SAN LUIS POTOSI, Mexico—Benecke-Kaliko A.G.'s North American operation is growing, primarily because of increased demand for its soft-touch surface materials.
A division of Hanover, Germany-based ContiTech A.G., the company has launched construction of a new 75,000-sq.-ft. expansion to its existing 118,400-sq.-ft. plant in San Luis Potosi, according to Shawna Soule, vice president of the customer business unit, NAFTA, for the Mexican operation.
Cost of the addition was estimated at $12.5 million. About 100 new jobs are expected to be created once the expansion is completed, which the company said should be finalized before the third quarter of 2016.
Benecke-Kaliko has been manufacturing Acella, Yorn, Tepeo and Tepeo 2 foils since 2008 at its San Luis Potosi plant, called ContiTech Mexicana S.A. de C.V., where it employs about 200.
It plans to move production of Tepeo and Tepeo 2 to the expanded section in the third quarter of 2016. The addition will house an extruder, painting line and printing machine along with ancillary equipment, several adjoining rooms and additional warehouse space.
Tepeo and Tepeo 2 are thermoplastic elastomers based on olefins, Soule noted.
Moving production of the products to a dedicated section will enable Tepeo and Tepeo 2 to match the production of Acella and Yorn while all four continue to grow, the company said.
A manufacturer of surface materials for automotive interiors, the firm's goal is to increase the annual output of Tepeo, Tepeo 2 and PVC in Mexico to 123.7 million square feet from 73.3 million square feet annually by 2019.
“All of our customers in the NAFTA region will benefit from the new production line,” according to Dirk Leiss, CEO of the company.
He said the addition “is our response to the continued growth in demand for high quality soft touch surface materials for the automotive industry in this region.”
Headquartered in Hanover, Benecke-Kaliko produces its materials at seven production facilities in Germany, China, Mexico, Poland and Spain.