The international plastic pipe systems manufacturer Uponor (HQ: Kimmeltie 3, FIN-02110 Espoo) has acquired a 100% shareholding in the hot water pipe producer Pexep Oy (FIN-Nastola). Leader in the field globally, Uponor aims at strengthening its position in the very international market for hot water systems. Pexep Oy is specialised in the manufacture of high-quality plastic tubing made of cross-linked polyethylene (PE-X). The products are used mainly for underfloor heating systems and for tap-water installations. Over 80% of the company's FIM 40m (DM 12m) sales are exported to 35 countries. The company was owned by Erkki Puolakka and family with the company Makron Oy, a minority shareholder.

For Uponor, the acquistion of Pexep is a welcome addition to a family that already includes two leading manufacturers in the field, Wirsbo Bruks AB of Sweden and Hewing GmbH of Germany. The PE-X technologies of the three companies are based on different production processes. In addition, the positioning of the various brands in the market place is different and the distribution channels complement each other. The expansion of the hot water systems portfolio brings Uponor benefits in technology and R & D synergies as well as in production capacity.

According to Äke Forssell, Vice President Hot water systems at Uponor, the deal is also important for the Group in that it opens up new sales channels in several countries which may be interested in utilising Uponor's extensive product portfolio. – Pexep Oy will continue to operate as a separate company with Erkki Puolakka continuing as managing director.

READER SERVICE: Uponor Annual Report 1993: PIE-No. 36647 – Magazine "Pipeline" Summer 1994: PIE-No. 36648.