The Hamburg-based company has also acquired all rights to Lindal de Mexico and has positioned itself for future market growth in Mexico, and shortened supply chains for customers that serve both the home and export markets.
The $3.5 million investment will go towards supporting a new actuator project for a large multinational’s leading brand of antiperspirants and deodorants, in both regular and compressed formulas.
The high annual volume actuator project involves multiple Mexican production cells, which will supply both the home market and the rest of North America. Production started this year and a second phase of production capacity expansion for 2015 has been initiated.
Mexico is one of the biggest markets for personal care products in Latin America, and the country’s projected growth in aerosol demand is also appealing, according to Philip Brand, Global Marketing Director.
“The quest for product differentiation continues to drive innovation, and our aerosol solutions help customers achieve distinction and enhance perceived value in a highly competitive retail environment, in Mexico and throughout the hemisphere,” Brand says.
The trend to near-shoring is significant, he says, noting a shift back to North American production, and away from China, for example, as Pacific Rim labor costs rise and transportation issues mount.
“Our automation here in Mexico, and proximity to customers and fillers, reduces cost and time and is a highly attractive alternative to Pacific Rim manufacturing, once all costs are tallied,” he adds.
“Our strategy is to align with customers to enhance supply chain efficiency. Why transport actuators all the way from China, when we can be right here in our customers’ back yards?”
Brand states that Lindal Group will continue to support its Mexico-based production, in anticipation of further demand from multinationals and local customers selling domestically, as well as for export to the U.S. and throughout the Americas.