Filtrona Mexico factory to close

Filtrona PLC will close their filter factory located in Monterrey Mexico effective today – Monday August 1 2011.
Staff are being informed and we wish them every success in finding new positions and for their families.

Opened less than 10 years ago, the Monterrey facility was originally the latest model for cost-savings by opening a facility where labor costs were lower than the neighboring US. In reality only direct labor was lower and the cost-savings elusive. As gas prices rose the facility became increasingly expensive to supply customers located East of the Mississippi.

High-speed combining machinery was relocated some time ago, leaving a residual mono-acetate filter business predominently supplying independent customers in North America. This business will presumably be relocated to the Greensboro facility – which apart from Paraguay is the only remaining facility in the Americas.

Special filter volumes have continued to slowly decline as special filter cigarettes were relocated to other multi-national cigarette factories outside the US – pressuring Filtrona with two large facilities in Monterrey and Greensboro.

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