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SOFIA (Bulgaria), January 11 (SeeNews) - Etem Bulgaria, a wholly-owned subsidiary of Belgium-based holding company Viohalco, decided to spin-off its production of extruded aluminium profiles business and the additional processing of aluminium profiles for the automotive industry into two units and to enter into an investment agreement with Spanish car parts maker Gestamp, Viohalco said.
As part of the agreement, two joint ventures will be established which will focus on the extrusion and processing of aluminium profiles for the automotive industry, in which an investment programme of some 30 million euro ($34.57 million) willl be implemented in the next three years, for the installation of a new extrusion line and related machinery for further processing of aluminium profiles in Bulgaria, Viohalco said in a press release on Thursday.
The agreement with Gestamp, a leading global group specialised in the design, development and manufacturing of metal components and structural systems for the automotive industry, will further strengthen Etem Bulgaria’s position in the automotive sector and help to ensure it can successfully meet the increased demand for aluminium products, following recent developments in the automotive industry, Viohalco said.
The agreement is subject to competition clearance approvals from the European and Turkish competition authorities.
ETEM was founded in 1971. The company is the first integrated designer and producer of architectural systems and aluminium profiles for industrial applications in Greece. The production facility in Bulgaria has an annual capacity that exceeds 35,000 tonnes per year.
Viohalco is listed on Euronext Brussels (VIO) and the Athens Stock Exchange (BIO). Its subsidiaries specialise in the manufacture of aluminium, copper, cables, steel and steel pipes products. With production facilities in Greece, Bulgaria, Romania, Russia, Australia, Macedonia, Turkey, the United Kingdom and the Netherlands, Viohalco companies collectively generate annual revenue of 3.7 billion euro.
Gestamp Automocion focuses on the design, development and production of metal components and structure systems for the automotive industry. The company's products portfolio includes skin panels and closure parts, structural and body components, chassis, bumpers and dashboard crossbeams, among others. Its customers include Volkswagen, Renault-Nissan, PSA, Daimler, General Motors and BMW, among others.