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Topics Mergers & Acquisitions Europe Automotive Automotive parts
Companies & Associations
Fresh consolidation in Russia's auto parts manufacturing sector has seen Autocomponent Group acquire the bankrupt supplier OAO Plastik of Syrzan.
OAO Plastik, previously controlled by the car seat and components maker Krista Group, relied heavily on one major customer, AvtoVAZ, and accumulated debts amounting to more than 66 million euros ($89.5 million).
Plastik saw a 20 percent fall in production and suffered reduced revenues, particularly in 2012, due to AvtoVAZ phasing out its classic Lada models and decreasing production of volume cars, such as the Lada Samara, Priora and Kalina, according to Russian press reports.
The firm recorded turnover for 2012 down 12.7 percent on the previous year at 123 million euros ($166.8 million). That year, it made a net profit of just short of 618,000 euros ($835,264)
Nizhny Novgorod-based Autocomponent, which completed the takeover deal in December 2013, agreed to restructure Plastik's debt with the state Sberbank and AvtoVAZ over seven years.
Its plans for the Plastik operation include raising production, diversifying its product lines and expanding deliveries to AvtoVAZ for new vehicle models. The firm molds a wide range of plastic and composite products for vehicle interiors, exterior and engine parts.
Autocomponent has a production unit in the nearby industrial centre of Togliatti to serve local Renault and AvtoVAZ assembly plants. The facility works with engineering support from the global French components supplier Faurecia SA.
Apart from Lada, Plastik has supplied components for other vehicles including GM-AvtoVAZ, GAZ, UAZ and Kamaz.
Autocomponent operates parts joint ventures in Nizhny Novgorod with the leading car wheel trim producer Zanini of Barcelona, Spain and polymer-composite gas cylinder Hexagon Composites of Ålesund, Norway.