Romania’s TeraPlast Group acquires Wavin’s assets in Hungary to stage regional expansion
Romania's TeraPlast, the largest polymer processor in Southeast Europe, announced the acquisition of Wavin Hungary's assets for the production of PVC and PE pipes. The move represents another step in the Romanian company’s expansion in Europe.
The acquisition of Orbia Building and Infrastructure, the name of the assets, will be made by Polytech Kft, a subsidiary of TeraPlast.
The value of the transaction is EUR 7.04 million and comprises close to 12.000 sqm of buildings and more than 40.000 sqm of industrial land located in Zsámbék, 30 km west of Budapest. The equipment acquired as part of the transaction has an annual production capacity of 12,000 tons of pipes.
“Our strategy has always been to be market leaders in every market where we operate. From the beginning, our plan included developing a PVC pipe factory in Hungary. While our initial approach focused on a greenfield investment, the agreement with Wavin allows us to expedite the start of the production,” said Dorel Goia, Chairman of the TeraPlast Board of Directors.
According to the company executive, the Zsámbék facility positions TeraPlast to serve markets such as Slovakia, the Czech Republic, Austria, Poland, Switzerland, Germany, and countries in the western Balkans.
“Our objective is to increase our sales in Western Europe, and this acquisition allows us to offset the disadvantage of a poor road infrastructure, reducing transportation costs and delivery time,” he added.
TeraPlast Group operates two factories in Hungary – Polytech and Pro-Moulding. The assets acquired from Wavin diversify the product range in Hungary by PVC pipes production. These will add to increasing the geographical footprint of TeraPlast Group in Europe, respectively to increasing sales outside Romania which at present represent 25% of the consolidated turnover.
(Photo source: TeraPlast on Facebook)
