Balkan automotive components processor AD Plastik announced it has acquired the Hungarian tier two auto parts supplier Tisza Automotive Kft.
Tisza Automotive, an injection and blow moulder with a single plant at Tiszaújváros, north east of Budapest, is a leading supplier of parts to Suzuki's local car assembly plant at Esztergom, Hungary.
With a workforce of over 400, the firm serves other vehicle manufacturers including Bentley and Volkswagen and a number of automotive tier one component suppliers such as Rehau, Reydel, APCB Corp., Mitsuba and Hanon Systems.
This deal coincides with an announcement that AD Plastik of Solin, Croatia has just secured a string of component supply contracts for Renault and Volkswagen in Russia worth €17.2m. Work on injection moulded and thermoformed parts such as wheel arch liners, fender protectors and rear door trim could occupy its plant in Kaluga, Russia up to 2026, it revealed.
AD Plastik revealed its Solin plant also won a series of European part orders worth €17.9m from the French PSA Group for new Citroen and Peugeot car models, as well as components for Buick vehicles PSA makes for the American market.
For the successful tier one Croatian supplier, its Tisza takeover “achieves key goals of (the company's) business strategy and its medium term development plan” and will ensure its further growth and customer portfolio expansion, it told the Zagreb Stock Exchange in a statement last week.
The acquisition, for an undisclosed sum, sees the Hungarian processor, originally formed in 1976 as a packaging producer, change hands once more after a chequered history with ownership passing intermittently between large Hungarian and Japanese groups and investor/management partnerships.
Since 1992, Tisza Automotive, then a food packaging moulder owned by Hungarian chemicals group TVK (Tiszai Vegyi Kombinát), was re equipped to supply technical injection and blow mouldings and began serving the local Suzuki automotive plant.
In 2001, the processor was sold by TVK to a 70:30% investor/management partnership and was fully reorganised to produce plastic automotive and other technical components. Barely two years later, after building up its auto part business, the firm changed hands again when its investors sold their controlling interest to Japan's Arrk Corp.
Renamed Arrk Hungary, it was subsequently hit by a slump in automotive business resulting from the 2008 economic downturn and diversified to mould other industrial components. Again, the company was rescued in 2012 by a management buyout backed by a Hungarian investor and renamed Tisza Automotive.
Last year, it saw growth in its auto business and recorded annual operating revenues of more than €20m. AD Plastik sees significant turnover growth for its acquisition in the next five years, the buyer emphasised in its ZSE statement.
AD Plastik, now with seven moulding plants in four countries, welcomed the compatability with Tisza technology and sees its Hungarian prize as an excellent fit. AD Plastik offers thermoforming, extrusion and non-wovens processing as well as blow and injection moulding.
The Croat company pointed to Tisza's auto industry experience and its good customer portfolio and welcomed its “very good geographical position” in relation to other motor manufacturers in that part of Europe.
The Tiszaújváros site includes an area of 22,400m2 comprising production halls, warehousing and plant offices.
AD Plastik already operates plants at Solin and Zagreb in Croatia; Mladenovac in Serbia; Togliatti and Kaluga, Russia along with a Faurecia joint venture unit at Mioveni in Romania.
The Croatian company run a total of 79 injection moulding lines - 50 - 3,200 tonnes clamping forces at its plants. The firm has 10 thermoforming lines, three blow moulding lines, and 10 extrusion lines.