Saint-Gobain GC announced the closing of its Ploiesti-located thermal insulation plant in Romania, which produces glass fiber products under the brand Isover. However, the company will continue to produce basalt mineral wool on its second line of production in Ploiesti.
The decision was made following the dramatic fall in demand for construction material in Central and Eastern Europe, including glass fiber thermal insulation. With reference to the official company statement, Profit.ro informs that “for the continuation of the production line in Romania additional investments of several million euro would have been required, investments which could not be supported by the financial results they would generate”.
To ensure the necessary volumes of glass fiber insulation in Romania market, the company will import such products from other Isover factories in the region. We have reported before that the Russian mineral wool market is also experiencing a decline in demand, stopping growth after 2014. However, the mineral wool market is estimated to reach $15 billion by 2022.
Saint-Gobain GC is a multinational company with a headquarter in France. It specializes in the manufacture and sale of construction materials under well-known brands. In Romania, Saint-Gobain has eight activities (Abrasives, Brodrene Dahl, Glass, Isover, MTI Impex, PAM, Rigips and Weber).
Saint-Gobain also has several subsidiaries in Russia, including basalt fiber thermal insulation plant in Chelyabinsk.