Etem Bulgaria, the extrusion branch of the aluminum segment of Viohalco SA, plans to spin off its aluminum extrusion and downstream processing capabilities for automotive into two separate joint venture subsidiaries. The decision is part of an investment agreement that Etem has entered into with Gestamp, a leading global group headquartered in Madrid, Spain, which specializes 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 — one focused on aluminum extrusion, the other on the processing of aluminum profiles for the automotive industry. The company plans to invest approximately €30 million over the next three years for the installation of a new extrusion press line and related machinery for further processing of aluminium profiles in Bulgaria.
Founded in 1971, Etem is a leader in the Southeastern Europe extrusion industry with export activities in over 20 countries. With production facilities in Athens, Greece and Sofia, Bulgaria, the company has an annual capacity of over 35,000 tons of profiles per year. In addition to aluminum extrusion, Etem has downstream surface finishing, fabricating, and processing capabilities serving the architectural, automotive, and industrial markets, with subsidiaries in Albania, Serbia, Ukraine, and other locations.
“The agreement will strengthen the position of Etem Bulgaria in the automotive sector and will prove that the company can successfully meet the increased demand for aluminum products following the new developments of the automotive industry,” said Viohalco in a press announcement.
The agreement is subject to competition clearance approvals from the European and Turkey competition authorities.