AD Plastik Group has published the Interim Report by Management for the first six months of 2019, showing that the operating revenue increased by 12.4 percent compared to the same period last year and amounted to HRK 713.7 million. The realized net profit of the Group in the reporting period amounted to HRK 57 million, which is an increase of 1.3 percent compared to the first six months of 2018. The Group’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) also recorded a growth of 3.4 percent and in the observed period it amounted to HRK 103.4 million.

„The serial production of the new Clio 5, one of the best-selling models of the Renault Group, began in June and due to the excellent demand and acceptance of this model in the market, we’ll have a significant increase in the quantities produced and the full implementation of all production activities during the autumn. Twingo, Smart and Clio as well as the start of the serial production of the new Ford Puma which is ahead of us provide us with stability of business in the upcoming period,“ said Marinko Došen, President of the Management Board of AD Plastik Group.

The net financial result was more favorable in the observed period, and the net financial debt increased compared to the end of 2018, although it decreased compared to the first quarter. This is mainly due to the realization of a loan to finance investments in the parent company.

„The announcements of our customers are good, which is confirmed by new deals sealed in the reporting period for the European market worth EUR 57 million. First deals sealed for our Hungarian company since its takeover are among them, which is significant because of the continuity and improvement of cooperation with new customers in the Group’s portfolio. Our revenue shows that we have been constantly growing better than the markets themselves in which we operate and confirms the validity of our business decisions, as the European and Russian markets continue to record a smaller fall in new car sales,“ said Marinko Došen.

This summer in Dalmatia was marked by a tremendous number of fires. One of the biggest ones hit outskirts of Split and its surroundings. Thus, in mid-July fire flames reached immediate vicinity of our factory in Solin. That night noone in Split could sleep peacefully. People fighting the fire were exhausted and tired and horrific footages of fire that swallows everything before it have spread around the world. The very next morning R & D department engineers in Solin initiated an urgent action of collecting aid for exhausted firefighters, following the instruction of the competent services. Management Board of AD Plastik Group immediately responded to aid collection with donations for the purchase of food and beverages. Colleagues from R & D department transferred collected aid to Žrnovnica with a van, thus expressing our support.

AD Plastik Group recently concluded new deals with the Renault-Nissan-AvtoVAZ Alliance for the Russian market with a total value of EUR 71.4 million. More than 80 different exterior components will be produced at the AD Plastik Group plant in Togliatti, which will expand its injection moulding capacities due to new deals.

In addition to the production of exterior components, referring to bumper components, rocker panels, mudguards and under engine covers, an experienced team of Group engineers is also responsible for the development of a large number of positions on which the deal was sealed. In this manner the Group has strengthened its position as a development supplier of the injection-moulded components of the Renault-Nissan-AvtoVAZ Alliance.

New deals refer to the third generation of Logan and Sandero vehicles produced in Russia under the Renault name at the AvtoVAZ Togliatti factory. The new generation of these vehicles will be produced in Romania, Russia, Algeria, Morocco and Colombia under a common global name and appearance. 

Renault Logan and Sandero are a sedan and compact version of the same vehicle, and they are among the twenty best-selling vehicles in the Russian market. Therefore, really high expectations for redesigned models, whose sales are estimated at over 140,000 vehicles annually only in Russia, are not surprising. The start of serial production is planned in the second quarter of 2021, and the estimated duration of the project is eight years.

“The Renault-Nissan-AvtoVAZ Alliance is among the key car manufacturers in Russia with more than 33 percent market share and it is as well one of our biggest customers. By concluding new deal, we have secured the position of the key supplier on this project, but we have also strengthened the important position of the development supplier. New vehicles are being manufactured on a platform that was introduced for the first time on the new Renault Clio 5, and they are expected to reach a maximum of five stars for safety on the Euro NCAP test. The vehicles will be somewhat larger than the existing models, and a strong impact of Renault Duster is evident in the design,” said Sales Director for the Russian market of the AD Plastik Group, Mislav Čelar.

Day of Family, Love and Faithfulness is traditionally celebrated in Russia in July, and a family photo contest was held on that occasion at the AD Plastik Togliatti factory. The purpose of the photo contest called “Family in the lens!” was to share the joyful moments from the life of the company’s employees. Sharing photos of happy family moments and experiences with each other, employees further connected and got to know each other.

The sixth conference of the Lider’s Club of Exporters was held at the Congress Center Forum in Zagreb, under the slogan „Smart ones know what export is for“. The Export Conference is the most important annual activity of the Lider’s Club of Exporters, a project initiated to sensitize the public, and especially those who make political and economic decisions, on the need for stronger export incentives as a prerequisite for economic and GDP growth.

Opening a conference attended by 150 participants, Lider’s Editor-in-Chief Miodrag Šajatović reminded that export growth is the most important factor of GDP growth. Minister of Economy Darko Horvat noted that GDP has been growing, primarily due to the strong state contribution to the implementation of large investment projects. At the round table with the topic “EU vs. the rest of the world”, which was moderated by the Lider’s deputy editor-in-chief Manuela Tašler, along with the President of the Management Board of AD Plastik Group, director of Šerif Group, Damir Pašić, also participated. In the conversation they tried to get the answer to the question whether less demanding, populous markets outside the EU were a better and more prospect opportunity for exporters. “The main markets for the AD Plastik Group, the automotive component manufacturer, are the European Union and Russia. There are no major differences in conducting business since it is a business whose quality standards are always at the same level. The lack of automotive industry in Croatia is one of the challenges we are facing, and there are a number of situations that make difficulties to our competitiveness in the global market. For example, labor costs are up to 40 percent lower in some other countries where we conduct business,” noted Došen, among other things. He recalled that AD Plastik has invested between HRK 250 and 300 million in development and growth and it has employed 300 new workers.