Austrian injection molding group Polytec acquires molder PPI, adds to own capacity tooAustrian injection molding group Polytec acquires molder PPI, adds to own capacity too

After some rough times, the financials are back in order at the Polytec Group, the orders book is full and the future looks bright. The molder's management is betting on a continuation of these positive developments as it announced its intent to expand its operations in Lohne, Germany and Hörsching, Austria, plus purchase for about €10 million the injection molding company PPI Plastic Products Innovation GM & Co  (Ebensee, Austria). Total investment, internal plus the acquisition, will be about €15 million ($21.2 million).

Polytec is an automotive Tier 2 supplier of components and also serves other industries with technical moldings. The purchase of PPI from its own, Huemer Invest GmbH, helps it on both fronts. PPI was founded in 2001 as the outgrowth of the captive molding operations of outdoor furniture manufacturer Steiner. The Steiner-brand furniture is still molded and marketed by PPI, but it has added custom molding work for other industries to include automotive. The company has machines large enough to process parts weighing up to 18 kg (40 lbs). PPI's sales for 2011 will reach about €26 million.

Regarding its internal growth, Polytec says it will expand the current Components facility in Lohne, Germany and its Car Styling plant in Hörsching, Austria. The plant in Lohne will be expanded to meet additional orders already placed in the non-automotive area (consumer electronics including JIS supplies) and so it can better handle increasing production volumes, especially with regard to molding of cylinder head covers.  

Polytec's Components business segment operates three injection molding plants in Germany (Lohne, Wolmirstedt and Idstein). In a company statement, it said its management had decided to acquire PPI and its injection molding assets rather than further expanding the existing business site in Wolmirstedt. PPI is within driving distance of a number of automotive manufacturing hubs including Ingolstadt, Györ, Bratislava, Munich and the Austrian engine plants of BMW and Opel.

PPI in the past had been on occasion a partner for Polytec's Car Styling division for a number of injection molding projects, and Polytec says PPI will increasingly carry out projects in the area of original equipment and small series on behalf of the Car Styling segment. Additional product groups produced by the PPI plant include industrial products and garden furniture.

In the first half of 2011, the Polytec Group reported an increase in sales of 10.8% to €405.4 million. Group EBITDA rose by 141.2% to €40.0 million in the period. On June 9, 2011 Polytec announced its divestment of its "Interior" business area to Toyota Boshuka.