SPAIN: Cie sees 30% sales hike from EM buys
Spanish auto parts and bioenergy group Cie Automotive expects revenues to soar 30% to EUR1.7bn by 2010, driven by acquisitions in Western Europe, Russia and India, a company official told just-auto on Thursday.
The firm reported EUR225m EBITDA last year on revenues of EUR1.3bn.
Basque country-based Cie has been expanding aggressively in the eastern Europe and Latin American autoparts markets. It has also carries out a major biofuels expansion through which it hopes to produce 700,000 tonnes/year of biodiesel in late 2008.
Cie plans to continue growing through acquisitions, the official said, confirming a Spanish press report citing company president Anton Pradera.
"We will look at acquiring parts companies in western Europe, particularly firms that have suffered from failing to adapt to globalised markets but have good technology," the official said, adding that deals are imminent.
Cie also wants to tap the Russia and Indian parts market, mostly via joint ventures, the official noted, "because of the complexity of those markets."
In eastern Europe, where the company recently bought Lithuanian hybrid-fuel engine maker UAB Peer, capping a slew of recent acquisitions there, Cie hopes to double production.
In the Nafta trade region, the company intends to grow sales to EUR100m from EUR10m now. The firm continues to study opportunities in China.
Cie invested EUR225m to expand last year, of which EUR190m went into its biofuels division, which it has been growing in Guatemala and Brazil, via acquisitions and partnerships.
The company said future investment capital would come from its own cash resources and credit lines but won't surpass twice its net EBITDA.
Cie's biofuels strategy envisions "sustainable" growth in global markets by building factories fed by the inedible jatropha curcas and the recycling of vegetable and animal fats.