STS Group AG announces major order for innovative long-nose trucks from a major Chinese commercial vehicle manufacturer
Hallbergmoos/Munich, 27 May 2019. STS Group AG (ISIN: DE000A1TNU68; www.sts.group), the global system supplier for the commercial vehicle industry listed in the Prime Standard on the Frankfurt Stock Exchange, announces an important major order from China. The company will produce the entire front and side module for the first trend-setting "long-nose truck" of a major Chinese commercial vehicle manufacturer over the next six years. "This large-volume order makes us very proud. It is a great success for us to provide support as a system supplier to one of the most important manufacturers for its first vehicle of this type, which is promising for the Chinese market," explains Andreas Becker, CEO of STS Group AG.
In fact, it is only since 2016 that a new law in China has made it possible to build the so-called "long-nose trucks". This type of commercial vehicle offers various advantages. On the one hand, lower fuel consumption thanks to better aerodynamics, on the other hand, better cooling features and higher overall driving performance.
Only two manufacturers have so far produced this type of truck in small quantities. However, market experts assume that demand will increase sharply in the next few years and that further manufacturers (OEMs) will produce these trucks. At the same time, for the STS Group, the more spacious design of the trucks represents a higher proportion of value-added per vehicle compared with conventional trucks.
The production of the new components will start in the second quarter of the next year. The building will take place at the new plant in Shiyan. After only six months of construction, the plant was officially put into operation in April 2019.
The STS Group has three medium-size plants in China as well as its own research and development center. The company expects a lot from its investments in China. "China is the industry's largest growth market. We intend to significantly expand our market share there in the future. This order is the first step in this direction," says Becker. The STS Group already supplies seven of the ten largest Chinese commercial vehicle OEMs and aims to expand this position strongly in the coming years.
About STS Group:
STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading system supplier to the automotive industry for soft and hard trim. The Group, which has a history of tradition and expertise dating back to 1934, employs more than 2,500 people and generated revenue of 401,2 mEUR in the 2018 financial year. At its 17 plants in total in France, Italy, Germany, Poland, Mexico, Brazil and China, the STS Group ("STS") produces plastic and acoustic components, such as solid and flexible vehicle trim, noise and vibration-damping materials and entire interior and exterior trim systems. STS is considered a technology leader in the manufacture of plastic injection molding, specialty acoustic products and components from sheet molding compounds (SMC). STS has a strong footprint with plants in China, Europe, Mexico and Brazil. The customer portfolio comprises leading international commercial vehicle and automotive manufacturers.
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