The French plastics converter Plastic Omnium (PO; HQ: 1, rue du Parc, F-92593 Levallois) will start three automotive plants in 1998. In Herentals, Belgium, the company is going to produce exterior parts and fuel tanks for Opel. In Measham, UK, it will produce exterior components for Jaguar and Rover. The third plant, located in Puebla, Mexico, will be dedicated to the production of front and rear bumpers as well as front and rear plastic fenders for the New Beetle of Volkswagen. In the USA, Plastic Omnium is planning to purchase Becker Group's 50% interest in the joint venture P&B Automotive LLC. This company was founded in 1996. It includes a factory in Anderson, South Carolina, which supplies exterior parts for BMW, as well as engineering offices in Troy, Michigan. Plastic Omnium and Becker Group Inc. recognise that their strategies in the area of exterior automotive components have diverged. That is why they decided to stop their partnership. "The purchase of Becker's 50% stake into P&B is not expected to have an impact on 1998 consolidated financial results. It will, however, increase debts for the period", says PO.

In 1997, PO's turnover rose by 13,1% to FRF 8,17bn. The improvement was led by substantially higher volumes in all core businesses, especially in the automotive branch (75% of total sales). Consolidated net profit amounted to FRF 136m (107m). In 1998, growth is expected to continue in all main areas. This is especially true of the automotive components business, since a large number of Plastic Omnium-equipped vehicles are scheduled for launch this year. "Although margin improvement is likely to slow in 1998 with the start-up of three new production facilities, the outlook remains positive for substantial growth in profit in 1999 and 2000", says the company.