By Rhoda Miel, Plastics News staff
Aurora, Ontario - Magna International is continuing to beef up its capacities in eastern Europe, buying a Russian moulding firm that makes parts for one of Russia's biggest automakers.
Technoplast, based in Nizhny Novgorod, had sales of Euro 29 million ($45.2 million) in 2007, making interior and exterior plastic components.
Ontario-based Magna has manufacturing plants throughout eastern Europe, including Poland, Slovakia, the Czech Republic and Hungary.
The Technoplast acquisition represents a major expansion into Russia just as automotive production is beginning an expected production climb from about 1.5 million vehicles made there in 2007 to 2.4 million by 2011.
"This acquisition expands our capability in the rapidly growing Russian market, positioning us to grow with both the Russian and international [automakers] in the region," said co-chief executive officer Siegfried Wolf said in a 1 Aug news release.
The two companies did not disclose the purchase price.
Technoplast's customers include the GAZ Group of Nizhny Novgorod, which is a subsidiary of Russian Machines, controlled by Russian billionaire Oleg Deripaska. Deripaska also controls 20 percent of Magna through a $1540 million investment in 2007.
Plastics News is a sister publication to Urethanes Technology International