Plastic Omnium in China: New Plants, New Customers and New Products to Double Revenue to €1 Billion in 2018

PARIS--(BUSINESS WIRE)--

Regulatory News:

With the Auto Shanghai Exhibition around the corner (April 20-29, 2015), and the Group counting among its participants, Plastic Omnium (Paris: POM) sets out its latest developments on the Chinese market.

With 22 million vehicles produced in 2014, China is the leading global automotive market. It accounts for one-quarter of automobile production worldwide. The country also represents almost half of the automotive market growth over the next four years, i.e. 6.5 million additional cars produced in China by 2018, against a total of 14 million cars produced worldwide. In addition, environmental standards are developing in the country: the aim to reduce carbon emissions is in keeping with Plastic Omnium's expertise.Accordingly, China represents a major source of growth for Plastic Omnium - the global leader in auto exterior parts and fuel systems - and the Group is developing its globalization and innovation strategy in the country.

Globalization: new plants and new customersAfter commissioning four new plants in 2014, the Group will launch four new production units in 2015-2016, thereby increasing its industrial network in China to 25 plants. Plastic Omnium is now established in seven major Chinese production areas (Shenyang, Beijing, Yantai, Shanghai, Wuhan, Guangzhou and Chongqing).The Group also works with nearly all of the world's carmakers and recently expanded its portfolio through new contract wins with Volvo-Geely, FCA (Fiat Chrysler) Group and Daimler Group.In China in 2014, Plastic Omnium’s revenue* grew 23% while the Chinese automotive production increased by 9%; 2015 will be another year of strong growth.

Innovation: new productsThe Group has 500 engineers and technicians in China, who are currently developing more than 100 new programs.In the wake of the major success achieved in Europe with its new range of lighter tailgates, Plastic Omnium launched the production of three tailgates made from composite materials for Capsa (DS6), Volvo (XC 60) and Land Rover (Evoque) in mid-2014. The first all-thermoplastic tailgate for DPCA (308) will be delivered in 2015.As for fuel systems, the Ningbo plant will produce TSBM® tanks for Shanghai General Motors in mid-2015, thereby reducing pollutant emissions. The Group recently won its first hybrid vehicle order from Volvo-Geely, which will be produced in 2017.

Increased market share and revenue* doubled to €1 billion in 2018The effect of this globalization and innovation strategy on the Chinese market will be increased market share in 2018, totaling 25% in bumpers (2014: 18%) and 15% in fuel systems (2014: 8%).Revenue* will double, with €1 billion expected in 2018, compared with €0.5 billion in 2014.Accordingly, China will contribute to the growth expected by the Group to reach total revenue* of €7 billion in 2018.

Plastic Omnium will be present at the 16th Auto Shanghai Exhibition from April 22-29, 2015 (media days on April 20 and 21), Hall 5.2.

Revenue*: economical revenue reflecting Group’s business and operational position. It includes revenue from jointly controlled entities in proportion to Plastic Omnium's degree of control (BPO, HBPO and YFPO).

Plastic Omnium is the world leader in automotive body components and modules, automotive fuel systems, and waste container solutions for local authorities and companies. The Group has 22,000 employees across 111 plants, 21 R&D centers and 30 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).

Plastic Omnium
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Source: Plastic Omnium

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