Japanese auto supplier Toyota Boshoku Corp. is selling its European interiors business to Megatech Industries AG just five years after it purchased the business in an attempt to boost its exposure in Europe.
Austria-based Megatech's acquisition covers plants in Germany, Poland and the Czech Republic.
In 2011, Kariya, Japan-based Toyota Boshoku purchased the interior component operations of Polytec Holding to expand its sales in Europe, but the operation has consistently finished in the red.
In March, Boshoku's interiors business recorded a loss of nearly 180 million euros ($202.5 million) for the most recent year, according to local media reports.
The European business employs 2,100 and makes headliners, door panels, pillar trim and trunk extension units. Included are three German plants at Waldbröl, Ebersdorf and Hodenhagen as well as one unit in Tomaszów, Poland and another at Pilsen in the Czech Republic.
They supply vehicle builders including Daimler and BMW.
In addition, Megatech and Toyota Boshoku Japan entered a 50-50 joint venture to produce natural fiber door panels. That business, which represented Boshoku's profitable natural fiber composites business in Pilsen will operate as Megatech Boshoku Europe s.r.o.
In a statement, the partners suggest the venture has a bright future “because we can combine the companies' research and development capabilities and customer relationships”.
Megatech Industries plans to decentralize and streamline the plants it has acquired from Toyota Boshoku.
This year, Megatech, which produces a range of parts for trucks as well as cars with injection molding, two-shot molding, painting, welding and assembly, is further expanding its operations in the Czech Republic where it already has auto plastics component plants at Jablonec nad Nisou and at Hlinsko.
Earlier, the firm agreed to lease a 10,000-square-meter manufacturing hall at a new site in Brno where it is investing around 6 million euros ($6.7 million) in new production lines and expects to employ up to 300. Initially, it plans to produce interior car linings for car assembly plants in Slovakia and Hungary run by manufacturers Audi and Volkswagen. Megatech also hopes to supply the new Jaguar Land Rover plant in Slovakia.
