Nissei Plastic Industrial Co., Ltd. announced Wednesday the launch of a new fully-owned subsidiary called Nissei Plastic Machinery America Inc., to be located in San Antonio. The new production facility represents a $20 million capital investment at Brooks City Base and will manufacture injection molding machines.
Nissei has been specializing in injection molding for a wide variety of applications since its founding in 1947. Nissei America first established a subsidiary in the U.S. in 1977. The new plant will manufacture injection molding machines as part of Nissei’s plan to boost its global production network. Construction on the 115,000 sq. ft. facility will begin in December 2016, and the company aims to be fully operational by February 2018.
The facility will initially be used for machining and assembly of medium to large-scale hybrid injection molding machines – with a mold clamping force of 500 to 1,440 U.S. tons –with Nissei plants in Japan, China and Thailand supplying main components. The use of American suppliers will be increased over time.
The new plant will also include a technical center to provide technical support to customers: it will be equipped with demonstration machines for mold and material and, thus, allow customers to test various machines prior to purchase.
“Nissei is proud to begin supplying the U.S. domestic market with machines manufactured locally in San Antonio to the highest quality and reliability standards, branded as ‘Made in USA’ and ‘Made by Nissei,’” stated Hozumi Yoda, president and representative director of Nissei. “This new location will support improved customer satisfaction with faster delivery and response times when modifications are required; enhanced customer service capacity with on-site inventory; and shorter lead times compared to orders shipped from Japan.”
The three main factors that led to the choice of Brooks City Base include San Antonio’s central location with respect to the North and South American continents, as well as its proximity to the American Midwest, where the auto industry is concentrated. Ready access to Mexico, a country with its own rapidly growing auto industry, as well as the presence of auto makers like Toyota in San Antonio made Brooks City Base an ideal location. Nissei representatives also cited Texas’ tax structure as a contributing factor for choosing San Antonio.
“We welcome Nissei Plastics and applaud the advanced manufacturing jobs that they will bring to San Antonio,” Bexar County Judge Nelson Wolff stated in a press release. “This investment in San Antonio represents their first U.S. facility, a historical milestone for our community and for their global organization.”
The San Antonio plant will be Nissei’s third production facility outside of Japan, joining the Taicang subsidiary in China, which opened in 2009, and the Rayong subsidiary, which opened in Thailand in 2012. With production facilities in four key locations, Nissei will boast a global supply chain with access to markets all over the world and the ability to pursue procurement on a global scale.
Plans for the San Antonio plant are to initially supply markets throughout the Americas, including South and Central America, the U.S. and Canada, and possibly European markets in the future.
“We are honored to have such an innovative international addition to San Antonio’s globally competitive advanced manufacturing landscape,” Mayor Ivy Taylor stated in a press release. “Nissei Plastics represents the most recent investment from a Japanese company, as San Antonio continues to build upon our strong economic relations with the country of Japan. We welcome Nissei Plastics to our San Antonio business community.”