Core Molding Technologies Inc. (Columbus, Ohio) announced on July 1 that it has signed a letter of intent to purchase 22 acres of land and to construct a manufacturing facility in Matamoros, Mexico. The company plans to invest approximately $20.2 million (USD) in a new facility that will replace its existing leased facility in Matamoros and add compression molding capabilities. The scheduled 2009 opening of the new 400,000-ft2 (37,161m2) plant will allow Core Molding Technologies to better serve existing customers and provide capacity for future growth.
"We've looked at making a strategic investment in the Southwest area for some time," says Kevin L. Barnett, president and CEO. Core Molding Technologies has had a successful open molding and resin transfer molding operation in Matamoros since 2001, operating out of a leased facility. "The existing leased facility is not optimal for our needs and does not offer much expansion opportunity for growth," continues Barnett. Core Molding Technologies plans to add compression molding capabilities at this new facility, to go with existing open and resin transfer molding processes. "Having compression molding in the Southwest will allow us to better serve our existing customers in this area by reducing the delivery costs associated with our products and improving our overall competitiveness," says Barnett.
Upon the completion of the new facility, Core Molding Technologies will move the production of certain products from its Columbus, Ohio, facility to the new facility to more competitively serve certain customers located in that region. The company expects to move approximately 75 positions from Columbus as a result of this transfer. The actual reduction in personnel is expected to be less due to increased labor needs resulting from increased production levels associated with the projected recovery in the truck market and new growth opportunities. "By expanding our capabilities in Matamoros and freeing up capacity in our Columbus facility, we gain the flexibility to take on new business, as we had little room for growth in either facility," Barnett adds. "We look forward to successfully completing this challenging project that improves our ability to serve our existing customers and expands our capabilities for future growth in both new and existing markets," says Barnett.
Core Molding Technologies is a compounder of sheet molding compound (SMC) and molder of fiberglass-reinforced plastics. The company produces high quality fiberglass-reinforced, molded products and SMC materials for varied markets, including medium and heavy-duty trucks, automobiles, personal watercraft and other commercial products.