August 31st, 2007
Paroc Signs a Letter of Intent to Purchase a Plot of Land in Russia
The Paroc Group is planning to expand into Eastern Europe. The positive market situation and the increasingly stringent energy efficiency regulations favour the investment plan relating to a new factory in Russia.
The company has been looking for a plot of land near St. Petersburg in Russia for some time now and today at noon, it signed a letter of intent for a plot of land in Chudovo located in the Novgorod region about 100 km from St. Petersburg airport. The privately owned plot is 60 hectares in size.
One production line will be built at the new factory and there will also be an option to expand capacity. Paroc currently has sales offices in St. Petersburg and Moscow.
Väinö Tuomisalo, President and CEO of Paroc Group, thinks that opportunities for the company in terms of new investments are good: The current market situation is favourable and measures being taken to slow down climate change by improving energy efficiency are also having a significant impact on the insulation industry. Demand in Eastern Europe is growing strongly and this trend is expected to continue for many years to come.
Evaluations of the suitability of the plot for Parocs purposes have started and are expected to be completed in the autumn. Once these evaluations are complete, a final decision will be made regarding the investment. According to Väinö Tuomisalo, Finding a plot of land has been a long process and we are happy to have achieved this significant milestone.
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