PLASTIC OMNIUM
Lighting division created after acquisition of operations from Varroc, Osram / Q1 sales fall due to problems in Europe
French automotive supplier Plastic Omnium (Levallois; www.plasticomnium.com) has announced the EUR 600 mn cash acquisition of the lighting division of India’s Varroc Group (Aurangabad; www.varroc.com), which specialises in drivetrains, E&E, and body and chassis components for cars and motorcycles.

Varroc Lighting Systems (Plymouth, Michigan, USA; www.varroclighting.com – see Plasteurope.com of 08.06.2020) and Germany-based Automotive Lighting Systems (AMLS, Munich; www.osram-amls.com) acquired from Osram are to form the core of Plastic Omnium’s new Lighting division. The French company expects the Varroc purchase to be concluded in the second half of the year, and the EUR 65 mn Osram transaction to be final in Q3. AMLS was founded at the end of 2021 with the dissolution of a joint venture between Osram and Continental.

Plastic Omnium said it anticipates annual growth of around 5% for the automotive lighting market to 2027. Over and above this, the company plans to expand the depth of added value for its own front and rear modules.

Pro forma, the turnover of the new division for headlamps and rear and interior lights amounts to just under EUR 1 bn, of which Varroc lighting systems alone will contribute EUR 800 mn and AMLS a further EUR 148 mn. The 6,500 employees at the Varroc operations are distributed over eight plants, including sites in Poland, the Czech Republic, China, and Mexico. AMLS has a further 770 employees spread over nine plants and development centres. A consolidation of businesses and plants is expected when Plastic Omnium integrates the two companies.
European turnover plummets in Q1
With the continuing shortage of electronic components and the war in Ukraine, Plastic Omnium’s sales in Q1 fell 4.7% compared with the same period last year to just under EUR 1.9 bn. The company did not reveal any details of its results but noted that earnings differed considerably from one region to another.

Related: Car market contraction continues due to supply chain issues and the war

Sales at the European business – the biggest unit – declined 16.6% to EUR 1 bn because of numerous production stoppages at OEMs and car manufacturers BMW, Daimler, VW, Stellantis, and Renault.

In contrast, revenue in some other regions of the world grew significantly. In North America, Plastic Omnium said it increased turnover nearly 18% and by a good 12% in China. In particular, the joint ventures of the French company – for example with ElringKlinger for fuel cells and with Chinese car manufacturer BAIC – grew revenues by 20%.
12.05.2022 Plasteurope.com [250193-0]
Published on 12.05.2022
Plastic Omnium: Übernahme der Licht-Aktivitäten von Varroc und OsramGerman version of this article...

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