Categories: Automobile

Plastic Omnium agrees to acquire units of lighting supplier Varroc for $634 million

[ad_1]

Varroc’s lighting division lost money in 2021, largely because of underutilized production capacity, Plastic Omnium CEO Laurent Favre said, adding that utilization rates are about 50 percent. Sales were about 800 million euros in 2021, he said.

Favre said Plastic Omnium hopes to bring Varroc’s lighting activities to a “double digit” EBITDA in two to three years, through better capacity utilization, improved operations and working capital management, and synergies with other units such as front-end modules.

“We’re very confident we can gain market share and develop the business in coming years,” Favre said in an online news conference. He said that Varroc was a leader in lighting for electric vehicles, supplying models such as the Volkswagen ID4, the Renault Megane E-Tech, the Rivian RT1 pickup and the Ford Mach-E. VW Group is Varroc’s biggest customer, followed by Ford Motor.

The addition of Varroc will complete Plastic Omnium’s lighting offer, he said. The Indian supplier specializes in head- and tail lights and turn signals, while Osram’s lighting activities center on interior lights and light sources such as LED modules.

“It makes a lot of sense to bundle the two activities into one division,” he said. Plastic Omnium’s other business units include bumpers and tailgates, front-end modules, exteriors and powertrain (including fuel tanks and hydrogen fuel cells).

[ad_2]
Source link
Admin

Recent Posts

Kijangwin is the latest online video gaming provider

Kijangwin is your brand-new go-to destination for all things internet gaming. Whether you're an informal…

2 days ago

How to Style Trendy Clothes Effortlessly

Hey there, fashion enthusiasts! Are you ready to dive into the world of trendy clothes…

3 days ago

How to effectively recover your frozen/stolen funds from fraudulent platforms

Hey there! If you're reading this, there's a good chance you've found yourself in the…

3 days ago

Important things about Core 2 . 0 regarding Hemp Users

Hey there, hemp enthusiasts! If you've been on the hunt for the next big thing…

5 days ago

Exploring the Features and Benefits of Strio

Hey there! Have you ever found yourself tangled up in the world of communication and…

1 week ago

The Importance of Pre-Sale Pest Control: Ensuring a Smooth Home Transaction

Are you worried that hidden critters might derail your home sale? Selling a house can…

1 week ago