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 Automotive, Mergers & Acquisitions, 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

Molder goes to auction block

October 17, 2014 12:17 pm ET

An Illinois custom injection molding operation will be auctioned off after its owner decided to close the business.    More

Image

Plastikon expanding in Kentucky

October 17, 2014 11:24 am ET

Automotive supplier Plastikon Industries Inc. plans to more than double the size of its production facility in Leitchfield, Ky.    More

Image

OnePlastics Group brand created to cover seven different plastics firms

October 17, 2014 9:48 am ET

A Dublin-based company is launching a new brand to unify its plastics businesses into a single entity called OnePlastics Group.    More

Image

PolyOne denies report it's bidding for Klöckner Pentaplast

October 16, 2014 11:44 am ET

UPDATED — Compounding leader PolyOne Corp. is denying a report that it bid as much as $2 billion for film and sheet major Klöckner Pentaplast...    More

Image

Chrysler's Busse has a surprise for you

October 16, 2014 6:00 am ET

Chrysler Group's interior design chief Klaus Busse and his team enjoy hiding what they call "Easter eggs" throughout Chrysler Group vehicles for owner...    More

Market Reports

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 million dollar 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

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

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

More Events