news


ADS snaps up pipe maker


US-based Advanced Drainage Systems (ADS) has acquired a fellow pipe manufacturer for $9.5m. ADS has bought


Florida-based Plastic Tubing Industries (PTI), a manufacturer of HDPE pipe and related accessories. PTI has three manufactur- ing plants – in Florida, Georgia and Texas.


“The acquisition of PTI’s


assets further increases our customer base and capacity in the growing Southeast region of the United States,” said Joe Chlapaty, chairman and CEO of ADS. According to its website,


PTI is a family owned business that supplies the stormwater, wastewater and agricultural industries. It is best known for its Pipe-R reservoir system, which is made from recycled HDPE. ❙ www.ads-pipe.com


Trex reports highest ever revenues with 9% rise


Trex, the US company that extrudes decking and other products from wood-plastic composites (WPCs), recorded its highest ever sales figures in 2016. The company posted


full-year sales of $480m, a 9% increase on the previous year. Profits before tax rose by one-third, to reach almost $103m.


“This was another record


year for Trex, reflecting the success of our branding campaigns and market share initiatives which included a heightened focus on wood market conversion,” said James Cline, CEO. Final quarter results were


broadly in line with the full-year results – with a 7% rise in sales. This came on top of a particularly strong perfor- mance in the final quarter of 2015, when warm weather had led to a 20% increase in sales. At the same time, gross


Cline: “Revenues in Q1 2017 are expected to rise another 9%”


profit – for both the final quarter and full-year – also rose.


“In the first quarter of 2017


we expect net sales of approximately $144m, representing over 9% year-on- year growth,” said Cline. He added that profitability


would continue to benefit from the company’s focus to boost efficiency, cut costs and raise capacity utilisation.


Looking forwards, he said


that increasing conversion from wood into WPCs would help to grow sales. “Every 1% of market share that WPCs take from wood is equivalent to around $50m in composite sales,” said Cline. Repair and remodelling,


projected to grow by more than 6% this year, is also likely to boost future sales, said the company. However, he said that the


company’s LLDPE pellets business – which was launched in 2015 – is moving more slowly. The pellets are used by customers to make plastic bags. “We received certification that the pellets are a recycled material, and that has generated a modest level of interest with bag manufactur- ers,” he said. “At this point, I don’t think it


will have much impact in 2017,” he concluded. ❙ www.trex.com


Indian PVC pipe maker plans demerger


Prakash Industries, an industrial company based in India, is to spin its PVC pipes business out into a separate entity.


The company’s other divisions are devoted to steel and power.


“Going by the continuous


growth trajectory witnessed in the PVC pipe industry – coupled with improving prospects in agriculture and housing – the


6


sector has tremendous growth potential,” said the company. For the first nine months of


the current financial year (ended 31 December 2016), turnover and profitability of the PVC pipe division grew by 14% and 20% respectively, compared to the correspond- ing period in the previous year. Prakash says that demerg- ing the PVC pipes business will help the business become


PIPE & PROFILE EXTRUSION | March 2017


more profitable. “A more ‘pureplay’ company, having a singular business, is preferred by investors as it follows a focused and sector- specific growth strategy,” the company added. The company says that its


‘Prakash’ brand of PVC pipes is particularly strong in the north of India, where it has a ‘significant market share’. Part of its ongoing strength in this


part of the business is due to ongoing consolidation and expansion initiatives in the PVC pipes unit in Uttarakhand, the company said. Prakash said the demerger


would “protect the respective businesses from each other’s risks including industrial and economic slowdown, change in regulatory policies and other market forces”. ❙ www.prakash.com


www.pipeandprofile.com


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