STS Group AG plans further expansion in China
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DGAP-News: STS Group AG
/ Key word(s): Expansion
STS Group AG plans further expansion in China - Memorandum of Understanding signed with Government of Taixing City for new manufacturing plant - Next milestone for the planned expansion of business in China Hagen, 30 May 2022. STS Group AG (ISIN: DE000A1TNU68), a global systems supplier to the automotive industry listed in the General Standard of the Frankfurt Stock Exchange, and its major shareholder, Adler Pelzer Group (APG), announce plans to further expand their presence in China. The companies signed a Memorandum of Understanding with the Government of Taixing City, under the patronage of CHIC, the Sino-Italy Foundation. STS Group has already a strong footprint in China with three plants and a research & development centre. The Group is one of the few specialists for the commercial vehicle market that is both a global supplier and has a local engineering center in the People's Republic of China, the world's largest growth market for commercial vehicles. The acquisition of STS Group by APG last year has been well received by Light Vehicle and Commercial Truck manufacturers and further reinforces the development plans of STS Group in China. The new future location in Taixing will bring the perspective of a convenient location close to its customers, with advantages of the proximity of a cluster of intelligent manufacturing and new material industry. It will also bring cost savings and protects the environment, thanks to the Taixing City development actions. When in operation, the new STS plant in Taixing will manufacture parts for its customers using its innovations and latest technologies of composite material for interior and exterior hard trims, including machining, fully automated painting and pre-assembly of submodule for easy assembly to cars or trucks. Alberto Buniato, CEO of STS Group AG: "China is an important core market for us and contributes significantly to the earnings situation of the STS Group. With the new location plans we will not only expand our footprint, but also lift the synergy potential the entire Group offers. Executing our further expansion in China marks the first milestone on our organic growth roadmap after the merger, which will set the foundation for accelerated revenue and earnings growth in the coming years." China is a clear growth driver for the automotive industry. Composites material in automotive, for structural and body parts, are growing in customer interest for New Energy Vehicles (BEVs, PHEVs and fuel cell vehicles) and the market is huge. In 2021, 3.5 million vehicles with alternative drive systems were sold alone in China. The trend to Autonomous Driving will increase to as much as 70% of new cars in 2050. Thanks to lightweight, increased function integration, permeability to Lidar waves and easier diversity management and at the same time the good adaptation to smaller production series, these developments are paving a bright future for a global systems supplier like STS Group.
30.05.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | STS Group AG |
| Kabeler Str. 4 | |
| 58099 Hagen | |
| Germany | |
| E-mail: | ir@sts.group |
| Internet: | https://sts.group |
| ISIN: | DE000A1TNU68 |
| WKN: | A1TNU6 |
| Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1361427 |
| End of News | DGAP News Service |
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1361427 30.05.2022
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