JSE-listed vehicle component and battery manufacturer Metair says hyperinflation in Turkey has hit its margins, while its export volumes from Romania took a hit following Russia's invasion of Ukraine.
In South Africa, Metair expects vehicle manufacturing to grow from 550 000 cars this year to more than 700 000 in 2023.Despite various disruptions, vehicle component and battery manufacturer Metair is upbeat about local car output – but its battery businesses in Turkey and Romania have been hit by hyperinflation and the invasion of Ukraine.
Metair previously considered splitting its business into two, and listing its battery business in an effort to unlock value for shareholders. But in an operational update on Monday, the group said its plans have"not translated into an executable transaction largely due to the geopolitical climate within Eastern Europe".For the year, volumes from its Romanian battery manufacturer Rombat are expected to fall by 15% due to the impact on demand following the invasion of Ukraine.