MANTUA, Ohio (July 15, 2009)—Mantaline Corp. plans to open a plant in Monterrey, Mexico, to better penetrate new and existing markets.
The sealing product manufacturer said many of its customers have moved to the country to tower their costs, and Mantaline intends to grow with those companies by geographically positioning some of its operations closer to them in Mexico. Customers will benefit from immediate logistical cost savings, the firm said.
“We're working with our customers as partners in the enterprise, and this new facility allows us to near-shore with them,” said Tom Mlinar, vice president of business development for Mantaline.
“We are taking advantage of the changing climate within the industrial world and positioning ourselves to best serve our customers wherever they are,” he said.
Mantaline is moving some of its machinery at its two Ohio factories, which will soon be consolidated into one plant in Mantua where it's headquartered, to the 36,000-sq.-ft. Monterrey factory, which will be under close supervision of company engineers and operations personnel.
Trade terms set forth in NAFTA allow Mantaline to move semi-finished goods to Mexico, with little or no duty, for just-in-time finishing and delivery to nearby customer locations, the firm said. Because of that, expansion into Mexico will strengthen distribution channels, develop new customer relationships and increase sales.
In early July, Mantaline announced it is moving its operations at the firm's Aurora, Ohio, plant, which will be closed, to the Mantua plant to optimize production costs.
“In the final analysis, our break-even scenario will be replaced by a highly sustainable and profitable footing,” Mlinar said.