France Country Report 2016

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Discovery Reports

Montupet's technology gains traction in Asia's vehicle part industry

PUBLISHED : Monday, 14 March, 2016, 3:09pm
UPDATED : Tuesday, 29 March, 2016, 5:17pm

Country Business Reports interviews and articles by Discovery Reports

By 2020, Asia will be home to 2 billion people of driving age with significant income levels. This drives global car manufacturers to expand into Asia's growth markets, particularly in China, India and Southeast Asia. French casting specialist Montupet strengthens its regional base to meet industry demand for world-class production and improve time-to-market delivery. "We have the technical expertise to create top-of-the-line castings that conform to changing industrial and environmental regulations," says chairman and CEO Stéphane Magnan.

Honed by more than 100 years of experience, Montupet's advanced technology includes replacing cast iron and steel components with aluminium alloys. This enables car companies to build lighter vehicles for improved fuel efficiency and reduced carbon emissions.

With a solid financial position, Montupet invests 5 to 6 per cent of its sales revenues in research and development. In the first half of last year, its turnover rose by 13.7 per cent at €271.8 million (HK$2.3 billion) compared with 2014 figures.

Montupet offers bespoke solutions by co-engineering with customers at the beginning of project development. Producing complex cast aluminium components for the automotive industry, the company is a trusted partner of top-tier European and American vehicle makers such as Ford, Renault, Audi, Daimler, Volvo and General Motors. It is the world's second-largest independent manufacturer of aluminium cylinder heads, which constitute 80 per cent of its business.

The company has seven plants in France, Northern Ireland, Spain, Mexico, Bulgaria and India - where it forged a joint venture in 2013 with aluminium die-casting company Jaya Hind Industries. The Jaya Hind Montupet facility went into production in June last year to address the requirements of original equipment manufacturers in Asia. In China, Montupet has a commercial office in Changzhou.

Aiming to produce up to 7 million cylinder heads by 2019, Montupet plans to establish a manufacturing facility in China in the next three years to meet increasing demand from European and international clients.