China-based Fuling Global Inc. builds new plant in Monterrey to avoid US tariffs
Fuling Global Inc., a specialized producer and distributor of plastic serviceware, with manufacturing facilities in both the U.S. and China, announced its plan to set up a manufacturing factory in Monterrey, Mexico amid the trade tensions.
The company is investing US$ 2 million on this facility, which is expected to launch production coming April.
“The ongoing U.S.- China trade tensions cast uncertainties for our export business to the U.S. market, our largest market segment that accounted for 85% of our revenues during the first half of 2018,” said in a statement Guilan Jiang, Chairwoman of Fuling Global. “The Mexico Factory offers certain attractive benefits for us, including zero tariff on trade between the U.S. and Mexico as well as low labor and transportation costs. We have high hopes for the Mexico Factory and view it as a key step for our continuing global expansion.”
The company forecasts the Mexico factory will have an annual design capacity of 10,000 tons. and will be primarily used for producing paper straws and paper cups serving the U.S. market.
Fuling Global products are supplied to fast-food restaurants and retailers, including Subway, Wendy’s, Burger King and Wal-Mart.
“The Mexico Factory is our second overseas expansion besides our Allentown, PA factory in the U.S. and marks another important milestone for the company,” expressed Jiang.
Last December, the company signed a building lease with Interpuerto Industrial Park in Monterrey, Mexico and a service agreement with a local shelter service company to help with administrative, accounting, compliance, import/export, human resources, etc., at the Mexico factory.
The facility remodeling started this month and will be followed by equipment installation and testing and worker recruitment in March.