Plastic Omnium announced its latest developments in China at the Shanghai motor show including four new plants.
With 22m vehicles produced in 2014, China is the leading global automotive market. The country also will see almost half of globals automotive market growth over the next four years – 6.5m additional cars produced in China by 2018 versus 14m cars produced worldwide.
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In addition, environmental standards are developing in the country: the aim to reduce carbon emissions is in keeping with the supplier’s expertise, it claimed.
“China represents a major source of growth for Plastic Omnium and the group is developing its globalisation and innovation strategy in the country,” the company said in a statement.
Globalisation: new plants and new customers
After commissioning four new plants in 2014, the group will launch four new production units in 2015-2016, increasing its footprint in China to 25 plants. Plastic Omnium is now established in seven major Chinese production areas (Shenyang, Beijing, Yantai, Shanghai, Wuhan, Guangzhou and Chongqing).
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By GlobalDataThe group supplies almost all global carmakers and recently expanded its sales with new contracts from Volvo-Geely, FCA (Fiat Chrysler) and Daimler.
Plastic Omnium’s China revenue grew 23% in 2014 as Chinese automotive production increased 9%; 2015 will be another year of strong growth.
Innovation: new products
The group has 500 engineers and technicians in China who are currently developing more than 100 new programmes.
In the wake of the major success achieved in Europe with its new range of lighter tailgates, Plastic Omnium launched production of three made from composite materials for Capsa (DS6), Volvo (XC 60) and Land Rover (Evoque) in mid 2014. The first all-thermoplastic tailgate for DPCA (308) will be delivered in 2015.
In fuel systems, the Ningbo plant will produce TSBM tanks for Shanghai General Motors in mid-2015, thereby reducing pollutant emissions. The group recently won its first hybrid vehicle order from Volvo-Geely which will be produced in 2017.
Market share increase and revenue to double in 2018
The effect of this globalisation and innovation strategy in China will be increased market share in 2018, totalling 25% in bumpers (2014: 18%) and 15% in fuel systems (2014: 8%).
Revenue will double with EUR1bn expected in 2018 compared with EUR500,000 in 2014.
Accordingly, China will contribute to the growth expected by the group to reach total revenue of EUR7bn in 2018.
