Modern production of plastic components for the automotive industry

Basic information

The subject of sale is 100% share in a company focused on the production of plastic components for the automotive industry. The company has been operating on the market for more than 30 years, and since its establishment it has continuously invested in the modernization of its production capacities and currently has modern technological equipment that meets the strict requirements of customers from the automotive industry.

The main focus of the company includes:

• production of plastic components by plastic injection molding;
• extrusion of plastic products;
• metalworking.

The company’s customers are primarily companies from the automotive industry, with currently 90% of the company’s production for the automotive industry. The company is currently a Tier-2 automotive supplier. The company’s product portfolio mainly includes plastic moldings for the automotive industry and other smaller industrial products, for example for electronics manufacturers.

The company has its own production area, including a production hall and a storage hall in the industrial zone. The halls have a total area of ​​over 16,600 square meters and their market value, including the land, was estimated by an expert at 2.05 million EUR. The production facility is equipped with the most modern injection molding machines from renowned foreign manufacturers. The company has been renting office space in a building adjacent to the production area for a long time. The technological equipment includes material dryers, thermoregulation devices, plastic crushers and conveyor belts with separators. Given that the company produces for the automotive industry, the company ensures the high quality of its products to meet standards within the automotive sector. The quality of production is confirmed by ISO 9001:2015 and IATF 16949:2016 certificates.

The company employs approximately 35 employees, with 7-8 production workers working on one shift. The company’s management is overseen by the CEO, who is also responsible for business activities and acquiring new orders.

During 2020 – 2021, the company was adversely affected by the Covid pandemic and related supply chain problems, the company generated losses and it was necessary to inject some financial assistance into the company. The company is now stabilized, but the company’s economy would certainly benefit from additional custom equipment and utilization of the company’s production capacities.

The company has space and capacity for further expansion of production, which would also significantly help improve the company’s economy. This may mean additional potential for an investor who already has some other activities in the field. Even with the current company setup, without further investments in machinery or expansion of premises, it is possible to increase the company’s turnover by an estimated 1.2 – 1.4 million by delivering additional orders to the company. EUR per year. If the company’s capacity needs to be increased, it is possible to introduce a weekend shift. The company currently works three shifts during the workweek.

Another potential capacity is practically a whole hectare of land, where additional production facilities could be built if necessary. At the same time, there is still free space in the neighboring plot, almost 11 thousand square meters for further use, which could possibly be purchased from the owner. In the case of an investor who prefers to significantly expand production in the future, the area is ideal for this.

The owners of the company are ideally looking for a strategic investor who would help them exploit the capacity of the machinery and technological equipment that the company owns. The owners will therefore prefer investors from the industry, or investors already active in automotive production or in another industry, who would be able to bring additional orders to the company. The reason for the sale is the older age of the owners.

Overview of the company’s financial results