Deceuninck expanding in Turkey

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: March 25, 2014 10:41 am ET
Updated: March 25, 2014 10:44 am ET

Related to this story

Topics PVC, Pipe/Profile/Tubing, Europe, Windows & doors

Deceuninck Group, the European vinyl profile extruder, plans to invest around 20 million euros ($27.6 million) to expand its manufacturing operations in Turkey over the next two years.

The group, which has seen steady sales growth in Turkey, despite national political crises there, will construct a new profiles plant with a capacity in the city of Izmir which will replace its existing Egepen Deceuninck plant in the city.

Deceuninck says it was prompted to invest in the new facility at this time because its current Izmir unit with a capacity of 50,000 metric tons per year has become too small for future expansion in the Turkish market. The new plant will be able to handle an additional 15,000 metric tons.

The company, based in Hooglede, Belgium, has made Turkey its export hub, feeding new emerging markets in Asia, Africa and Latin America. In 2012, it launched a warehouse in India and recently opened another in Santiago, Chile.   

Deceuninck expects to complete the move to the new plant in Menemen near Izmir by the end of next year. The vacated plant buildings will then be put up for sale, a spokesman told EPN.

Deceuninck estimates the warehouse and foiling manufacturing section of the new plant will be finished in 2014 with its extrusion and compounding sections to be completed in 2015.

The Belgian group operates a second smaller plant in Turkey at Kocaeli. It manufactures Deceuninck’s Winsa brand window system and opened in 2007.

In Turkey, Deceuninck states, it has made a good start to 2014 although it expects the weak Turkish lira to continue to weigh on its revenues and earnings in the region.

In 2013 Turkish sales represented 23 percent of the group’s world sales, with Western Europe representing 33 percent, Central and Eastern Europe 30 percent and North America 14 percent.   

Deceuninck reported it cut its debt and doubled its net profit in 2013 to 8.4 million euros ($11.5 million) “in spite of the challenging economic environment.” This resulted from stable volumes, strict working capital management and cost control, the group’s CEO Tom Debusschere said.

At the same time Deceuninck saw its overall sales dip 3.7 percent to 536.5 million euros ($740.2 million) with European construction markets depressed after a harsh winter. Even so, stable volumes resulted from growth in the U.S., Germany, Italy and England as well as Turkey and the emerging markets, said the group.


Comments

Deceuninck expanding in Turkey

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: March 25, 2014 10:41 am ET
Updated: March 25, 2014 10:44 am ET

Post Your Comments


Back to story


More stories

Image

Soy-based foam improves window performance, sustainability

December 18, 2014 12:51 pm ET

Launched in April 2013, Madison, Wis.-based WFI Global LLC is making a name in the fenestration market with what it says is a distinct product...    More

Image

Europe puts its 'Circular Economy' recycling effort on hold, for now

December 18, 2014 12:28 pm ET

The European Commission has withdrawn its Circular Economy initiative from its 2015 work program, and will instead replace it with “a new, more ...    More

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

Image

Sweden's Indutrade buys Belgian packaging firm Verbeek

December 18, 2014 9:42 am ET

Sweden's Indutrade AB has purchased all the shares in Belgium's Verbeeck Packaging Group.    More

Image

Röchling buys two UK firms

December 18, 2014 9:24 am ET

Germany's Röchling Engineering Plastics SE & Co. KG has expanded its presence in the high-performance plastics market by acquiring two British firms &...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

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 billion 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

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