Asset Management
Cross-Border Recovery
In 2010, a chance remark from a client opened the door to an exceptional opportunity. A Mexican subcontractor casually mentioned that a secure area of their plant housed crates of brand-new Panasonic SMT equipment.
The equipment had been purchased by General Motors four years earlier for the subcontractor to manufacture components on their behalf. When GM’s plans changed, the equipment was overlooked. Because it had been imported tax-free under the Maquiladora program and never used, the subcontractor was left in a difficult position.
Frustrated
They needed some of the equipment but couldn’t legally use it. Further investigation revealed even more brand-new equipment for the same project—this time stored in a bonded warehouse across the border in Laredo, Texas.
Sensing the opportunity, we reached out to GM. Six weeks later, we connected with the right decision-maker and negotiated a deal to purchase the equipment outright.
The equipment at the plant had to be re-exported back to the USA before some of it could be re-imported into Mexico and sold to the subcontractor, with the remainder going into our general inventory.
Tariffs
The bonded warehouse equipment was even more problematic. Some of it had been manufactured in Japan and some in Germany, meaning multiple sets of tariffs applied—and much of the original paperwork had been misplaced.
Negotiations
After complex negotiations, we secured its release from bond. Uniquely, we sold a significant portion of the inventory back to Panasonic, who had customers awaiting delivery. As far as we know, selling brand-new equipment back to the company that manufactured it was an industry first.