PLASTIC OMNIUM
Turnover and profit improve for 1996 / Auto business reorganised / Integration of Reydel
As planned 1996 was a period of reorganisation, consolidation and debt reduction for Plastic Omnium S.A. (HQ: 1 rue du Parc, F-92300 Levallois), following the major acquisition of Reydel Industries (PO Box 6, F-59147 Gondecourt) in July 1995. The automotive equipment business has been reorganised into three divisions: Interior Components, Exterior Components and Fuel Systems. Together these businesses represented a turnover of FRF 5.4bn, or some 75% of the consolidated total. Plastic Omnium's other areas of business are in Urban Systems, with two divisions: environment and leisure, and high technology plastics. Total group sales increased by 26.6% over the previous year to FRF 7.2bn. Net profit rose to FRF 107m following losses of FRF 119m in the previous year.
With its acquisition of Reydel, Plastic Omnium now serves nearly 20% of the European market for instrument panels and more than 10% of the market for door panels and interior trim. Interior Automotive Components account for the largest share of sales at FRF 2.25bn (1995: FRF 2.1bn). Business was particularly strong in France, Italy and Spain with extensive unit production for the Renault Megane and instrument panels for the Peugeot 106, as well high-volume projects for Nissan in Spain and the UK and Fiat in Italy. From 1st January 1997 four factories (2 in France and 2 in Spain) were transferred to the Interior Automotive Components division to strengthen its activities, particularly for interior trim. In May 1997 its recently enlarged Porriño factory near Vigo in Spain began production of instrument panels for the new Citroën compact.
In bumpers Plastic Omnium has a growing European market share which it expects to reach 25% by 1998. Foreign sales rose nearly 40% in 1996, while orders were stable in France. Turnover was just over FRF 2bn. In November the group signed a joint venture agreement with Becker Inc (see Plasteurope.com 22, 1996) to strengthen its activities in North America. Production capacity was doubled at Eisenach in Germany and plans have been approved for two new integrated plants to be built in 1997. One at Herentals, near Antwerp, Belgium will supply Opel, the other in Puebla, Mexico will make bumpers and fender panels for "New Beetle" from Volkswagen.
There was a steady growth in sales for fuel systems (FRF 1.1bn) with sales of 2.5m units. During 1997 three factories will begin manufacturing fuel systems at Villastellone, near Turin in Italy, in South Africa and at the new plant in Belgium, so that by the end of the year this division will be represented in 8 countries, with 12 plants.
Company strategy is now focussed on expanding its global marketplace outside France through new plants and joint ventures and strategic alliances, while improving profitability.
READER SERVICE: Plastic Omnium annual report 1996 (English): PIE-No. 41051.
With its acquisition of Reydel, Plastic Omnium now serves nearly 20% of the European market for instrument panels and more than 10% of the market for door panels and interior trim. Interior Automotive Components account for the largest share of sales at FRF 2.25bn (1995: FRF 2.1bn). Business was particularly strong in France, Italy and Spain with extensive unit production for the Renault Megane and instrument panels for the Peugeot 106, as well high-volume projects for Nissan in Spain and the UK and Fiat in Italy. From 1st January 1997 four factories (2 in France and 2 in Spain) were transferred to the Interior Automotive Components division to strengthen its activities, particularly for interior trim. In May 1997 its recently enlarged Porriño factory near Vigo in Spain began production of instrument panels for the new Citroën compact.
In bumpers Plastic Omnium has a growing European market share which it expects to reach 25% by 1998. Foreign sales rose nearly 40% in 1996, while orders were stable in France. Turnover was just over FRF 2bn. In November the group signed a joint venture agreement with Becker Inc (see Plasteurope.com 22, 1996) to strengthen its activities in North America. Production capacity was doubled at Eisenach in Germany and plans have been approved for two new integrated plants to be built in 1997. One at Herentals, near Antwerp, Belgium will supply Opel, the other in Puebla, Mexico will make bumpers and fender panels for "New Beetle" from Volkswagen.
There was a steady growth in sales for fuel systems (FRF 1.1bn) with sales of 2.5m units. During 1997 three factories will begin manufacturing fuel systems at Villastellone, near Turin in Italy, in South Africa and at the new plant in Belgium, so that by the end of the year this division will be represented in 8 countries, with 12 plants.
Company strategy is now focussed on expanding its global marketplace outside France through new plants and joint ventures and strategic alliances, while improving profitability.
READER SERVICE: Plastic Omnium annual report 1996 (English): PIE-No. 41051.
15.07.1997 Plasteurope.com [19265]
Published on 15.07.1997