PLASTIVALOIRE
Karl Hess unit to restructure / Earnings outlook improves
The reorganisation of automobile production and weak demand are hitting companies in France. Local plastics processor and car industry supplier Plastiques du Val de Loire (Plastivaloire, Langeais; www.groupe-plastivaloire.com) may be reporting quite respectable figures, but the company said the financial year to 30 September 2023 produced a loss of EUR 11.4 mn, which was still half of the previous year’s mark.

The more modern German site in Neunkirche likely has more promise than the other domestic plant in Burbach (Photo: Karl Hess)


As a result, the company is continuing its optimisation efforts: the two plants run by German injection moulding subsidiary Karl Hess (Burbach-Wahlbach; www.hess-kunststofftechnik.de) are to be combined at the unit’s Neunkirchen site over the course of the spring. In addition, the development department in Burbach will be relocated to France, the company said. The measures are to cost between EUR 3 mn and EUR 4 mn.

RelatedPlastivaloire slowly gets back on track

Plastivaloire CEO Antoine Doutriaux told Plasteurope.com that although some modifications will be made to the Neunkirchen production facility, no expansion is necessary. He said all activities are to be relocated, and that there are no plans to cut jobs in production. For the administrative areas, however, this likely only applies to a limited extent. “Indirect functions will be adapted in a timely manner and in the context of an agreement with the works council and (German union) IG Metall,” Doutriaux said.

Karl Hess was largely to blame for the weak results, with special depreciations totalling a good EUR 15 mn. The Neunkirchen plant mainly produces automotive parts on 26 large machines, while the main plant in Burbach has 56 injection presses to make products for E&E, households, and mechanical engineering. 
Brighter days ahead?
The situation for Plastivaloire appears to be improving. “The outlook for the medium term is good,” the company said. Doutriaux attributed this to solid orders of EUR 900 mn in fiscal year 2022, from which Plastivaloire is still benefitting. Although new order volume last year was significantly lower at EUR 600 mn, the figures were “satisfactory”, according to management. 

Doutriaux said he expects revenue of more than EUR 800 mn in the current financial year and a slightly higher EBITDA margin than the 8.3% in fiscal year 2023. 
12.01.2024 Plasteurope.com [254290-0]
Published on 12.01.2024
Plastivaloire: Umstrukturierung bei Karl Hess angestoßenGerman version of this article...

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