MKTSN, a manufacturer of kinematic and non-kinematic plastic components for the automotive industry was acquired by Minda Corporation in 2007.
German company Minda KTSN Plastic Solutions GmbH, a powertrain parts maker, has filed for insolvency after its parent Minda Corporation declined to infuse further capital.
Minda Corporation held a Board of Directors meeting to review the request for further financial support to this German subsidiary.
"After extensive deliberations and considerations on the current and future cash flow requirements of MKTSN clubbed with COVID 19 pandemic impact, the Board of Directors decided not to undertake further financial exposure in MKTSN and advised that the capital be allocated for growth and profitable business opportunities," said Minda in a note.
MKTSN, a manufacturer of kinematic and non-kinematic plastic components for the automotive industry was acquired by Minda Corporation in 2007. It has since infused more than Euro 35 million into MKTSN.
The company is headquartered in Germany and has production sites in Pirna (Germany) and through its subsidiaries in Poland, Czech Republic and Mexico.
"We expect a positive outcome for all our stakeholders in the long run despite the insolvency filing. We are focusing on channelizing our precious capital towards tremendous business opportunities of profitable growth, with the view of enhancing EBITDA Margin and ROCE. This move, is expected to enhance Minda Corp’s EBIDTA by 2 percent and ROCE by 5 percent," said Ashok Minda, Chairman and Group CEO, Minda Corporation.
The Indian company said it is well positioned to address the technological shift due to change in customer requirements, new trends and government regulation. The company is investing in R&D and new technologies such as light weighting, electronics and EV related products.
