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Wienerberger AG recently announced that it is continuing its international growth course with market entry in Serbia. The company has acquired 100% of the shares in IGM Backa Nova, which operates a hollow brick plant in Mali Idjos. This city is located roughly 130 km north of Belgrade and roughly 50 km north of Novi Sad in the northern region of Serbia.
The plant currently has a production capacity of 40 million NF, and plans call for an increase in output up to 140 million NF. During the 2007 financial year, the plant generated revenues of approximately €2 million (~ $2.9 million) with 50 employees. The closing of the transaction took place in December 2007, and the parties have agreed not to reveal any information on the purchase price.
“Bricks are the dominant building material in Serbia and hold an 80% share of the market for materials used in wall construction,” said Johann Windisch, responsible member of the managing board of Wienerberger AG. “The Serbian market will create significant opportunities to increase sales volumes because of its good macroeconomic conditions. Strong and sustainable economic momentum has been noted, especially in the northern part of the country. For this reason, we not only expect positive GDP development but also an increase in residential construction over the coming years. In addition, this acquisition will allow us to develop the market in southern Serbia and Romania over the long-term and further strengthen the market position of Wienerberger in this region.”
For additional information, call (43) 160192-463, e-mail email@example.com or visit www.wienerberger.com.