Insulation industry news from Global Insulation

Hungary: Masterplast has entered talks with a ‘major Hungarian lender’ to refinance its debt following concerns over its liquidity. It is reportedly requesting a one-time exemption from its bond obligations to allow for a new credit line of up to €7.6m for a three-year term, according to the producer. Its bondholders are currently voting on the proposal. Bne IntelliNews has reported that the developments follow ratings agency Scope Ratings’ downgrading of Masterplast’s rating to CCC.

Masterplast CEO Tibor David said that talks are ‘progressing well.’

Italy: Masterplast inaugurated its new Euro3m Calerno insulation plant in Emilia Romagna on 28 November 2023. Once fully operational, the producer expects the plant to add Euro15m to its annual sales.

Hungary: Masterplast reported sales worth Euro114m during the first nine months of 2023. This represents a year-on-year decline of 31% from Euro164m in the corresponding period in 2022. The producer’s earnings before interest, taxation, depreciation and amortisation (EBITDA) losses were Euro2.93m, compared to a positive figure of Euro19.3m. During the third quarter of 2023, sales declined in Hungary by 45% and across its export markets by 26%. They rose by 21% in Poland, by 8% in Croatia and by 2% in Ukraine.

Masterplast attributed its sales decline to low demand due to global inflation and rising interest rates amid on-going lockdowns, energy crises and war in Ukraine, while energy-saving renovation initiatives have also been subject to delays. The company set a savings target of Euro2m/yr and laid off 250 employees, including 210 from its plants in Serbia. It completed the construction of new expanded polystyrene (EPS) and extruded polystyrene (XPS) capacity in Italy and Serbia, which it expects to bring online later in 2023.

Germany: Masterplast has inaugurated the new Euro3m storehouse at its Achersleben non-woven fleece products plant in Saxony-Anhalt. The plant produces non-woven fleece products for various applications from polyethylene (PE) and polypropylene (PP). Masterplast has announced a budget for Euro50m of upcoming investments across Central and Eastern Europe.

Chair Tibor David said “The new hall allows for flexible, smaller-scale servicing and is a crucial step in strengthening our market positions in the EU's largest market.”

Serbia: Hungary-based Masterplast has inaugurated the 150,000m³/yr Subotica insulation plant in Vojovodina. GradSubotica News has reported that the plant will be the first in Serbia to produce extruded polystyrene (XPS) insulation. The Hungarian Export Promotion Agency (HEPA) provided 50% of investment in the plant. Masterplast's on-going strategic expansion in Southeast Europe is aimed at making it insulation market leader amid growing demand in the region.

Serbia: Masterplast has concluded a deal to acquire the outstanding 49% stake in mineral wool insulation producer Masterwool MW-1. Masterwool MW-1 is currently building a new Euro20m mineral wool insulation plant in Vojvodina. The project is supported by a grant from Hungarian state-owned Hungarian Export Promotion Agency (HEPA).

Masterplast plans to commence a Euro50m growth phase in the near-term future. It expects its sales to drop in the first half of 2023 due to negative trends in new home construction. However, it expects recent new expanded polystyrene (EPS) and extruded polystyrene (XPS) insulation capacity to partly offset this.

Hungary: Masterplast has concluded an agreement to acquire Pimco. Pimco is in the process of establishing a Euro35.7m, 20,000t/yr glass wool plant at Szerencs, Borsod-Abaúj-Zemplén County. Növekedés News has reported that an advance investment by Masterplast in the company will enable Pimco's Szerencs plant project to move into the implementation phase. It would then enter production in 2024. Masterplast will fund the investment using the proceeds of its Euro23.3m stock market capital raising in October 2022. The upcoming Szerencs plant was previously the subject of a Euro35.7m grant from the Hungarian Investment Promotion Agency.

Masterplast employs 1400 people across 10 countries.

Hungary/Serbia: Building products producer Masterplast and construction company Market Epito have entered into a strategic cooperation agreement to build mineral wool plants in Central Europe to meet anticipated demand for insulation. Plans for a first plant to be built in either Hungary or Serbia could be finalised in the first quarter of 2023. Joint-venture companies will be set-up on a 50:50 basis to support the new plants. As part of the deal, both companies would endeavour to purchase mineral wool from the new production units where possible for Market Epito’s construction projects and Masterplast’s commercial activities. The companies also hope to use public funding to support the building of new plants due to their importance to the national economy.

Hungary: Masterplast says that it has signed an option contract to acquire the outstanding 76% stake of expanded polystyrene (EPS) producer T-Cell Plasztik. T-Cell Plasztik holds a 10% market share in Hungarian polystyrene production, and recorded revenues of US$7.91m in 2021.

Masterplast first acquired a 24% stake in T-Cell Plasztik in June 2019.

Hungary: Building materials producer Masterplast has been awarded a Euro0.8m grant from the government for its foam insulation plant at Kal. The grant will be used as part of a Euro1.6m upgrade at the site, according to the MTI-Eco news agency.