Leading European PVC building profile extruder Deceuninck Plastics Industries NV is acquiring a majority stake in one of Turkey's top three window and door makers, Ege Profil AS. Deceuninck of Hooglede, Belgium, has agreed to buy a 50.1 percent stake in the publicly held firm, which claims a 10 percent share of the growing Turkish PVC profile market.
Ege Profil, based in Izmir, Turkey, employs 200 and reported 1999 sales of more than 20 million euros ($19.2 million).
Deceuninck already has vinyl window and door operations in Belgium, England, Poland and the United States, including Dayton Technologies Inc. in Monroe, Ohio. Deceuninck plans to integrate Ege Profil within its operations, but keep the Turkish firm's local management.
"The Deceuninck group has confidence in the Turkish market, where the economy is improving ... and there are prospects of [Turkey] joining the European Union," the company announced in a news release. "Turkey's construction industry is growing strongly."
PVC window and door profiles in Turkey already hold a market share of more than 50 percent against traditional wood and aluminum products. By 2005, Deceuninck predicts, Turkey's annual PVC profile consumption will double to about 225 million pounds.
Ege Profil, founded in 1981 by the Zorlu family, sells its Ege Pen-brand profiles in Turkey through a network of 120 window fabricators.
The new owner sees opportunities to expand the range with its own products and to serve neighboring national markets through the acquired company.
In 1999, Deceuninck expanded its European production when it doubled its share of the United Kingdom profile market, buying Status Systems PVC Ltd. of Oldham, England. In May, Deceuninck diversified its material range by acquiring flexible polyethylene and polypropylene tubing extruder Uniplast NV of Estaimpuis, Belgium.
Meanwhile, Deceuninck is investing $12.5 million in a plant expansion at Dayton Technologies. That project includes tripling compounding capacity and buying new extruders.
The first phase, which involves enlarging a blending facility, is scheduled to be completed this spring.