Masterplast takes another step forward with the production of finished health care products

Masterplast is launching another investment in the health care industry, which aims to create the production capacity of personal protective equipment for medical use. The development, completed by September 2021, is closely related to the investment in the production of health care raw materials started in December last year. With the latter, the company will also start the production of finished health care products. The HUF2.6-billion-investment is financed within the framework of the Health Support Program, with the contribution of the Ministry of Finance, which provides an 80-percent, non-refundable support. Together with the current project, the total value of Masterplast’s manufacturing developments in the health care industry already exceeds HUF12 billion. By developing the production capacity of finished products, an integrated production will be established in the health care segment as well. As a result, the Hungarian company can control the overall production chain from raw materials to finished products, and actively contribute to strengthen Hungary’s pandemic defense ability.

The new investment, which will be implemented within just 6 months, will enable the production of finished health care products such as protective coveralls, medical gowns, surgical gowns, shoe covers, head protection, and insulating sheets. Several industrial opinions and analyzes justify that a massive and rapidly expanding market demand is expected in the future, and the demand for medical protective clothing and isolation products will continue to grow even after the end of the pandemic situation. The reason for this is that the industry is constantly switching to new generation products that offer a more efficient and better solution in their areas of use compared to traditional-obsolete equipment. In addition to fulfilling the needs of Hungarian health care, the new capacity will also open up further export business opportunities for Masterplast. In the plant, which will create 40 new jobs, production efficiency will be ensured by advanced machine units with a high degree of automation, while complying with strict hygiene and quality assurance standards. By developing the production capacity of finished products, the integrated production will also be created in the health care industry, allowing Masterplast to take control of the entire production chain from raw materials to finished products.

Masterplast is thus taking a significant step towards implementing its updated strategy. As it was highlighted before, with its German acquisition in last year, the Hungarian manufacturer has successfully entered the health care industry. Subsequently, in December 2020, the largest production development investment in Masterplast’s history was started, raising the importance of the health care segment in the life of the company to a strategic level. In parallel, the updated strategy published in early January this year already predicted that the health care segment, due to its high profitability, could generate additional sales of up to €20 million in 2021 – with profitability reaching the level of the construction business by 2030. With its efforts in the health care industry, the Hungarian company aims to create investor value and strengthen Hungary’s pandemic defenses at the same time.

“With this new investment, we are taking a significant step towards implementing our health care strategy announced at the investor conference in January. Currently, the demand for these medical products is huge, but the industrial opinions and surveys suggest that we can expect a sustainable increase in the market even after the pandemic, as the industry transition to next-generation health products has only just begun. At the same time, with the production of finished health care products, we can actively contribute to strengthening Hungary’s pandemic defense ability, which can then ensure the supply of medical protective clothing needs from domestic sources. We took important steps forward last year. With the acquisition in Germany, we have successfully entered the health care industry, the industry of the future, and our ongoing investments will multiply our opportunities and represent the next step in the company’s history. The integrated production from raw materials to finished products will make Masterplast a significant industry player in the health care industry in the medium term.”said Róbert Nádasi, CEO of Masterplast Nyrt.