Dynamic Balkans auto parts producer AD Plastik d.d. announced it has secured a string of new car component contracts worth €10.2m for the European market.
This business boost includes new supply deals valued at €3.6m for Suzuki, Audi and BMW vehicles in the Hungarian market. These are the first Hungary orders AD Plastik has won since the firm acquired the Hungarian parts maker Tisza Automotive last year.
News of AD Plastik’s latest success comes barely a week after the plastics moulder revealed it had attracted other big contracts worth €46.8m from the global PSA and Fiat Chrysler Automobiles groups.
Solin, Croatia-based AD Plastik’s flurry of announcements ensuring its 8 plants across south eastern Europe and in Russia remain busy for up to 10 years follow news of the group’s record turnover and profits last year.
In February, the stock market listed group revealed it achieved record operating revenue of more than €175.24m, 21.02% up on the previous year along with a net profit up 27.23% at over €12m year-on-year.
AD Plastik group chairman Marinko Došen reported that his company had successfully sealed new contracts during 2018 with a total value of €136m. With almost 80 active projects, it has already begun serial production with 25 of them, he stated.
The new orders confirmed last year “give us additional security and stability”, he told shareholders in AD Plastik’s 2018 annual report.
“Based on new deals and announcements of our customers, we expect an increase in revenue in 2019. We will have significant investments in increasing production capacities at the production sites in Croatia and will also implement new sub-technologies that will add value to our existing product portfolio,” Došen concluded.
AD Plastik expects to complete integration of its 2018 strategic acquisition of Tisza Automotive in Hungary later this year. This addition signifies further growth, providing diversification and expanding the group’s customer portfolio.
“The new (Tisza) plant is located in one of the fastest growing markets in the automotive industry, thus we have additionally provided conditions for organic growth of the production site and our group as a whole,” commented the chairman.
He pointed to one promising business prospect in the recovery of the Russian market although “the exchange rate and strong currency continue to negatively affect our results”.
New Hungarian work AD Plastik won includes a €5.1m deal moulding light housings for Hella for the Nissan Navara and Volvo V40 models over three years starting 2019; a seven-year contract over 7 years from 2020 to make radar brackets for the Renault Trafic worth €1.6m and €3.6m of orders for components for models including the Suzuki Vitara, Audi A3 and BMW3.
Bigger supply contracts for PSA and FCA groups include orders worth together €20m for grab handles in Peugeot, Citroen and Opel models over 10 years starting this year and nearly €14m worth of FCA work on air ducts and interior parts for Fiat 500e over eight years from 2020.
AD Plastik has plants in Tiszaújváros, Hungary; Mladenovac in Serbia; Mioveni, Romania; Novo Mesto, Slovenia with two Russian units at Kaluga and Vintaj in Samara region as well as Croatian plants at Solin near Split and Zagreb.