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[December 2007]
Wienerberger Expands Brick Business in Italy
Vienna, December 6, 2007 – Wienerberger, the world’s largest producer of bricks and the number two in clay roof tiles in Europe, is expanding its activities in Italy with the acquisition of the RIL Laterizi Srl hollow brick plant in Piemont and thereby strengthening its market position in Northern Italy. This brick plant is located in Gattinara, 80 km west of Milan, and has a production capacity of 140 million NF (= standard format for bricks). In 2006 the facility generated revenues of € 10.4 million with 27 employees. The acquisition represents part of the Wienerberger bolt-on program for 2007, which is expected to cover € 260 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%, bricks are 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“, explained Johann Windisch, responsible 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.
For additional information contact:
Thomas Melzer, Public and Investor Relations
T +43(1)60192-463 | communication@wienerberger.com
ENDS