to open plant near Guadalajara, Mexico

30 January 2008 16:02  [Source: ICIS news]

MEXICO CITY (ICIS news)--Paint company Cardinal, based in the US state of California, plans to open a 100,000 lb/month paint manufacturing facility in Atotonilco, in the western Mexican state of Jalisco, director of corporate affairs Lawrence Felix said on Wednesday.

“We have already invested $150,000 (€102,000) at the site, because we need separate water supply and infrastructure,” Craig told ICIS news from the sidelines of the Coatech paints and coatings trade show in Mexico City. “It should be up and running within six to 12 months. But it is just the beginning. We hope the demand will be there and we will go beyond that.”

The company will probably import its main raw materials, polyethylene (PE), polyurethane (PU) and epoxy from the United States.

It will be the second overseas venture for the firm, which opened a warehouse and an office in Hong Kong in 2000 and also plans to open a representative office in Shanghai.

“We had already been selling to businesses in Tijuana, Tecate and Ciudad Juarez for at least 25 years,” Craig said. “Our core customers are electronics manufacturers. As they moved south, we followed.”

Atotonilco is around 30 miles from Jalisco’s capital city Guadalajara, which is sometimes known as Mexico’s Silicon Valley as it is home to a host of electronics companies including Siemens, Flextronics, GE and Cisco Systems.

Craig estimates that around 10% of the company’s business is currently in Mexico. Cardinal hired a representative Guadalajara 18 months ago to ensure to follow up on purchases from Cisco among others he said.

“We are on specification for Cisco, but we realized that just because we meet their specifications, we are not guaranteed the business,” Felix said.

He added that the Atotonilco plant hopes to manufacture custom colours for aerosols, bicycle manufacturers and a host of other businesses in Guadalajara’s industrial belt.


By: Alex Manda
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