June 28, 2023. Sárszentmihály – Wroclaw. Within the framework of a strategic collaboration, Selena Group will acquire a 50% stake in the glass wool manufacturing project in Hungarian town of Szerencs, which was jointly announced by the parties. Through the Hungarian-Polish cooperation, the companies will jointly establish the glass wool factory in Szerencs.
The establishment of the mineral-based thermal insulation manufacturing plant was previously initiated by Masterplast through the acquisition of PIMCO Ltd. In the ongoing production development project company, Selena will carry out a €10 million capital increase, acquiring a 50% ownership stake, and together with Masterplast they will continue the investment.
Sustainability aspects play a crucial role in the project. Glass wool, which belongs to the family of mineral-based thermal insulation materials, is highly applicable in both new construction and modernization projects aiming to enhance building energy efficiency. The market for mineral-based insulation materials is expanding in line with the increasing expectations related to energy consumption in buildings, and in previous years, supply chain operations were characterized by shortages and slower performance. One of the main raw materials for this product is waste glass, which is recycled during the manufacturing process, following the principles of circular economy. The plant will be equipped with environmentally friendly, modern electric furnace technology, partially supplied by renewable energy sources.
PIMCO Ltd. has a 4.3-hectare industrial site in Szerencs, Hungary, prepared for factory construction, supported by a non-refundable HIPA investment grant of HUF 5.645 billion, and an advanced investment project. The project company possesses the necessary construction and environmental permits, and the suppliers for the manufacturing technology have already been selected. The new plant, covering an area of 11,500 square meters and requiring a €47.5 million investment, will have an annual production capacity of approximately 19,000 tons of glass wool insulation material. It is planned to commence full-scale production in the first half of 2025. After the completion of the investment, management rights related to the joint venture will be exercised by Masterplast, and the performance of the company will be included in the consolidated results of the enterprise.
“We are very proud to collaborate with Selena Group, an internationally recognized professional manufacturing partner, in the implementation of the strategic mineral wool insulation development. This is a crucial step that provides an opportunity to exploit synergies between the companies and pursue further joint development. After the successful rock wool production, we can now establish both projects with professional partners,” said Tibor Dávid, President of Masterplast.
“The Pimco project will strengthen Polish-Hungarian business relations and is a part of our contribution toward sustainable buildings. I am glad that Selena can move this project forward together with Masterplast, which is one of the European leaders in insulation materials. For many years, our products have not only made the work of professional contractors easier and faster, but also helped make construction more sustainable,” said Krzysztof Domarecki, founder and main shareholder of Selena Group.
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.