[inspic=27,left,,]Within its overall strategic shift away from the production and sale of commodity products, REHAU announced that it will exit municipal PVC pipe manufacturing and supply in Canada, as well as its business as a PEX plumbing systems supplier in the U.S. and Canada.
Production of municipal PVC pipe will end as of October 31, 2008, with sales continuing through March 31, 2009. The company will also support PEX plumbing systems orders through March 31, 2009, and will provide full-scale customer assistance to ensure a smooth transition into alternative plumbing systems product lines thereafter.
“This decision is part of a significant company-wide initiative to hone our construction focus on high-performance polymer systems, which provide quality, energy-efficient solutions,” said Dr. Kathleen Saylor, REHAU North America chief executive officer. “Over the past several years, REHAU has innovated a number of products and systems to help address the global energy and infrastructure challenges we face now and in years to come. Providing such systems solutions for our customers is REHAU’s strength, and is where we need to concentrate our resources for the future.”
22 positions tied to REHAU’s PEX plumbing systems business will also be eliminated across its headquarters, sales offices and related manufacturing plant, and an additional 10 employees will be reallocated to other areas of strategic focus. All staffing adjustments will commence immediately, with continued transition through March 2009.
REHAU became the first PVC pipe extruder in North America upon opening its municipal pipe manufacturing plant in Prescott in 1970. In addition, the company introduced cross-linked polyethylene (PEXa) pipe for plumbing applications to the North American market in 1997, capitalizing on more than two decades of previous experience with the product in Europe.
“Our expertise as a company has always been in the innovation and introduction of the latest polymer technologies,” Saylor said. “Having paved the way for products that have now become commodity entities in the marketplace, it is time for us to exit these markets and concentrate on advancing the next set of cutting-edge offerings for the construction industry.”
“We have realistically assessed the commoditized nature of the PEX plumbing systems market, recognizing that tight profit margins cannot justify future efforts,” said Bill Johansen, business unit manager for REHAU’s heating and plumbing group. “As REHAU’s business philosophy supports responsible product innovation under stringent and extensive testing standards, we have otherwise decided to focus our resources toward the future through polymer systems innovation.”
The company plans to direct its efforts toward establishing and further defining the market for integrated low-temperature heat source and distribution systems, including PEXa-based radiant heating, geothermal ground loop and solar thermal systems. More: KWD-globalpipe, 2008-11-04, No.297.
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