TeraPlast Group continues its geographical expansion in Europe and acquires the assets for the production of PVC and PE pipes, owned by Wavin Hungary (Orbia’s Construction and Infrastructure business). The acquisition will be made through its subsidiary Polytech Kft. This transaction aligns with Orbia B&I’s strategic decision to streamline its operations on the Hungarian market, reduce complexity and focus on capitalizing on its main strengths in Europe.

The transaction value is EUR 7.04 million and includes almost 12,000 sqm of buildings and over 40,000 sqm of industrial land, located in Zsámbék, 30 km west of Budapest. The equipment acquired as part of the transaction has an annual production capacity of 12,000 tons of pipes.

“Our strategy has always been to be leaders in every market in which we operate. From the very beginning, our plan included the development of a PVC pipe factory in Hungary. While our initial approach was aimed at a greenfield investment, the transaction with Wavin allows us to accelerate the start of production. The assets in Zsámbék help us become the market leader in Hungary and to efficiently serve foreign markets such as Slovakia, the Czech Republic, Austria, Poland, Switzerland, Germany and the Western Balkan countries. Our goal is to increase sales in Western Europe, and the acquisition of this factory will allow us to eliminate the disadvantage of the poor quality of the road infrastructure, reducing transport costs and delivery times. We have Western quality and Eastern prices, which is why we are confident that we will succeed”, stated Mr. Dorel Goia, Chairman of the Board of Directors of TeraPlast.

The transaction will be concluded in two steps, once several prerequisites are met. Polytech is expected to start operations at this plant in the second quarter of next year.

In Hungary, the TeraPlast Group has two plants – Polytech and Pro-Moulding. The assets acquired from Wavin diversify the range of products manufactured in Hungary by producing PVC pipes. They will contribute to increasing the Group’s geographical footprint in Europe, implicitly increasing sales outside Romania, which currently represent 25% of the consolidated turnover.