Masterplan plans a level jump

 In its latest forecast, the company increased its planned profit after tax for this year from 16.5 million EUR indicated in January to 18.1 million EUR, which was caused by a significant boost in thermal insulation materials sales and improved profits.

Since the energy efficiency of buildings came into focus, the circumstances have been preferable in the company’s markets, which Masterplast wishes to use based on its implemented investments and commencing manufacturing. In the next 3 years, Masterplast is thinking about another level jump; according to their new strategic goals, by 2025 profits may double and reach 450 million EUR, while profitability might be enhanced even further. By 2025, EBITDA might surge to nearly 60.8 million EUR from the 22.8 million EUR level forecasted in 2022, whereas profit after tax can reach up to 42 million EUR by the middle of the decade. 

At its investment conference, the company gave a detailed presentation about its implemented investments, the new manufacturing plants commencing in 2023 and some future improvements. Following an intense manufacturing improvement strategy, since 2008 the company has invested about 80 million EUR in three main industries. Energy consciousness, efficient manufacturing and sustainability have become the key aspects of business planning in each ongoing and future development. In addition, the company pays special attention to improving the organization and its digital processes. Glass fibre and roof foil manufacturing, among other already productive investments, deserves attention as the company has turned into a leading European manufacturer in the last few years. These core products in the company’s range of products had a significant effect on the profit while reaching full capacity will provide further options for expansion. 

Masterplast sees significant growth prospects in modular building element manufacturing, too. Trends in the construction provide space for the market of innovative technologies, which might lead to a rapid acceleration of operational building module manufacturing. Masterplast aims to enter the market at the beginning of 2023, following this year’s developments. The new business is expected to return a revenue of 10 million EUR and raise dynamically in the future. As regards the health industry, its improvement is slower due to the industrial characteristics, but the company continues to see the segment as a business with great potential. The product portfolio has been created, investigations are ongoing, and then the focus will be shifted onto gradually enhancing manufacturing and sales. 

Among new investments, the manufacturing development of thermal insulation materials is dominating the construction industry, as next year, along with the already operating factories, three new plants will commence production, increasing Masterplast’s capacity to produce plastic-based polystyrene thermal insulation materials by 800,000 cubic metres. Thanks to its geographically diverse developments, the company can take better advantage of the evolution of insulation in the European markets, meanwhile, T-CELL’s buyout option announced lately might improve profitability better than planned. 

However, the big story of thermal insulation manufacturing is yet to come. Two weeks ago, Masterplast announced its strategic step to become a manufacturer of mineral wool thermal insulation. During the event, investment plans to establish a rock wool and glass wool manufacturing plant were presented, by the implementation of which the company will become one of the few elite thermal insulation material manufacturers in Europe. As the company’s first mineral wool manufacturing project, a rock wool manufacturing plant might be established in the town of Szávaszentdemeter (Sremska Mitrovica), in the southern tip of Vojvodina, Serbia. The new plant will be equipped with technology that enables the production of 30,000 tons of rock wool thermal insulation per year. The energy supply of the modern, environmentally friendly plant will be electricity-based, complying with ESG factors and sustainability requirements. The company is also applying for a government subsidy to implement its large-scale project worth 20+5 million EUR, and ideally, the plant will come into operation in 2024. At the same time, Masterplast envisioned launching a glass wool factory, a 25 million EUR investment into the establishment of a plant with a production capacity of 25,000 tons. The Hungarian manufacturer aims to provide for the Central and Southern European market with the year 2025 implementation of the investment. 

Fibre insulation materials made of mineral wool are used across the buildings, from attics and roofs to plinths, including basement structures, separations between floor slabs, facades, and plasterboard wall insulations, in each type of building, like offices, industrial halls, detached houses or apartment buildings. In the last few years, the demand for mineral wool thermal insulation materials has been increasing in Europe, which can only be met partly by the current manufacturing capacities. The unfolding energy crisis has increased the need for energy-efficient modernisation of buildings, and it may result in a great expansion in the market of thermal insulation materials. By manufacturing fibre thermal insulation materials, the company could take a step forward to become a top key European manufacturer of a product range with great sales potential and a higher profit margin. 

For funding the mineral wool manufacturing development investments of 50 million EUR, the company is going to raise capital on the stock market. Shares worth 8-10 billion HUF could be issued later this year, in relation to which a simplified prospectus has been submitted to the Hungarian National Bank.

“Our profitability is founded by the implemented manufacturing developments and acquisitions, our new thermal insulation material productions launching next year will boost growth, and the lately announced mineral wool thermal insulation manufacturing development projects will open new horizons allowing us to become, by the middle of the decade, a member of an exclusive elite world dominated by the biggest international companies. Thanks to the developments, Masterplast will have a unique extensive portfolio of thermal insulation products, and we will have a presence in both the plastic and mineral-based insulation markets, significantly improving the company’s competitiveness and business prospects. Due to the planned capital raising, investors can also receive a share of the industry and Masterplast’s dynamic development. The decade of thermal insulation has begun,” emphasised Masterplast CEO Dávid Tibor.