Inter Groclin Auto : New appointments from VW and GM for Groclin

On 22 and 27 July Groclin's Management Board signed three letters of intent received from Volkswagen and General Motors for the batch production of Opel Zafira, VW Crafter and VW Passat CC seat covers.

The appointment related to VW CC is particularly important to us because it is the first order for the supplies for the German concern's passenger cars. Our cooperation to date has covered only commercial vehicles such as Caddy, T5 and T6, hence it is a breakthrough. Developmental works on that project will be performed through our daughter company, SeaTcon, Wendlingen, www.seatcon.com whereas the production will be handled by our plant in Ukraine, approx. 40,000 cars per year. The supplies are estimated to total approx. EUR 60 m. The production of VW Crafter's seat covers will be commenced as early as in the first half 2016, mostly likely in Poland, approx. 40,000 cars per year. The order totals EUR 12m. Based on GM's letter of intent regarding Opel Zafira, the order totals EUR 24m. Just like in the case of VW CC, the production will be launched in Ukraine.

The said models will be produced throughout a period of six years at least. Accordingly, the company plans to increase its headcount in its Uzhhorod-based plant. Moreover we plan to launch a plant in Dolyna which to-date has not been involved in Groclin S.A.'s manufacturing activities.

We are very glad about broadening our existing co-operation with Volkswagen and General Motors, its long-term nature of the supplies and their scope. The appointments confirm the strategy of all parties involved aimed at the development of mutual relations.

The quantity of the supplies and their value are impressive, thus the company and its staff alike face numerous challenges and enormous workload. The company's Management Board is, however, fully convinced that the projects will be a success.

Thanks to new contracts, in the near future Groclin will be able to return to its growth path as regards the seat cover business. The company continuously works on new contacts to expand co-operation with its existing customers and to win new ones. The company's Management Board has positively rated the automotive industry in Europe, in particular, its tendency to grow. We hope to become an integral part of that process.