Viohalco S.A. announces that the Board of Directors of its wholly owned subsidiary Εtem Bulgaria SA (‘Etem Bulgaria’), the extrusion branch of the aluminium segment of Viohalco SA, decided on January 7th, 2019 the spin-off of the production of extruded aluminium profiles business and the additional processing of aluminium profiles for the automotive industry business into two subsidiaries of Εtem Bulgaria.
The aforementioned decision will serve the purposes of an Investment Agreement (the ‘Agreement’) that Etem Bulgaria has entered into with Gestamp, a leading global Group specialized in the design, development and manufacturing of metal components and structural systems for the automotive industry.
As part of the Agreement, two joint ventures will be established which will focus on the extrusion and processing of aluminium profiles for the automotive industry, in which an investment programme of approx. EUR 30 million will be implemented, in the next three years, for the installation of a new extrusion line and related machinery for further processing of aluminium profiles in Bulgaria.
The Agreement will further strengthen Etem Bulgaria’s position in the automotive sector and help to ensure it can successfully meet the increased demand for aluminium products, following recent developments in the automotive industry.
The aforementioned agreement is subject to competition clearance approvals from the European and Turkey Competition Authorities.