Plastic Omnium expands footprint in Russia, India

Plastic Omnium expands footprint in Russia, India
Plastic Omnium expands footprint in Russia, India
Plastic Omnium expands footprint in Russia, India

Plastic Omnium (Paris) is continuing to expand in countries with fast-growing automobile markets, particularly Russia and India. In Russia, Omnium Auto Inergy has announced plans to construct a new plant in Saint-Petersburg in 2013, to service contracts obtained recently from Nissan, General Motors, and Ford. The plant will be built by the 51%-owned joint venture officially created in April 2012 with DSK, Russia’s leading fuel systems manufacturer. It will be the Group’s third manufacturing facility in Russia, along with the Stavrovo plant that makes fuel systems mainly for Renault Dacia and the Togliatti plant that primarily supplies Avtovaz.

By 2015, the division expects to be manufacturing over a million fuel tanks in Russia, giving it 40% of the local market. In India, Plastic Omnium Auto Exterior has acquired exclusive control of its joint venture in Pune, after buying out the 40% stake held by local partner Varroc. The Pune plant supplies bumpers to General Motors, Mahindra & Mahindra and Volkswagen. Plastic Omnium Auto Inergy operates two plants in India, one of which is majority-owned alongside Maruti Suzuki.

The division has recently won an order to supply the first plastic fuel tanks to Hyundai in India, after being awarded a similar contract by Toyota in Ranipet, close to Chennai. The Group will continue to expand in India, riding on the momentum created by the country’s vibrant automotive market and the growing trend among automakers to replace metal fuel tanks with plastic ones. The BRICs already account for some 10% of consolidated revenue and the Group is holding firm to its objective of raising the percentage to 20% by 2015.

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