Deutz Sells Pipe Manufacturing Operation
Deutz AG said it has sold its pipe manufacturing operation at the Cologne-Deutz site, Germany, to T.ERRE Deutschland GmbH effective April 1, 2013. The the purchase price was not disclosed. Deutz and T.ERRE have signed a long-term supply agreement for pipes and conduits.
The pipe manufacturing site employs 88 people, for whom a continued employment - either with T.ERRE or in other parts of Deutz in Cologne - will be provided. T.ERRE will be manufacturing pipes at the Cologne-Deutz site until the end of 2014 and at the same time will set up a new production facility with growth prospects in the immediate vicinity.
Deutz said that outsourcing the pipe manufacturing business will bring significant efficiency improvements which are going to have a positive impact on the supply chain. The company also expects to benefit from innovations made by the partner T.ERRE.Edit Module