The Kingspan Group has reached an agreement with Schramek to purchase a majority share of Steico SE.

Steico is a world leader in wood-fibre insulation and wood-based building envelope products, based in Germany and listed on the unofficial markets of several German Stock Exchanges. It has a very well invested asset base, with four large production sites comprising 27 lines situated in Poland and France, including additional capacity nearing completion with up to EUR200m revenue headroom. Steico had audited operating revenues of EUR445m in the 12 months to 31 December 2022.

The acquisition is conditional on regulatory clearance, and is expected to complete in early 2024.

Welcoming the agreement, Gene Murtagh, Kingspan Chief Executive Officer, said: "The acquisition of a majority stake in Steico represents an exciting next step in our strategy to provide the full spectrum of insulation products. Its suite of wood-based building envelope solutions broadens our ability to enable our customers to meet their sustainability and energy performance needs. Kingspan's global routes to market, paired with our drive to innovate and widen the applications of Steico's current technologies, are key to our plans to bring Steico bio-based solutions to the next level."

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Udo Schramek, Steico Chief Executive Officer, stated: "It has been a great honour to lead the team at Steico to become the pre-eminent global supplier of wood-based insulation. We are now entering the next phase of growth and are very enthusiastic about the collaboration opportunities Kingspan brings, in both the existing Steico range and across the Kingspan portfolio and geographies. I am excited about the future for Steico and about being invested in the future growth of both companies."

Kingspan is innovating and evolving to meet the needs of the construction industry for high-performance lower embodied carbon products, as part of the overall solution for a decarbonised built environment. This Steico announcement follows the launch earlier this year in the UK of the first product in Kingspan's new LEC (lower embodied carbon) range – QuadCore LEC insulated panels.

More announcements will follow in the coming months in both the LEC and bio-based product categories, along with the launch of AlphaCore (our new breakthrough A-class fibre-free ultra-thin insulation solution).

This innovation journey is being supported by the advanced materials science team and research facilities at IKON, Kingspan's world-class global innovation centre.