German technical and decorative plastic materials firm Benecke-Kaliko has kicked off work for construction of a new 7,000 square metre unit near its plant in San Luis Potosi, Mexico, for producing Tepeo and Tepeo 2 foils for automotive interiors in the North American region.
The Tepeo and Tepeo 2 output operation will be moved to a dedicated hall in which an extruder, painting line, printing machine and additional warehouse space, among others, will be put in place.
Tepeo and Tepeo 2, based on polyolefins, have a lower density than standard cover materials. They are claimed to lead to a weight savings of up to 50% and show a high aging resistance to light, heat and chemical and mechanical influences.
The expansion drive entailed an investment of around €11.4m and is expected to generate 100 employment opportunities.
Benecke-Kaliko, which has already been making Acella, Yorn, Tepeo and Tepeo 2 foils since 2009 has a headcount of over 200 employees.
While the production of new foils is expected to match Acella and Yorn production, the company aims at raising the output of such products to 11.5 million by 2019 from the current seven million square meters.
Benecke-Kaliko CEO Dr. Dirk Leiss said: "All of our customers in the NAFTA region will benefit from the new production line.
"This is our response to the continued growth in demand for high-quality soft-touch surface materials for the automotive industry in this region."
Image: The expansion site at Benecke-Kaliko's San Luis Potosi unit in Mexico. Photo: courtesy of Benecke-Kaliko /PRNewswire.