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Since I was in the OEM/ODM automotive business before, will share some thoughts.
Venture is unlikely to buy Fischer Tech. Venture itself is not getting new customers, why do they need Fischer Tech?
Unless Venture decides to go for automotive, which is a tough business, they are not set up to do automotive, Long way off.
There is little or no moat to these plastic businesses. Avoid. An upturn may see a bit of profit for its businesses but in the long run, it's not a very profitable business. Hi-P, a much more capable player, which has higher/more capabilities, is struggling.
Any person with some money can open a molding company. The tools can be easily sourced. In Malaysia, the larger plants have molding machines that are left idling. The golden days of contract manufacturing and precision plastic business is over. Most contract manufacturers earn peanuts now. I personally know one that gave up the factory and rented it out, the day they decided to close its operation was the day it turned profitable.
Venture remained profitable and sustainable due to its huge Research and Development capabilities. many companies find it good value(European and American MNCs) to engage Venture as a ODM(Original Design Manufacturer) and save on the higher R&D cost. A one stop center for them.
Venture is unlikely to buy Fischer Tech. Venture itself is not getting new customers, why do they need Fischer Tech?
Unless Venture decides to go for automotive, which is a tough business, they are not set up to do automotive, Long way off.
There is little or no moat to these plastic businesses. Avoid. An upturn may see a bit of profit for its businesses but in the long run, it's not a very profitable business. Hi-P, a much more capable player, which has higher/more capabilities, is struggling.
Any person with some money can open a molding company. The tools can be easily sourced. In Malaysia, the larger plants have molding machines that are left idling. The golden days of contract manufacturing and precision plastic business is over. Most contract manufacturers earn peanuts now. I personally know one that gave up the factory and rented it out, the day they decided to close its operation was the day it turned profitable.
Venture remained profitable and sustainable due to its huge Research and Development capabilities. many companies find it good value(European and American MNCs) to engage Venture as a ODM(Original Design Manufacturer) and save on the higher R&D cost. A one stop center for them.