DULUTH, Ga. — Specialty plastics manufacturer Kraiburg TPE Corp. has formed a new entity in Mexico under the legal name Kraiburg TPE Mexico S. de R.L. de C.V.
As an operating subsidiary of Kraiburg in the U.S., the new company will function primarily to provide commercial and logistical infrastructure support for goods imported into the region. Kraiburg said formation of the Mexican firm will help to accelerate business growth, provide a higher level of localized service and improve turnaround times.
Kraiburg makes products for various sectors that include the automotive manufacturing, consumer and medical industries.
“We've had so much opportunity and business growth over there that we just decided that it was...the right opportunity and the right timing to go ahead and incorporate over there,” said Katherine Olano, distribution and marketing manager of Kraiburg TPE.
About 50 to 60 percent of the company's materials are exported to Mexico and Central America, so it just made sense to create the subsidiary, especially from a customs standpoint, she said.
“Every research paper that you see just talks about the boom over there in Mexico, especially around the automotive industry, the automotive manufacturing industry,” Ms. Olano said.
“And that's one of our biggest focuses and pushes for the coming year.”
The newly formed Mexico division of Kraiburg TPE also will benefit both current and future customers located in Central America. Kraiburg said operating under Kraiburg TPE Mexico S. de R.L. de C.V. provides more efficient importation operations, improved logistics management and streamlines the flow of materials. It also reduces the need for administrative support, documentation and invoicing of imported goods.
“We knew that there would be a point in time where this could potentially be something that we would do,” Ms. Olano said.
While Kraiburg did not have a timeline in place, the company did see that over time, the potential was there for growth.
“It was something planned long term. I think with the results and everything that we've seen so far, maybe it was just pushed up just a little bit sooner than maybe was thought or planned out in the long term. But it's definitely something that we saw would happen in the long run,” she added.