Published on : Thursday, July 20, 2017
EGGER Group has acquired the Masisa plant in Concordia, Argentina. The purchase contracts were signed on July 17, 2017. By acquiring the Masisa plant, from Chilean company Masisa S.A., EGGER secures a production site outside of Europe for the very first time. The Austrian company is company is consistently pursuing its strategy of continuing to grow on its own terms and to make itself future-proof through increasing internationalisation.
With a market share of 35%, Masisa is the number 2 in Argentina, with Masisa Argentina posting turnover of USD 131 million in 2016. The plant in Concordia has facilities for the production and lamination of chipboard and MDF boards. In 2016, it recorded production capacities of 165,000 m3 chipboard, 280,000 m3 MDF boards and 274,000 m3 lamination. An enterprise value of USD 155 million has been agreed for Masisa Argentina’s business. Masisa Argentina’s forestry activities are not to be taken over by EGGER, but a long-term wood supply partnership has been agreed.
Thomas Leissing, spokesman of the EGGER Group Management, explains “We are certain that it is an opportune time to invest in South America. Because Argentina is just coming out of its worst economic downturn, and following recent political developments, there is plenty of reason to hope that the economy will continue on its course to recovery.”
For EGGER, owning a production site in the growth markets of South America is vital for tapping into the local market potential. The goal is to become a major player in the South American market. Though the wood-based material manufacturer has already had a sales office in Chile since 2012 and made its first forays into the South American market, EGGER recognises that without its own production capacities it would always have remained limited to a small niche.
Thanks to sharing a similar corporate philosophy and strategy, Masisa Argentina and the EGGER Group are a great match. Masisa enjoys broad market access through its distribution channels in DIY, distributors and industry. Masisa uses pull marketing techniques and social media activities to communicate with its customers, and it also has an established customer loyalty programme – Red M – which boasts some 9,500 members.
Alongside the plant and its distribution, EGGER will also go on to take over the established Masisa Placacentro Argentinian dealer network, which is independently run by 42 partners.
With the closing of the transaction EGGER will take over all 500 Masisa Argentina employees. “We are looking forward to welcoming the new, qualified and dedicated colleagues who will support us in our further growth in South America, and who will gain clear opportunities for their future through this takeover,” explains Leissing.