Pipelife: Full control of Hungarian joint venture
Austrian pipe extruder Pipelife has taken full control of Pannonpipe in Hungary and its subsidiary Pipelife Romania, acquiring the 50% stake in the business owned by Pannonplast. Pannonpipe was established in 1990 as a 50:50 joint venture between Pannonplast and Pipelife. Norbert Speiser, chief operating officer of Pipelife Eastern Europe, said the venture was “very beneficial in the early stages of the market economy in Hungary”. The Hungarian and Romanian businesses had net sales of E39m last year and employed 300 staff. After a number of successful years, the business made a loss in 2004, according to joint-owner Pannonplast. Pannonplast said proceeds from the deal – the purchase price and consolidation of loans – would reduce net debt by E11.5m. It said it will now focus on its consumer packaging business.