Polyfelt for Sale

OMV, Central Europe’s leading oil and gas group, is planning a strategic divestment of its wholly-owned subsidiary, Polyfelt, the world’s largest manufacturer of geotextiles. The reason for OMV’s decision to separate is that Polyfelt’s increasing focus on geosynthetics does not fit into OMV’s business model. However, both sides will benefit from the split. “The divestment creates a win-win situation for both sides,” said OMV associate managing director Gerhard Roiss. “OMV, as an integrated oil and gas group, will be in a position to concentrate more on developing its core business. Polyfelt will be able to focus more strongly on its international growth.” OMV says the forthcoming negotiations will be conducted confidentially in 2005, and that they are committed to finding an investor that is fully supportive of the company developing its position internationally. They also want to ensure that the buyers have a sustainable and profitable investment plan that will safeguard Polyfelt’s Linz headquarters. “We are committed to ensure that Polyfelt takes a partner that will uphold the company’s values and support strategic growth in geosynthetics,” says Gerhard Roiss. Polyfelt is stil growing; the latest sales office will be opened in New Delhi and will help the company to gain a foothold in the booming Indian market for geotextiles.
At the beginning of the second quarter this year, a unique manufacturing plant with 9,500 tons per year for high performance geotextiles will go into operation in Linz. This €11 million investment will increase production capacity for geotextiles and further develop the company’s technology. After the commissioning of the new plant, global production capacity will reach some 40,000 tons a year.