Julian Electric invests 10 million dollars for its expansion in Derramadero
By Guillermo Vázquez
January 9, 2020
To close 2019 with a flourish, in Saltillo the investment of 10 million dollars was announced for the expansion of the operations of the American company Julian Electric, which is located in the Alianza Derramadero Industrial Park.
The completion of the construction of this new plant is planned for September 2020, with the generation of 450 direct jobs.
During the laying of the first stone of the new plant, Kenny Julian, CFO and co-president of Julian Electric, said that since their arrival in Coahuila they found skilled and very productive workforce, which makes the region strong, and which motivated them to decide on this area to invest in their new plant.
“In 2008, when Daimler opened its plant in Saltillo, we began to consider the possibility of also opening a plant to provide this company and others within this sector. After searching for about a year the most suitable location for our project, we conclude that Derramadero was our best option to establish ourselves and we started operations in 2010, ”he recalled.
"For a decade we realized that Saltillo is the best option to establish our plant and continue growing here, since we find skilled and very productive workforce, which makes the region strong (Southeast of Coahuila)," he added.
He also mentioned that they found strong allies such as the Alliance Group, as well as unions and state and municipal governments.
“These alliances with different partners helped us decide to grow our operations here in Mexico and led us to expand the operation and invest in Coahuila in the long term. It is very valuable for me to demonstrate to the community the goals that can be achieved when companies and the private sector work hand in hand with the government, ”he emphasized.
For his part, César H. Cantú, CEO of Grupo Alianza, the project developer, mentioned that it is an honor for them as the Alliance family to welcome them.
"The industrial landscape of our community today grows a little more thanks to Julian Electric's confidence in this land, it is a company that arrived about 10 years ago with a smaller-scale project, but just as ambitious," he said.
He said that throughout that time, Julian Electric's lease format has had some changes and growths, but finally they decided to acquire part of the territory to be able to establish and take root in Derramadero.
“Winning this project was not easy, although Julian was established with us for years, they have always been looking for the best option. Analyzing everything required in accordance with international production and competitiveness standards, we can gladly tell you that we comply and that today you decide to stay here, in your original home: Alliance, ”he added.
COAHUILA, YOUR SECOND HOME
Founded in 1959, in Chicago, Illinois, where another plant is located and the corporate one, Julian Electric is a manufacturing company that produces copper and aluminum battery cables, harnesses and electrical components for the automotive industry, heavy vehicles, household appliances, and industrial and agricultural machinery.
COAHUILA, ITS SECOND HOUSE
Founded in 1959, in Chicago Illinois, where another plant is located and the corporate one, Julian Electric is a manufacturing company that produces copper and aluminum battery cables, harnesses and electrical components for the automotive industry, heavy vehicles, appliances, and industrial and agricultural machinery.
The production of the plant in Coahuila is destined to the US market by 70%, 15% to the Mexican market, and the rest is divided between Canada, China, India, Japan, Australia, Brazil and the European Union.
Among the main clients of Julian Electric is the German company Daimler (including Freightliner, Mercedes Benz Buses and Thomas Built Buses in North America), as well as Navistar, Parker Hannifin, Ford Motor Co., JLG, among others.
Manuel Alvarado, Production Manager of the Derramadero plant, mentioned that the company currently has 350 workers in Coahuila, covering an area of 180,000 square feet, while a human capital of 800 people is used globally.
“We have a current capacity of 720,000 pieces per year among our product range; the expectation of growth in the new plant in the first year of operations is 15%, ”he said.
He mentioned that Julian Electric's mission is to provide its customers with the assembly and assembly of harnesses and wiring with the highest quality to meet and exceed their expectations. To achieve this, each employee has the responsibility and authority to stop any process that is manufacturing products below the normal level.
While the company's vision is to conquer the markets of Mexico, South America, and Europe, being a leader in battery cables and harnesses, both in the automotive and heavy transport industry.
Among the plans that Julian Electric has in Saltillo, he highlighted the expansion that is already underway, which will begin operations in 2020 with an area 50% larger than the current one, with business vision being an expansion of 120,000 square feet more in A period of five years.
“As for the workforce, we are in the phase of launching new projects that will increase the required staff by 10% over a period of 3 months. Likewise, for projects in the quotation phase it would increase from an additional 10 to 15% by the end of 2020 ”, he shared.
On the Julian Electric market in 2019, he reported that it was a record year in production volumes for customers during the first three quarters, hoping to close the year very strongly with a view to a successful 2020.
Manuel Alvarado stressed that the company is certified under the regulations of ISO TS 16949 and ISO 14001. And finally mentioned that they are committed to the recycling of 100% of wood and cardboard pallets used in the supply chain, as well as to the reduction of use of tin and the recycling of waste from it used in production processes.
“Our new plant will, in turn, have intelligent systems with a view to reducing the consumption of electrical energy. All that has been said is established in our environmental policy, ”he said.
SALTILLO: NATIONAL POWER
During his speech, Manolo Jiménez Salinas, mayor of Saltillo, praised what is produced in Derramadero, to the extent of cataloging the industrial zone as a national power.
“Sometimes it is normal for us to be from Saltillo and see it every day, but being here at an event where the Tesla glass is manufactured a few meters away, one of the most technologically advanced cars on the planet, about 3 kilometers away manufactures the most awarded truck in the world of 2019, which is RAM 1500 and soon the Heavy Duty RAM of 2020, where 62,000 trucks are produced per year by the company Daimler, really that Saltillo is a national power and that thanks to that we have determined entrepreneurs, the best workers and workforce, ”he said.
He also thanked Kenny Julian and his company for continuing to trust the Coahuilense capital, because thanks to the success they have had over a decade, they were growing to such a degree that today they are going to make their own ship.
SPILL, FIRST LEVEL
Finally, Miguel Ángel Riquelme Solís, governor of Coahuila, emphasized that from now on it will be the job of the entire productive sector to care for and protect the investment, through local supply chains and infrastructure, mainly this last point, making Derramadero A world-class investment destination.
“So that both workers and employers can feel good, we will promote a transportation system for everyone who comes to Derramadero and also promote housing for those who today have a job have the opportunity to live nearby, which translates into higher quality of life, ”he insisted.
"Here in Derramadero in maximum two years we will be finishing the extension of the road to Derramadero and that will improve competitiveness to be one of the preferred areas to house companies around the world," he concluded.
The ceremony of laying the first stone was also attended by executives Leonard Ottosen Dávila, general manager of Julian Electric Saltillo; George Ferro, manager of Daimler Saltillo Plant; as well as officials Jaime Guerra Pérez, secretary of Economy; Gerardo Berlanga Gotés, Secretary of Infrastructure, Urban Development and Mobility, and Román Alberto Cepeda, Secretary of Labor.