WAVIN
1994: Improved results / Sales volume up to 471,000 tonnes / Factory closure in Germany
Wavin BV (HQ: PO Box 173, NL-8000 AD Zwolle), Europe's leading manufacturer of industrial plastic products, announces improved results for 1994. Net profit for the multinational company increased to NLG 20.8m from NLG 0.8m (1993). Improved trading conditions saw sales edge up 8% to NLG 1.9bn and sales volume 6% to 471,000 tonnes. Previous year's figures were adversely affected by recession in many European building and utility markets. Although this recession is now working itself out of most European countries, Wavin reports that particularly in Germany and Southern Europe market conditions remain depressed. In addition, margins in 1994 were negatively influenced by steep increases in raw material prices. Therefore, operational results of Wavin improved only 3% to NLG 98.5m.
More than 80% of the company's business is devoted to the manufacture of plastic pipe systems. These activities in the Netherlands, UK and Scandinavia have proved successful with good financial results. In Eastern Europe where Wavin has been pioneer in creating joint ventures and new production facilities, demand for plastics pipe systems in the utility and building markets is flattening out. Nevertheless, Wavin's turnover for Eastern Europe has reached a record NLG 275m.
Disappointing results in 1993 prompted the company to restructure and reorganise its operations. One outcome has been an ongoing streamlining of the company's manufacturing facilities. For this reason, the company announces the closure of its Europlast factory in Oberhausen and the transfer of production from this site to its factory at Twist, in the West of Germany. Europlast was acquired in 1992 through the acquisition of the plastic pipe business of Von Roll in Switzerland. The Oberhausen factory employs 85 people all of whom have been offered either a possibility of transferring to Twist or a fair redundancy package. Similarly, a small factory in the Southern part of Spain was temporarily closed. Moreover, in January this year, Wavin announced the transfer of its profile business to Wadinko – the investment arm of the Overijssel Water Board.
Commenting on the expected future performance of the company which is celebrating its fortieth anniversary this year, Wavin's President A.J. Driessen explains: "We have set out upon a course towards a sound financial performance. Although the price of raw materials is expected to rise well into the second half of this year, Wavin has negotiated continuity of supply. Moreover, a more efficient manufacturing base and the development of new pipe systems' products which are expected to create new markets will ensure growth in sales and especially in our profits for the next few years." – Wavin continues its strategy of achieving European leadership for its main products. This objective has been largely accomplished for its thermoplastic pipe systems' business. For the films, crates and glass fibre reinforced products, this leadership position will be realised through cooperating with partners.
READER SERVICE: Further details in a 4-page press release of Wavin (English): PIE-No. 37578.
More than 80% of the company's business is devoted to the manufacture of plastic pipe systems. These activities in the Netherlands, UK and Scandinavia have proved successful with good financial results. In Eastern Europe where Wavin has been pioneer in creating joint ventures and new production facilities, demand for plastics pipe systems in the utility and building markets is flattening out. Nevertheless, Wavin's turnover for Eastern Europe has reached a record NLG 275m.
Disappointing results in 1993 prompted the company to restructure and reorganise its operations. One outcome has been an ongoing streamlining of the company's manufacturing facilities. For this reason, the company announces the closure of its Europlast factory in Oberhausen and the transfer of production from this site to its factory at Twist, in the West of Germany. Europlast was acquired in 1992 through the acquisition of the plastic pipe business of Von Roll in Switzerland. The Oberhausen factory employs 85 people all of whom have been offered either a possibility of transferring to Twist or a fair redundancy package. Similarly, a small factory in the Southern part of Spain was temporarily closed. Moreover, in January this year, Wavin announced the transfer of its profile business to Wadinko – the investment arm of the Overijssel Water Board.
Commenting on the expected future performance of the company which is celebrating its fortieth anniversary this year, Wavin's President A.J. Driessen explains: "We have set out upon a course towards a sound financial performance. Although the price of raw materials is expected to rise well into the second half of this year, Wavin has negotiated continuity of supply. Moreover, a more efficient manufacturing base and the development of new pipe systems' products which are expected to create new markets will ensure growth in sales and especially in our profits for the next few years." – Wavin continues its strategy of achieving European leadership for its main products. This objective has been largely accomplished for its thermoplastic pipe systems' business. For the films, crates and glass fibre reinforced products, this leadership position will be realised through cooperating with partners.
READER SERVICE: Further details in a 4-page press release of Wavin (English): PIE-No. 37578.
31.05.1995 Plasteurope.com [20753]
Published on 31.05.1995