PARIS--(BUSINESS WIRE)--Regulatory News:
Exhibiting at Auto Shanghai for the 3rd time, Plastic Omnium (Paris:POM) confirms its successful development in China and capacity to pursue its growth in the biggest automotive market in the world, leading to double its revenue* to €1.3 billion in 2021.
Plastic Omnium set up in China in 2007 and recorded revenue of €640 million in the Chinese market in 2016, with 26 production sites and a workforce of 5,100.
Our robust growth expectations are based on market share gains, developments with local Chinese car manufacturers, and the increase in the share of innovative products. Growth projections are backed by a comprehensive industrial network and expanded R&D capacity.
26% of the bumper market and 16% of the fuel systems market in 2021
Plastic Omnium is currently the leading supplier of exterior body parts in China, with 22% of the market, and number 2 for fuel systems, with a 9% market share.
Based on our substantial order book, by 2021 we will raise our market share to 26% for exterior body parts and 16% for fuel systems.
At this rate, Plastic Omnium will grow much faster than Chinese automotive production, which is set to hit the 30 million vehicle mark in 2021, up from 26 million in 2016.
30% of revenue with local Chinese car manufacturers in 2021
We are diversifying our customer portfolio in China with local Chinese car manufacturers, which currently account for 46% of the Chinese market. Plastic Omnium develops and supplies automotive parts and components for 18 Chinese car manufacturers. These customers will make up 30% of our revenue in China in 2021, double the 15% in 2017.
Growth in SUVs is also significant, at 40% of revenue for this segment (36% for the market).
Driven by tougher environmental standards and the development of new engines, the success of our weight reduction and aerodynamic innovations designed to reduce emissions and improve electric vehicle range is confirmed in China and in the rest of the world.
We have five programs in production and eight more in development for tailgates and aerodynamic spoilers. Plastic Omnium has signed an order with Chinese carmaker NextEV for all its electric vehicle body parts.
Production of the first high-pressure tank for rechargeable hybrids is scheduled to start at the end of 2017.
Dense industrial footprint with 26 plants in six manufacturing clusters
With 26 plants in production, we have a presence in the six major manufacturing clusters in China (Shenyang, Beijing, Shanghai, Wuhan, Guangzhou and Chongqing).
A new plant in Chongqing will come on stream in June 2017 to produce fuel systems for Hyundai.
The loading rate in our installed industrial capacity will increase significantly from 80% in 2016 to over 95% in 2021 to absorb this substantial growth in the near future.
New R&D center and test lab in Wuhan
Plastic Omnium employs 500 engineers and technicians in China working on developing more than 100 new programs in two R&D centers, one in Shanghai for exterior body parts, and the other in Wuhan for fuel systems.
We are ramping up development capacity in China with an investment in a new fuel systems R&D center and test lab in Wuhan, set to open in H2 2018. The new center will round out our network of six fuel systems plants in China.
Plastic Omnium will be at the 17th Auto Shanghai from April 21 to 28, 2017 (press days on April 19 and 20), Hall 5.2, stand 5BD101.
Revenue*: financial revenue reflecting the Group's operating and managerial reality. It is calculated as sales including the share of the YFPO joint venture in exterior body parts.
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 nearly 33,000 people in 128 plants, 23 R&D Centers and 31 countries worldwide. Plastic Omnium is listed on Euronext Paris, compartment A. It is eligible for the Deferred Settlement Service (SRD) and is part of the SBF 120 and CAC Mid 60 indices (ISIN code: FR0000124570).