Wavin BV (PO Box 173, NL-8000 AD Zwolle), Europe's largest manufacturer of industrial plastic products, has acquired a major share in a Lithuanian pipe factory Polimeriniai Dirbiniai AB (Kirtimu 45, 2028 Vilnius / Lithuania). The factory which will be called Wavin Baltic, has around 100 employees and is situated close to the Lithuanian capital Vilnius. Under the terms of the agreement worked out between Wavin and the Lithuanian state, Wavin now holds 45% of the company's equity, the Danish Investment Fund for Central and Eastern Europe holds 23% and the Lithuanian State retains 24% and around 8% is kept by the employees. The Danish Investment Fund and Wavin have invested "several millions of guilders in the acquisition – all of which will be reinvested in the modernisation of existing factory building and equipment."

Plans are to complete the modernisation programme and to start local production of plastic sewer pipes and rainwater gutters before the end of this year. The Lithuanian company will also operate as a trading base for plastic pipe products manufactured in other Wavin factories in Eastern Europe. Wavin sees the investment as providing an important stepping stone for the company's expansion in the Baltic States. Moreover, it expects to benefit from major infrastructure programmes for sewer, water, gas and telecommunications that are planned for the region. The company has pioneer manufacturing investment in Eastern Europe. Instead of managing these acquisitions centrally, Wavin selects one of its established operating companies to "foster" the new enterprise thereby ensuring a more practical transfer of technical and commercial know how. The Lithuanian joint venture will be managed by Wavin's Danish company. It is Wavin's seventh acquisition in Central and Eastern Europe and this market alone generated a turnover of NLG 300m during 1995.