By: Richard Higgs
EUROPEAN PLASTICS NEWS
February 3, 2014
European automotive parts supplier Boryszew SA has revealed it is seriously considering setting up a production plant in Mexico which would assist its entry into the U.S. market.
Any resulting project by the Polish group is most likely to see capacity added by its hoses and hose assemblies subsidiary Maflow, which already operates an offshoot in Brazil. It also has plants in China, India, Poland, France, Spain and Italy.
The group also expects to double sales at its plant in China over the next three years as a result of growing orders.
"We see substantial potential for development in China, also in cooperation with new clients. We are considering entering China with our plastic products," Paweł Surówka, Boryszew director responsible for automotive business development told the Polish news agency PAP recently.
Meanwhile, the Sochaczew-based Boryszew said its automotive division has built up an order book of 2 billion euros worth of component business, of which 1.5 billion euros represents new contracts covering the next three years.
Boryszew expects new orders to grow this year and into 2015 at both Maflow and its plastic car parts producer Boryszew Automotive Plastics (BAP). Both comprise businesses acquired by the group from bankruptcy since 2010 and have been restructured, so it has taken time to attract new, higher margin orders, according to Surówka.
Any project in Mexico will result from Boryszew's need to meet growing demand in North America.
"We are seriously mulling an investment in Mexico, as we are receiving inquiries about it from clients. That market in itself is interesting, and moreover, our presence there may become a foothold for expansion on the American market," explained the Boryszew director.
Despite a slowdown in Russian car sales, Boryszew is still building market share through its newly launched plastics parts plant in Dzerzhinsk. Its Russian presence is attractive to customers, said Surówka, which is proven not only by new orders from Volkswagen but also from other clients including Daimler. As a result, Mitsubishi also expressed interest in doing business with Boryszew, he added.
The group believes it could triple its Russian capacity and is preparing to expand the plant within a year and a half, said Surówka.