Kingspan Group Plc, the Irish manufacturer of building components, has acquired Joris Ide Group, the Belgian producer of sandwich panels, together with their production facility in the city of Gatchina, and intends to double the production of this structural material in Russia, despite the crisis.
After acquiring the Russian subsidiary of the Belgian company called Joris Ide LLC along with their plant in Gatchina (Leningrad region) in early 2016, Kingspan is doing re-branding and is changing the legal entity for Kingspan LLC.
Currently, Gatchina plant produces sandwich panels with various types of fillers, including polystyrene and mineral wool. There are plans to increase output from 600 million sq.m. in early 2016 to 2 million sq.m. at the end of the year.
Although the sandwich panels’ consumption is decreasing in Russia due to a slowdown of investments, the experts say the market is unsaturated and demand is increasing in certain sectors of the economy, particularly in the agricultural sector. In addition, ruble devaluation led to the reduction of demand for imported goods, resulting in promotion of domestic production.
During the press conference at the InterStroyExpo exhibition, Paul O’Gorman, Managing Director of Kingspan’s The Insulated Panel Activities In Continental, Central & Eastern Europe and Russia stressed that Russia is one of the most promising markets, and his company is about to open 3 or 4 plants in the Russian Federation until 2020.
Terms: Sandwich panels