Royal Power Solutions joins the Queretan auto parts boom
By Víctor Vázquez
January 9, 2020
Royal Power Solutions began operations this year in Querétaro. From this location they assemble terminal systems for automotive batteries, molded plastic covers and electrical terminals for multiple Tier 1 and Tier 2 manufacturers.
The company of American origin provides these components, essential distribution of electrical energy and high precision signals for automotive applications, to global industries, but above all it exports its products indirectly through its various customers based in the region.
Randy Ross, CEO of Royal Power Solutions, said that by manufacturing these products in Querétaro, the company can join the supply chain for companies that assemble harnesses with automotive wiring in the country.
“Many important clients asked us to be in Mexico, which motivates us to move in the supply chain. Our presence here reduces delivery times by five days and allows us to be more alert to your needs, ”he said.
The company started the assembly processes in Querétaro in January of this year, for March it introduced the molding and in July it did the same with the stamping. Last November they completed the first die designed and manufactured in this location, which made their Queretana plant completely self-sufficient.
Chad Cranney, general manager of the Royal plant in Querétaro, emphasized high-speed stamping and product solutions for manufacturing terminals, connectors, busbars and shields, which the US company introduced in this region, and warned as one of its strengths.
“Other companies have not been successful in stamping because they hire employees and just expect the staff to know how to do it. Precision stamping requires a unique set of skills, so we are investing in knowledge transfer to train our team. ” This instruction includes technical staff stays at Carol Stream, Illinois, the company's headquarters, for nine-month training.
The plant in Querétaro, located in the Innovation Technology Park of the municipality of El Marqués, covers an area of 75,000 square feet and employs 130 associates; however, they expect the company to reach 300 new jobs, after the more than 285 million pesos it has invested in the state.
FUTURE IN MEXICO
The president of Royal Power Solutions, Randall J. Ross, shared that he has been investing in this state for 22 years and that this is the fourth company he has collaborated with. At this time, he said, he has realized that the success of the companies is the people, so they seek to continue growing in Querétaro, where they have found quality workforce.
“Here on the right we have a wall that we are going to throw, in order to grow our company (…) Together we will continue to build a fabulous team that will continue to learn together, growing hand in hand and together we will break that wall to continue growing, ”he said, while anticipating that they have planned a larger investment in the region in the medium term.
In this regard, the co-founder of Royal Power Solutions, Eric Heglie, agreed that human capital is the main element taken into account to make an investment.
“When we are looking for locations for new plants, we have this principle, we look for people who are worth it. We have been pleasantly impressed with the people who are in Querétaro, with the skills they have, the trainings, the resource they have. ”
SECTOR
Governor Francisco Domínguez Servién, during a visit to the plant, emphasized that the subsector of the auto parts is the one with the highest reception of foreign capital in Querétaro, since in the last five years it added more than 1,242 million dollars invested.
In addition, he said that Querétaro is the first supplier of auto parts for the major shipowner regions throughout Mexico.
“Who wants the best quality, the best parts, the best auto parts, turns to see Querétaro. Who seeks to provide cars with greater intelligence, greater security, also goes to the most advanced technology that is generated in our state, ”he said.
From January to August 2019, the automotive sector grew 9.3% in the state compared to the same period of the previous year.
And while the country grew 1.3 in job creation, Querétaro grew 5.8.
The productive sector in Querétaro reached, until October of last year, 44, 582 jobs; which means a growth of 18%, compared to the same period of 2018.
+ INFO
Start of operations: 2019
Capital: American
Turn: Automotive
Products: Terminal systems for automotive batteries, molded plastic covers and electrical terminals
Location: El Marqués, Qro.
