Polish auto parts manufacturer Boryszew Group is expecting significant new business growth on the back of the electric vehicle revolution breaking out across Europe.
At the start of 2019, Boryszew’s group subsidiaries serving the automotive industry had received nominations for new projects worth €22m of which more than €15m was won by the plastic parts producer Boryszew Automotive Plastics (BAP), the group reported.
Much of the group’s new deals involve the supply of components for road vehicles being developed for the ‘green’ electric powered car market.
“New projects, partly related to the prospective electric car market for us, allow us to look optimistically at subsequent periods. The share of parts for electric and hybrid cars in our portfolio of nominations is currently over 15%,” reported Boryszew’s management board president Piotr Lisiecki.
He recalled Boryszew won its first nominations for such car parts “much earlier”, but in 2019 it would be able to see the impact of the electric car market on group results because production was due to begin by this mid-year.
In the first quarter of 2019, Boryszew reported automotive segment business generated a pre-tax profit of around €4.6m on revenues worth €103.4m. Overall group turnover for the period reached almost €346m with a pre-tax profit of €20.7m.
But, the Boryszew revealed it was continuing to feel a “significant impact” of implementing the new industry test procedure for the approval of vehicle fuel consumption and emissions (WLTP).
The group, based in Warsaw, Poland, announced investment plans for several areas of its business including its intention to further develop its automotive components manufacturing division.
Boryszew also committed to improving the financial efficiency of all its subsidiaries and boosting production capacity and broadening its product portfolio in its main metals business.
The company also reported that its chemical products business, specialising in production of a range of automotive de icing and other fluids for vehicle radiator, brakes and washers, saw Q1 revenue up 4% to €16.8m. However, the division profit was down against that of the same period in 2018 at around €806,000 due to lower trade margins for plasticiser products.
Boryszew ERG is developing more fluid products for the aviation sector and produces polyester textiles, polyamides and PET flakes. The group’s biggest business remains the metals manufacturing division turning out rolled aluminium, zinc, copper pipe, and steel.