Better times may be in sight for beleaguered German precision injection moulder Balda (Bad Oeynhausen; www.balda.de). Although the company has not yet commented, it is understood to have the contract to manufacture touch-screen displays for Apple´s new multimedia mobile phone "iPhone". This major-league business could give the traditional mobile phone manufacturer – the segment is by far its biggest – a much-needed shot in the arm after the recent bankruptcy of important customer BenQ in Germany (see Plasteurope.com Web of 06.10.2006) and a decline in orders from Finnish mobile phone market leader Nokia. The two setbacks led Balda last year to issue profit warnings and announce plans to shave 1,000 jobs from its 1,600-member German workforce, as well as ending contracts with 450 temporary workers in Hungary (see Plasteurope.com Web of 31.07.2006).

Touch-screen specialist TPK Holding, in which the Asian holding Balda Investment Singapore (BIS) took a 50% stake in 2006, started up a 63,000 m² production facility at Xiamen / China late last year (see Plasteurope.com Web of 31.07.2006 ), producing screens measuring 2-8 inches. The iPhone is thought likely to account for the lion´s share of TPK´s projected EUR 300-350m sales for 2007. The worldwide market for touch screens, which market analyses suggest will eventually replace keypads in mobile phones, is estimated at EUR 7.5 bn, with annual growth of 15-20%. If the dispute between Apple and Cisco over rights to the iPhone name does not delay market entry, the new ultra-thin electronic device with a 3.5-inch touch-screen is expected to be launched in the US in mid-2007.

Despite the good prospects on the Asian front, Balda may be in for a rough ride at home, as regards its ownership. According to German reports, the moulder is being pursued by an aggressive American corporate raider, Guy Wyser-Pratte, who recently acquired 5.4% of its shares and is well known for trying to influence corporate strategy. Balda CEO Joachim Gut already has had to contend with several private equity investors and hedge funds, one of which is said to be seeking to de-list the company over management´s objections.