Masterplast Focusing More on the Healthcare Industry

The Hungarian company Masterplast turns from a classic construction firm into a company that is increasingly focused on the insulation industry and has strategic positions in the healthcare industry as well, CEO Róbert Nádasi told the business daily Világgazdaság.

With the acquisition of a German plant in Aschersleben, near Leipzig, last year, Masterplast also took over a significant knowledge base, skilled workforce and management, which enabled the launch of a major investment in the production of healthcare raw materials at its base in Sárszentmihály, SW of Budapest. It was also possible to expand the Hungarian plant  further by building a factory unit suitable for the production of finished health care products keeping in mind domestic needs. With the investment of approximately HUF 12 billion, an integrated production will be established, which, in addition to the production of protective clothing, will ensure the Company's competitive and sustainable operation with a wider range of healthcare products at the regional level, the CEO said.

The projects are progressing at the planned pace, with the production of healthcare raw materials starting in June and the production of finished products starting in September in Hungary. By the end of 2021, the capacity increase investment in Subotica, northern Serbia will also be completed, making the Company the second largest glass fabric manufacturer in Europe.

The investments described so far create the background for the revenue and profit growth announced for 2021-2023. The Company is already working on insulation and health industry development plans that will ensure growth in the years after 2023. It will also be possible to raise additional funds from another bond issue to finance future developments. The Company expects that, in addition to the increase in turnover in both sectors, the operating profit of the two business units may contribute 50-50% to the Group's performance by the end of the decade.

The year 2021 started good for the Company, with positive government incentives for the construction and insulation industries, especially in the Hungarian market. The market for raw materials has also flourished, supply chains have stuck, and prices have risen significantly in 2021. Masterplast's strategic raw material inventory was high at the beginning of the year, with its strong financial background ensuring the supply of raw materials and finished products for the next period, and its production and operation are also progressing according to plan. The impact of all this will also be reflected in the first quarter results, and the Company sees assurance that the financial performance targets for 2021 announced in early January will be achieved, the CEO concluded.