Cavan-based insulation specialist Kingspan has acquired a 51 per cent stake in a manufacturer of insulated metal panels in Chile as it continues to expand its presence in Latin America.
The company announced the deal for Villalba, which is based in Santiago, on Monday. Together with the 51 per cent stake recently secured in the Kingspan MV joint venture in Asuncion, Paraguay, the deal brings the company’s total facility count across Latin America to 11.
The group’s footprint includes operations in Colombia, Panama, two in Uruguay, and five facilities throughout Brazil. Annualised revenue in the region is now approximately €500 million, which to date has been solely concentrated on the insulated panels business stream.
Kingspan entered the Latin American market in 2017 with a series of acquisitions in Colombia, Mexico, and Brazil. The company had long-signalled its ambition for further expansion in the region.
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Speaking at the group’s annual general meeting in 2018, Kingspan chief executive Gene Murtagh said the purchase of insulated panel manufacturer Isoeste in Brazil signalled “the start of a push into Latin America” for the group.
“I see our entry into Brazil as the beginnings of us taking on the Latin American market,” Mr Murtagh told reporters after the meeting.
He said Kingspan was prepared for the “humps and hollows” of its planned foray. “We will have to build demand [over the long term] for our products there,” he added.
Sales at Kingspan rose 3 per cent in the first nine months of 2024, buoyed by a 6 per cent rise in the third quarter that pushed it to €6.35 billion.
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However, sales pre currency and acquisitions were down 4 per cent in the year to date and were in line with the third quarter of 2023, the company said.
In a trading update for nine months to September 30th 2024, Kingspan said its insulated panels business saw sales improve in the third quarter, rising 1 per cent, but were down 2 per cent over the first nine months of its financial year.
Although the Americas, France and Germany were showing signs of strength, eastern Europe remained challenging overall. Sales of insulation, meanwhile, rose 18 per cent in the nine months to September, and 20 per cent in the third quarter as the acquisition of 51 per cent of Steico early in 2024 had an impact.
Board sales fell in the third quarter, with Kingspan noting activity and margin in continental Europe was a particular challenge.
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