SEKISUI CHEMICAL CO., LTD. (President: Teiji Koge, hereinafter called "SEKISUI CHEMICAL") has restructured the pipeline renewal business in Europe, and the transfer of the ownership on manufacturing and construction companies has been completed. Further, the new company established in the Netherlands will concentrate on production and sale of SPR method*-related products.
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*SPRmethod：A method to renew aged pipeline by winding rigid-PVC made profile spirally inside of aged pipe and filling the gap between such aged and newly wound pipes by special type back filling material. |
1. Background and History
In May 2008, SEKISUI CHEMICAL’s Urban Infrastructure and Environmental Products Company intended to penetrate and expand pipeline renewal business in Europe through the acquisition of Chevalier Pipe Technologies GmbH (current SEKISUI SPR EUROPE GmbH). In addition to its commonly used products including Cured in Place Pipe Method, high value added SPR Method related business has been promoted. Further, in December 2011, SEKISUI CHEMICAL also acquired Rabmer Holding GmbH (current SEKISUI SPR CONSTRUCTION GmbH) to expand the network of installation operation especially in Eastern Europe. Nevertheless, both companies have been affected by the reduction of public expenditure due to the depression of the European economy, unable to avoid the intensified price competition for commonly used products, and continuously showing negative operating profits as a result.
2. Purpose of Restructuring
Although the reorganization has been continuously conducted on this business, it was decided that drastic countermeasure was inevitable to improve profitability and resulted in the transfer of the ownership. From now, SEKISUI CHEMICAL will concentrate in Europe on the businesses of SPR method-related products that have the largest market share in Japan.
3. Outline of the Restructuring
The ownership of SEKISUI SPR EUROPE GmbH, engaged in the production and sale of pipeline renewal products and SEKISUI SPR CONSTRUCTION GmbH, engaged in the installation of pipeline renewal method in Europe has been transferred to New Technologies Management SAS, which was established mainly by the management teams of both companies, and the procedures were completed on January 8th.
4. Future Developments
For the purpose of business development in Europe, SEKISUI CHEMICAL has established a new company, SEKISUI PIPE RENEWAL B.V. in the Netherlands. All functions concerning the SPR method-related products obtained by those two companies have been transferred, and business operation will be concentrated on manufacturing and sale only.
-Outline of New Company
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Name |
SEKISUI PIPE RENEWAL BV |
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Address |
Metaalweg 7, 6045 JB, Roermond, The Netherland |
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Representative |
Paul Koopman |
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Outline of Business |
The manufacture and sales of pipeline renewal-related products |
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Capital |
4 million Euros (SEKISUI EUROPE BV 100%) |
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Established |
December 15, 2015 |
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Number of Employees |
10 |
-Outline of Companies Transferred (Before the transfer of the ownership)
(1) SEKISUI SPR EUROPE GmbH
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Address: Julius - Mueller - Strasse 6, Schider - Schwalenberg, Germany |
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Representative: Director and CEO: Masaru Noriki |
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Lines of Business: Pipeline renewal business (method development, manufacture, sale (materials and equipments)) |
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Established: November 2002 |
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Sales: 18 million Euros (Fiscal year ending March 2015) |
(2) SEKISUI SPR CONSTRUCTION GmbH
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Address: Bruckbachweg 23, A-4203 Altenberg bei Linz, Austria |
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Representative: Director and CEO: Masaru Noriki |
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Lines of Business: Renewal of potable water and sewer pipelines |
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Established: June 1963 |
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Sales: 40 million Euros (Fiscal year ending March 2015) |
Disclaimer
This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.