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Foam: The Common Denominator Between EVs and ICE Vehicles

Udo Storck - Masterfoam Group
Managing Director

STORY INLINE POST

Sofía Garduño By Sofía Garduño | Journalist & Industry Analyst - Tue, 08/30/2022 - 10:39

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Q: How relevant are Mexico’s operations to Masterfoam’s global strategy?

A: Our plant in Mexico is quite new compared to our operation in the Netherlands, which was established in 1964. In Mexico, we have been operating for three years and recently installed new management and reinforced our sales department because we have high hopes to grab a larger share of the local market. We plan to grow operations in Mexico alongside German OEMs like BMW, Mercedes, VW-Group and other OEMs in Mexico. But we also rely on a healthy mix, so we also take care of other markets, for example, home appliance.

Q: Masterfoam arrived in Mexico just before the pandemic started. How did you sustain your new operations in the pandemic environment?

A: It was an interesting experience. We overhauled the entire management team, hiring a new team using only video calls, which we considered as impossible before the pandemic. We are happy with our management team today as they stabilized our operations. We learned that hiring through video calls works.

Q: How is Masterfoam facing international challenges?

A: We had to adapt our purchasing strategy. We used to buy raw materials from the EU but prices grew fivefold, leading us to look for local suppliers. This was not easy but we tried to include our customer base in this decision as much as possible. All companies are suffering from high prices, especially in the automotive sector. Compared to these crazy high prices, it almost feels like covid was easier to solve  

Q: What other opportunities in the Mexican market can boost Masterfoam’s growth?

A: We work with the automotive, white goods and mobility industries, among others. We have a great deal to offer the market. We attended the exhibitions in Queretaro and the Foam Expo in the US so potential customers could become acquainted with our broad range of services. Masterfoam has been in the Mexican market for three years and is a solid company that can guarantee stability, a good product and a wide range of different technologies of several materials. We are eager to grow together with our customers.

Q: How is Masterfoam capitalizing on the electrification trend? How do its solutions benefit EVs?

A: Our products are mainly for car interiors, which have not changed much replacing the drive system. Therefore we supply besides the previous brands also to Tesla, Lucid Motors, Lightyear and Fisker.These vehicles require the same products as ICE vehicles, which we provide.

In the middle term, it will be easier for new OEMs to enter the automotive market. Electrification gives many companies the chance to enter the automotive sector, which was impossible with the complex combustion engine technology of the past. The market will see heavy competition but it will not affect us in the short term because we have positioned ourselves in the EV industry.

Q: How can Masterfoam’s offer improve the efficiency of agricultural vehicles?

A: We supply the agricultural sector with interior solutions, such as specially designed floor mats and acoustic solutions, which are necessary because those sitting for over 10 hours in a tractor want to have a silent and comfortable environment. We offer several products for this market as our core is molding flexible materials into shape.

Q: What role does the heavy-vehicle industry play in Masterfoam’s operations?

A: This industry represents about 15 percent of our sales; the rest is light vehicles. We have a different business model for heavy trucks. The strategy is to offer smaller volumes and more personalization of each article, which is impossible to do with passenger vehicles. We adapted to this market and now run two business models.

Q: What are Masterfoam’s plans for the rest of 2022?

A: Our main priority is to increase our market share in Mexico. We hired two more key account managers. We work one-on-one with clients because parts are developed together with them. We also plan to invest in more machinery and in sustainability at our plant in Mexico by installing solar panels on the roof to reduce our CO2 emissions. Our goal is for the plant in Mexico to be Co2-neutral in 2025  latest.

We are also focusing on Spain. By the end of the year, we will have integrated another manufacturing plant in Spain into the Group and we are going to  introduce another product range to the EU and USMCA- markets. We do not have short term plans to enter another region but in the long term, we are going to enter Asia.  We are still a midsize, privately owned company so we also have to hold our horses and make sure that we can achieve our current goals.

 

Masterfoam Group produces flexible foams and fleece materials, including foams, foils, felts and filter materials for sealing, noise protection and cushion packaging. Masterfoam’s materials can be used in almost any sector.

 

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