PLASTAL
Takeover of insolvent OEM supplier imminent? / Faurecia seen as potential buyer
A buyer for the German operations of insolvent automotive OEM supplier Plastal (Weißenburg) as well as the independent Plastal group companies in Spain and France may be in sight – see Plasteurope.com of 28.07.2009. The most recent reports point to French competitor Faurecia (Nanterre; www.faurecia.com), subsidiary of automotive manufacturer PSA, as the most likely candidate.
Neither Faurecia nor insolvency administrator Siegfried Beck (Nuremberg; www.ra-dr-beck.de), is prepared to comment on whether a preliminary agreement has been reached. However, speaking to PIE, Faurecia did not deny its interest. A spokesman for Beck commented that “intensive talks” about a sale are in progress, as well as consultations with Plastal’s employee representatives. This suggests that only one potential buyer is still in play, and a deal could be imminent.
The Plastal companies have been in administration for more than half a year and the OEMs they supply are believed to be pressing for a speedy sale to a strategic buyer. A protracted insolvency period would increase the risk of a supply breakdown or at least interruption of production. Some reports say Faurecia was approached directly.
Plastal’s German business would be a good fit with Faurecia, whose moulded bumpers and front modules division recorded annual sales of around EUR 950m in 2008, employing 2,400 workers at 13 worldwide plants. This division is regarded as Europe’s largest and the world’s second largest automotive OEM supplier. In the German market it is mostly present in front end modules. However, it has no German production capacity for the bumper’s outer skin – which Plastal does.
Faurecia’s most important automotive customer in the German market, where it transacts the largest share – 40% – of total sales, is Audi. This brand contributes 14% of German revenues, followed by BMW.
A separate solution evidently is being sought for Plastal’s Sinntal-Sterbfritz site, which specialises in small-scale production. According to Beck, negotiations are continuing with two interested parties. However, the site, which employs 300, is regarded as uncompetitive due to outdated technology. Observers say it could be closed by the end of this year, if a sale agreement cannot be signed.
Neither Faurecia nor insolvency administrator Siegfried Beck (Nuremberg; www.ra-dr-beck.de), is prepared to comment on whether a preliminary agreement has been reached. However, speaking to PIE, Faurecia did not deny its interest. A spokesman for Beck commented that “intensive talks” about a sale are in progress, as well as consultations with Plastal’s employee representatives. This suggests that only one potential buyer is still in play, and a deal could be imminent.
The Plastal companies have been in administration for more than half a year and the OEMs they supply are believed to be pressing for a speedy sale to a strategic buyer. A protracted insolvency period would increase the risk of a supply breakdown or at least interruption of production. Some reports say Faurecia was approached directly.
Plastal’s German business would be a good fit with Faurecia, whose moulded bumpers and front modules division recorded annual sales of around EUR 950m in 2008, employing 2,400 workers at 13 worldwide plants. This division is regarded as Europe’s largest and the world’s second largest automotive OEM supplier. In the German market it is mostly present in front end modules. However, it has no German production capacity for the bumper’s outer skin – which Plastal does.
Faurecia’s most important automotive customer in the German market, where it transacts the largest share – 40% – of total sales, is Audi. This brand contributes 14% of German revenues, followed by BMW.
A separate solution evidently is being sought for Plastal’s Sinntal-Sterbfritz site, which specialises in small-scale production. According to Beck, negotiations are continuing with two interested parties. However, the site, which employs 300, is regarded as uncompetitive due to outdated technology. Observers say it could be closed by the end of this year, if a sale agreement cannot be signed.
19.11.2009 Plasteurope.com [214892]
Published on 19.11.2009
German version of this article...