HÖRSCHING, AUSTRIA (Aug. 12, 1:15 p.m. ET) — Austria's Polytec Holding GmbH has benefited from the improving auto sector in Europe — the supplier saw its shareholder value increase 182 percent in the last 12 months, more than four times the industry average.
Now the company is investing about 15 million euros on extra capacity.
H"rsching-based Polytec announced Aug. 3 that it is adding injection molding capacity at its plant in Lohne, Germany, plus buying a molding plant in Ebensee, Austria, from PPI Plastic Products Innovation GbmH & Co KG.
Polytec said it has new orders from both automotive and non-automotive customers.
On the investment front, the company is spending 5 million euros to expand the plant in Lohne, plus add capacity at it car styling plant in H"rsching. The Lohne plant is benefiting from higher production volumes, especially cylinder head covers.
On the acquisition side, Polytec said it chose to buy the Ebensee plant rather than expand an existing Polytec plant in Wolmirstedt, Germany.
“Owing to its geographic proximity to the most important automotive hubs such as Ingolstadt, Gy"r, Bratislava, Munich and the Austrian engine plants of BMW and Opel, the PPI plant represents a sound addition to the production network of Polytec's Components business,” Polytec said in a news release.
Polytec's total consideration for purchasing the PPI plant is 10 million euros, including 1.5 million euros in equity and the remainder in assuming PPI's financial liabilities.