Published On: Tue, Nov 1st, 2016

QSR to open new plant in Querétaro

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On Monday October 31, Rubber & Plastic News, a website that serves rubber product manufacturers primarily engaged in the production of tires and inner tubes, reported that QSR will be opening a new plant in Mexico.

QUERETARO, Mexico—Quality Synthetic Rubber Inc. is venturing south of the border.

The unit of Q Holding Co. will establish a manufacturing facility dedicated to producing primarily silicone electrical connector seals and insulators for industrial applications, mainly automotive and aerospace. The 65,000-sq.-ft. plant will be operational on Nov. 15 and is projected to create direct 135 jobs.

QSR is making an initial capital equipment investment of $3 million USD for the first year. The site has room for an additional 65,000 square feet should demand dictate it expand further.

“We’ve looked to going into Mexico for many years,” President and CEO Randy Ross said. “Not because we’re just shooting in the dark without plan, but we look to where our customers are. Where are our customers setting up operation and where do they consume the product? We would like to, not just in Mexico but around the world, make sure our operations are close to serving our customers needs.”

He added that the firm has a large amount of revenue in the country that it already has developed, and now is the ideal time to locate manufacturing there to produce close to those customers. The firm’s volumes are increasing year-over-year and have hit the point for some form of brick and mortar investment.



“When we looked at where our customers were consuming the product, the very logical choice was Mexico,” Ross said. “It was both a matter of us outgrowing our current infrastructure and looking at our revenue flows and where we’ve developed a majority of the business and this idea of being close to the customer’s manufacturing operation.”

Automotive has been a fast-growing market for Mexico with major original equipment manufacturers making significant investments in enhancing their manufacturing presence. Ford, General Motors, Fiat-Chrysler, Honda, Nissan, Toyota, Mazda, Kia, BMW, Mercedes-Benz and Volkswagen either already are operating or preparing to open assembly plants in the country.

Right now QSR’s facility will serve its industrial customers, but the firm has the capability to serve the medical market through its Qure Medical arm if demand dictates. All it would take is some additional investments to secure the appropriate medical-related certifications.

Ross said he believes the firm isn’t far from making those investments as more medical device production occurs in the region.

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