TI Banks on Tanks, Mexican Market

TI Automotive opens its third North American production facility for plastic blow-molded fuel tanks, and CEO Bill Kozyra tells Ward's he expects two additional assembly lines within two years, based on talks with potential customers.

Fabrication and assembly of extruded polyethylene tanks begin in spring for Nissan Motor Co. Ltd. as production ramps up for A-class small cars (Micra, March and Note) at its plant in Aguascalientes, about 100 miles (160 km) from TI's plant in San Luis Potosi.

Central Mexico has become a magnet for parts producers hoping to supply components for vehicles manufactured by Volkswagen AG, General Motors Co., Ford Motor Co. Chrysler Group LLC and Nissan.

TI wants to sell tanks to all of them, but its rivals — Inergy Automotive Systems and the Kautex division of Textron Inc. — already have operations in the region.

Tightly sealed plastic fuel tanks are a top priority as the industry complies with the Partial Zero Emission Vehicle mandate, which requires evaporative emissions in certain states of 54 milligrams in a 24-hour period for the entire vehicle.

In meeting PZEV, auto makers want fuel tanks with evaporative emissions below 10 mg. Fuel tanks were allowed to emit 2,500 mg a decade ago. Five years ago, the limit was about 250 mg.

TI has a new modular manufacturing process allowing three different types of tanks to be blow-molded with the same equipment and tooling, but meeting different evaporative emissions levels, depending on regional demands.

The first manufacturing cell at TI's new plant will produce tanks for Nissan capable of meeting LEVII evaporative requirements, with emission levels of about 30 mg. The fuel pump, valves and other components are installed through two holes in the tank after the molding.

Within two years, Kozyra expects two more cells to be added, and at least one will use the same equipment to produce tanks capable of meeting PZEV requirements.