Car parts maker PATEC Group announced expanding to Europe with its 4th global manufacturing facility in Hungary.
The factory with initial investment of €5 million – €8 million, will supply metal component parts to world class manufacturers such as Volkswagen, Peugeot, Honda & Toyota.
Despite the Global recession, Patec Group is proceeding with its expansion plan into Europe. With conservative financial gearing and wide business diversification, the Group’s business has shown great resilience. Although the auto industry has being badly affected by the economic crisis, Patec Group’s sales continue to grow as it gains more market share with weaker players in the industry disappearing.
“We did delay our expansion plans by a few months due to the global crisis, but our customers had being encouraging us to quickly increase our production scope as they would prefer that we supply to them. Due to the economic downturn, they are concern that some of their existing suppliers may not survive. Moreover many companies choose to rationalize their supply chain at this time to improve their procurement efficiency. As our product quality has consistently being high, our customers are very comfortable to increase their partnership with us,” said Michael Wee, Group CEO of Patec. With Patec’s intimate knowledge of metal stamping and material characteristics, they are often able to produce parts with fewer processes and better reliability, thus achieving better cost and quality control.
Having surveyed Poland, Slovakia, Czech Republic, Patec decided to situate the factory in Hungary as it is near to most of their customers. “It is important to be near our business partners, than we understand their requirements better and consequently fulfill their needs better.” Patec Group now has 3 other production facilities in Japan, Indonesia, China and Singapore where it is based. With the establishment of its European factory, Patec Group now has presence in most of the important automotive manufacturing centers in the world. (press release)