TeraPlast Group acquires Wavin’s assets in Hungary, including PVC & polyethylene pipes production
Bistrița, December 19, 2024
TeraPlast Group continues its geographical expansion in Europe and acquires the assets for PVC and PE pipes production held by Wavin Hungary (Orbia’s Building and Infrastructure business). The acquisition will be made by Polytech Kft, a subsidiary of TeraPlast.
This transaction aligns with Orbia B&I’s strategic decision to streamline its operations on the Hungarian market, to reduce complexity and focus on leveraging core strengths across Europe.
The value of the transaction is of EUR 7.04 million and comprises of 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 have 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. The Zsámbék facility positions us to achieve market leadership in Hungary and efficiently serve foreign markets such as Slovakia, the Czech Republic, Austria, Poland, Switzerland, Germany and countries in 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. We have western quality and eastern prices, which is why we are confident that we will be successful." stated Mr. Dorel Goia, Chairman of the TeraPlast Board of Directors.
The transaction will close in two steps, once several preconditions have been met. Polytech is expected to commence the operation of the factory in the second quarter of next year.
In Hungary, TeraPlast Group operates two factories – 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.
About TeraPlast Group
TeraPlast Group is the largest polymer processor in Southeast Europe. The Group comprises of TeraPlast, TeraGlass, TeraPlast Recycling, TeraBio Pack, Palplast Moldova, Wolfgang Freiler Group companies, Optiplast and Somplast.
Since July 2, 2008, TeraPlast SA has been listed on the Bucharest Stock Exchange under the TRP symbol. The company’s shares are included in the BET reference index of the Bucharest Stock Exchange, as well as in the Small Cap and Global All Cap indices of FTSE Russell, and the MSCI Frontier IMI (Investable Market Index).
About Orbia
Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) is a company driven by a shared purpose: to advance life around the world. Orbia operates in the Polymer Solutions (Vestolit and Alphagary), Building & Infrastructure (Wavin), Precision Agriculture (Netafim), Connectivity Solutions (Dura-Line) and Fluor & Energy Materials (Koura) sectors. The five Orbia business groups have a collective focus on ensuring food and water security, expanding information access and connectivity and advancing decarbonization and the energy transition with basic and advanced materials, specialty products and innovative solutions. Orbia has a global team of over 24,000 employees, commercial activities in more than 100 countries and operations in over 50, with global headquarters in Boston, Mexico City, Amsterdam and Tel Aviv. The company generated $8.2 billion in revenue in 2023. To learn more, visit: orbia.com
About Orbia Building & Infrastructure (Wavin)
Orbia’s Building and Infrastructure business Wavin is an innovative solutions provider for the global building and infrastructure industry. Backed by more than 60 years of product development experience, Orbia B&I is advancing life around the world by building healthy, sustainable environments for global citizens. Whether it’s to optimize water supply, improve water sanitation and hygiene; to create climate resilient cities or to reduce energy use in buildings, Orbia B&I collaborates with municipal leaders, engineers, contractors and installers to help future-proof communities, buildings and homes. Orbia B&I has over 11,000 employees across approximately 50 production sites worldwide, serving over 90 countries through a global sales and distribution network. To learn more, visit: wavin.com
