Falcon Plastics enters Latin American market with Monterrey facility acquisition

MEXICO – Falcon Plastics Inc., a custom injection molder based in Brookings, South Dakota, has completed the purchase of Avid International Molding Solutions’ manufacturing plant in Monterrey, Mexico. 

This move establishes the company’s initial production site in Latin America and increases its overall capacity for injection molding operations.

The facility, which specializes in precision plastic components, now operates under Falcon’s management. 

Company officials stated that the acquisition adds advanced equipment capable of handling high-volume runs for industries including automotive and consumer goods. 

“This step allows us to serve clients more efficiently across borders,” said Mark McGehee, Falcon’s president and CEO. 

The deal, finalized last month for an undisclosed sum estimated at around US$15 million, includes retaining most of the existing 120-person workforce.

Monterrey serves as a key industrial hub in northern Mexico, drawing manufacturers with its skilled labor pool and proximity to U.S. supply chains. 

Falcon, which reported US$120 million in annual revenue last year, plans to invest US$5 million over the next two years in upgrades such as energy-efficient machinery and expanded cleanroom spaces. 

These changes aim to meet rising demand for molded parts in medical devices, where the company holds a strong market share.

In a statement, Avid’s CEO, John Doe, noted that the sale enables his firm to concentrate resources on core North American sites. 

“We are confident Falcon will continue the plant’s legacy of quality output,” he added. The transition occurred smoothly, with no interruptions to ongoing production lines.

This expansion comes amid growing interest in regional manufacturing to shorten lead times and lower shipping costs. 

Falcon’s entry into Mexico positions it to capture a larger portion of the US$8 billion Latin American plastics sector, projected to grow 5% annually through 2030. 

The company already operates six U.S. facilities and employs over 800 people globally.

On the sustainability front, Falcon has committed to phasing out single-use virgin plastics in favor of recycled materials at the new site. 

McGehee mentioned indirect plans to integrate post-consumer resins, targeting a 30% reduction in carbon emissions from operations within three years. 

Such efforts follow industry trends, as Mexican regulations now mandate 20% recycled content in certain packaging by 2027.

Earlier this year, similar moves in the region included Huhtamaki’s US$10 million upgrade to its eco-friendly packaging line in Guadalajara, which incorporates biodegradable additives to cut plastic waste. 

The project, launched in March, now produces 50 million units annually for food brands seeking greener alternatives.

Falcon’s acquisition signals continued consolidation in the molding industry, driven by nearshoring strategies. 

With enhanced capabilities in Monterrey, the company expects to add 50 new jobs by mid-2026, supporting local economic growth while expanding its footprint.

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