Printable PDF - Tessenderlo Group

Conclusion: 2003 was a good year for profiles, mainly thanks to the European market, which more than
made up for the ongoing difficulties in America. Sales figures in Europe remained buoyant or increased further,
despite the weak construction sector.
Plastic pipe systems
Demand for plastic pipe systems in Belgium and the Netherlands bottomed out in 2003. There were even
signs of a slight upturn in the second half of the year. The closure of the plant at Goor in the Netherlands in
2002 resulted in higher profitability in the Benelux countries.
Dyka Polska, which took over part of Goor’s production, continued to expand its distribution network. Sales
figures increased in line with expectations.
2003 was a good year for pipe systems in the UK. The amalgamation of the business of Dyka UK and John
Davidson Pipes Ltd was finalised, thus resulting in the optimum synergy. John Davidson Pipes also took
advantage of the buoyant UK construction market to further its expansion.
Although sales dipped slightly in France, Tessenderlo Group succeeded in maintaining prices at the 2002
levels. Nevertheless, prices were still too low to generate adequate profitability. Competition among manufacturers
striving to maintain their market share continued in 2003. France remains a very difficult market
due to low prices and the highly concentrated distribution system.
Overall, the plastic pipe systems business line was able to maintain its results at the 2002 level. At the same
time, profitability improved due to cost-cutting measures.
In conclusion, turnover in the Plastics Converting division was slightly higher than in 2002, while the 2003
results were quite identical to the ones of the previous year.
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