Frimo is one of the world’s leading providers of tools and machinery used to manufacture plastic parts for different applications, such as car dashboards, door trims and arm rests. Its customers are mainly automotive suppliers but it also delivers its products directly to automotive manufacturers. The group has a decentralised structure and is a full-service supplier of tools, machines and automated production lines. Frimo’s product portfolio covers almost the entire process chain of its customers.

As the technology required to manufacture interiors must be updated or adapted for almost every new car model due to changes in design, this means that Frimo’s business is not determined by the number of vehicles produced, but rather by the number of new car models. The company benefits from the trend towards high-quality and individually designed vehicle interiors, which allows automotive manufacturers to set themselves apart from the competition. Apart from the automotive industry (~90 per cent of its revenues), Frimo also serves customers in the aviation and chemical industries.

Key drivers for the company’s further development in the coming years are further regional expansion, especially in China, the US and Mexico, as well as growing the service and spare parts business and acquiring supplementary technologies and applications. Frimo operates in a niche market and benefits from its good technology base. DBAG will support the company in doing so with its own expertise and that of the DBAG network, for example in the areas of strategy and organisation. We can rely on our in-depth knowledge of business models in mechanical and plant engineering as well as in global market structures, which has been gained from investing in more than 20 companies in this industry sector in the past 25 years, among other experience.

The automotive industry as Frimo’s key end market is facing some geopolitical uncertainties and hence higher volatility. In the wake of the exhaust gas scandal, for instance, numerous automobile manufacturers have postponed the production of new models or even completely suspended such plans. Given these developments, Frimo’s revenues are expected to remain on previous year’s level.

In response to the tense market situation, Frimo is pressing ahead with the operational improvements launched at the start of investment. In addition, further approaches to optimise the cost base and production processes were implemented with full effects expected to become effective in 2020 and thereafter.