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DGAP-News: STS Group AG
/ Key word(s): Incoming Orders
STS Group AG creates basis for considerable growth potential in North America with major contract and construction of first plant in the USA
- Important strategic milestone for substantial growth potential concretized
- Major order from a leading commercial vehicle manufacturer with a total volume of approximately 230 mEUR over a period of more than ten years
- Entry into the third-largest commercial vehicle market with its own local production site
- Production start planned for the second quarter 2021
- Successful implementation of the IPO strategy in fiscal 2019
Hallbergmoos/Munich, December 19, 2019. STS Group AG (ISIN: DE000A1TNU68; www.sts.group), the global systems supplier for the automotive industry listed in the Prime Standard of the Frankfurt Stock Exchange, has won a major contract in the important US market. This marks an important strategic milestone in the growth strategy communicated at the IPO.
STS Group has today been commissioned by one of the leading international manufacturers of commercial vehicles to produce a complete truck roof system made of fibre-reinforced plastic SMC (Sheet Molding Compound). Once again, STS was able to convince with its technological know-how and international presence. The project volume is approximately 230 mEUR with a term of over ten years. The project is scheduled to start in the second quarter of 2021.
The US market is the third largest commercial vehicle market in the world. The long-nose trucks established there represent a very large sales potential per vehicle for STS products. The order now won will significantly expand the market position in the USA. In this context, the company plans to establish its own production site in the state of Virginia. With the construction of a plant in the northeastern region of the USA, STS Group is also strategically ideally positioned to acquire further orders.
"Our growth strategy is based on three main pillars. These include innovative products, where we are already benefiting from the shift to electromobility, growth in China and market entry in the USA. We are very proud that with this order we can substantially expand our position in the US market. It was important for us to receive a relevant order that guarantees optimal capacity utilization of a new plant from the very beginning. We were once again able to prove that our technologies are in high demand from customers and that we are well positioned for the future. Our goal is to constantly strengthen this position today and to further expand it for tomorrow," says Andreas Becker, CEO of STS Group AG.
In addition to the successful order in the USA, STS achieved further important milestones in 2019. In the future market of electromobility, a total of four orders were secured for components to cover battery systems for electric vehicles. In China, the construction of the third plant in Shiyan was a further milestone. In terms of sales, the STS segment China grew by 8.4% to 10.3 mEUR in the third quarter of 2019 compared to the same period of the previous year. The strong growth trend in China is expected to continue in the fourth quarter of 2019. These successes in 2019 have enabled STS Group to lay a strong foundation for future growth.
About STS Group:
|Company:||STS Group AG|
|Phone:||+49 (0)811 124494 0|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||940565|
|End of News||DGAP News Service|