Varroc pursues auto sector, sells JV stake to Plastic Omnium

By Satnam Singh
Correspondent

Published: September 14, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Automotive, Injection Molding

AURANGABAD, INDIA (Sept. 14, 3 p.m. ET) — Indian auto parts supplier Varroc Group and France’s Cie. Plastic Omnium have ended their joint venture in India, and now Varroc is moving forward with its own expansion plans.

Aurangabad-based Varroc sold its 46 percent stake in the auto exterior venture to Levallois, France-based Omnium.

The JV, Plastic Omnium Varroc Pvt. Ltd., has operated in Chakan, India, since 2007.

“We have amicably decided to grow on our own in the growing Indian automobile market,” said M.P. Sharma, Varroc’s vice president for material & projects, in a telephone interview.

Details on the buy-out were finalized in mid-August, he said. Terms were not disclosed.

Now Varroc is expanding its polymer division by setting up three new facilities in different parts of India to cater the various automobile hubs.

The company is investing around $20 million in the plants. The first, in Pithampur, will start production in October. The plant — Varroc’s eighth plastics operation — will supply Mahindra & Mahindra and VE Commercial Vehicles Ltd.

The plant, on a 12.5-acre site, has injection presses ranging from 450-850 tons of clamping force.

The second plant, in Bangalore, will open next year. It will supply Honda Motorcycle & Scooters India (HMSI) and automotive plants around Bangalore, Sharma said.

The third plant, in Chennai, will open in 2014 and serve the fast-growing automotive hub in that region, he said.

In August, Varroc bought Visteon Corp.’s global lighting business. That business has 4,200 employee at plants in Monterrey, Mexico; Pune, India; and two sites in the Czech Republic — Novy Jicin and Rychvald.


Comments

Varroc pursues auto sector, sells JV stake to Plastic Omnium

By Satnam Singh
Correspondent

Published: September 14, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Newell Rubbermaid expanding production, employment in Kansas

March 3, 2015 3:31 pm ET

Newell Rubbermaid Inc. is expanding and extending plastics molding technologies at its Winfield, Kan., manufacturing plant and distribution center.    More

Image

Accella buys IPS Polymer Systems

March 3, 2015 5:26 pm ET

Accella Performance Materials Inc. is acquiring IPS Polymer Systems Inc. to expand the firm's growing polyurethane operation.    More

Image

Best Places To Work: No. 5, Plastic Components Inc.

March 3, 2015 2:50 pm ET

Plastic Components Inc. had a busy 2014: It built a house, earned a patent, spun off a business, added presses and expanded its staff.    More

Image

Best Places To Work: No. 2, B&B Molders LLC

March 3, 2015 1:56 pm ET

Britt Murphey is trying to retire. But he's just having too much fun.    More

Image

Best Places To Work: No. 4, Ayanna Plastics & Engineering Inc.

March 3, 2015 2:39 pm ET

Ayanna Plastics & Engineering Inc., a Clearwater, Fla., injection molder and toolmaker, ranks No. 4 on the Plastics News Best Places to Work list. The...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events