Nissei Plastic Machinery’s Injection Moulding Machines Manufacturing Facility, United States of America


Nissei

Japanese plastic injection moulding machines manufacturer Nissei Plastic Industrial launched a new subsidiary named Nissei Plastic Machinery America in December 2016, as part of its growth strategy to boost its global production and distribution network.

The 100%-owned US-based subsidiary will construct a new injection moulding machines manufacturing plant in south San Antonio, Texas, US.

The $20m facility will be Nissei Plastic's third manufacturing facility outside Japan, with two other plants in Taicang, China, and Rayong, Thailand, launched in 2009 and 2012 respectively.

With production facilities in key global locations, the company aims to enhance its supply chain network and its access to global markets, optimising procurement.

Construction of the new manufacturing facility was initiated in December 2016, with the completion and operations scheduled for February 2018.

The plant will manufacture and sell plastic injection moulding machines and equipment to the US market, which is the company's second-biggest export market after China.

Details about Nissei's US plant in Brooks City Base

Nissei's new manufacturing facility is being constructed at Brooks City Base, the former Air Force base in San Antonio. The company purchased a nine-acre land in the evolving economic hub from the Brooks Development Authority, in October 2016.

The air base has been considered as an ideal location for the plant for three main reasons, including San Antonio's geographical location, which is in the middle of the North and South America, making it easy to supply the expanding demand in both countries.

"With production facilities in key global locations, the company aims to enhance its supply chain network and its access to global markets."

The city has also attracted a number of auto makers, and is in close proximity to Midwest US and Mexico, where automotive manufacturing clusters are located.

The state of Texas also offers an attractive state tax regime, which includes zero corporate and personal income taxes.

Other major benefits include improved customer satisfaction with quick response times, reduced waiting times and faster delivery. An on-site inventory will enhanc customer service and shorter lead times as orders will no more be shipped from Japan.

Details of the injection moulding machines manufacturing facility

The new plant will be an 115,000ft² manufacturing facility being constructed in a 392,040ft² area. A new 13,700ft² office building and a 47,000ft² warehouse will also be constructed within the same area.

The plan also includes construction of a new technical centre, which will be equipped with demonstration machines for mould and material, to provide technical assistance to the customers. The centre will enable testing for customers before purchase.

Production at Nissei's manufacturing plant in San Antonio

The plant will be initially involved in machining and assembly of medium to large-scale hybrid injection moulding machines with clamping force between 500 and 1,440 US tons.

The main components for the assembly will be supplied from the company's manufacturing plants in Japan, Thailand and China, while procurement from the local suppliers will be increased gradually.

The San Antonio plant will start manufacturing moulding machines of highest quality and reliability standards in a later phase. They will be branded as Made in USA and Made by Nissei products and will be supplied in South America, Central America, the US and Canada. The supply is also planned to be extended to European countries in future.

Contractors involved

The plant was designed by Appleby + Laccetti Architects, a design firm based in Atlanta, as reported by Texas Department of Licensing and Regulation.

Marketing commentary

The demand for competitively priced medium to large-scale production equipment is expected to grow in the US, with increasingly more manufacturing companies looking for local production. The demand is expected to see a steady growth especially in major categories such as packaging, daily goods, household products and automobiles.