Plastic Omnium's North American Growth Boosted by a $650 M Investment

Jan 11, 2016, 07:00 ET from Plastic Omnium

PARIS, Jan. 11, 2016 /PRNewswire/ -- Plastic Omnium, the world leader in automotive exterior components and modules and automotive fuel systems, is exhibiting at the North American International Auto Show in Detroit for the first time in 2016.

The company recently announced an acquisition of Faurecia's Auto Exterior division, which reported sales of $2 billion in 2014. With this transaction, Plastic Omnium emerges as a global player with over €8 billion of sales which places it among the 25 largest automotive suppliers worldwide.

(Since the deal is anticipated to close  by the end of 2016, the figures below do not include this acquisition).

North America: First growth driver for Plastic Omnium in 2015-2019  

From 2015-2019, North America will be the largest contributor to Plastic Omnium's total growth. With an increase in revenue of nearly $1 billion, the company's revenue is expected to increase by 50 percent to reach a total of $2.8 billion.

This strong growth is supported by a sustained investment plan of $650 million, aiming at increasing the industrial footprint, diversifying the portfolio of customers and developing innovative products and solutions.

Four new plants in 2015 - 2017 with an objective to increase market share

In 2015, Plastic Omnium launched two new manufacturing facilities in the United States: in August 2015, the Chattanooga (Tennessee) facility started producing bumpers for Volkswagen, and in November 2015, the Fairfax (Kansas) plant delivered its first fuel systems to General Motors.

Additionally, two new manufacturing facilities are under construction in Mexico. Leon will start production mid-2016 to deliver fuel systems to General Motors and Daimler, while the San Luis Potosi facility will start delivering exterior components to General Motors in mid-2017, and will also supply components to Daimler.

These new production facilities will help increase market share, with an objective to reach 10 percent of the bumpers segment and 37 percent of the fuel systems segment by 2019.

New customers in portfolio

The strong increase in customers' demand is generated by both new and existing customers, including German automakers.

Increasing success of Plastic Omnium SCR, diesel depolluting system

In 2015, Plastic Omnium delivered 140,000 Selective Catalytic Reduction (SCR) diesel depolluting systems in North America. The company anticipates demand for SCR systems to grow to 500,000 units in 2019, accounting for nearly 50 percent of diesel vehicles in North America.

Laurent Burelle, President and Chief Executive Officer of Plastic Omnium declared: "Our participation in the 2016 Detroit NAIAS is testament to the importance of our long term investment in North America. The United States represents the first most important country in turnover and the third in staff for our company. We will proceed to strongly invest in North America, in our plants, in innovative products and in the safety of our people. In this line, we are proud to announce that we will renew our three-year, $1 million commitment to Focus Hope's workforce development initiatives".

With 17.5 million vehicles and 20 percent of the world's production, North America is one of the largest automotive markets. Plastic Omnium operates 17 plants (eight in the United States, eight in Mexico and one in Canada), four development centers, and employs 4,500 people in North America. These operations supply bumpers, modules and fuel systems to many leading automakers, including General Motors, Ford, BMW and Fiat Chrysler Automobiles (FCA). American-based customers such as General Motors, Ford and FCA generate 27 percent of Plastic Omnium automotive revenue.

Plastic Omnium will exhibit at the 2016 Detroit North American International Auto Show from January 11th to 14th, Cobo Center, level 3, room 310B.

Financial information  Tel.: +33 (0)1 40 87 64 49 Fax: +33 (0)1 40 87 96 62 investor.relations@plasticomnium.com

Plastic Omnium is the world leader in automotive exterior components and modules, automotive fuel systems, and waste container solutions for local authorities and companies. The Group and its joint ventures employ 25,000 people in 115 plants, 21 R&D centers and 30 countries worldwide. Plastic Omnium is listed on Euronext Paris, compartment A, is part of the SRD and the SBF 120 and CAC Mid 60 indices (ISIN code: FR0000124570).

SOURCE Plastic Omnium