Nogales, AZ (02/03/11) – Under the shelter plan program of Collectron International Management Inc., the original maquiladora shelter plan program provider in Mexico, Federal Electronics, Inc., a leading vertically integrated electronics manufacturing services (EMS) provider, successfully opened a new manufacturing facility in Sonora, Mexico. The 30,000 square foot facility in Hermosillo will supply copper cable assemblies, wire harnesses, fiber optic interconnect assemblies and higher level assemblies to the avionics, defense/military, homeland security, industrial equipment, instrumentation/test and medical industries, with plans to introduce additional capabilities at a later date. The facility celebrated its grand opening and began shipping product in the fourth quarter of 2010.
In addition to their current facility in Rhode Island, Federal Electronics decided to open a second manufacturing plant in Mexico in an effort to reduce manufacturing costs while benefiting from the proximity advantage that nearshoring offers. They chose Hermosillo based on the city’s infrastructure, stable operating costs and a large number of available skilled personnel, according to Richard Evangelista, Vice President of Operations at Federal Electronics.
“The introduction of our own manufacturing facility in Mexico, in tandem with the extensive capabilities that exist in our Cranston, RI, headquarters, will minimize the risks associated with offshore production while addressing our customers’ needs for cost containment and reduction,” said Ed Evangelista, Vice President of Business Development for Federal Electronics.
While Federal Electronics knew they wanted to establish a second manufacturing plant in Mexico, they didn’t know how to go about it or where to begin, which is where Collectron came in. Collectron’s shelter plan program allows manufacturers to test Mexican productivity and product cost savings before committing to incorporating in Mexico and forming a Mexican subsidiary. After evaluating their options, Federal Electronics chose Collectron to help them set up their plant in Hermosillo.
In a speech announcing the grand opening, Richard Evangelista acknowledged Collectron’s President, Maria Elena Rigoli, as operating “one of the most professional organizations I have had the pleasure of working with, anywhere.”
“Much can be learned from the customer service oriented organization that you have established,” Evangelista added, while thanking Rigoli and the Collectron team. “Without your hard work, patience and the commitment to our success, we couldn’t be here today,” he said.
Collectron has helped more than 200 companies start up and operate their maquiladora plants in Mexico since 1969.
“We are so proud to be a part of Federal Electronics successful grand opening,” said Rigoli. “This is just one more example of what we – manufacturers, suppliers, and shelter programs, and on a broader scale, the United States and Mexico – can accomplish by working together. Together we will. That’s Collectron’s motto. This impressive grand opening is a positive result of that.”
The 180,000-square-foot facility includes sheet metal assembly for the company's King Air turboprops and Hawker jet products, as well as electrical assembly.
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This expansion will eventually provide the company with the capability to manufacture and assemble aerostructure and landing gear systems.