TECO Electric & Machinery : Invests in New Efficient Low-Voltage Motor Plant in Mexico to Form Short Supply Chain for North American Market

TECO Invests in New Efficient Low-Voltage Motor Plant in Mexico to Form Short Supply Chain for North American Market

2023/09/19

Image / TECO

TECO (1504) held the inauguration ceremony of the efficient low-voltage motor plant in Cienega de Flores, Nuevo Leon, Mexico today (September 18). The Chairman Sophia Chiu stated in her address that TECO set up its North American production site in response to the shift towards regional economies and short supply chains. TECO relocated parts of its production capacity in its plants in Asia to access the local market, reduce long supply chain risks, and increase the competitiveness of its efficient low-voltage motors. TECO stated that it already has sales operations in Mexico and the production line investment will create a business model with local sales networks and a regional production plant and increase revenue.

TECO's Vision Fulfilled with Process Energy Conservation, Reduction, and Alternative Materials in New Plant in Mexico

The opening of TECO's new efficient low-voltage motor plant in Mexico was supported by Taiwan's Representative in Mexico Armando Cheng and the economic development authorities of Mexico, who attended the ceremony and congratulated the company. The motor plant occupies an area of 11,000 square meters and has an energy-efficient production line with electrical engineering, machining, and assembly. It produces 150,000 HP1-HP250 motors each year and will first be used to produce NEMA-rated industrial motors for the North American market. In terms of process planning, it can also produce motors that comply with IEC standards to expand to the Central and South American markets. In terms of the features of the plant, TECO stated that new plants constructed in recent years are designed to increase automation, AI operations, and energy efficiency. TECO invested in automated equipment such as winding machines for stators, high-precision processing for rotors, and mechanical arms for flexible coating. TECO adopted digital management methods including a quality traceability system based on QR codes and an operation and monitoring system for the entire plant that uses big data and industrial IoT. In terms of emissions reduction, solvent-free Varnish immersion equipment reduces emissions of volatile organic compounds (VOCs) by 30% and water-based paint significantly reduces VOC emissions by 50%. The centralized baking equipment also reduces energy consumption by nearly 50% compared to old processes. TECO stated that process automation, electricity savings, consumption reduction, and the use of local materials can help the company achieve its goals for energy-saving, carbon reduction, AI, and automation.

TECO Creates "In the Region-For the-Region" Short Chain Production Model in Anticipation of Market Demand in North America

North America benefits from the US$4 trillion Build Back Better Plan launched by President Biden. The demand for low-voltage motors has increased and TECO's sales of low-voltage motors in North America accounted for 40% of overall sales in 2022 with a growth rate of over 35%. TECO Chairperson Sophia Chiu stated that the new plant in Mexico can be quickly connected to the TECO-Westinghouse Motor Plant in Texas. TECO will continue to strengthen its North American supply chain for accessing the markets in the United States, Canada, and South America, and winning business opportunities in Mexico. TECO stated that the new plant in Cienega de Flores, Nuevo Leon is located near a comprehensive range of service providers. In addition to ensuring stable quality of supply and creating a more competitive cost structure, products can be made in Mexico and the company can benefit from the import/export duty exemption.