Rehau makes progress on plastic tube market

Rehau Polymer SRL, the local branch of the German construction supplies group, estimates its turnover will grow by 20% this year after making 26 million euros in 2004.

The company has enjoyed a high rate of growth on the market for PVC and polyethylene tubes and windows, with the expected figures for 2005 nearly double what was achieved in 2003. Rehau grew by 44% in 2004 alone, the first year their PVC and polyethylene tubes factory in Sibiu began operating at full capacity.

“The tube market started to grow strongly this year thanks to the EU-funded projects that are being implemented, especially in rural areas where sewerage and water supply works are in progress. We have secured a good position on the market,” said Emil Pop, the company’s general manager.

Market players put the plastic tube market in Romania at around 40 million euros a year. Until now the market has only seen yearly growth in single digits.

Things are different on the PVC windows market, says Pop, which is experiencing a strong increase in competition.

Rehau has been operational in Romania since 1996 and has invested over 10 million euros to date.

The company had a sales structure in place in Romania until 2003, when it completed a 5.5 million-euro investment project for a PVC and polyethylene tubes factory in Sibiu.

Rehau’s shift from importer to local producer has boosted the business of the local branch, which now exports to other markets, such as Hungary, Ukraine, Slovakia or Greece.

The company’s portfolio is very diverse: it is active on the markets for PVC and polyethylene tubes, electrical and sanitary installations, as well as heating and underground installations, where it competes with players like Romstal and Energi Co. Rehau is also an important player on the PVC profiles market, where its competitors include Gealan.

The company became the second most important foreign investor in its field following its investment in Sibiu.

The Sibiu factory has PVC and polyethylene production capacities of 3,500 tonnes and 1,500 tonnes respectively. The start of manufacturing operations led to a doubling in the number of the group’s employees in Romania, now approximately 100 employees.

On the other hand, International PipeLife Group (a joint venture between Austrian company Wienerberger and Belgian company Solvay) has been involved in manufacturing operations in Romania since 1998 through its facility in Miercurea Ciuc, which has an initial capacity of 3,500 tonnes a year.
adrian.mirsanu@zf.ro