The MMM group aims for 70 million in revenue with the manufacturing of tubes for automotive and green hydrogen machines.
The MMM group has been manufacturing the tubes that run inside cars for over half a century. With the exception of the exhaust pipe, the Barcelona-based group produces them all. They transport water, gases, fuel… They are essential components trusted by major car brands, such as Nissan – which allowed them to start the business in the 1950s –, BMW, Volkswagen, Toyota, and Suzuki.
The company, controlled by the Priu family, plans to export 92% of its parts and generate a revenue of 70 million euros this year, surpassing pre-pandemic levels. Due to COVID, the company is going through a transitional period. Recently, they have reached an agreement with various entities to restructure part of their debt, which amounts to 40 million euros. Among the conditions of the agreement, they have obtained an 18-month grace period that affects 5 million euros.
Born in 1944, the company exports 92% of its products and employs 580 people, 180 of them in Molins de Rei.
Jordi Priu, CEO and third-generation member, argues that the company has reached this situation due to “a 30% drop in revenue, the accumulation of several pre-pandemic investments, and the impact of the war in Ukraine.” In fact, due to the war, MMM divested itself of the factory it opened in Russia in 2013. Now, the group maintains centers in Molins de Rei, Romania, and Mexico, the latter of which was opened in 2019.
Priu acknowledges that “all investments in new factories have caught us in times of crisis, as the one in Romania was opened in 2007.” At that time, the company had to file for bankruptcy and approve an agreement to restructure its debt. “Now the situation is not as fragile, and we want to end this dependence on the automotive industry.”
For this reason, the company, in addition to refinancing part of the debt, has launched a plan to diversify its activity. “In Molins, we have opened a production line for machines that produce green hydrogen through methanol. We believe it will be a very useful solution in the future,” the executive asserts. To do this, MMM has established a subsidiary and raised 3 million in a capital increase that has brought in various industrial partners. Furthermore, 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 trucking companies. MMM has the infrastructure and human resources to achieve this. Despite selling the Russian center, it still has three factories employing 580 people, with 180 of them in Molins de Rei.
SOURCE: LA VANGUARDIA
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