Carol Stream, Illinois, April 30, 2019 - Royal Power Solutions, a supplier of critical high-precision electrical power and signal distribution components for global vehicle and industrial applications, has opened a new assembly plant in the Querétaro, Mexico automotive mega-cluster.
Royal initiated Querétaro production in February and is currently assembling automotive battery terminal systems, molded plastic covers and studded eyelets for multiple Tier I and Tier II manufacturers.
With the delivery of dies from the United States, the company will begin stamping processes in June to fully assemble automobile connection components and systems.
By manufacturing systems and components in Querétaro, Royal can localize the supply chain to companies assembling automotive wiring harnesses in Mexico, according to CEO Randy Ross.
“Several top customers asked us to be with them in Mexico, which has moved us up in the supply chain,” Ross said. “Our presence here reduces delivery times by five days and allows us to be more nimble in addressing their needs.”
The 75,000 square-foot plant is located at Parque Technologico Innovacion in Santiago de Querétaro. Royal employs 60 at the facility and is expected to increase staffing to 100 by the end of 2019. The plant footprint can be doubled based on future production demand.
Royal has invested in state-of-the-art equipment at Querétaro including high-speed stamping, molding and insert molding process technology from American, European and Japanese suppliers. The plant’s infrastructure includes an Italian-manufactured water-cooling system, aluminum airlines, German-made air compressors and the implementation of a TPS system to optimize workflow and eliminate waste.
Stamping and Knowledge Transfer
Royal’s high-speed stamping and product solutions for terminal, connector, busbar and shielding production is a rare capability in Mexican manufacturing, according to Chad Cranney, Querétaro general manager and a 35-year automotive industry veteran with prior Mexico plant experience.
“Other companies have failed at stamping because they hire employees here and just expect them to figure it out,” he said. “Precision stamping requires a unique skill set, so we are investing in knowledge transfer to properly train our team members.”
This includes bringing Royal senior managers from the U.S. to work at Querétaro as well as sending key operations and technical associates from Mexico to Royal’s Carol Stream, Illinois headquarters for up to nine months of training.
“A lot of manufacturers look at Mexico as a huge cost-savings opportunity – which it ultimately is – but they expect instant results,” Cranney said. “It’s not that simple. You have to invest in training long term to realize the payback.”
According to Ross, Mexico will allow Royal to expand its business in the U.S. where he does not anticipate any permanent job losses resulting from Querétaro production.
“This is an opportunity for us to develop new products and win new manufacturing contracts in the States,” he said. “It frees up our most highly skilled team members in Illinois to take on more complex work that supports the rapid emergence of new Electric Vehicle architectures and complex systems designed and developed in the USA.”
To spur this growth, Royal is putting the finishing touches on expanding its innovation center for new product development and testing at its Carol Stream headquarters that will include an A2LA-accredited lab.
Royal’s Henrik Freitag Innovation Center for new product and process development in Carol Stream Illinois is focused on innovations that bring better power solutions to leading Automotive customers worldwide.
The breakthrough innovation of fastener free/boltless, high-power connection technology is revolutionizing the way automotive architects are designing in an ever-increasing electrified world, according to Ross. New products are enabling better total systems cost and reliability, optimized packaging space and improved assembly and ergonomics for Royal customers.
About Royal Power Solutions
An Industrial Growth Partners (IGP) company, Royal Power Solutions, established in 1938, is a global leader in the development and production of critical high-precision power and signal distribution components. The company’s headquarters and primary production facility is located in Carol Stream, Illinois. Royal acquired Horizon metal stamping in East Dundee, Illinois in 2018 and opened a third assembly plant in Querétaro, Mexico in 2019. www.RoyalDie.com