Adval Tech switches auto parts capacity from Swiss plant to Hungary

Photo by Adval Tech Adval Tech operation at Szekszárd, Hungary

Auto parts producer Adval Tech is in the process of moving plastics moulding capacity to an expanding operation in Hungary from a Swiss plant that will shut down later this year.

The planned closure of the group’s plant at Uetendorf, south of Bern, Switzerland with component production switching to other units at Szekszárd in southern Hungary and Endingen am Kaiserstuhl, Germany is part of broader restructuring by the Swiss group.

Meanwhile, this month (Sept), Adval Tech announced it had agreed to sell off its consumer goods plastic components operation in Pluak Daeng, Thailand to Singapore-based precision plastic parts maker Sunningdale Tech Ltd.

Its disposal of Adval Tech (Thailand) Co Ltd, which employs 80, was in line with the Swiss group’s continuing strategy of focusing on certain activities, particularly in its main target market of the automotive sector.

Sunningdale Tech is a significant global plastics processor with more than 1,000 injection moulding machines producing auto, consumer and healthcare parts at 20 plants in Mexico, Latvia, Brazil and across Asia. It boasts more than 2.8 million m2 of factory space.

Adval Tech, based in Niederwangen, Switzerland, specialises in manufacturing both plastic moulded, composite and metal automotive parts. It has operated in Hungary since 2007 and early last year split its national subsidiary into two separate businesses, one, Adval Tech (Hungary Kft., injection moulding plastics parts and the other, Adval Tech (Hungary) Plant 2 Kft. making and assembling metal components.

During 2016 and 2017, the publicly quoted group won several large orders for plastics components which are expected to keep the Hungarian operation busy for several years. These include a contract for air flow systems from a new automotive sector customer, part of the Volkswagen group, with series production set to start next year and run for around four years.

From 2019, Adval Tech will also start turning out parts for a front panel, including radiator shutters which it will manufacture for different models of various OEMs. That business is due to continue for seven years, the firm said.

It attracted a further order to supply oil guidance components for another automotive OEM with series production in Hungary also set to start in 2019. That business is likely to last for about six years.

Adval Tech group, which employs 1,400 overall, reported annual income of €182.5m for last year and has achieved first half 2018 sales of €91.2m, slightly up on the same period in 2017. It reported 2018 first half pre tax profit of €9.75m.