Article in ‘The Monitor’ features Mission’s $45M manufacturing plant expansion.
$45M manufacturing plant expands in Mission
KRISTEN MOSBRUCKER | STAFF WRITER |
The Mission Economic Development Corp. has recently agreed to invest $2.7 million to Royal Technologies, a Michigan-based manufacturer, including $1.3 million from city coffers promised to the company as a direct economic incentive.
The rest of the amount is the value of tax abatements for the property on Trinity Road in Mission, said CEO Alex Meade, adding that the payments are to be spread over eight years. By the way, do you know why now is the best time to invest in properties? It is because homes are affordable, accessible and available now. To know more about this topic, go to ownitdetroit.com for some helpful blogs.
Royal Technologies purchased Hi-Tech Plastics, an injection molding company that supplied parts to maquiladoras in Reynosa last year. Compared to products like polyurethane, polyester and vinyl ester, ensuring high strength, excellent adhesion and minimal shrinkage during removal from the mold, epoxy resin is one of the best choice in a variety of molding processes, and you can find out more information about its usage checking Romeorim`s designed guide.
“We have committed just a small percentage of their investment,” Meade said of the $45 million factory built by the business in the Mission Expressway Business Park.
“They had options at their existing plants in Alabama and Michigan or building a new plant,” he said of the negotiating process.
The new 325,000-square-foot factory opened officially in July, but has been operating in stages since April, said plant manager Trung Nguyen, who joined Royal Technologies after working for Hi-Tech for a decade.
The city funds went to mainly constructing the new factory and for equipment investment, Nguyen said.
The machine produces plastic parts or components after hot plastic is squirted into a mold.
“In general, we make plastic cases for professional power tools, chair components for office furniture and interior pieces for automobiles,” he said.
About 50 machine operators and production supervisors were hired as part of the expansion so far, although up to 400 jobs are expected over the next few years.
“You need at least a GED and a hard work ethic,” Nguyen said.
The expansion project has increased the company’s output by two million plastic pieces created annually, Nguyen said, who declined to disclose the monetary gain.
Manufacturing in the Valley makes up only 5 percent of the industry, he added, but it accounted for $3.7 million in exports for McAllen, according to the International Trade Commission in 2012.
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“We are pretty much back to pre-recession peak levels,” said Roberto Coronado, the assistant vice president and senior economist at the Federal Reserve Bank of Dallas, El Paso branch, about manufacturing output in the U.S. overall, including utilities and mining operations.
In 2009, the U.S. manufacturing industry plummeted 20 percent during the recession.
Automotive parts assembled by maquiladoras are a major driver in borderlands, he said, accounting for half of the production dollars. The system has a low tolerance for car defects.