The Meco Corporation Signs Agreement to Commence Manufacturing in Mexico
Tennessee firm shifts production from China to North America.
- (1888PressRelease) September 20, 2010 - TUCSON, AZ -- Greeneville, Tennessee-based Meco Corporation has entered into a 7 year agreement for the provision of outsourced manufacturing support, or "shelter", services in Mexico with The Offshore Group of Tucson, Arizona. Under the terms of the agreement, the company will establish a 175,000 sq. ft. facility at the La Angostura Industrial Park in the city of Saltillo, Coahuila.
At the project's maturity Meco expects to employ approximately 400 workers in the manufacture of folding chairs and tables. This is production that will be shifted from China, and will utilize Mexican sourced steel. The company plans to manufacture components for outdoor grills at the Saltillo facility, as well.
According to company President, Harrell Ward, "Two years ago we began the search for alternative manufacturing to better protect our customers from shipping and cost issues. Working with the Offshore Group, it became apparent we could significantly reduce the supply chain by transferring some of our products back from China and manufacturing in Mexico. The ability to utilize their "shelter" services will enable us to better control deliver and total cost on select products."
Originally known as Metals Engineering Company, the Meco Corporation was founded in 1959, and has been family-owned and oriented since. Over the course of its 50+ years, the company has manufactured over 130 million metal folding chairs and more than 20 million outdoor barbeque grills.
The Offshore Group is the largest provider of outsourced manufacturing support, or "shelter" services in Mexico. Currently 51 manufacturers are in production are at The Offshore Groups three industrial parks in Sonora and the city of Saltillo, Coahuila. Through its Vangtel subsidiary The Offshore Group also offers services to companies occupying the call center, IT development and BPO markets.
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