PDA

View Full Version : Rehau Discontinuing PEX Production & Sales



D'Brie
11-10-2008, 08:23 PM
Rehau will soon discontinue production on their PEX products. :mad: This is from one of our suppliers (Keller). Anyone hear this too?

sixlashes
11-10-2008, 11:49 PM
Per the web site - pmengineer.com, dated 31 October 2008:

http://www.pmengineer.com/CDA/Articles/Breaking_News/BNP_GUID_9-5-2006_A_10000000000000458633

"REHAU has announced a strategic shift away from the production and sale of commodity products, and will exit municipal PVC pipe manufacturing and supply in Canada, as well as its business as a PEX plumbing systems supplier in the United States and Canada.

Production of municipal PVC pipe will end as of Oct. 31, 2008, with sales continuing through March 31, 2009. The company will also 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."

Since Rehau is often cited on this forum as the most trusted pex system on the market, this seems to be a dark cloud decending on the pex industry. Why would they discontinue a product line they recently invested quite heavily in (4th quarter 2006)? If their engineers were confident their pex system was a solid performer, wouldn't they be salivating at the prospect of huge profits on pex with the current (and forecasted) high cost of copper?

The term - liability - comes to my mind. This news really gives me pause whether to use pex in my house.

Darn it, I guess copper isn't that expensive... :confused:

Southern Man
11-11-2008, 05:58 AM
Wow. I'm glad I didn't buy that crimper after all....

nhmaster
11-11-2008, 04:23 PM
Yes, we are all glad :D

kingsotall
11-11-2008, 08:14 PM
Sounds like they are saying, "Been there, done that." They're planned ventures sound really exciting. Time to buy stock in Rehauż

master plumber mark
11-12-2008, 04:04 AM
Sounds like they are saying, "Been there, done that." They're planned ventures sound really exciting. Time to buy stock in Rehauż

They are getting out of the pex as fast as they can
probably with the laywers nipping at their heels..


their will be many others to follow suit....like ZURN...


those "new ventures" are their way of saying that they would
rather throw the dice and gamble on something else working
out ok before dumping any more money into PEX..

building a 20 million dollar plant and then shutting it down soon
after it has been built is certainly not a good sign....

Perhaps watching copper droppping down to 165 a pound has
taken the competitive edje off the pex market..???.



IMHO...their announcemnt to get into other exciteing ventures is what is
called a "forward looking statement" ...

and you see it in all penny stock "disclaimors" and
pie in the sky announcements.agout their future.....

I have lost my ass in enough of them to know...


I would not put a dollar into that mess.....

sjsmithjr
11-12-2008, 05:33 AM
If getting out of PEX plumbing is about potential lawsuits, rather than getting out the (low margin) commodities product market, why are they discontinuing the manufacture of municipal PVC piping?

Redwood
11-12-2008, 06:28 PM
I don't think it's a liability problem at all. They just recognise that their product is not going to be one of the big players in PEX and they are never going to reach the profits that they want to achieve.

The brand while good quality, I consider it to be one of the better systems but, has never been the most popular. I believe with the low market share they had they were just unable to compete and didn't think they would get the federal bailout that GM, Ford, or, Chrysler might be getting. Without a doubt Wirsbo/Uphonor is the Big Kahuna and Viega is probably in second place, or, at least close to it in the also rans.

I think it was just a case of them deciding to stop...http://i44.photobucket.com/albums/f2/Redwood39/deadhorse.gif

You will note in the release that they are also discontinuing production of PVC. If your following the liabiliy logic then we all better start worrying about all the PVC we have installed...:eek: Dark clouds are looming on the horizon!:eek:

Face it the economy today just plain sucks!
There are a lot of businesses that are going to make tough decisions that their survival will depend on.

The better product doesn't always win in the marketplace. Anybody remember the VHS wars? VHS vs. Betamax? In this case the superior product lost! Betamax had better picture quality, and better sound quality yet the only users ended up being the professionals. Those News clips you watch every night were mostly shot on betamax but the video rental and sales went VHS.

Now we see the same thing happening with DVD...
Go figure!

kingsotall
11-13-2008, 04:43 AM
And then I don't know where he read it but the :cool: Bossman :cool: said that Rehau has since scratched the idea and is going to still be a viable player in the domestic PEX markets.

Redwood
11-13-2008, 06:26 AM
And then I don't know where he read it but the :cool: Bossman :cool: said that Rehau has since scratched the idea and is going to still be a viable player in the domestic PEX markets.

Their websites last press release says otherwise.
It is the same one that says they are discontinuing PEX and PVC.
I would think that their decision was well thought out and not one to be quickly reversed.

If they did reverse it I'm sure they would be screaming it from the mountaintops.

burleymike
11-22-2008, 08:28 PM
Anybody else heard anything about Rehau in Las Vegas? Looks like they are also having problems with their brass.

http://www.scaview.org/REHAU.html

vern2009
12-09-2008, 07:11 AM
Attended a meeting last week regarding Rehau PEX & Everlock Fittings.
The information regarding PEX is; Rehau will continue to manufacture PEX.
The production of Everlock brass fittings will no longer be NSF certified after March, because of zero tolerance for lead in plumbing fixtures. Fittings will be for nonpotable heating applications.