13 March 2013 02:02 [Source: ICIS news]
MEXICO CITY (ICIS)--Manufacturers that moved production to Asia during the last decade are bringing their capacity back to the western hemisphere, a trend that is benefitting Mexico and raising demand for plastics, executives for Eastman Chemical said on Tuesday.
Despite concerns about security in Mexico, the country still provides a good and energetic atmosphere for manufacturers, said Rafael Hernandez, an Eastman sales director who oversees Mexico, Central America and the Caribbean.
Hernandez spoke on the sidelines of the Plastimagen plastics conference.
The manufacturing industry is a large consumer of plastics in which Mexico has an established manufacturing base.
Chinese wages have risen over the years, making Mexican production much more attractive, said Gabriel Crosta, an Eastman sales director who oversees much of South America. Meanwhile, freight costs from Asia have increased.
Sustainability has also become a bigger concern among companies, Crosta said. Moving freight across the Pacific ocean consumes fuel, which increases carbon emissions.
A growing number of companies are adopting sustainability programmes and are thus increasingly sensitive about emissions, Crosta said. Moving production closer to markets helps reduce those emissions.
Plastimagen lasts through Friday.
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