Frankfurt, Germany – Tristone Flowtech Group GmbH's internationalisation plan is paying off, financial results compiled by the firm in the nine months to 31 Dec indicate.
During that span, the company's sales grew 7.3% to $199.6 million (€188 million). It is expecting sales growth of about 9% to approximately $269 million for the year.
Tristone is looking for further growth in 2017 with one new plant that came on line late last year and another in the latter part of 2017.
The firm is not legally bound to post earnings results.
However, Guenter Froelich, president and CEO of the Frankfurt-headquartered company, did say that the firm's EBIT for the year to September has increased by 32% over last year's results.
Plants that are expected to play a key role in Tristone's growth plan include new sites in Pune, India, and Delicias, Mexico.
Froelich said the firm's newly opened plant in India, its first in the country, will help the company continue on the globalization path it has traveled for the last few years and give it greater access to a relatively new growing passenger car market.
Construction of the 38,000-sq.-ft. factory is complete and it opened in September. Machinery and equipment is being installed and the necessary staffing is being brought on board, he said. The company is slated to begin producing engine cooling hose, air charge hose and plastic surge tanks in the fourth quarter.
Tristone is investing about $2.7 million in additional machinery equipment at the factory, according to Froelich.
He estimated the factory's work force will total about 70 employees at the end of the year and around 150 employees by the end of 2018.
"We are confident of the future growth of the Indian passenger car market, which is as of today already the sixth biggest car market in the world," Froelich said, adding that the firm already has seen the potential in the market for its products, including hose needed for fluid applications and plastic surge tanks.
Tristone established a business – called Tristone India – that consisted primarily of sales and engineering offices in India during September 2015. Initially it planned to form a joint venture with a local partner and build a production facility.
But that plan changed, according to Volker Butz, chief financial officer of the firm.
Instead, he said, the company opted to proceed on its own to construct a plant in Pune. "Therefore, Tristone India is a 100% subsidiary of the group," Butz said.
Meanwhile, the firm completed construction and recently opened the plant in Mexico. The facility is producing engine and battery cooling hoses for the NAFTA market, Froelich said.
He noted that further investments, primarily about $4.5 million for machinery and equipment, will be ongoing in 2017 and 2018 at the site, which will have maximum production and logistical space of about 220,600 square feet.
Tristone operates a smaller plant in Mexico. It intends to move production from that facility to the new factory by mid-year and close the old building.