Kraiburg opens unit in Mexico

Mexico City – German thermoplastic elastomer compound maker Kraiburg TPE GmbH & Co. KG will open a wholly owned subsidiary in Mexico in 2015.

Kraiburg de México S de RL de CV will be located in Monterrey, in northern Mexico, according to Alberto Oba, the Bavarian company’s commercial manager for Mexico and Central America. “We’ve seen continuous growth in Mexico,” said Oba, one of two Kraiburg sales representatives in Mexico, explaining the decision.

Oba reports to Kraiburg TPE Corp. in Duluth, Georgia, where Kraiburg, of Waldkraiburg, has had a sales office since 1996 and manufacturing operations since 2001. He said Kraiburg’s sales in the Americas are forecast to total $32 million in 2015, up from $28 million this year.

“Between and 43 and 45 percent of those [sales] will come from Mexico,” Oba said. He also said Kraiburg plans to open a warehouse in central Mexico in 2015. “There’s a huge growth opportunity for us in Mexico,” he added.

In 2014, he said, Kraiburg sold 1,900 metric tons of compounds in Mexico, up from 1,600 metric tons in 2013. “Expectations for 2015 are close to 2,200 metric tons.”

Fifty percent of Kraiburg’s sales in the country are for the automotive industry, Oba said, with another 35 percent going into consumer products.

All compounds sold in Mexico are manufactured in Duluth, where Kraiburg is able to produce up to 6,000 tonnes a year. Oba said extensions in Duluth will enable the company to increase its capacity there to 9,000 tonnes by 2016. In addition to its home base in Germany, Kraiburg also has production operations in Malaysia.