A goal of becoming No. 1 in the Argentine vinyl pipe and fittings market led Amanco Group of Zurich, Switzerland, to buy PVC Tecnocom SA of Buenos Aires, Argentina.
Tecnocom manufactures 53 million pounds of PVC pipe and fittings per year and has a 66 million-pound-per-year PVC compounding line.
The $60 million deal was concluded in mid-March.
``With this acquisition, the Amanco Group now controls 55 percent of the PVC pipes and fittings produced in Argentina,'' said Nilo Checco, financial and market relations director at Fortilit Tubos e ConexÃµes SA, an Amanco affiliate based in Sumare, Brazil.
The Argentine PVC pipe and fittings market totals 154 million pounds per year, according to a Fortilit news release.
Amanco also owns Cinplast SA, a 30 million-pound-per-year pipe and fittings plant near Buenos Aires. The unit dedicates most of its capacity to processing PVC, but it also makes some high density polyethylene pipe.
According to Checco, Amanco will continue to expand in Latin America, especially in Brazil via Fortilit.
Fortilit has a 79 million-pound-per-year PVC pipe and fittings plant in Anapolis, Brazil, and is inaugurating a 287 million-pound-per-year unit in Sumare, close to SÃo Paulo.
By year's end, the firm will add an HDPE pipe line in Sumare and launch a $25 million, 55 million-pound-per-year plant in northeastern Brazil. The new plant will make PVC pipe and fittings.
Fortilit's plans for 1999 include an additional plant in southern Brazil that will have the capacity to make 77 million pounds of PVC pipe and fittings per year.
Amanco is the branch of Zurich-based Nueva AG responsible for Latin America.