MMM group aims for 70 million in revenue with the manufacture of automotive tubes and green hydrogen machines.
The MMM group has been manufacturing the tubes that run through the interiors of cars for more than half a century. With the exception of the exhaust pipe, the Barcelona group produces them all. They transport water, gases, fuel… They are essential parts that large car brands entrust to it, such as Nissan – which allowed it to start the business in the 50s –, BMW, Volkswagen, Toyota or Suzuki.
The company, controlled by the Priu family, plans to export 92% of its parts and invoice 70 million euros this year, exceeding pre-pandemic levels. Due to covid, the company is in a moment of transition. Recently, it has closed a plan with several entities that restructures part of its debt, which amounts to 40 million. Among the conditions of the agreement, it has achieved a grace period of 18 months that affects 5 million euros.
Founded in 1944, the company exports 92% and employs 580 people, 180 of them in Molins de Rei
Jordi Priu, CEO and member of the third generation, reasons that the company has reached this situation because of “the 30% drop in turnover, the accumulation of several investments prior to the pandemic and the impact of the war in Ukraine”.
In fact, due to the war, MMM divested last year from the factory that opened in Russia in 2013. Now, the group maintains the centers in Molins de Rei, Romania and Mexico, the latter opened in 2019. .
Jordi Priu, CEO said:
All the investments in new factories have caught us in times of crisis, since the one in Romania opened in 2007.
Then, the company had to file for bankruptcy and approve an agreement to restructure the debt. “Now the situation is not so fragile and we want to end this dependence on the automotive industry.”
It is for this reason that the company, in addition to refinancing part of the debt, has launched a plan to diversify its activity. “At Molins we have opened a production line of machines that produce green hydrogen through methanol. We believe that it will be a very useful solution in the future,” says the manager.
To achieve this, MMM has established a subsidiary and has raised 3 million in a capital increase that has brought in several industrial partners. In addition, the company is collaborating with research centers to launch new products and is working to enter the 3D printing sector.
In parallel, Priu wants to start selling exhaust pipes to truck companies. MMM has the infrastructure and human team to achieve this. Despite having sold the Russian center, it has three factories that employ 580 people, 180 of them in Molins de Rei.
Highlight:
- The MMM group aims for 70 million revenues with the manufacture of automotive tubes and green hydrogen machines
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From tubes to hydrogen, October 7, 2023