TeraPlast Group continues European expansion, acquires Wavin’s assets in Hungary

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.

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 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.

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.