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MEXICO
Galgo Announces Investments at Tula Facility
Hules Galgo SA de CV, the Mexico-based tread rubber manufacturer, has announced a significant investment package at its factory in Tula, Mexico, designed to strengthen the company’s position as a leading
ambitious energy co-generation project, were revealed to Retreading Business during a recent visit to Galgo’s headquarters in Mexico City. The investments follows a previous capacity increase of 33%
people including 400 at the Tula factory. In addition to retreading materials Galgo supplies a diverse range of rubber products to a number of other markets. Other businesses include industrial rubber footwear sold to the mining, oil and sewerage industries, automotive parts such as motor bearings and suspension buffers, rubber flooring, compounds for the mining industry and tubes for aircraft tyres.
According to Operations Director and Shareholder Luis Suarez, central to Galgo’s development plans is an ongoing project to double capacity at the tread rubber facility. In order to achieve this, the company has ordered a new extrusion line from Berstorff, which is scheduled to be installed within the next nine months. Next year the company also plans to add a new tread press.
In addition to the factory enhancements, the company is also doubling the stock in their impressive distribution centre in Tula. In order to improve logistics
heating/cooling.
Says Suarez; “We decided we needed more energy so we decided two years ago to invest in an energy co-generation project using natural gas engines, which will help us reduce our electricity bills significantly, as well as generate heat for the presses and hot water for the cooling systems for the tread rubber.” The machiner y, produced by General Electric’s Austrian facility, is already in place ready for commissioning, and is expected to be ready for use by December this year. The 4500 HP engines will provide over 2200 Thermal KW for heating and 1500 Thermal KW for cooling per month. Surplus energy sold through a supplier in Mexico. According to Suarez, the system will allow the company to save 25% of its electrical costs and 100% of the cost of heating the process. The system will also improve emissions, making the company more environmentally friendly. Galgo is investing 8 million Euros in the project with
At Galgo’s head office in Mexico City: left to right – Juan Silveti, David Stevens (TRIB), Francisco Ibarzabal, David and Richard Wilson
Galgo’s state of the art distribution centre
international supplier to the retreading market. The plans, which include investments in machinery aimed at doubling production capacity, major developments to improve logistics within the company’s state-of-the- art distribution centre, and an
announced in 2011.
Galgo, still a family-owned company, has always followed a quality-oriented strategy and reinvested profits into the company. This has helped the company develop to its current position where it employs 1,200
Inside the tread rubber factory
Galgo has constructed a tunnel under the street that separates the factory from their distribution centre. The tunnel will carry pre- packed tread rubber on conveyors direct to the distribution centre so that the product does not leave the factory.
“The key issue was making the warehouse more accessible from across the road,” said Suarez. “The conveyors and lifts have now been installed and will be operational shortly.”
Particularly innovative is a plan to install equipment in Tula that will allow Galgo to produce its own energy for electrical power and for
pay back on the investment expected within four years.
In addition to the planned investments at Tula, Galgo has a number of plans in place to continue to develop its positions in international markets, particularly in Latin America, Europe and North America.
Galgo has long considered itself to to be the leader in the Mexican market, operating through branches in Monterrey, Guadalajara, Veracruz, Tijuana and Mexico City. However, the company has developed a strong export presence, to the point where Galgo has managed to
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