Ceramic Industry News

Wienerberger Expands Brick Business in Italy (posted 12/12/07)

December 12, 2007
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Wienerberger is expanding its activities in Italy with the acquisition of the RIL Laterizi Srl hollow brick plant in Piemont.

Wienerberger is expanding its activities in Italy and strengthening its market position in Northern Italy with the acquisition of the RIL Laterizi Srl hollow brick plant in Piemont. The plant is located in Gattinara, 80 km west of Milan, and has a production capacity of 140 million NF. In 2006, the facility generated revenues of €10.4 million (~ $15.2 million) with 27 employees.

The acquisition represents part of the Wienerberger bolt-on program for 2007, which is expected to cover €260 million (~ $380 million) of growth investments. The parties have agreed not to reveal any information on the purchase price for this transaction.

With a market share of roughly 85%, brick is the dominant building material for walls in Italy, which is also the largest brick market in Europe. “In Italy, the long-term outlook for residential construction is positive. The acquisition of the RIL brick plant will allow us to expand our market radius in the Northwestern region of the country. We will also create a good basis for the further development of plane brick sales and be able to utilize synergies in the Italian sales network,” said Johann Windisch, member of the managing board of Wienerberger AG.

Wienerberger currently operates five hollow brick plants in Italy, at Feltre and Imola in the north, and Terni in the central region of the country. The Group also holds minority stakes in hollow brick plants in Cormons and Sagrado, which are both located in Northern Italy. The acquisition of RIL Laterizi Srl was closed on November 30, 2007.

Visit wienerberger.com for additional information.


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