European plastics car parts maker Boryszew Group has signed a letter of intent to work with the Japanese investment and trading conglomerate Mitsui & Co. in developing lightweight automotive parts.
Under the September outline agreement between Boryszew and Mitsui's German offshoot Mitsui & Co Deutschland, the parties will also study wider international cooperation options. These may include investment in Mitsui group automotive sector businesses, according to Polish media reports.
This follows an earlier Boryszew deal in June when it purchased an 80 percent stake in Tensho Poland Corporation (TPC) of Ostaszewo, Poland, a plastics component molder partly owned by Mitsui Group. Mitsui retains a 14 percent share of TPC.
TPC was acquired from TPC shareholders, Mitsui, Tensho Electric Industries and Sanko Corp.
In the latest agreement, partners Boryszew and Mitsui plan to work together in research and development aimed at producing components made with lightweight materials developed by Mitsui.
“Specifically, the parties declared their close cooperation in the implementation of new, innovative products as well as exploiting synergies between companies belonging to the Boryszew and Mitsui groups,” the companies stated.
In addition, the deal will see Mitsui providing Boryszew, based in Sochaczew, Poland, with supply chain management support and help to strengthen its place as a global auto parts supplier.
Meanwhile, Boryszew has announced strong financial results for the first half of 2014. In August, the group reported 72 percent net income growth to almost 12 million euros ($15.4 million) on revenue up 4 percent, thanks to a big improvement in Boryszew's auto components business, said group CEO Piotr Szeliga.
"Boryszew results for the first half are probably the best since the bull market of 2007/08, and certainly the best since the acquisition of the automotive companies,” he told a results news conference.
This was the first time the figures included all the results of Boryszew's recent automotive restructuring moves and new automotive business projects. The car parts division showed sales revenue for the period up by 14 percent or 27.3 million euros ($35 million) to 217 million euros ($278.6 million) year on year.