Coburg, Germany – In 2021, Brose, a privately held mechatronics and automotive seat maker, made its first loss since 1945. It is also reshaping its production base.
The company said revenues in 2021 were EUR5.3bn, significantly below budgeted figures. This is a result of production stoppages and slowdowns by automotive manufacturers because of coronavirus and the shortage of semi-conductors, it said.
However, it added, it had the highest order intake in its history in 2022, and expects to achieve growth of more than 20% between 2022 and 2024.
Shareholders are investing EUR1.3bn, while 2000 jobs will be lost and four plants closed in Germany by the end of 2022. The new money will go to new manufacturing facilities and administrative and production buildings, the company said.
It will go ahead with the 50:50 Sitech joint venture with Volkswagen in 2022. This will focus on automotive seating systems and interiors.
Brose is confident that income from this will help it to increase revenue to EUR7.4bn in 2022, and 9.2bn in 2024. Employment will increase from 24,500 before the German redundancies to 30,000 worldwide by the end of 2024. Sitech will be recruiting in Eastern Europe, North America and China.