Plastic Omnium, which presented its 2014-2018 growth and innovation strategy during its investor day held in Compiègne (France) at its new global R&D centre
08 Dec 2014 | 9564 Views | By Autocar Professional Bureau
Plastic Omnium, which presented its 2014-2018 growth and innovation strategy during its investor day held in Compiègne (France) at its new global R&D centre, Α-Alphatech, is targeting a revenue of 7 billion euros (Rs 53,578 crore) in 2018. .
Plastic Omnium, whose development strategy is focused on strengthening its ...
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Plastic Omnium, which presented its 2014-2018 growth and innovation strategy during its investor day held in Compiègne (France) at its new global R&D centre, Α-Alphatech, is targeting a revenue of 7 billion euros (Rs 53,578 crore) in 2018. .
Plastic Omnium, whose development strategy is focused on strengthening its industrial facilities worldwide, and on the ambitious development of its new product lines, confirms that its business will grow twice as fast as the global automotive market in 2014-2018, reaching 7 billion euros in revenue in 2018, compared with the estimated 5.3 billion euros (Rs 40,566 crore) in 2014. At that time, Europe will account for 50 percent of the total figure, North America for 29 percent and Asia for 18 percent, with revenue in China doubling between 2014 and 2018 (28 plants in 2018).
In order to meet the commercial success experienced among leading automobile manufacturers worldwide, Plastic Omnium plans to invest 1.7 billion euros (Rs 13,011 crore) in 2014-2018, compared with 1 billion euros in 2009-2013. These investments are intended to develop new automobile programs and to expand the group's industrial facilities, which are currently well loaded. Accordingly, the group plans to open 20 new plants in 2014-2018, including 12 in Asia. The group already has 66 plants in 17 countries including India.
In so doing, Plastic Omnium will strengthen its leading market positions with 15 percent market share expected in bumpers in 2018 (10% in 2014) and 24% in fuel systems (21% in 2014).
1 billion euros in revenue in new product lines in 2018
Increased regulatory constraints worldwide aimed at protecting the environment (CO2, NOx) represent a major driver of growth for Plastic Omnium's businesses. Accordingly, the group is developing innovative solutions to make vehicles lighter (plastic tailgates, parts made with composite materials and carbon fibre) and to improve aerodynamics (light-air bumper), together with systems to remove NOx (DINOx-SCR).
The ramp-up of these new product lines will enable Plastic Omnium to generate nearly 1 billion euros (Rs 7,654 crore) in revenue with innovative solutions in 2018, i.e. 15 percent of revenue, compared with 5 percent in 2013.
The company says, the strong growth expected in 2014-2018 will be accompanied by the rigorous management of industrial costs and projects, which will continue to position Plastic Omnium's profitability within the benchmark of the automotive manufacturer industry.