Investing in growth Cooper Standard Automotive Czech Republic

INVESTING IN GRoWTh

Cooper Standard Automotive Czech Republic s.r.o., based in Žďár nad Sázavou, is the largest European production plant of Cooper Standard Automotive, the global producer of systems and components for the automotive industry. The group restructuring, initiated two years ago, has brought positive changes for the Czech subsidiary – in 2017 the company commissioned a new factory and capacity is set to further increase. Romana Moares reports.

Cooper Standard, headquartered in Novi, Michigan, USA, is a leading global supplier of systems and components for the automotive industry. The company is a leader in gamechanging advances in material science to produce green solutions and automotive components that reduce weight, lower emissions, enhance design and improve vehicle performance for customers. Products include rubber and plastic sealing, fuel and brake lines, fluid transfer hoses and anti-vibration systems. Cooper Standard employs more than 30,000 people globally and operates in 20 countries around the world.

In 2015, the group launched an extensive programme to restructure its European manufacturing footprint based on current and anticipated market demands. The aim was to further improve Cooper Standard’s European capability by removing excess capacity, improving cost structure and shifting some production to its Eastern European facilities. Actions include consolidation of operations to improve efficiencies and closure or downsizing of certain facilities with high costs and non-utilised capacity in western Europe, including Germany and France. Cooper’s global leaders confirmed that a healthy European business was also essential to ensuring that Cooper Standard is properly positioned to support its local and global customers.

Growing plant

The restructuring activities have significantly boosted the position of Cooper Standard Automotive Czech Republic, the group’s biggest production facility in Europe. Launched in 1998 under the name of Siebe Controls C. R., the company, based in Žďár nad Sázavou, started to operate as Cooper Standard Česká republika s.r.o. in 2001. The plant is part of the Metallic group, which includes factories in Germany (Schelklingen, Grünberg a Hockenheim), France (Creutzwaldu) and another Czech subsidiary in Turnov. In 2007, the production area was extended by 7000 square metres to 18,000 square metres. Key technologies include metal and plastic pipe bending and assembly equipment and final product assembly lines containing thousands of machines operating under strict emission limitation regimes. Raw materials, including the steel and plastic pipes, are supplied mainly from the group’s sister companies. The plant manufactures a variety of automotive components including fuel systems, brake systems, fluid transfer systems, valves and others.

As the third largest provider of fluid transfer systems in the world, Cooper Standard’s products control, sense and deliver fluids and vapours for optimal powertrain and HVAC operation. The portfolio of fluid transfer products addresses the full spectrum of temperature requirements, while offering weight reduction, abrasion resistance, corrosion protection and finished assembly aesthetics. By rigorously monitoring the safety, fuel efficiency and emission standards and regulations the company is a step ahead of its competitors. The customer base includes practically all car makers in Europe and some companies in Asia and North America.

Increased capacity, stronger position

As a result of the group restructuring, Czech production capacity has been significantly boosted. In the autumn of 2017, the company launched a new factory, built on a greenfield site some 30km from the older plant. Although the new factory will copy the portfolio of the existing plant, the focus will be different: while the factory in Žďár nad Sázavou, now employing over 1000 people, makes primarily plastic brake and fuel systems, the new plant will house the production of components made from metal.

The investment, estimated to be worth some CZK 1bn (€37m) was started in 2016 and the first hall was completed within over a year. Cooper Standard is expected to create about 450 new jobs at the production facility. The project is scheduled to be fully completed by 2020, according to Jan Barák, the chief executive of Cooper Standard’s Czech subsidiary. In the first phase of the investment, i.e. by the end of 2017, the new factory took on some 200 people.

Customers of the Czech Republic’s Cooper subsidiary encompass all Jaguar factories (including the recently opened plant in Slovakia), PSA, Opel, Renault, Daimler as well as the Volkswagen Group. New cusomers include Audi and Porsche. The company achieved a turnover of CZK 3.5 billion last year and is set to grow further. The second stage of extension is already under way.

The development of Cooper Standard Automotive Czech Republic will follow the group’s strategy of strengthening its position on a global scale. In the recent past, the company has met or exceeded its growth goals and is now poised for a future of growth as a top global automotive supplier. n