Masterplast made a big health announcement: the exchange rate is skyrocketing

The highly automated production line will produce raw materials for almost all sanitary protection equipment and hygiene products.

The investment in the healthcare industry, which is unique in the entire Carpathian Basin, contributes to strengthening Hungary’s defense capacity against the pandemic, as it can meet the raw material needs of healthcare industry producers. health of the country and the region from national sources.

The plant is scheduled to be delivered at the end of May 2021, where production can start with a steady increase from June.

Following development, the most profitable healthcare division could generate annual sales of more than 20 million euros, which could rise to the level of the construction segment at the Hungarian manufacturer by the end of the decade.

Enter the healthcare industry

Founded in 1997, Masterplast’s main activity is the production and sale of insulating materials for construction. Today, the international group of companies based in Hungary, Central and Eastern Europe has its own active subsidiaries in 9 countries around the world, where it operates several production units at 4 sites. With its main products, the group is present in the field of thermal insulation system for facades, thermal, acoustic and water insulation, roofs and dry construction.

In 2020, the company also entered the healthcare industry with the acquisition of a German plant in Aschersleben. The factory produces specialty fleeces and multi-layer membranes for the sanitary and construction sectors. The German subsidiary was founded in June by Masterplast, Masterplast Nonwoven GmgH. called. Masterplast has acquired a 50 percent stake as well as the management rights of the company, the remaining 50 percent is owned by a German businessman, Hartmut Layer, and the parties have entered into an option agreement to purchase the shareholder’s stake. . The purchase process will be completed within a predetermined price range no later than the second quarter of 2023, at the end of which Masterplast will acquire a 100 percent stake in the company.

The German market will be presented separately from the third quarter of 2020, since Masterplast will be present in the country with direct sales from the second half of the year. Thanks to the new manufacturing company, the turnover increased significantly, Germany became the second largest market of the group after Hungary. Masterplast Nonwoven products are found in the product group for roofing sheets and roofing elements, as well as in industrial applications.

The fleece factory to be established at the Masterplast headquarters in Sárszentmihály is fully suitable for the supply of raw materials to manufacturers of medical protective clothing, mouth masks and other hygiene devices used in healthcare. The new plant, which will occupy an area of ​​7,700 square meters, can be delivered by the end of May 2021 and will start production with 50 employees from June, with a continuous increase.

With the development, a unique regional investment will be created not only in Hungary, but also in the entire Carpathian Basin, after At present, there is no similar production of raw materials for health care in Hungary or in neighboring countries. In connection with the viral situation, several mask production lines have been installed in Hungary and in the region, and more are being planned, the new plant will ensure a significant demand for raw materials.

The Hungarian producer plans to sell raw materials produced in excess of domestic demand in European destination markets, for which demand has increased significantly. In addition to the usual profit margin in the healthcare industry, higher than in the construction industry, the healthcare business could generate annual Masterplast sales of around 20 million euros in 2021 and reach the segment level of construction at the end of the decade.

Building on the knowledge and experience gained through the acquisition in Germany, Masterplast also intends to carry out more serious research and development activities at its new plant, with the aim of developing new innovative raw materials adapted to the needs of the healthcare industry. The new generation of health care textiles can provide more durable usability which, by producing at a lower cost level, can provide the company with an additional competitive advantage and increased profitability.

The main investment of 9.4 billion HUF will be financed with 20 percent of own resources and 80 percent of non-reimbursable state support, which will be paid by the Ministry of Finance within the framework of the Support Program for the Industry of the Health.

“The acquisition in Germany provided us with the opportunity to enter the healthcare industry. Based on our significant professional experience, manufacturer knowledge, and customer and supplier relationships, we made the decision to become a major player in the healthcare industry. Long-term, strengthen our healthcare business at the construction segment level by the end of the decade, reducing our exposure to construction cyclicality, improving our resilience to shocks, and achieving higher profit margins. those interested in an online conference on the 12th ”. added Tibor Dávid, President of Masterplast.

Masterplast closed a record quarter last time, thanks in part to healthcare activity. The company’s sales and EBITDA in the third quarter of this year, as well as its profit after taxes, also beat the best quarterly figures so far. With the launch of the German subsidiary, Germany became Masterplast’s second largest market after Hungary in terms of quarterly revenue.

Masterplast’s share price jumped to 7.4 percent in today’s trading, making them the best performing stocks on the BSE today.

Cover image: Masterplast