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Paroc, Press Release 3 December 2013

Medvedev and Vapaavuori celebrated the inauguration of Paroc’s factory in Russia

Paroc Group, the leading insulation solutions producer in the Baltic Sea region, has opened a stone wool insulation factory in Russia. The factory was officially opened on December 3 in an inauguration ceremony. The new factory is the first step in a line of investments Paroc is planning to make in Russia, and these investments are estimated to reach a total of 170 million euros.

Paroc Group’s stone wool insulation factory has started operations in Russia, and it is the first production plant in a sequence of factories Paroc Group is planning to open in Russia. On December 3, the new factory in Izoplit, Trev was inaugurated, and the Finnish Minister of Economic Affairs Jan Vapaavuori and the Prime Minister of Russia Dmitri Medvedev attended the ceremony. This first production line is worth 60 million euros in investments, and it is a part of a larger investment plan that will be carried out in stages. The first stage now carried out covers approximately 10% of Paroc’s total production and employs 120 people locally in Russia.

Opening this new production plant is a significant step in Paroc’s long-term growth strategy. Expanding activities in Russia from importation to local production improves the reliability of deliveries and availability of products for Russian customers.

We have reached an important milestone in Paroc’s expansion. Our new factory enables us to serve our customers faster and more broadly than before. This project is a demonstration of the close collaboration and partnership between Finland and Russia. Both Finnish and Russian authorities have responded extremely positively to the project, and collaboration with authorities has gone smoothly during the project,” says Kari Lehtinen, CEO of Paroc Group.

During the past two decades, Paroc has established its position in the local insulation market through sales activities in Moscow and St. Petersburg. Until now, Paroc has imported insulation products from its Finnish, Polish and Lithuanian production plants to the Russian markets. The share of imports to Russia constituted approximately 7% of Paroc’s revenue.

From now on, we are able to supply to the Russian markets these same high-quality products manufactured locally. With the new production plant, we are truly a part of the field of energy efficient, fire safe and responsible construction also in Russia. Our goal is to double our Russian revenue by 2015,” says Igor Shatz, General Director ZAO PAROC Russia.

The demand in Russia for mineral wool insulation solutions is expected to increase 8–10% annually until 2020. Paroc aims to meet this increasing demand in Russia by building in the Izoplit factory area a total of three building insulation production lines and a production unit for technical insulation. Paroc estimates that the investments will total 170 million euros and constitute approximately 30% of Paroc’s total production. The plan is to make possible further investments at Tver in stages in the coming years. When finished, the factory would employ approximately 600 people.

For the needs of the new factory, Paroc has also repaired and partly rebuilt the water and sewage network in the Izoplit region. Both improvements also benefit the people living in the region.

More information and requests for CEO’s interviews:
Anne-Maarit Sepling, Vice President Marketing and Communications, Paroc Group
anne-maarit.sepling@paroc.com , +358 40 670 8033

For photos from the event, please contact Karolina Kościańska, Communications Assistant
karolina.koscianska@paroc.com , +48602331948

Paroc is the leading manufacturer of energy-efficient insulation solutions in the Baltic Sea region. The cornerstones of our operations are customer and personnel orientation, constant innovation, profitable growth and sustainable development. Paroc products include building insulation, technical insulation, marine and offshore insulation, construction panels and acoustic products. The products are manufactured in Finland, Sweden, Lithuania and Poland and, starting in 2013, also in Russia. The company has sales and representative offices in 14 European countries. Paroc Group is owned by a consortium of banks and other institutional investors and, as a minority shareholder, Paroc’s personnel. In 2012, our net sales amounted to 430 MEUR and we employed an average of 2019 people.

www.paroc.com


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