In stark contrast to the sales figures for the first half of 2022 announced in mid-September, French automotive supplier Akwel (Champfromier; www.akwel-automotive.com) suffered badly on the earnings side in the same period. The bottom line for the first six months was only just in the black.

From revenues of EUR 491 mn, which were stable compared to the same period of the previous year, Akwel – formerly MGI Coutier – generated EBITDA of EUR 42.3 mn, down a third year-on-year. Net earnings, on the other hand, were pulverised by higher costs for feedstocks, transport, and energy, falling 95% to just EUR 1.9 mn.

The French supplier is therefore apparently cutting costs wherever it can: restructuring measures in the year to date have included the sale of its Birmingham, UK, plant and the withdrawal from the Sinfa Cables joint venture in Morocco, in which Akwel had previously held a 55% stake (see Plasteurope.com of 09.11.2015). The company also trimmed its portfolio – the number of strategic customers has been reduced by three to nine. At the same time, Akwel is on the lookout for a possible plant location in Eastern Europe. This could be a move to reduce the expensive French labour costs; the company has yet to respond to a respective Plasteurope.com query.

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Parallel to the cost-cutting measures, the French automotive supplier is focusing more on alternative drive systems, which have so far only been a distant second to internal combustion engines. Akwel now intends to push ahead with the development of corresponding structural components, such as electronic modules, cable guides, and parts for battery packs.