German automotive OEM Benecke-Kaliko (Hannover; www.benecke-kaliko.de), a subsidiary of Contitech (Hannover; www.contitech.de), has started construction work on a new 7,000m² building for producing its “Tepeo” and “Tepeo 2” polyolefin-based foils for the North American market. Approximately EUR 11.4m is being invested in the building, which is immediately adjacent to its existing plant in San Luis Potosi / Mexico. The expansion will go into operation in the beginning of quarter three next year and will create around 100 new jobs.

The company has been manufacturing “Tepeo”, “Tepeo 2”, “Acella” and “Yorn” foils at the site since 2009. Production of “Tepeo” and “Tepeo 2” will move to the dedicated facility, which will include an extruder, painting line and printing machine as well as additional warehouse space. The long-term plan is to increase annual output from 7m m² of sheet goods to 11.5m m² by 2019.

Dirk Leiss, Benecke-Kaliko’s CEO, said: “All of our customers in the NAFTA region will benefit from the new production line. This is our response to the continued growth in demand for high-quality soft-touch surface materials for the automotive industry in this region.” The company said its expertise as a leading premium supplier of automotive interior foils is increasingly in demand as greater emphasis is being placed on interior quality as a differentiator.

The foils have a lower density than standard cover materials and their lightweight construction can result in weight savings of up to 50%. In addition, a study by Benecke-Kaliko has shown that “Tepeo” foils have a 48% better CO₂ footprint than standard foils.