- Entry into fast growing and promising building material market
- Strategic location in South India
- Goal: development of relevant market positions in the region over
the mid-term
- Continuation of profitable growth strategy
Vienna, November 8, 2007 - Wienerberger AG, the world's largest
producer of bricks and the number two in clay roof tiles in Europe,
is continuing the pursuit of its international growth strategy
through market entry in India. With the start of construction on a
hollow block plant northwest of Bangalore, the capital of the South
Indian state of Karnataka, Wienerberger has set an important
strategic milestone in its Asian expansion. The first phase of this
project will support annual production of roughly 60 million NF (=
standard format for bricks), and plans call for a doubling of
capacity in consequence. The investment will total more than ¤ 26
million, and is included in the bolt-on program for 2008/2009.
High-potential market with growing demand for housing
"This project marks our entry into a new and highly promising
building material market and will create excellent opportunities for
further profitable growth. Following the acquisition of Arriscraft in
Canada, this investment represents another key step in the expansion
of our geographic portfolio", indicated Heimo Scheuch, member of the
Managing Board of Wienerberger AG and responsible for market entry in
Asia. "India is one of the largest and fastest growing markets in the
world with a population of roughly 1.1 billion and forecasted
demographic growth of more than 1% per year as well as an increase of
8 - 0% in disposable income as a result of the strong economic
momentum. The demand for housing is increasing steadily due to the
low level of housing stocks - conservative estimates show a current
deficit of approx. 31 million units - and the ready availability of
financing for residential construction. All this makes India a very
interesting market for Wienerberger", explained Scheuch.
Karnataka: attractive market for residential construction projects
Bangalore is situated at a key strategic location in the south of
India, close to the fast growing metropolitan areas of Chennai and
Hyderabad. It is not only the capital city of Karnataka but also the
IT hub of India, which make it the focal point of a relatively broad
and affluent middle class. The region is particularly attractive for
institutional residential construction as well as urban and non-urban
housing projects. "Our goal is to establish a relevant market
position in Southern India over the mid-term, with a number of plants
and a broad-based presence", added Scheuch in conclusion.
For additional information contact:
Karin Hofmann, Public Relations
T +43(1)60192-463 | communication@wienerberger.com
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Wienerberger AG
Wienerbergstraße 11 Vienna Austria
ISIN:
AT0000831706; Index: WBI;
Listed: Prime Market in Wiener Boerse AG;
