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Temporary closure of Bentley, Volkswagen plants affects Croatia's AD Plastik production

Author Iskra Pavlova
Temporary closure of Bentley, Volkswagen plants affects Croatia's AD Plastik production Croatian manufacturer of plastic components for the automotive industry AD Plastik, Photo: AD Plastik

ZAGREB (Croatia), March 26 (SeeNews) - Croatian manufacturer of plastic products for the automotive industry AD Plastik [ZSE:ADPL-R-A] said its operation has been further affected by the temporary shutdown of car making plants of Bentley and Volkswagen due to the coronavirus crisis.

"We inform the investment public that we have received a notice from the customer Bentley Motors, for which our company in Hungary supplies products, on the temporary closure of factories in the UK due to the situation caused by the spread of the COVID-19 virus," AD Plastik said in a statement with the Zagreb bourse on Wednesday.

"Volkswagen Group has also temporarily closed factories in Russia. Our factory in Kaluga will adapt its capacities according to the new situation. Other customers in Russia continue to operate for the time being," the company said.

Last week, AD Plastik said it was suspending most of its operations in Croatia, Serbia and Hungary as its global customers halted production due to the coronavirus spread. Back then, the Croatian company said that for the time being the work of its Russian production sites had remained unaffected by the crisis.

AD Plastik has eight production plants in five countries - three in Croatia, two in Russia, and one each in Hungary, Serbia and Romania. It employs some 2,900 workers.

The company's shares closed 2.4% higher at 106.5 kuna ($15.3/13.9 euro) on the Zagreb Stock Exchange on Wednesday. They did not trade at opening on Thursday.

AD Plastik's consolidated net profit rose 10% to some 99 million kuna in 2019.

Car parts makers were among the first sectors in Southeast Europe to feel the blow of the coronavirus crisis as their supply chains were severely disrputed. 

(1 euro = 7.61165 kuna)