Hungarian construction and insulation materials company Masterplast reported a major improvement in its performance, especially in the Polish, Slovakian and Hungarian markets at the end of 2018.
It generated revenue of €23.8m in the final three months of last year, up by 13% against the last quarter of 2017 and boosted its operating profit 14% on the back of recent capital investment projects and favourable economic conditions, it said.
The producer of EPS, XPS and fibreglass mesh insulation materials reported it grew its 2018 annual sales by 10% to close to €100m with an operating profit increase of 24%.
In the Hungarian construction market, representing more than a third of Masterplast’s total 2018 turnover, the Sárszentmihály, Hungary-based group saw sales grow 23% in the last quarter. A similar rise was achieved in Slovakia with sales up 21% in Poland, the firm stated.
“We have renewed and made the operation of our company more efficient and increased our production capacity. These measures provide us with an excellent basis for exploiting the opportunities offered by economic activity,” commented Masterplast president David Tibor.
As a result of this success, he expects that, after this year’s increased turnover, “we will surpass the €120m (mark) by 2021 with improved performance”.
In recent years, Masterplast group has continued to grow with capital project investment amounting to more than €15.54m.
Last year, Masterplast completed a major expansion project in Serbia where it invested €6.7m to boost capacity and the product offer at its fibreglass mesh building insulation material plant at Subotica.
In the second growth phase there, the group raised production capacity by 20 million m2 to 90 million m2of mesh a year and created 105 new jobs.
In northern Hungary, Masterplast has carried out another output expansion project at its extruded polyethylene foam material plant in the community of Kál. With investment of €1.56m, backed by €781,000 in state aid, the group will double plant capacity, improving product quality and increasing production efficiency, it said.
Its high-density anti-static PE foam has applications in the construction and packaging industries, including for dry building profiles and heat and sound insulation and for packing electronic goods.
Last year, Masterplast shut down a 150,000m3 per year EPS foam insulation panels plant at Sepsiszentgyörgy in Transylvania, Romania declaring it was uneconomic and in the wrong location.
Today, Masterplast, formed in Székesfehérvár, Hungary in 1997 by five partners, has production subsidiaries in eight countries apart from Hungary across central and eastern Europe including Croatia, Slovakia, Poland, Macedonia, Romania and Ukraine. It employs a total workforce of around 1,000.