Odelzhausen. W.E.T. Automotive Systems, the market leader for car seat heating systems, aims to expand its operations.
The Bavarian supplier could make acquisitions to grow its seat heating systems business, CEO Caspar Baumhauer said.
W.E.T. Automotive Systems is based in Odelzhausen, near Munich. North America accounts for about 40 percent of its revenues, Europe for 45 percent and Asia for 15 percent. The company expects its greatest growth in coming years to be in Asia.
In 2003, the company acquired supplier SeaTex to strengthen its seating business line. SeaTex specializes in processing upholstery coverings and leather.
W.E.T.'s other fields of business include manufactured cables, flat cables and industrial heating elements.
"We are also going to expand the cable business," Baumhauer said.
But W.E.T. will move out of flat cables. "In that area, we are no longer see the growth that we originally promised ourselves. So we want to restrict ourselves to round cables."
For the 2005/2006 business year, ending June 30, W.E.T. expects to reach 190 million euros, or about $225.3 million at current exchange rates, in revenues. And Baumhauer is seeing revenues of the same order for 2006/2007.
Thereafter, revenues should grow by up to 15 percent a year due to new orders.
"According to our analysis, W.E.T. can reach a figure of 300 million to 350 million euros ($355.7 million to $415 million ) through its own internal growth, Baumhauer said.
You may e-mail Klaus-Dieter Floerecke at [email protected]