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[May 2005]
Wienerberger Builds New Brick Plant in Estonia
Wienerberger AG (Vienna, Austria) is continuing its profitable growth course with the construction of a facing brick plant in Aseri, Estonia. "This new production facility represents the first 'real' growth step for Wienerberger in the Baltic region," commented Heimo Scheuch, member of the Wienerberger Managing Board for North-West Europe. "The Baltic States are a promising economic region with a growth potential well above the European average. Our decision to construct a new plant was based on the rising demand for facing bricks in these countries, which has exceeded our present capacity in Aseri."
The company decided, additionally, to convert its existing facing brick plant in Aseri to hollow brick production and this, together with the brand new facing bricks facility, represents an overall investment of 16 million. The company has typically been importing roughly 18% of bricks sold in the Baltic States from its plants in neighbouring countries.
"This production facility will nearly double our capacity from the current level of 28 million to 50 million brick units," added Scheuch, "and also allow us to supply the entire Baltic region. In addition, we will be able to expand our market position not only in Estonia, Lithuania and Latvia but also in Russia through exports to the St Petersburg area.
"These planned investments of 16 million will benefit Wienerberger in a number of ways: we will adjust our capacity to meet growing demand, expand our product line in the increasingly important high-quality segment and realize significant cost optimization."
ENDS