“This is a very big achievement because it can also draw other major clients as it shows you are playing in the major league of car subassemblies. Romania can easily absorb three times as many subassembly producers because next spring the Sibiu-Arad highway will be completed and producers will find it easier to export,” said auto sector analyst Adrian Mihailteanu, editor in chief of ProMotor magazine.
Compa has in the past few years invested tens of millions of euros in partnerships with giants such as Bosch, Delphi and Honeywell.
Compa last year obtained a record-high profit, of 22.5 million lei (EUR5 million) and for this year has budgeted a net profit of RON19.6 million (EUR4.6 million).
The car parts manufacturer says it has so far managed to avoid the significant decline in orders experienced by the automotive sector internationally by diversifying its product range and by investing in new partnerships with giants in the sector.
Compa exports the bulk of its production and last year reported a record-high turnover and profit despite the sector’s problems.
“The car industry is going through a terrible crisis, but for us it was an extraordinary year. This had to do with the fact that we developed a very wide range of products. (…) We are always looking for partners that can ensure our volume of orders,” said Ioan Deac, general manager of Compa Sibiu.
The company’s management expects a slight decline in its indicators this year against last year, but anticipates a sales rebound starting in the last quarter of the year.
For 2013 Compa has budgeted 8% lower sales, of RON462 million (EUR105 million), while the company’s net profit is expected to decline 14% to RON19.3 million (EUR4.6 million).
“In April-August we anticipate a decline in the volume of production because of lower car orders, with a return to normal expected as of September.,” Deac said.
“We have a lot of projects this year that need investments. They will start operating as of January 2014. Recently we won a contract with Bosch for the production of subassemblies for injection systems – this is a EUR10 million business when it matures,” the manager says.
Compa plans to invest around EUR8.5 million in 2013 in the project developed in partnership with German group Bosch and EUR4 million in the one developed with Honeywell.
Compa’s partnerships with three major international groups – Delphi, Bosch and Honeywell – contribute around 80% of the company’s turnover.
The company exports a large part of its production, but imports the bulk of its raw materials. 88% of them were imported last year. The head of Compa says he uses imports because he cannot find quality and complex enough products in Romania.
“Can’t you see the entire Romanian steel industry is bankrupt and you cannot rely on anything? We import highly complex products for subassemblies and there’s no chance for now of getting our supplies from Romania,” Deac said.
Compa is 54.6% held by its employees through an employee association.
(English version by Daniela Stoican)