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[February 2006]
Wienerberger Enters Bulgarian Market
In an investment planned to total approximately 25 million euro, Wienerberger AG (Vienna, Austria) has purchased more than 90% of the shares in Uspeh AD in Bulgaria, which operates a brick plant in Lukovit, 120km north-east of Sofia.
"This acquisition signifies our entry into a new and interesting brick market that will further expand our geographic portfolio toward the east," commented Johann Windisch, member of the Managing Board of Wienerberger AG responsible for Central-East Europe. "Since spring 2005 Wienerberger has been present in Bulgaria with exports from Romania and Hungary, and our high quality POROTHERM bricks have become extremely popular with Bulgarian people. We have not even come close to meeting the high demand through imports."
Lukovit is well located in the most important Bulgarian brick market near Sofia with its 1.1 million inhabitants and also has substantial clay reserves adjacent to the production site. Wienerberger will reconstruct the plant to meet the latest technical standards after all necessary approvals have been received. This 25 million euro investment is another part of the bolt-on growth programme that is forecast to reach 250 million euro in 2006.
It is thought that the heavily fragmented brick market in Bulgaria will present Wienerberger with further growth opportunities in that country.
www.wienerberger.com
ENDS