As it proceeds to implement its transformation programme – first embarked upon at the end of last year (see Plasteurope.com of 01.12.2015) – Uponor (Vantaa / Finland; www.uponor.com) has decided to close down its PEX pipe production site in Mostoles / Spain and transfer all activities to its facility in Virsbo / Sweden. The move will affect 56 employees, and Uponor has already started consultations with the local works council. The company did not provide a timeline for the closure.

The Mostoles facility specialises in the production of PEX pipe for markets across southern Europe. However, “our main PEX pipe markets are in the Nordic countries and Germany,” said Jan Peter Tewes, president of Uponor’s Building Solutions Europe business. He added that for this reason, the site in Virsbo is better suited as a manufacturing location. Uponor will continue to operate a logistics centre as well as a sales and marketing organisation in Spain.

By the end of next year, the Finnish company hopes to have achieved at least EUR 25m in operational savings from its transformation programme, which targets a rationalisation of manufacturing as well as cost reductions. Its Building Solutions Europe business is expected to contribute at least EUR 20m of those savings.