Belgian gear manufacturer VCST is pursuing its international expansion. Having invested in Belgium, it is now expanding its Romanian facilities. An expansion in China may well be on the cards, too.
Sint-Truiden based VCST is investing more than 14 million euros in real estate and machinery in Romania.
“VCST’s East European plant will be more than doubled,” said Eddy Van Steyvoort, Vice President Business Line Automotive at IGW/VCST, in an interview for De Tijd newspaper. “This will meet the company’s expected revenue growth.
Our 320 employees in the Eastern European site are currently achieving a turnover of 26 million euros. In 2018, this figure should rise to 35 million euros. By 2020, we’re expecting it to increase to 40 million euros.”
Innovation wins over Porsche
The reason behind the growth in Romania? The company’s own innovation and the success of its products.
Since the supplier itself began innovating, it acquired patents for gears that are quieter and vibrate less.
Ford and Audi were already VCST customers. Porsche, won over by the new gears, has been added to the portfolio.
Investment in Belgian site as well
Over the past 4 years, the developer and manufacturer of car and track gears and powertrains has recorded a 10% average annual growth in revenue. The innovative company is also expecting double digits over the next four years.
“Since the downturn during the 2009 recession, we are growing again,” said CEO Eric Willekens in an interview with BeAutomotive. “And it doesn’t stop there. Between now and 2018, we will add 14% output each year. This is done by continuously investing in our sites. To give you an example, we invested 10 million euros in our Belgian site.”
VCST China plant also due to expand
Both the headquarters in Limburg and the Mexican plant each have realised a 50-million-euro turnover. Considering the turnover growth in Romania, that site will eventually catch up.
The expansion plans are not the only growth plans resulting from the pooling of resources at VCST and IGW, IG Watteeuw International. (Gimv sells supplier for the automotive industry VCST to BMT Group)
The group is also predicting strong growth in China. Since a further expansion may be required, options are currently being weighed.