Spanish autoparts makers CIE Automotive and Hispamoldes have signed a joint venture to establish a factory in Tangier, Morocco that will supply Renault.
The two partners will own the fledgling concern 50% each and will make plastic injection moulds at the factory for which ground will be broken in October, a Cie official in Spain confirmed to just-auto.
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The plant will supply parts to Renault which will begin building an undisclosed [Logan platform-based – ed] model in Tangier in 2012, the official added.
At the same time, the Cie/Hispamoldes venture is considering building another factory to make thermoplastic components and provide a plastic mould repair service for regional automotive makers.
The two companies hope to extend their venture to build parts factories in other emerging markets where Cie has been growing strongly in recent years and from where it now derives the bulk of its revenues.
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In fact, Cie plans few new investments in its original Galicia, Spain, factories.
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By GlobalData“We need to look at the world now, find new markets and generate value because our future lies in having many factories outside the country,” Cie’s president Anton Pradera said.
Hispamoldes specialises in making injection moulds and has sales of EUR32m a year, 60% of which is to Mexico and France. Employing 300 people, it owns the Hispamoldes, Hispaplasti and Plasticos de Palencia brands.
Cie, which makes a variety of components, had sales of EUR1.5bn last year and a EUR41.4m net profit, buoyed by expansion in the emerging markets.
The Basque Country firm hopes to strengthen its presence in Russia and Asia in the next few years where it envisages 50% of the autoparts market will be located.
Cie has 62 factories around the world with strongest presence in Brazil and Mexico.
