The overall positive performance of automotive supplier Plastic Omnium (Levallois, France; www.plasticomnium.com) in the first half of 2023 seems to have slowed down in the third quarter. With an increase of 12.5% compared to the same period last year, turnover rose to almost EUR 2.4 bn.

However, without the consolidation of Varroc Lighting, growth would only have been half as high. In the opinion of CEO Laurent Favre, the poor performance is due to the increasing uncertainty in Asia, which weighed on the joint ventures there, as well as the strikes in the US automotive industry, which have now largely come to an end. 

In addition, the third quarter was unable to keep pace with the previous two quarters. Over a nine-month period, sales increased by a good quarter – driven to the same extent by the two major divisions, Industries and Modules (HBPO). 

Following the figures for the third quarter, Plastic Omnium revised its forecast for the year as a whole. While the previously unspecified turnover is expected to continue to grow “strongly” – also supported by a reportedly large order intake – the operating result looks mixed. Favre cut the outlook from previously “more than EUR 400 mn” to now EUR 370 mn to EUR 390 mn.  

Related: Plastic Omnium's hydrogen storage facility to be built in the US

Worldwide, the French group, which aims to increase its revenue to EUR 11.5 bn by 2025, is seeing signs of a slowdown in the production of electrically powered cars from the forges of “traditional car manufacturers” – which is likely to mean the Europeans. The Chinese market in particular saw a drop in sales of almost 17% during the third quarter, with the same scope of consolidation. At the same time, the main market of Europe, which accounts for almost half of total sales, grew by 9.5%, while North America still improved by 8.4%.         

On the product side, Plastic Omnium is gradually reorganising the group. On the one hand, the German fuel tank plant in Rottenburg an der Laaber is being closed, while on the other, the French company is investing heavily in hydrogen-based mobility.

By 2027, the company plans to expand tank production in Lachelle near Compiegne in France, in Herentals in Belgium, in South Korea and China, and in Grand Blanc in the US state of Michigan. Activity in this area is also underlined by fuel cell specialist EKPO Fuel Cell Technologies (Dettingen, Germany; www.ekpo-fuelcell.com), which was founded with ElringKlinger in 2021.