Automotive components, plastics and controls manufacturer TransTec is looking to Germany for its next acquisition as the company attempts to cut costs.
‘This might be an extension to existing component activities or a new business that will add value,’ said Richard Carr, chief executive of the Birmingham-based group.
Carr said moving into Germany would enable TransTec to source cheaper metal parts from eastern Europe, as it continues efforts to drive costs down.
Automotive is the biggest of the group’s three businesses, accounting for about £250m of last year’s annual sales of £349m.
TransTec this week reported a 34% rise in pre-tax profits to £10.2m for the six months to June, from sales of £209m.
A strong contribution from Spanish engine parts supplier Cremsa, acquired in January, boosted manufacturing turnover and profits by 38% to £169m and 46% to £10m respectively.
With Cremsa’s input, TransTec has also won a contract to supply major car makers in Europe with a new exhaust gas recycling valve and gas cooler assembly. The new unit combines in a single assembly what was formerly ten separate components. It should boost sales by a further £10m over the next four years.
Demand from Rover for plastic inlet manifolds for the K series engine has also boosted sales in the group’s plastic products business.
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