Varroc is transferring the programs and equipment of its Italian factory to Târgu Mureș and Hanoi to reduce costs and improve margins

Varroc intends to transfer the programs and equipment of its plant in Cambiano, Italy, to production facilities in Târgu Mureș, Romania, and Hanoi, Vietnam. The company aims to reduce conversion costs, improve gross margins and absorb fixed costs more efficiently, according to information published by Profit.ro.

Both Romania and Vietnam already have production capacity for exterior lighting systems within Varroc’s network, compatible with the operations currently carried out at the Italian plant. The transfer is expected to enable the reorganization of the company’s international operations and make production more efficient.

Varroc is India’s largest automotive components supplier and is controlled by businessman Tarang Jain. The company sold its lighting systems operations in the United States, Brazil, Mexico, Poland, the Czech Republic, Germany, Turkey and Morocco to French group Plastic Omnium in a transaction valued at €600 million.

Following this transaction, Varroc is focusing on the two-wheeler segment in China, Italy and Vietnam, as well as on electronic products in Poland and Romania. The company is retaining its four-wheeler lighting operations in Asia.

In Romania, the group owns Varroc Elba Electronics and Varroc Lighting Systems România, formerly Electromureș. Founded in 1988, Varroc Engineering has more than 13,800 employees worldwide and annual revenue of approximately $1.8 billion.