Paving the way for growth AD Plastik

PAVING THE WAY FOR GROWTH

Marinko Došen As a company that works with some of the biggest names in the automotive industry, Croatian AD Plastik is something of a trendsetter. Operating in a country that does not have its automotive industry and is currently going through a prolonged economic crisis, AD Plastik is a shining example of how a home-grown Croatian company can contribute to the regeneration of the local economy. Vanja Švačko talks to Marinko Došen, the new president of the management board, to find out more.

The development and manufacture of plastic components for the automotive industry is the foundation upon which AD Plastik has built up its core business, vision and values. There are four main technologies used in the manufacturing process: injection moulding/ painting, thermoforming, extrusion and blow moulding. Its product portfolio encompasses: plastic parts for vehicles such as instrument and door panels, headliners, sun visors, grab handles, pillar trims etc (for interiors); and bumper skin components, side trims, wheel arch liners and extruded sealing systems (for exteriors). AD Plastik offers independent development, industrialisation and manufacturing of those parts from the existing production sites or in collaboration with partners. Its customers include Renault, Nissan, AutoVAZ, Dacia, Opel, PSA, VW, Ford, Fiat, BMW, Faurecia, Visteon, Antolin, Webasto, Hella, Magna and many others.

Although two years ago the company was looking to increase sales of its non-automotive products, today the objective has somewhat changed. “Our ultimate goal is to become an eastern European leader in the field by offering innovative solutions and

Acoustic and Thermal Insulators

ARI® GEOPANNEL® is a family business founded in 1944. Our aim is to achieve a better and more efficient and sustainable insulator range. Our technology, unique at a European level, together with the study and development of new materials in coordination with other private companies, research centres and European Universities, has led us to create and manufacture products completely adapted to the toughest demands of the best automobile and construction companies.

Since its foundation, ARI® GEOPANNEL® has been devoted to the regeneration of textile fi bres and its later use as base material in the production of felt applied in the footwear, car, upholstery, bedding, labour protection and construction industries. In order to fi ght the petrol dependence and its high environmental impact, we continuously develop, create and improve our products basing them on natural fi bres and resins, 100% recyclable. Sustainability, effi ciency, price stability and adaptability to the needs of each project mark the character of our products.

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Weuse the latest high-tech technology for felt production, foams, kiss cutting, die cutting, lamination, self-adhesive, and our own labs including fi re tests, chemical tests, dynamometers and acoustics even with a homologated alpha cabin in order to achieve all requirements of our customers.

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services. Focusing our strategy on improving the core business has consequently led to the discontinuation of the part of portfolio we had outside of the automotive industry,” explains Mr Došen.

Turning the crisis into an opportunity

AD Plastik has nine plants in Croatia, Serbia, Slovenia, Russia and Romania. Following the opening of an additional subsidiary in Russia and its first facility in Serbia in 2012, the company invested heavily in machinery and tools to meet the market needs. The actual market conditions and a significant depreciation of the Russian ruble resulted in a decrease in sales in the Russian market – but sales did grow at Group level.

“Despite the complex situation in that region,” continues Mr Došen, “we have succeeded in expanding our production capacities. Various economic difficulties forced many companies to close their businesses, including a number of our competitors, which has given us the chance to increase our market share and to strengthen our customer base. We have used this crisis to seize opportunities and therefore we do not exclude the possibility of acquisitions or joint ventures in the Russian market. Russia will always stay in our focus.”

Of the about €50 million invested over the past two and half years, €30 million was used for financing new factories in Serbia and Kaluga, the extension of production capacity in Togliatti, project X52, and other Russian projects. The majority of them are starting this year with active serial production, which is expected to lead to an increase in profits in comparison to last year.

Project Edison

The remainder of the investment (more than €20 million) was put towards preparations for a new collaboration with Renault and Daimler Chrysler under the project name ‘Edison’. Renault has chosen AD

Plastik as a supplier of exterior and interior plastic parts for the new vehicles Renault Twingo and Smart 2S and 4S, whose total annual production is estimated at about 300,000 units.

Mr Došen says, “The sale of Renault Twingo and Smart with two and four doors started last year. According to our predictions, the production of these models should continue for the next five to seven years, depending on their market success.”

To meet these demands, the company has recently built a new, fully automated painting line, one of the most advanced technological solutions for this type of production and subject to the highest environmental standards.

The importance of innovation

AD Plastik pays special attention to strengthening the development of its knowledge and innovation. Last year the company closed a deal with Chrysler thanks to its newly designed grab handle which is ergonomically sophisticated and has a high level of functionality. The company was able to come up with solutions that also significantly reduced installation time, while meeting high quality requirements.

In the Russian factory in Kaluga the company is starting the mass production of injected parts for the interior and exterior of the new Dacia Duster, whilst from the factory in Togliatti more orders are expected from Dacia Logan and Sandero.

Carefully considered acquisitions

Talking about future prospects, Mr Došen underlines the fact that the organic expansion at AD Plastik continues through primary revenue growth of more than 25 per cent in Croatia, while at the group level there are expectations of 12 per cent growth in the current year.

“The planned growth and profitability of our company are steadily increasing. Our objective to utilise existing production capacities to the maximum is logical given the investments in the past two years. But it does not exclude plans for expansion into new markets. Therefore, we expect the future development of our company to come not only through organic expansion but through possible acquisitions or partnerships as well.” n

Visit: www.adplastik.hr