TROISDORF, GERMANY — Dynamit Nobel AG became the latest European automotive parts supplier to establish a base in South America.
The Troisdorf company in late November acquired Tortuguitas, Argentina-based Emplast SA, an important regional injection molder.
It also bought the business, but not the assets, of Emplast affiliate Corplast SA of C¢rdoba, Argentina. Terms of the deal were not disclosed.
The transaction was carried out by subsidiary Dynamit Nobel Kunststoff GmBH of Weissenburg, Germany.
Emplast produces automotive interior and exterior systems, including bumpers, door panels and small components. The molder, which claims to lead the bumper market in Argentina, has annual sales of roughly $46 million. The firm also paints plastic parts produced internally and by third parties.
Corplast specializes in painting plastic auto parts. Emplast/Corplast's client portfolio includes Ford, General Motors, Fiat, Volkswagen, Peugeot, Renault, Mercedes-Benz and Chrysler.
The acquisition is part of Dynamit Nobel's effort to globalize its plastics business segment. The company focuses on exterior vehicle components, especially bumpers, front ends and rear ends.
``It is important to follow our main customers from Europe to Argentina and Brazil,'' said spokesmen Ulrich Hopmann.
He said the Argentine facility is Dynamit Nobel's first plastics manufacturing unit in the Americas. The firm is considering a second plant in Argentina as the market develops.
``We are sure the automotive industry in Argentina and in Brazil will grow in the near future, in spite of the effects from the [global financial] crisis the region is currently experiencing,'' Hopmann said.
Emplast has worked in recent years to increase its value with a view to a potential sale, according to Emplast business development manager Rodolfo Achille.