One of the leading auto component players in India, Somvardhana Motherson Peguform is setting up its second manufacturing plant at Bavaria in Germany. The plant is likely to go on stream by November this year, according to Europeanplasticsnews.com.
The report further said that the greenfield plant, located on 39,000 square metre manufacturing site at Schierling, near Regensburg produce painted vehicle bumpers and other parts for German auto makers. What is more, the new plant will create an estimated 500 new jobs by 2017, quoting the company, the report said.
SMP already has its bag full with multiple high volume orders from German car manufacturers. In order to cater to the burgeoning demand, the company is in a hurry to ramp up its bumper module capacity of its Germany facility. SMP already has a manufacturing facility at Neustadt an der Donau, near Schierling.
Ground breaking event
The ground breaking event at the site was held back in Septamber last year. SMP is installing plant and machinery through the first three months of this year. The new plant will have a large scale robotic paint shop capable of handling 1.4 million vehicle components a year that includes bumpers. The firm has plans to locally produce large bumper blanks at plastic injecction moulding units, just before they are painted. After this, the assembly will happen at SMP’s new facility. This helps SMP to keep wearhousing and transport costs at bay, noted the report.
Quality and flexibility
The high level vertical integration of the plant, akin to its Neustadt plant will enable the Indian auto component major’s combine quality with flexibility, besides improving efficiency and effectiveness. At the first plant, SMP manufacturers bumbper modules, rocker cover panels, instrument panels and interior door panels for the German vehicle manufacturers. Samvardhana Motherson Peguform was formed back in 2011, when the Noida-based Samvardhana Motherson acquired a majority stake in German auto plastic component moulder, Peguform with 16 facilities spread across seven nations.