VIENNA, Austria, July 11, 2002 (PRIMEZONE) -- Wienerberger:
-- Successful integration in record time Production, administration,
sales and IT combined in five countries
-- Annual synergies of EUR 13 million expected as of 2003
-- Positive response by customers to uniform market presence
Good Teamwork Leads to Quick Integration
Wienerberger AG has successfully concluded the integration of Hanson Brick Continental Europe (Hanson BCE) in three months, supported by excellent cooperation from all parties involved. After approval of the acquisition by the European Commission on April 18 teams from Wienerberger und Hanson BCE merged the two companies in Belgium, the Netherlands, France, Germany, and Poland and realized existing synergy potential.
Uniform Presence in All Markets
This integration has been used to create a uniform market presence in all countries under the "Wienerberger" brand name and the "Terca" line for facing bricks. In Belgium the traditional "Desimpel" brand will continue as a distinct product line.
Closing of Administrative Offices
Hanson BCE headquarters in the Netherlands were closed. Moreover administration and sales in Belgium, France, Germany, and Poland have been taken over by the local Wienerberger country organizations. Within a period of only three weeks the IT system was converted to SAP and linked to the Wienerberger network.
20 Plants Integrated, 3 Closed
In the production area, a limited number of plant closings are required to optimize costs and adjust capacity. Of the 23 acquired plants, three must be closed. In Germany, the unprofitable Zentropa facing brick plant in Aachen and the KKW in Emmerich were already shut down. The Lobith plant in the Netherlands will be closed because of excessively high manufacturing costs and low utilization of capacity. All other brick plants were integrated into the local country organizations. In order to utilize available capacity, a further increase in exports is planned.
Entry into Facade Market in Poland
In Poland Wienerberger has successfully integrated the Jankowa and Torun facing brick plants in the local organization, and thereby entered the facade systems segment of a major growth market.
Annual Synergies of EUR 13 Million as of 2003
These integration measures and plant closures led to a reduction of 163 in the workforce. Restructuring costs can be offset against the "badwill" that arose from the favorable purchase price paid by Wienerberger, and will therefore not generate any additional expenses. In total the integration of Hanson is expected to create synergies and cost savings of roughly EUR 13 million per year beginning in 2003.
Focus on Bricks and Related Products
The rapid merger of the two companies was met with positive response on the part of customers. During the second half of 2002, Wienerberger will concentrate on streamlining the product line and intensifying marketing activities for "Terca" facing bricks and "Porotherm" hollow bricks. The integration of Hanson BCE is an important step to strengthen earning power in the facing brick business and underscores the Wienerberger strategy to focus on bricks and related products.
Visit our Website for further information and download of the press release (pdf file) www.wienerberger.com