Supplier Brose expands US plants to hit aggressive targets

Coburg. Brose hopes to significantly increase the size of its business, primarily through growth in the USA.

The supplier hopes the US market will account for 25 percent of revenue by 2008, up from 15 percent last year, Brose Group CEO Michael Stoschek said.

Stoschek said sales will increase by 50 percent to 2.7 billion euros in the next five years, even though the supplier will only manage a revenue increase of 2 percent to 1.8 billion euros in 2003.

By 2005 Brose will have a higher proportion of income from abroad than in Germany, which now accounts for 45 percent of revenue.

Brose's US customer base is already growing.

"We received new contracts in the USA for both door systems and seat adjuster controls," Stoschek said.

The company is building three plants in North America to supply customers on-site. It will have a door systems factory in Chicago to supply Ford and Mitsubishi; a door module plant in Tuscaloosa, Alabama, to supply the Mercedes-Benz M-class starting in 2005; and a seat adjusters factory in London, Ontario, Canada, to supply US customers starting in autumn 2005.

"So far we only produced in Mexico, in order to supply the North American market," Stoschek said.

Brose plans to open seven plants worldwide. The remaining four factories will be built in Rastatt, Germany; Gothenburg, Sweden; Gent, Belgium; and Saarwellingen, Germany.

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