The European Commission has approved plans by Austria's Greiner Holding AG (HQ: A-4550 Kremsmünster) and Belgium's Recticel SA/NV (HQ: 12, Av. de Broqueville, B-1150 Brussels) to extend their 50:50 joint venture Eurofoam to Germany and Austria. The joint company that manufactures, converts and markets flexible polyether and polyurethane foam has operated up to now solely in eastern Europe. By establishing a presence in the west, it will become market leader in Europe, ahead of the UK's Vita group and US-based Carpenter. According to Greiner ceo Peter Greiner, the linkup in Germany and Austria will improve synergies and lower costs in these highly saturated markets. The Commission said it had no objections to the deal, as there is still sufficient competition in the foams sector. Other players are Otto Bock, Reisgies, Löhr and Continental.

The new Eurofoam will have eight production sites, including four in Germany, two in Austria, one each in Poland and Hungary. Sales in 1997 are projected to reach ATS 3bn (DEM 425m) with a workforce of 1,700. The existing company had sales of ATS 851m (DEM 676m) in 1996, solely in eastern Europe. In addition to PU foams for furniture and mattresses, Greiner's portfolio focuses on foam technology, packaging technology and laboratory technolgy, as well as cork and sealing technology. These activities will be retained within the Greiner group, which employed 3,430 and had sales of ATS 4.6bn in 1995/96. Recticel, a subsidiary of Societe Generale de Belgique, supplying the home furnishings, automotive and other industrial markets, as well as the insulation sector, had sales of DM 1.6bn in 1996 and a worldwide workforce of 7,800 people in 69 plants in 16 countries.

READER SERVICE: Further details on Eurofoam and Greiner 1995/1996 business performance (German): PIE-No. 40596.