Sweden's Rosti expanding in UK, Germany

PRW

Published: January 27, 2014 2:26 pm ET
Updated: January 27, 2014 2:38 pm ET

Related to this story

Topics Automotive, Packaging, Injection Molding, Europe

Rosti AB, the privately-owned plastics processor, will invest 60 million euros ($81.9 million) across the business in the next two years to help it achieve its annual turnover goal of 600 million euros ($819.9 million) by 2017.

The company has also announced that it is closing its factory in India, with the loss of 100 jobs.

The company based in Malmo, Sweden, which was acquired by Swedish family-owned investment firm Nordstjernan in 2010, will plow some of the funds into Rosti McKechnie's plant in Pickering, England, where the company makes parts for automotive customers including Jaguar Land Rover.

Money will also go into extending the firm's packaging plant in Dresden, Germany, by a further 32,300 square feet, while at its operation in China will add 43,000 square feet of space, all to accommodate new business.

Investment in Pickering will include 20 injection molding machines up to 2,700 metric tons, an extrusion line and a new painting plant – currently being built.

Tez Kurwie, Rosti's sales and business development director, told PRW that when the business was acquired by Nordstjernan four years ago Rosti was then a 200 million euro ($273.3 million) business and had set itself a target of hitting an annual sales target of 400 million euros ($547 million) by its 2014-15 fiscal year.

"We achieved that goal in 2013. So now we set ourselves the goal of reaching 600 million euros by 2016-17," he said.

Part of that growth would come through organic growth, supported by the latest investment program, and part through acquisition, Kurwie added.

"Looking at our return criteria [of 8 percent sales growth per year] it was clear we are not going to hit 600 million euros through organic growth alone, so we are proactively looking at buying businesses generating in excess of 50 million euro ($68.3 million) turnover."

Kurwie said Rosti was casting its eye over the U.S. and Mexico, where it had had businesses until the Nordstjernan deal in 2010, at which point these were sold to management.

Brazil was also on Rosti's radar, Kurwie added, while the company was on the lookout for business opportunities in Western and Eastern Europe.

As well as its investment plans, Kurwie revealed that Rosti had closed its plant in Chennai, India, which manufactured products including business machines and consumer electronics goods.

"In 2008 we were invited by two customers to establish a plant in Chennai. They have subsequently decided to align themselves away from that part of the world and as a result we have had to close the plant," he added.

Around 100 jobs have gone and the factory's 12 machines have been redeployed to Rosti's other Asian operations.


Comments

Sweden's Rosti expanding in UK, Germany

PRW

Published: January 27, 2014 2:26 pm ET
Updated: January 27, 2014 2:38 pm ET

Post Your Comments


Back to story


More stories

Auto supplier receiving grant to help expansion

October 30, 2014 3:35 pm ET

Summit Polymers is receiving an $800,000 performance based grant to help with a $7.3 million expansion of three of its Michigan facilities.    More

Image

Magna opens new exterior facility, plans for lighting investment

October 30, 2014 1:36 pm ET

Canadian automotive supplier Magna International Inc. on Oct. 28 opened a new injection molding and robotic paint line facility in Delta Township,...    More

Image

Finalists named for 2014 SPE Automotive Innovation Awards

October 30, 2014 11:00 am ET

The Society of Plastics Engineers Automotive Division has selected finalists for its 2014 Automotive Innovation Awards competition. Category winners...    More

Image

Xten may shut down, working on sale to Commercial Plastics

October 29, 2014 5:49 pm ET

Xten Industries LLC is working on a sale to Commercial Plastics Co. of Mundelein, Ill. Xten, an injection molder based in Kenosha, Wis., filed a...    More

Image

Protective packaging predicted to grow 6.1 percent annually

October 29, 2014 3:39 pm ET

Protective packaging looks to be a high-growth market in the coming years, according to a new study by Freedonia Group Inc.    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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events