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REHAU Exits the PEX Plumbing Systems Market

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[#1] Posted: 11/20/2008 - 11:04:45 AM
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On October 20th, REHAU announced that it will exit municipal PVC pipe manufacturing and supply in Canada, as well as its business as a PEX plumbing systems supplier in the U.S. and Canada.

The company will support PEX plumbing systems orders through March 31, 2009, and will provide full-scale customer assistance to ensure a smooth transition into alternative plumbing systems product lines thereafter.

REHAU was the first PVC pipe extruder in North America and introduced cross-linked polyethylene (PEXa) pipe for plumbing applications to the North American market in 1997, capitalizing on more than two decades of previous experience with the product in Europe.

“This decision is part of a significant company-wide initiative to hone our construction focus on high-performance polymer systems, which provide quality, energy-efficient solutions,” said Dr. Kathleen Saylor, REHAU North America chief executive officer. “Our expertise as a company has always been in the innovation and introduction of the latest polymer technologies. Having paved the way for products that have now become commodity entities in the marketplace, it is time for us to exit these markets and concentrate on advancing the next set of cutting-edge offerings for the construction industry.”

“We have realistically assessed the commoditized nature of the PEX plumbing systems market, recognizing that tight profit margins cannot justify future efforts,” said Bill Johansen, business unit manager for REHAU’s heating and plumbing group. “As REHAU’s business philosophy supports responsible product innovation under stringent and extensive testing standards, we have otherwise decided to focus our resources toward the future through polymer systems innovation.”

The company plans to direct its efforts toward establishing and further defining the market for integrated low-temperature heat source and distribution systems, including PEXa-based radiant heating, geothermal ground loop and solar thermal systems.

REHAU will also concentrate on introducing or further defining the market for residential fire protection systems, radiant cooling systems and pre-insulated PEX energy transfer pipe. Additionally, the company will continue to fill a mid-term technology pipeline with innovations including biomass, ground-air heat exchange and rain water management solutions.

It would be prudent for inspectors, who find homes plumbed with this product, to advise their customers that any additions to the system will need to be done with a different brand PEX product.

   
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