Nissei opens new injection molding machinery assembly subsidiary in United States
In November 2016, Nissei Plastic Industrial Co., Ltd. have launched a new fully-owned subsidiary called Nissei Plastic Machinery America Inc., in San Antonio, Texas. The new subsidiary will manufacture injection molding machines as part of Nissei’s global production network.
The new production facility will be located at Brooks City Base in San Antonio. Construction is starting from December and is due to finish in November 2017, with production expected to commence in February 2018.
The facility will initially be used for machining and assembly of medium to large-scale hybrid injection molding machines (mold clamping force 500 to 1,440 US tons), with the main components to be supplied by Nissei plants in Japan, China and Thailand. Local procurement from American suppliers will be gradually increased over time.
The new plant will include a Technical Center to provide technical support to customers. The Center will be equipped with demonstration machines for mold and material, enabling various testing with customers prior to purchase.
The new plant will proudly supply the U.S. domestic market with machines manufactured locally to the highest quality and reliability standards and branded as Made in USA and Made by Nissei. Other important benefits of the new plant include: (1) lower transportation costs; (2) faster delivery and improved response times when modifications are required; (3) major boost to customer service capacity thanks to on-site inventory; and (4) shorter lead times compared to waiting for orders to ship from Japan.
With the manufacturing sector in the United States increasingly reverting to local production, we can expect to see growing demand for medium to large-scale production equipment in key categories such as automobiles, household appliances, packages and daily goods. We believe there is a market for competitively-priced injection molding machines made locally by Nissei. The San Antonio plant will supply markets throughout the Americas, including South and Central America as well as the United States, Canada, and in the future may supply European markets as well.
The new plant is ideally situated to supply expanding demand in North America, and represents a key part of Nissei’s plans for a global production and distribution network. The three main factors that led to the choice of Brooks City Base were as follows.
(1) Texas is roughly in the middle of the North and South American continent and close to the Midwest region where auto industries are concentrated. San Antonio itself has recently attracted a number of auto makers. The region also boasts ready access to Mexico, with its own rapidly growing auto industry.
(2) Texas has a very attractive state tax regime, including zero corporate and personal income taxes for the state.
(3) San Antonio is relatively less influenced by natural disasters comparing other areas in Texas.
The San Antonio plant will be Nissei’s third production facility outside Japan, joining the Taicang subsidiary in China (opened 2009) and the Rayong subsidiary in Thailand (2012). With production facilities at four key locations, Nissei will boast a truly global supply chain, with ready access to markets all over the world and the ability to pursue procurement on a global scale.
