Plastic Omnium to open 3 plants in China this year
Three of the six plants that automotive molder Plastic Omnium SA plans to open this year will be in China, part of a broader push the company is making in Asia, where it will open 12 of the 20 new factories in its near-term investment plans.
The Levallois, France, company said on Feb. 25 that 2014 sales in its automotive division rose nearly 5 percent to 4.9 billion euros (36.8 billion yuan), with profits up 9 percent to 401 million euros.
While European auto sales revenue grew 7.4 percent, and it said performance in the United Kingdom and Germany was "excellent," much of its capital investment is targeting Asia, where it projects China's vehicle market to grow 7 percent this year to 23.2 million vehicles.
"The market is once again driven by China," said COO Jean-Michel Szczerba, in a presentation to analysts. "China will account for 1.6 million additional cars, 80 percent of the year's growth. We're expecting subdued growth in Western Europe and North America."
The company said its sales last year grew in all major markets, including Western Europe. Asia accounted for only 17 percent of Plastic Omnium's global sales, but that's where the company is growing fastest.
This year, Szczerba says the company will open two bumper manufacturing plants: one in Wuhan for General Motors joint ventures and one in Changsha for VW and Fiat joint ventures. In Beijing, Plastic Omnium will open a fuel systems plant for a local carmaker.
Last year, Plastic Omnium opened four plants in China, where its sales rose 23 percent to 430 million euros.
The company said 58 of its 102 automotive product launches globally came in Asia last year. Worldwide, Plastic Omnium wants to double the auto industry's anticipated annual growth of 3 percent from 2014 through 2018.
The company said, "This growth will be driven by the installation of new production capacities, particularly in China and North America, and new product lines ... boosted by new laws worldwide increasingly favoring innovative products to reduce weight and control pollution."
While European auto sales revenue grew 7.4 percent, and it said performance in the United Kingdom and Germany was "excellent," much of its capital investment is targeting Asia, where it projects China's vehicle market to grow 7 percent this year to 23.2 million vehicles.
"The market is once again driven by China," said COO Jean-Michel Szczerba, in a presentation to analysts. "China will account for 1.6 million additional cars, 80 percent of the year's growth. We're expecting subdued growth in Western Europe and North America."
The company said its sales last year grew in all major markets, including Western Europe. Asia accounted for only 17 percent of Plastic Omnium's global sales, but that's where the company is growing fastest.
This year, Szczerba says the company will open two bumper manufacturing plants: one in Wuhan for General Motors joint ventures and one in Changsha for VW and Fiat joint ventures. In Beijing, Plastic Omnium will open a fuel systems plant for a local carmaker.
Last year, Plastic Omnium opened four plants in China, where its sales rose 23 percent to 430 million euros.
The company said 58 of its 102 automotive product launches globally came in Asia last year. Worldwide, Plastic Omnium wants to double the auto industry's anticipated annual growth of 3 percent from 2014 through 2018.
The company said, "This growth will be driven by the installation of new production capacities, particularly in China and North America, and new product lines ... boosted by new laws worldwide increasingly favoring innovative products to reduce weight and control pollution."
