On Dec. 14, Nissei Plastic Industrial Co. announced the launch of a new subsidiary, Nissei Plastic Machinery America, in San Antonio. The new production facility represents $20 million capital investment at Brooks City-Base and will manufacture injection molding machines as part of Nissei’s global production network. Construction on the 115,000-square-foot facility begins this month, and the company expects to be fully operational in February 2018.
“We are honored to have such an innovative international addition to San Antonio’s globally competitive advanced manufacturing landscape,” said Mayor Ivy Taylor 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.”
The facility will initially be used for machining and assembly of medium to large-scale hybrid injection molding machines, with the main components to be supplied by Nissei plants in Japan, China and Thailand. Local procurement from American suppliers will be gradually increased over time. The new plant will also include a technical center to provide technical support to customers, equipped with demonstration machines for mold and material, enabling different types of testing with customers 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’,” said Hozumi Yoda, Nissei group president, in the release. “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 San Antonio plant will initially supply markets throughout the Americas, including South and Central America, the United States and Canada, and in the future may supply European markets.
The company cites San Antonio’s geographic location and Texas’ tax structure as main factors that led to the choice to locate in San Antonio. Also recognized by Nissei, San Antonio has attracted a number of auto makers, such as Toyota on the South Side, and is in close proximity to automotive manufacturing clusters in the Midwest region. San Antonio also boasts ready-access to Mexico, with its own fast-growing auto industry.
“San Antonio continues to offer the unique benefits and a strategic geographic location that is attractive to global companies seeking to expand their reach in the Americas,” said Jenna Saucedo-Herrera, San Antonio Economic Development Foundation president/CEO, in the release. The San Antonio plant will be Nissei’s third production facility outside of Japan.