Uponor and KWH Pipe merge infrastructure businesses

Published: September 21, 2012 6:00 am ET

Related to this story

Topics Construction, Mergers & Acquisitions, Pipe/Profile/Tubing

HELSINKI, FINLAND (Sept. 21, 5:20 p.m. ET) — Uponor Corp. and KWH Group Ltd. have formed a joint venture that combine their pipe systems businesses, which have been hit by a slowdown as a result of the recession.

The venture, Uponor Infra Oy, will focus primarily on northern Europe. Both Uponor and KWH are based in Finland.

The new company is jointly owned by Uponor (55.3 percent) and KWH Group (44.7 percent).

Uponor’s infrastructure solutions business focuses on storm water and sewer systems. The business generated 2011 earnings before interest, taxes, depreciation and amortization (EBITDA) of 3.8 million euros ($4.9 million) and sales of 150 million euros ($194 million). The operations employ 516 and include two factories in Finland and one in Sweden.

KWH Pipe generated EBITDA of 7.4 million euros ($9.6 million) and sales of 234 million euros ($303 million). Operations employ 1,238, and include three plants in Finland, two each in Denmark and Canada and four other factories in Sweden, Poland, the Czech Republic and Thailand.

The deal is subject to regulatory approvals.

The companies said the JV is aimed to improving efficiency and profitability, and reflects the mutual interest of both companies to stay in the business.

“The industry landscape in this business segment in Finland and other Nordic markets has changed remarkably over the past several years, due to international and specialized domestic players having entered the market,” Uponor President and CEO Jyri Luomakoski said in a news release. “At the same time demand has suffered as a result of a prolonged global crisis.”

KWH Group President and CEO Peter H"glund added: “Uponor and KWH wanted to contribute to the challenging situation at hand together, and will establish a new structure that aims at a better capacity utilization and a sustainable development of the infrastructure business in the future.”


Comments

Uponor and KWH Pipe merge infrastructure businesses

Published: September 21, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Xten may shut down, working on sale to Commercial Plastics

October 29, 2014 5:49 pm ET

Xten Industries LLC is working on a sale to Commercial Plastics Co. of Mundelein, Ill. Xten, an injection molder based in Kenosha, Wis., filed a...    More

Image

Buildings could reach new heights with help from plastic-coated rope

October 28, 2014 1:55 pm ET

Skyscrapers will be able to soar to greater heights with help from plastic in the latest lift technology developed by Kone Corp., an elevator and...    More

Image

TMI has new private equity owner

October 27, 2014 2:03 pm ET

Pittsburgh-based TMI International LLC, a maker of PVC-based film, panel and sheet products as well as PVC-coated curtains and screens, has been...    More

Image

Deal puts Convergence Packaging under Comar's umbrella

October 24, 2014 2:00 pm ET

Convergence Packaging Holdings LLC, itself a product of mergers, now is joining together with Comar LLC.    More

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events