“The company decided to enter the Romanian market from a strategic perspective, due to the local market potential for constructions, and the need for good insulation materials. Currently, Romania is lagging behind the other European countries regarding the insulation standards for constructions,” said Bossan.
The overall insulation materials market, including glass wool and mineral wool, is estimated at EUR 50 million to EUR 60 million by the company's representatives, who expect a growth rate of 20 percent in the next years. The company said it would open a logistic center in Romania, from where it plans to distribute all around the country to the local partners' network. On the short and medium term, the company doesn't plan to open a production plant in Romania.
“Due to the already developed production plants in the neighboring countries, we do not think of such a development as a priority, yet,” said Bossan. Knauf Insulation runs factories in Russia, Serbia, Ukraine, Hungary, Slovakia, Slovenia, the Czech Republic and a recently opened one in France.
The average investment in the larger production facilities is estimated at EUR 100 million, according to company officials. Overall, Knau Insulation reported a turnover of EUR 1 billion from its 30 production stations in Europe, Russia, Asia and the US. For Romania, it plans to gain a market share ranging from 13 to 15 percent.