Engel inaugurated its first production plant in Mexico
Engel, a global manufacturer of injection molding machinery, inaugurated its first production plant in Mexico with an investment of US$49 million.
The announcement takes place in a context of trade uncertainty due to the possible imposition of tariffs by the United States, but the company maintains an optimistic view of its operation in the country.
The new plant, located in Querétaro, is Engel's first in the Americas and represents a key step in its expansion strategy. While the United States was initially projected to be the main export destination, the company is open to modifying its plans based on market conditions.
“We could supply from our 10 plants in Austria to the United States. Despite tariffs, it still makes sense to produce in Mexico,” commented Stefan Engleder, CEO of Engel, in a meeting with the media. He added that if the machines stay in Mexico, the investment is also justified, allowing them greater flexibility in the face of changes in international trade.
The uncertainty over tariffs has generated a brake on new investments in the country, but Engel maintains its commitment to the Mexican market.
“The problem with this uncertainty is that the economy slows down because nobody invests. There is no investment when there is uncertainty, so that in itself represents a problem, but we hope that this will be resolved. Engel is staying on,” said Engleder.
The plant will start operations with an initial production of up to 200 units per year. However, the company has ambitious plans for the complex, with the intention of tripling production by 2027.
Among the products to be manufactured in Mexico are the e-mac Series, a smaller, all-electric machine, and the Wintec t-win, a large-format machine with double platen technology.
Engleder noted that, despite trade challenges, the injection molding industry faces over-demand globally. “Tariffs or no tariffs, this is a growing sector, so we are focused on the best way to operate,” he said.
He also stressed that Engel's global production network allows them to maintain competitive prices and minimize the impact of eventual trade tariffs. “I think that is a strong and forceful message: the customer can be assured that when he buys an Engel machine, he acquires the best machinery with the lowest possible tariff,” he assured.
Currently, 50% of Engel's portfolio is aimed at the automotive industry, while 20% corresponds to technical machinery used in sectors such as construction and toy manufacturing. Another 20% is for the medical and packaging industry, and the remaining 10% for electronics.
