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Embraco announces construction of plant in Mexico

Embraco, a global company and world leader in the compressor market for refrigeration, has just announced the construction of its first factory in Mexico, in the metropolitan area of Monterrey, in the state of Nuevo León. The announcement was made at 1 p.m. (local time) in Mexico City, at the Official Residence of Los Pinos, with the presence of the President of Mexico, Felipe de Jesús Calderón Hinojosa; the Secretary of Economy, Bruno Ferrari Garcia de Alba; Governor of Nuevo León, Rodrigo Medina and Embraco’s global President, João Carlos Brega.

The company, headquartered in Southern Brazil with factories in Europe, Brazil and Asia, has been present in Mexico with a sales office in the metropolitan area of Monterrey since 2004. The new investment is part of Embraco’s global growth strategy and the actions are focused on expanding production of high energy efficient compressors.

As part of the global strategy, the company is also expanding the production capacity of high energy efficient compressors in Embraco China and Slovakia’s plant will introduce a line dedicated to this type of product in the first quarter of 2011. With this, the high energy efficient compressor - Embraco Mini (EM) will be the only compressor produced in all of Embraco’s operations (China, Italy, Slovakia, Brazil and Mexico).

"With the expansion of our production we will be able to offer a quicker response to our customers, in both products and services, allowing them greater flexibility to make changes according to the market scenario", says Embraco’s President, João Carlos Brega.

Embraco’s Mexico factory

Embraco's new factory in Mexico begins operations in August 2011 with approximately 500 employees and production capacity for 2.5 million compressors per year. But the project foresees a total investment of US$ 90 million by 2013, when the company will reach full capacity of 5 million units and will increase to nearly 1,000 the number of direct jobs. The company estimates further that the project will create approximately 500 indirect jobs with the development of a base of local suppliers.

By 2013, the facilities will reach 33 thousand square meters and will include Manufacturing and a Technology Center, equipped with five laboratories to ensure product quality and adaptations to customers’ cooling systems.

The project adopts the elements of the greenbuilding concept, based on best practices in sustainable building, such as installing elevators, ramps and entries with more physical space for complete accessibility; control systems for temperature and water and energy consumption. Embraco Mexico will also have high energy efficient equipment and use natural gas as its primary energy source.

The construction design favors natural lighting and ventilation of the environment. The project also includes thermal insulation in walls to reduce the use of air conditioning in summer and make the plant warmer in winter.

Close to customers

Proximity to customers is the main reason for choosing the country, explains Embraco’s President, João Carlos Brega. According to the executive, the choice for the Monterrey region is due also to the existence of a consolidated industrial area, the presence of specialized professionals and the good conditions of roads, railways and airports.

Another aspect that weighed on the decision for the region is the favorable environment for establishing partnerships with universities and technical schools. The company maintains agreements with institutions in various countries and this historical practice of the company has contributed to the generation of knowledge and talent, one of the factors responsible for Embraco’s innovation differential.

"Our presence in Mexico is a strategic step for Embraco’s business and this operation will follow the best practices of the organization globally. The company invests in the development of people, in the high quality of products and services and seeks to reduce to the maximum its social and environmental impact, contributing to improving the quality of life in all communities where it operates. We want to build a partnership with the community of Nuevo León and contribute to local development", explains the plant director of the new factory, Carlos Xavier.  

High efficiency

The EM compressor, product chosen for the Mexican factory, serves a niche considered of great importance to Embraco’s business that is the high energy efficient compressor segment. The search for products with lower energy consumption is a global trend and the company is the absolute leader in this segment in all continents.

The new factory’s production will attend the demand of customers located inside the country and in the United States, where the EM compressor will meet the technical requirements of the 2012 Energy Star Program. The United States is also preparing itself for the new energy rating of the United States Department of Energy, which establishes a reduction from 20% to 30% in the energy consumption of products beginning in 2014. This new energy rating also extends to the Canadian and Mexican markets.