Plastic Omnium makes leap into China

Plastic Omnium makes leap into China	18/04/2007
By David Eldridge
String of automotive ventures set to boost revenues by 2012.
18 April 2007 – Plastic Omnium is aiming to have significant income from China in just five years, generated by a series of ventures in the country’s burgeoning automotive sector. In 2012, the French company expects to generate revenue of around €200m in China, having had no operations in the country at all before 2006. Measured against its group revenue of €2.33bn in 2006, this would account for a 9% share. The latest in a series of deals involves a joint venture between Plastic Omnium Auto Exteriors and Yanfeng Visteon (which is itself a joint venture between tier one company Visteon and Shanghai Automotive Industrial Corporation). Chinese authorities have granted an operating licence to Yanfeng Plastic Omnium Automotive Exterior Systems (YFPO). Plastic Omnium will acquire a 49.95% stake in YFPO, which will consolidate the exterior components businesses of Yanfeng Visteon. The joint venture is scheduled to start operating late in the first half of this year, supplying multiple customers from two production facilities in Anting and Chongqing, and will employ about 500 people. Three other projects are contributing to Plastic Omnium’s presence in China. Its HBPO business is set to open an assembly plant in Fuzhou at the start of 2008, which will supply front end modules to Daimler Chrysler. Inergy Automotive Systems, the company’s joint venture with Solvay, is also building a plant in Wuhan, Hubei Province. This is scheduled to come on stream in 2008 and will deliver fuel systems to Nissan and General Motors. Plastic Omnium has further exposure to the Chinese automotive market through Inoplast, which specialises in hatchbacks, floors and boot lids. France-based Inoplast last year acquired a 60% stake in XieNO, which operates four plants and mainly supplies truck manufacturers FAW and China National Heavy Trucks. Inoplast is co-owned by Plastic Omnium and Diaz SAS (PRW 2 May 2006).