Pipe systems manufacturer Wavin (Zwolle / The Netherlands; www.wavin.com) is to further streamline its organisation in response to the downturn of the European construction markets. The main effects of the restructuring will be felt in the UK, which will suffer most of the 200 job losses resulting from the programme. The company expects to complete this reorganisation in the fourth quarter of 2008.

A restructuring charge of around EUR 8.5m will be taken in the second half year and the measures are forecast to provide annualised savings of around EUR 6.5m. The reorganisation comes on top of the earlier announced restructuring in Ireland – see Plasteurope.com of 25.03.2008 – and the UK, which affected over 100 employees.

At the end of August, the company announced a 17% fall in first half 2008 operating profits to EUR 92m on sales up 1% at EUR 834m. At that time Philip Houben, Wavin CEO, warned that the decline in construction activity had been apparent throughout Europe “and is affecting us severely in the UK/Ireland region. We have taken immediate action to deal with these negative market developments. The announced restructuring measures in the UK and Ireland are on track and will deliver a structural cost reduction of EUR 6m in the region. At the same time, we have reduced our workforce on a group-wide level by 300 full time equivalent employees.”

While there has been a fall in demand due to reduced building activity in the UK, Wavin is obviously looking for openings in alternative, related markets in the country. In July 2008, it acquired underfloor heating systems specialist Warmafloor, which focuses on the non-residential market. The company provides energy efficient heating and cooling systems for public, commercial and industrial buildings. It employs 56 people and had turnover of EUR 9m in 2007.

e-Service:
Wavin press release for the first half year 2008 as a PDF document (82 KB)