Masterplast is launching the largest manufacturing development investment in its history, taking its presence in the healthcare industry to a whole new level. The plant, which will be established at the company’s central site from HUF 9.4 billion, will be able to produce a wide range of raw materials required for the production of health care protective equipment every year. The modern, highly automatized production line will produce raw materials suitable for almost every healthcare protective equipment and hygiene product. The investment in the health industry, which is unique in the entire Carpathian Basin, helps strengthen Hungary’s pandemic defense capability, as it can cover the raw material needs of the country’s and the region’s health industry producers from domestic sources. According to the plans, the plant will have been handed over by the end of May 2021, and the production can start at a continuous increase from June. Following the development, the higher-profitability healthcare division could generate annual sales of more than € 20 million, which could reach the level of the construction segment at the Hungarian manufacturer by the end of the decade.
The fleece factory, being established at Masterplast’s central site in Sárszentmihály, is fully suitable to supply with raw materials the manufacturers of medical protective clothing, mouth masks and other hygiene equipment used in healthcare. The high productivity is ensured by a highly automatized manufacturing technology, which is capable of producing single or multi-layered health care textiles and producing special product properties at the same time. The 7.700-square-meter large new plant can be handed over by the end of May 2021 and will start the production with 50 employees from June, with a continuous increase.
The business rationale of the project is justified by several factors and national economic aspects. With the development, a regional investment will be created which is unique not only in Hungary, but also in the entire Carpathian Basin, as there is currently no similar production of health care raw materials in Hungary and in the neighboring countries. The new plant will significantly contribute to enhance the pandemic resilience of Hungary. In connection with the known viral situation, several mask production lines have been installed in Hungary and in the surrounding region, and more are being planned, the significant needs of which will be ensured by the new plant.
The Hungarian producer plans to sell raw materials produced exceeding the domestic demand in European target markets, for which demand has increased significantly. With the usual profit margin in the healthcare industry, which is higher than in the construction industry, the healthcare business could contribute with € 20 million to the annual sales of Masterplast in 2021 and reach the level of the construction segment by the end of the decade.
Based on the knowledge and experience gained through the acquisition in Germany, Masterplast also intends to carry out more serious R&D activities in its new plant, with the aim of developing new-innovative raw materials tailored to the needs of the healthcare industry. The new generation of healthcare textiles can provide longer-lasting usability, which are not only cost-efficient but also able to provide an additional competitive advantage and higher profitability to the company.
The main investment of HUF 9.4 billion will be financed from 20 percent of own resources and 80 percent of non-refundable state support, which will be granted by the Ministry of Finance within the framework of the Health Industry Support Program.
“The acquisition in Germany provided us an opportunity to enter into the healthcare industry. Pursuant to the exceptional professional experience accumulated there, the manufacturer’s know-how and customer and supplier relationship system, we made our decision with the aim of becoming a key player in the healthcare industry in the long run. The biggest investment in our history is therefore a real milestone and an opportunity to take the healthcare business to the level of the construction segment by the end of the decade. In this way, we can reduce our exposure to the cyclicality of the construction industry, increase our resilience to the crisis and achieve higher profit margins. The new investment significantly overwrites the previous strategy, the updated material of which will be presented to those interested in an online conference on January 12, 2021.”– added David Tibor, CEO of Masterplast.
Masterplast Nyrt.
Founded in 1997, the Masterplast group is one of the leading building material producer and distributor companies in the Central Eastern European region. The company group owns subsidiaries in 10 countries, and sells products in a further 30 countries. The company is registered in the premium category on the Budapest Stock Exchange, and had revenue of 201,8 million euros in 2022.