By Liz White, UT editor
Cavan, Republic of Ireland-Kingspan Group plc, which makes construction industry products including a range of insulation, says its strong double-digit growth in the first half of 2006 continued in the second half of the year.
The Irish group also quietly revealed two strategic moves in insulation during the year. It bought a controlling interest in small Turkish panel maker Izopoli, and also acquired a Canadian producer of insulation. Kingspan described the latter deal as "its first move into the North American market."
Insulated panels manufacturing capability was extended to Turkey with the acquisition of a 51 percent stake in local producer Izopoli Yapi Elemanlari AS and its foreign subsidiaries-"one of Turkey's leading manufacturers of insulating panels," said Kingpsan's statement.
This will "enhance the reach of the Kingspan brand in the region," said Kingspan. The sales spread will extend from Turkey into parts of Asia, the Middle East and the Balkans, all regions where insulation demand is high at present, indicated a Kingspan spokesperson.
Kingspan is currently doubling production at the Izopoli site in Bolu, the spokesperson added.
Kingspan also said that, "in anticipation of increasing environmental awareness," it has moved into the North American insulation market with an acquisition in Canada. In this move Kingspan bought a producer with two sites, one in Toronto and one in Vancouver, said the spokesperson.
The division also bought a controlling stake in a plant in Australia, where it says the insurance industry is demanding more FireSafe building materials.
In a trading update prior to its 5 March 2007 results meeting, Kingspan said it expects profit for the year to grow by about 33 percent. "Strong underlying markets, a contribution from acquisitions and a favourable material pricing environment contributed to the performance," said an 18 Dec statement from the Irish group.
Net debt for Kingspan for the year should be about Euro 160 million, after Euro 60 million capital expenditure, the group said. It has also spent Euro 85 million on nine deals which have combined annualised sales of over Euro 100 million. Kingspan said many of these deals are "effectively substituting for capital expenditure, thereby supporting further organic growth by strengthening the Group's geographic reach."
These buys-which are "in line with the group's "proven model"-also extend Kingspan's product range in both the residential and non-residential sectors, the company added.
PIC: A modern house in Oxford, UK, using a lot of glass, is well insulated with structural insulated panels from Kinsgspan Century. "