Plastic Omnium’s Automotive Division has recorded 2016 revenue up 17.3% to EUR6.6bn (US$7bn).
The supplier attributes the results to “robustness of our backlog, ramping-up production from new facilities (Mexico, UK and China), and the success of our portfolio of products.”
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Business was particularly strong in 2016 in the UK (up by 28.5%) thanks in particular to the commissioning of the Warrington-Liverpool plant for exterior parts for Jaguar Land-Rover in June last year.
Additionally, the development of SCR systems for reducing diesel vehicle emissions continues to expand with a surge of 50% during the year, taking revenue to EUR306m. Business in North America posted growth of 7.7% in 2016 at constant scope and exchange rates.
During the second half of 2016, revenue in North America rose by 10.9%, again at constant scope and exchange rates, an outperformance of 10.1 points, confirming the region will be a major growth area for the Group with the commissioning of new facilities in Mexico and in the US.
In North America, the Group benefited from a significant exposure on SUV models, that accounts for around 75% of business. Business in Asia, including China, increased by 22.9%, at constant scope and exchange rates.
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By GlobalDataIn China, which represents economic revenue of EUR634m or 10% of total revenue, business growth at constant exchange rates amounted to 30.8% for the year in automotive production which rose 14.3%, an outperformance of 16.5 points.
The Group benefited from high investments made during the last three years to develop its industrial footprint, consisting of 26 plants, and increase market shares, particularly with Chinese carmakers of which there are currently 18.
In the rest of Asia, growth in business came to 14.6% at constant scope and exchange rates, driven by Japan, India and South Korea.
“2016 was an exceptional year,” said Plastic Omnium CEO, Laurent Burelle. “Firstly from a financial perspective, Plastic Omnium has set new records with double-digit growth seen repeatedly in all the group’s financial aggregates. From a strategic perspective, Plastic Omnium closed the most important acquisition in its history by integrating the Faurecia Exterior Systems business.
“This large-scale operation has given the Group a new dimension – 2016 pro forma revenue of EUR7.5bn – and provided leverage to grow both its customer portfolio and technological potential.
“Furthermore, Plastic Omnium has sold off a number of non-strategic activities in order to focus on its core businesses, namely the automotive industry and the environment. From a commercial perspective, business was very intense and confirmed the success of a growth strategy driven by the addition of new industrial facilities, gains in market shares and the success of our innovation portfolio geared to a reduction in weight (CO2) and emissions (Nox).
“From an industrial perspective, Plastic Omnium has the benefit of an optimized industrial footprint that drives the growth. Four new plants were commissioned during the year, while five were shut down and five others are now under construction worldwide.”
