Romanian lead-acid battery manufacturer Rombat has officially commissioned its new production facility in Bistrita, Romania.
Rombat is a 99.42%-held subsidiary of JSE-listed Metair Investments.
The new facility manufactures original- equipment batteries for vehicles with start-stop technology and regenerative braking systems.
Total investment in the facility numbers R252.4-million, supported by a financial grant by the Romanian government of R99.2-million.
Metair MD Theo Loock says his company is “very excited” about the investment, as it represents a “significant shift” in Metair’s focus on the aftermarket sector, while also providing the company with a platform to inject its technology into “a new market with enormous potential”.
“Our investment considerations included finding a partner with exceptional production facilities, scale in supplying the aftermarket and original-equipment manufacturers (OEMs), and someone who was located in a time zone manageable from South Africa.
“Romania proved a destination of choice, given its proximity to Western Europe, the work ethic of its people and the R99.2-million investment grant the Romanian government was willing to invest in this facility.”
Metair, in turn, provides the latest in start-stop battery technology, says Loock.
Demand for start-stop technology batteries is increasing as vehicle manufacturers battled strict emission legislation, with Rombat ideally positioned to capitalise on this demand, he adds.
“We have a strong relationship with Dacia Renault, one of the fastest-growing OEM brands in Europe, and have already commenced with the testing phase for some luxury German vehicle brands. We aim to start commercially supplying start-stop batteries in 2016.”
Loock says it is Metair’s strategic intent to penetrate the European battery market through the established Rombat brand, using Rombat’s distribution network, experience, dominance and presence within Romania, and its position within the broader European battery market.
Rombat can produce 500 000 to 600 000 conventional and start-stop batteries a year.
The new plant is also vertically integrated, with its own recycling plant recovering lead and polypropylene through the recycling of used automotive batteries.