Pipelife increases stake in Romanian branch to 100%

Pipelife, the manufacturer of plastic pipes for the construction supplies industry, has increased its stake in its Romanian branch to 100% under an agreement reached with Hungary”s Pannonplast. The agreement saw Pipelife buy Pannonplast”s 50% stake in Pannonpipe Hungary, increasing its ownership in Pannonpipe, and also in the Romanian branch, which is owned by Pannonpipe, to 100%. The value of the deal was not disclosed. Pipelife is a joint venture between Belgium-based company Solvay and Austrian company Wienerberger. Pannonpipe and Pipelife Romania posted sales of 39 million euros in 2004. They have 300 employees. Pipelife teamed up with Pannonplast in 1990. According to company officials, Pannonpipe posted losses in 2004. The plastic tube market in Romania is put at approximately 50-60 million euros a year and is growing at a yearly pace of 10%. Its potential is based on the serious state of wear and tear of infrastructure in Romania. ZF