Royal Power Solutions opens assembly plant in Mexico

Royal Power Solutions opened their new assembly plant in Mexico, in the state of Queretaro, to serve the growing automotive sector.

In this factory, Royal Power Solutions assembles terminal systems for automotive batteries, molded plastic covers and electrical terminals for several Tier I and II manufacturers.  It also, employs 60 people and anticipates increasing personnel to 100 workers by the end of 2019.

Royal Power Solutions is a supplier of essential components of electric energy distribution and high accuracy signs for global automotive and industrial applications.

According to the company, this month will they will begin the stamping processes to completely assembly the automotive and systems connection components.

Randy Ross, CEO of Royal Power Solutions, said that when manufacturing systems and components in Queretaro, Royal can locate the supply chain for companies’ assembly harnesses with automotive wiring in Mexico.

“Many important customers asked us to be in Mexico, what encourages us to move in the supply chain.  Our presence here reduces delivery times in five days and allow us being more aware of their needs,” he referred.

The 75,000 square feet plant is located at the Innovation Technological Park in Santiago Queretaro.

In addition, the space of the plant could be doubled based on future production demand.

Royal has invested in forefront technology equipment in Queretaro, including high speed stamping, molding and process molding technology by introducing American, European and Japanese suppliers.

The plant infrastructure includes a cooling system of Italian manufacturing, aluminum aerial lines, air compressors made in Germany and the implementation of a TPS system to optimize work flow and eliminate wastes.

STAMPING AND KNOWLEDGE TRANSFER

Chad Cranney, general manager of Royal plant in Queretaro, explained that high speed stamping and product solutions for terminals manufacturing, connectors, collector bars and shields of Royal is a little known function in Mexican manufacture.

“Other companies have not achieved being successful with stamping because they hire employees here and they expect them to know how to do it.  Precision stamping requires a set of unique skills, thus we are investing in knowledge transfer to suitable train our team members,” he noted.

This, he said, includes bringing Royal directives from the United States to work in Queretaro, as well as sending key operations and technical employees from Mexico to Royal in Carol Stream, Illinois, for a period of up to nine months of training.

“Many manufacturers see Mexico as a great opportunity to save costs – what at the end it is – but they expect immediate results.  It is not easy.  You have to invest in a long term training to receive a reward,” he explained.

EXPANDING THEIR BUSINESS

Meanwhile Randy Ross, CEO of Royal Power Solutions, Mexico will allow Royal to expand their business in the United States.

“This is an opportunity for us to develop new products and gain new manufacturing contracts in the United States.  It allows our highly qualified team in Illinois taking the most complex work to support the quick emerging of new electric architectures for vehicles and complex design systems developed in the United States,” he said.

Aiming to encourage this growth, Royal is setting the final touches by extending their innovation center for the Development of new products and tests on their headquarters in Carol Stream which will include an A2LA certified laboratory.

The Center for Innovation Royal Henrik Freitag for new products and processes development, focuses on innovations that bring better energy solutions for main customers from the automotive sector worldwide.

Advanced innovation of screw less fasteners, with high power connection technology, is revolutionizing the way automotive industry architects are designing an increasingly electrified world, according to Ross.

Finally, he referred that new products allow better costs and total reliance of systems, optimized packaging and assembly, and improved ergonomics for Royal customers.