NAVIGATING CHANGE. UNLOCKING POTENTIAL.

POLYTEC excels in the exceptional ability to adapt to changing market dynamics through organisational and technological ­flexibility. The company has proven this strength time and again in the past and successfully held its ground even in economically difficult times.

Despite this high level of flexibility, POLYTEC does not remain unaffected by the current economic trend. Especially the weakness of the automotive industry, still the company’s central market, is evident: vehicle production in Europe declined by roughly seven percent in 2024 compared to the previous year and is expected to stagnate at around 15 to 16 million vehicles produced in the medium term. For reference: European vehicle production peaked at approximately 21 million in 2017, with no sign of recovery in sight. On a positive note, however, POLYTEC is still able to generate solid revenue in this market as an established partner of the European automotive industry even when growth is stagnating.

Nevertheless, the automotive industry is currently facing multiple challenges. Electromobility, whose revenues recently fell significantly short of expectations, and extended life cycles of vehicles with combustion engines underline the uncertainty that currently dominates the industry. Over the past years, POLYTEC had added innovative solutions, in particular components for thermal management and around the battery, to its product portfolio for electric vehicles. Some of these products, however, have not been sold in large quantities so far due to early production phase-outs as well as the withdrawal or postponement of contracts by OEMs. This is due to the general uncertainty in the market, which makes planning significantly more difficult for all market players. Additional factors, such as excess production capacities in the entire sector, general delays in awarding contracts in 2024, and persisting price pressure, have further increased strain on the industry. Against this backdrop, POLYTEC is currently benefitting from the fact that it also enjoys a good positioning for conventional combustion vehicles with its products, and its portfolio therefore comprises attractive products for both electric and conventional vehicles. 

Based on a wide range of technologies and materials as well as a solution-oriented market approach, POLYTEC pursues a strategy that allows serving customer needs efficiently. Launched in 2020, the POLYTEC SOLUTION FORCE is central to this technology-independent approach, which POLYTEC successfully applies in both the automotive industry and other sectors. Over the past years, it has helped the company to establish itself as a valued supplier of high-quality and innovative plastic solutions, increasingly also in non-automotive segments. The basis for this is the focus on proactive product development and flexibility, which the company builds on in the targeted expansion of both its product and customer portfolios. Rather than concentrating on materials and technologies alone, the POLYTEC SOLUTION FORCE focuses on applications and specific customer benefits, thus expanding POLYTEC’s prospects in the automotive market, on the one hand. Requirements for vehicles are changing significantly and POLYTEC can advance into new application areas with its innovative plastic solutions. On the other hand, the company is opening up access to completely new industry and market segments with the POLYTEC SOLUTION FORCE. This is to contribute to further increasing the share of the non-automotive business in revenue in the coming years, thus reducing dependence on the automotive business in the long term.

This new concentration on future-oriented segments aside from the automotive industry is an important part of POLYTEC’s portfolio strategy, summarised under the title “Smart Plastics Applications”. Addressing a broad spectrum of plastic solutions ranging from reusable containers and autonomous mobility solutions to energy storage and charging infrastructure, this product segment opens up new opportunities beyond the classic automotive business. In 2024, this segment saw a very positive development; in the coming years, its share in the group’s revenue is expected to increase to a realistic 20 percent. Reusable packaging solutions, a product segment that POLYTEC has been engaged in for many years, offers special potential in this context. In 2024, an average of more than one logistics box per second rolled off the production line at the Ebensee plant.

Meanwhile, another exciting project is starting in spring 2025, in which POLYTEC will contribute to making plant retailing in Europe greener with its reusable plant trays. The development of such novel products is particularly challenging. On the one hand, they involve long lead times, as a sufficient number of potential customers need to be convinced of the new product first. On the other hand, ongoing updates and specifications on the part of customers require continuous adaptations during the product development process. Read more details about innovation at POLYTEC on the innovations page. 

While POLYTEC has a well-established position as a reliable industry partner in the market, the transformation of the group’s core market – the automotive industry – still requires enormous efforts, not only in terms of cost pressure, which recently saw a massive increase due to disrupted supply chains and high inflation. The technological requirements for products in demand on the market are also growing continuously. Of course, POLYTEC can draw from its long-standing experience here. However, the combination of different technologies gives rise to unprecedented complexity.

Against this backdrop, the POLYTEC GROUP already launched internal programmes to keep the increased level of complexity manageable several years ago. Along with the above-mentioned process harmonisation they also included a comprehensive digitalisation offensive. The benefits of these measures became evident in the context of the market upheavals caused by Covid-19 and later by Russia’s attack on Ukraine. Nevertheless, the challenges remain significant for POLYTEC. The ­company was recently faced with personnel, plant and material ­shortages related to some complex ramp-ups, which caused significant ­additional costs at two plants in particular. ­POLYTEC aims to decisively counter such developments in the future by implementing additional process optimisation measures.

Sustainability is another integral part of POLYTEC’s corporate strategy. Progress in recycling and resource-friendly production processes are important approaches to meet the increasing ecological requirements. With an initiative for sheet moulding compound recycling, POLYTEC recently took a pioneering role in the industry in this area. POLYTEC thus also proves to be a reliable partner for its customers in terms of sustainability and conversion to a responsible circular economy.