Offshore Group Quarterly Intelligence Reports

The Offshore Group Quarterly Intelligence Report – 4th Quarter – 2009

Kromet International to Establish Mexican Operations

Cambridge, Ontario, Canada – based Kromet International will shortly begin to manufacture aluminum and steel appliance handles and trim in Saltillo, Mexico.

The company has signed an agreement with The Offshore Group for the rental of a projected 30,000 -35,000 square feet of industrial space, as well as for outsourced manufacturing support, or “shelter,” services at the La Angostura Industrial Park in Saltillo, Coahuila. At the project’s maturity, Kromet expects to employ 35 direct labor employees.

According to the company’s Director of Sales, Dave McQueen, “Our decision to establish a Mexican production facility was based upon the desire to provide cost-effective and timely service to our new and existing customers”.

Kromet currently operates two wholly-owned manufacturing plants in Canada. The company extrudes, roll forms, machines, fabricates and assembles aluminum and steel into a variety of structural designs to meet specific industry needs. Its finishing capability includes powder painting, anodizing and a range of brushing and polishing techniques. Appliance handles and trims, grab handles, transportation luggage racks, solar panel frames, and a variety of office furniture trim and structural components are among Kromet’s successful range of products.

Manufacturing in Mexico Conference Videos Available for On-line Viewing

IInformative conference videos from two recent manufacturing in Mexico events hosted by The Offshore Group in Guaymas, Sonora, Mexico are now available for viewing on-line by interested parties.

During the 4th quarter of 2009, the 15th Annual Manufacturing in Mexico Summit and the Aerospace Manufacturing in Mexico Conference were held at the San Carlos Plaza Hotel in the West Mexico state of Sonora, home of large general manufacturing and aerospace industry clusters.

A sampling of some of the topics addressed by expert speakers in the on-line accessible videos includes:

• New Legislative Initiatives and their effect on investments in Mexico;
• Mexico and The United States: An Integrated Economic Relationship;
• Mexico and the Global Aerospace Industry;
• Globalization from the OEM’s Perspective – Opportunities for Mexico?
• An Overview of Mexican Law;
• Developing a supplier base in Mexico.

Access to the videos can be gained at: http://www.offshoregroup.com/Videos-MexicoEvents2009.asp

Physical Infrastructure Investment Results in Greater Service Reliability

Travelers to Southern Arizona during the summer months are familiar with the sometimes torrential rains that fall during the region‘s monsoon season. During these brief, but powerful storms, local business and residences sometimes lose electrical power for extended periods. Since The Offshore Group’s headquarters in Tucson houses services that are critical to the day to day functioning and success of its client companies, important modern infrastructure has been added to the facility to ensure that operations will continue to run smoothly between the U.S. and Mexico during inclement weather.

This past October a Cummins 140 Kw Generator 600A Transfer Switch propane automatic generator was installed and made functional at a cost of $90,000.00. This equipment will ensure that, in times of power outages, the Import-Export Department and the Crossdock will be able to continue to communicate with both manufacturers and suppliers, and will be able to process the paperwork and physical tasks required to conduct clients‘ crossborder transactions without delays or interruptions. In the case of an extended power outage, the generator will provide 72 hours of electrical energy, before requiring an additional refueling.

Further infrastructure improvements aimed at improving the level of service delivered to Offshore Group clients are scheduled to be made at Offshore Group’s facilities in Mission, Texas; Saltillo, Coahuila and Guaymas and Empalme, Sonora.

Horst Engineering Expands Its Ability to Supply Mexican Market

Horst Engineering de Mexico has expanded its business in the domestic market, serving new customers in Sonora, Tijuana, and elsewhere in Mexico. HEDM General Manager Andy Law, says, “The expanded capabilities permit direct shipments to our customers, which is a big benefit to their supply chains. Our customers have realized shorter lead times as a result of our supply agreements.”

In 2010, Horst Engineering de Mexico will expand its precision machining capacity in three areas: Swiss screw machining, turning, and milling. Additionally, the company will add capabilities and capacity as new parts and projects come online. Examples of new processes could include thread rolling, centerless grinding, and honing.

The company ended 2009 strongly. In January, the company celebrates one year in Guaymas with The Offshore Group, though they have been manufacturing in Sonora, Mexico since 2006. Both its US and Mexican operations have upgraded ISO9001:2008 registrations and are prepared for the new AS9100 revision when it is launched. A new CMM was installed at the Guaymas plant for the inspection of complex machined components.

In Connecticut, Horst Engineering has received much positive attention for their solar PV electric power system, which went live in 2009. The 128 panel solar system produced more than 50% of the electricity consumed at or their 41 Cedar St. plant. Overall, Horst Engineering’s operations in the US and Mexico are positioned for growth, and the company will be investing in new multi-axis machining technologies in an effort to deliver more value for their customers.

Pinnacle Aerospace Contracts with Vangtel to Open Aerospace Software Development Operation in Obregon, Sonora

Phoenix, Arizona – based, Pinnacle Aerospace has contracted with The Offshore Group’s Vangtel to initiate and maintain an aerospace software development operation in Obregon, Sonora, Mexico under the Vangtel Shelter Program. Pinnacle is the aerospace community’s “partner of choice” for the development of high quality and cost-effective embedded software and product solutions. The company offers full life cycle support for all DO-178b, DO-254 or equivalent mission critical software applications. From developing customized project plans using proprietary planning templates to end item delivery and certification support, Pinnacle has expertise in all aspects of product development and documentation. Pinnacle offers the following:

• Project Planning
• Systems Design and Requirements Development
• Software Design and Code
• Integration and Test
• Tool Development and Qualification

The agreement between Vangtel and Pinnacle Aerospace is two years in duration. The company will occupy approximately 2,600 square feet in the Obregon Software Technology Park and will employ 150 Mexican software engineers at the projects maturity.

According to the President of Pinnacle Aerospace, Mike Morgan, “Mexico offers my customers excellent value in nearshore software development. The unniversities, state and local governement resources have all done an outstanding job of building an education system and infrastructure to support the high growth Aerospace industry. Our partnership with Vangtel has proven to be a very successful part of our initial growth strategy and long term strategic growth plan.”

More information about Pinnacle Aerospace and its activities can be reviewed at: www.pinnacleaerospace.com

Vangtel was founded by The Offshore Group in 2005 for the purpose of offering outsourced support, or “shelter,” services to companies seeking to set up nearshore call center, IT development, customer support and other business process outsourcing operations.

Let us know how we are doing

Luis Felipe Selder III, Director of Corporate Quality

As a part of ongoing efforts to promote an atmosphere of continuous improvement, The Offshore Group has established a permanent email account to which client firms and their personnel may directly address their complaints, comments, and suggestions. The purpose of establishing this direct and convenient line of communication is to enable The Offshore Group to determine and respond to its shelter plan client’s requirements and expectations with greater speed and efficiency.

Please send suggestions or comments to: luis.seldner@offshoregroup.com

Keep up-to-date with developments in the maquiladora industry by visiting Maquilaportal.

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