Deceuninck buys PVC window maker Pimas, adds capacity in Turkey, Russia

By Catherine Kavanaugh
Staff Reporter

Published: August 25, 2014 2:26 pm ET
Updated: August 25, 2014 3:49 pm ET

Image By: Deceuninck Group Deceuninck Group is adding PVC window profile production in Turkey and Russia with its acquisition of Pimas Plastik.

Related to this story

Topics Mergers & Acquisitions, Pipe/Profile/Tubing, Europe, Windows & doors

European building products manufacturer Deceuninck Group has acquired 81.2 percent of Pimas Plastik Insaat Malzemeleri AS, the leading PVC window profile producer in Turkey, for about 57.7 million Turkish lira ($26.5 million).

The purchase gives Deceuninck, which is based in Hooglede, Belgium, two more manufacturing facilities — one near Istanbul and one in Rostov-on-Don, Russia — along with complementary products and a wider customer base served by a distribution network with 1,200 points of sales.

The acquisition, which was announced Aug. 25, is in line with Deceuninck’s plans to strengthen its position in Russia and Turkey, which are the first- and second-largest PVC window markets in Europe, respectively.

Ever since Deceuninck entered Turkey more than 14 years ago, sales and profits have grown steadily, according to CEO Tom Dubusschere.

“Some periods of turbulence were turned into opportunities for further market share growth,” he said in a news release. “The acquisition of Pimas, with its pioneer brand Pimapen, the most recognized name for windows in Turkey, presents a great opportunity. As a result, Deceuninck will move to the No. 1 position in Europe’s second-largest PVC window market, which is estimated at 325,000 [metric tons] per year.”

The same market in Russia is estimated at 370,000 metric tons per year. Deceuninck has had a presence in Moscow for 10 years. The Pimas acquisition gives it a modern facility in southern Russia, which is a competitive market for new construction and renovation.

Pimas posted sales of 174 million Turkish lira ($79.9 million) for the fiscal year that ended June 30 and is listed on the Istanbul stock exchange. Deceuninck will launch a mandatory public offering after the deal closes to meet a Turkish law requirement.

Already listed on Euronext Brussels under the ticker DECB, Deceuninck had 2013 sales of 536.5 million euros ($708.3 million). Turkish sales represented 23 percent of the group’s world sales while Western Europe made up 33 percent, Central and Eastern Europe were 30 percent and North America was 14 percent.

Turkey is a major export hub for the 75-year-old company, which also is building a new factory there in Menemem near Izmir that will replace the smaller Egepen Deceuninck plant.

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

Deceuninck will fully consolidate Pimas when the deal closes and then it will hold the top three brands for high-end PVC windows in Turkey with Winsa, Egepen and Pimapen, which also offers a foldable glass balcony system.

Deceuninck currently has 12 manufacturing plants in 10 countries and 2,700 employees in 25 countries.


Comments

Deceuninck buys PVC window maker Pimas, adds capacity in Turkey, Russia

By Catherine Kavanaugh
Staff Reporter

Published: August 25, 2014 2:26 pm ET
Updated: August 25, 2014 3:49 pm ET

Post Your Comments


Back to story


More stories

Image

Huntsman closing four pigment plants

March 5, 2015 3:36 pm ET

Huntsman Corp. is closing four plants — three in the U.S. and one in Germany — that make pigments for plastics and other markets.    More

Image

VisiPak adds to customer mix, product offerings with Tulox acquisition

March 5, 2015 2:19 pm ET

VisiPak has acquired Tulox Plastics Corp., a maker of clear plastic packaging.    More

Image

Bigger doors, windows gain appeal

March 5, 2015 11:43 am ET

Door and window manufacturers are continuing to super-size product lines to make a grander first impression at main entrances and to expand vista...    More

Image

Auto supplier Motus adds more production as it buys Leon Interiors

March 5, 2015 10:52 am ET

Motus Integrated Technologies, a Tier 1 automotive interiors supplier, is getting bigger, adding the assets of Tier 2 supplier Leon Interiors Inc.    More

Image

PET makes it possible to have your beer and be sustainable too

March 5, 2015 10:45 am ET

PET could replace stainless steel beer kegs in a material swap product developers say will be more environmentally friendly and cost effective for the...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

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

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

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

More Events