New state-of-the-art 500,000 square-foot facility in Arteaga, Mexico, will produce Phillips Industries and Phillips Connect products destined for North American customers
March 8, 2023 – Arteaga, Mexico – A grand opening celebration was held today at the expansive Phillips site in Arteaga, Mexico. The reconfigured and newly constructed buildings on the Phillips campus are state-of-the-art and will produce products destined for Phillips Industries and Phillips Connect customers in North America.
Phillips customers, partners, media, company executives, local dignitaries, and others were in attendance as the company showcased their extensive and newly outfitted Mexico production facilities now totaling 500,000 square feet.
Phillips first came to Mexico for production of wiring harnesses in 2007 and moved to a larger location in Arteaga in 2015 to meet the growing demands of its Phillips Industries OEM customers. The facility was recognized with numerous quality awards and has a stellar reputation for its commitment to quality and on-time delivery of all its products.
The new building in Arteaga, completed in 2022 and totaling 380,000 square feet, will now house all Phillips Industries manufacturing operations, including those already in Mexico, and all production lines relocated from their former location in Santa Fe Springs, CA. Phillips has taken advantage of this move to upgrade equipment, including three new high-speed wire and cable extruders, 36 new injection molding machines, and various other applicators to prepare the factory for increased production capacity. These improvements will significantly increase Phillips Industries’ capacity to service both the Aftermarket and vehicle OEMs in North America. With the expanded space, the latest in manufacturing techniques and quality control functions, the availability of an excellent workforce, and proximity to its customers, Phillips Industries is prepared for additional business and the high service levels for which they are recognized.
The original Arteaga building, with 120,000 square feet of floor space, has been reconfigured to manufacture, test, and ship electronic telematics products for the Phillips Connect business under the highest of standards. Phillips Connect is in the process of relocating its manufacturing from China and near-shoring its product assembly to ensure lower cost, fewer supply chain constrictions, better control of quality, and quicker delivery to its North American customers.
The new Phillips Connect facility includes an ESD SAFE room featuring 21,000 square feet of controlled ambient environment that meets the ANSI ESD 20/20 standards for electronic assembly. Production capabilities of the new facility include in-circuit device programming, automatic fully automated glue dispensing, and assembly using S-Y and 6-axis robots, automated torque drivers, leak detection systems up to IP69K, along with functional testing, and customer acceptance testing. Quality and production standards are based on ISO9001 and follow IPC610c for electronic assembly, inspection, and acceptance criteria. All test stations are connected to a custom-made SCADA system that retains the most critical information for every unit ensuring control and traceability to the sub-assembly level. Purchased items are 100 percent checked as they are received with follow-up assessments, such as their battery strength, as they are designated for production.
“Our experience in Mexico has proven to me that it’s the absolute best place to manufacture Phillips and Phillips Connect products,” commented Rob Phillips, CEO and president of Phillips Industries and Phillips Connect. “The facility is the cleanest, most well-organized, and the best managed we have anywhere in the world. Most importantly, the people are outstanding. Our current workforce and those ready to come to work for us can be relied upon to carry our success forward. We depend on that as we continue to expand here in Mexico.”
By the end of 2023, Phillips expects to employ 2,100 people in Arteaga.
Phillips headquarters will remain in California and serve as the base for Customer Service, Accounting, Research Development, and other support functions for North America, Europe, Phillips Connect, and Phillips Innovations.
About Phillips Industries
Based in Santa Fe Springs, CA, USA, Phillips Industries is a leading manufacturer of advanced electrical and air brake system components for the commercial truck and trailer industry. For 95 years, Phillips Industries has been the benchmark for quality and innovation. Phillips products come standard or are spec’d on nearly 100 percent of Class 8 trucks and more than 80 percent of trailers manufactured in North America. The evolving needs of commercial vehicle operators continue to drive product development to address the changing dynamics of the industry. Supporting this shifting technology landscape, Phillips Innovations, its newest strategic business unit and separate company within Phillips Family Holdings, acts as an accelerator for bringing market-leading sustainable technology and trailer vision products into the Phillips platform, collaborating with some of the most advanced technology trailblazers to develop original and inventive solutions for the transportation industry. Phillips has manufacturing and distribution facilities throughout North America, Asia Pacific, and Europe. Its manufacturing facilities have earned top-quality accreditations, including ISO/IATF 16949 and ISO 14001, and have received multiple prestigious customer awards. Phillips maintains active memberships and leadership positions in key industry associations, including ATA,TMC, SAE, MEMA, NTDA, HDMA, and various state trucking associations. For more information, please visitwww.phillipsind.com. Follow and subscribe to Phillips Industries on LinkedIn,Facebook, Instagram, Twitter, and YouTube.
About Phillips Connect
Phillips Connect takes telematics light-years beyond basic GPS tracking by combining the industry’s most advanced connected asset solutions for trailers, chassis, and containers with a variety of sensors including brake, tire pressure, and light sensors, among others. Its products are seamlessly integrated with the Connect1 user interface, giving fleet managers the information they need to turn their assets faster and maximize driver productivity.
Phillips Connect has developed industry IoT sensor connection technology that is widely used in the freight industry. Phillips Connect is truly transforming the industry and continues to do so by keeping drivers in the seat and their cargo safe. The products are designed to improve overall safety and security, reduce costs in fleet maintenance, and dramatically enhance fleet asset utilization. Phillips Connect is a stand-alone company within the Phillips Technologies Group portfolio of companies. Visit www.phillips-connect.com for more information.
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