The company plans to direct its efforts to heating,
energy efficiency and fire protection markets.
REHAUhas announced a strategic shift away
from the production and sale of commodity products, and will exit municipal PVC
pipe manufacturing and supply in Canada, as well as its business as a PEX
plumbing systems supplier in the United States and Canada.
Production
of municipal PVC pipe will end as of Oct. 31, 2008, with sales continuing
through March 31, 2009. The company will also support PEX plumbing systems
orders through March 31, 2009, and will provide full-scale customer assistance
to ensure a smooth transition into alternative plumbing systems product lines
thereafter.
“This decision is part of a significant
company-wide initiative to hone our construction focus on high-performance
polymer systems, which provide quality, energy-efficient solutions,” announced REHAU
North America CEO Dr. Kathleen Saylor. “Having
paved the way for products that have now become commodity entities in the
marketplace, it is time for us to exit these markets and concentrate on
advancing the next set of cutting-edge offerings for the construction
industry.”
The company plans to direct its
efforts toward establishing and further defining the market for integrated low-temperature heat source and distribution
systems, including PEXa-based radiant heating, geothermal ground loop and solar
thermal systems.
REHAU will also concentrate on
introducing or further defining the market for residential fire protection
systems, radiant cooling systems and pre-insulated PEX energy transfer
pipe. Additionally, the company will
continue to fill a mid-term technology pipeline with innovations including biomass,
ground-air heat exchange and rain water management solutions.
“We have come to this decision
at a time when choice is still viable, and outside market conditions have not
yet required us to formulate an urgent conclusion,” Saylor further announced. “It
has resulted from careful consideration of the best path for REHAU’s long-term
growth, as well as the need to continually address our customers’ dynamic
requirements. We expect at the end of
this process to be even stronger as a company, and to further exemplify REHAU’s
dedication to the delivery of unlimited polymer solutions.”
Staff adjustments related to
REHAU’s exit of the municipal PVC pipe industry include the loss of 40
positions at the company’s plant in Prescott, Ontario, which will indefinitely
cease production of PVC pressure and sewer pipe at the end of this month. In addition, eight positions across REHAU’s
North American headquarters and sales offices will be eliminated, and nine
staff members will be reassigned to industrial and renewable energy product
growth areas.
A total of 22 positions
tied to REHAU’s PEX plumbing systems business will also be eliminated across
its headquarters, sales offices and related manufacturing plant, and an
additional 10 employees will be reallocated to other areas of strategic focus. All staffing adjustments will commence
immediately, with continued transition through March 2009.
REHAU Exits Municipal PVC, PEX Plumbing Systems Markets
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