REHAU has 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.
REHAU has 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
“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
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
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.