Masterplast is launching the largest manufacturing investment in its history, thus entering the healthcare industry at a completely new level. The investment established at the company’s HQ, worth of EUR 25.56 million, will be able to produce a wide range of raw materials for the production of health-care protective equipment. The modern, highly automated production line will produce raw materials suitable for almost each healthcare protective equipment and hygienical product. The investment in the medical industry, which is unique in the entire Carpathian Basin, helps to strengthen the pandemic defense capabilities of Hungary, as it can cover the raw material needs of the local and regional health industry producers from a domestic source.
According to the plans, the plant is supposed to be completed by the end of May 2021, and the production can start gradually latest from Q3. As a result of the development, the higher-profitability healthcare division could generate an annual sales of over EUR 20 million in 2021 and reach the level of the construction segment by the end of the decade.
The new Spunbond-based factory established at the HQ of Masterplast in Sárszentmihály, is fully suitable to supply raw materials for the manufacturers of medical protective clothing, face masks and other hygienical equipment used in healthcare. High productivity is ensured by a fully automated manufacturing technology capable of producing single or multi-layer health-care textiles and speciality products. The 7,700-square-meter large new facility may open in second quarter 2021 and starts production with 50 employees latest from Q3, with a gradual increase.
The feasibility of the project is justified by several factors and national economic aspects too. With this development, a regional investment will be created which is unique not only in Hungary but also in the entire Carpathian Basin, as there is currently no similar capacity of health care raw materials in the region. The new plant will significantly enhance the pandemic resilience of Hungary. In connection with the known pandemic situation, several mask production lines have been installed locally and in the region, and more are being planned, their raw material needs can be covered from the new plant.
Masterplast also plans to sell these raw materials all accross Europe as the demand has also increased there significantly. With the usual profit margins of the healthcare industry – well over the one of the construction industry – the healthcare business unit could contribute to the annual sales of Masterplast in 2021 by EUR 20 million and reach the level of the construction segment by the end of the decade.
Based on the knowledge and experience obtained during the acquisition in Germany, Masterplast also intends to carry out more serious R&D activities in its new plant, with the aim of developing new, innovative raw materials designed to the needs of the healthcare industry. The new generation of healthcare textiles can provide longer-lasting usability, which is not only cost-efficient but also capable of providing an additional competitive advantage and higher profitability to the company.
The main investment of EUR 25.56 million will be financed from 20 percent of own resources and 80 percent of non-refundable state subsidy, granted by the Ministry of Finance of Hungary within the framework of the Health Industry Support Program.
“The acquisition in Germany provided us with an opportunity to enter the healthcare industry. Based upon the exceptional professional experience accumulated there: manufacturer’s know-how, customer and supplier relationship system, we have made our decision to become a key player in the healthcare industry in a long term. The biggest investment in our history is therefore a real milestone and an opportunity to raise the level of our healthcare business to the one of the construction segment by the end of the decade. This way, we can reduce our exposure to the cyclicality of the building industry, increase our resilience to the crisis and achieve higher profit margins. This new investment significantly overwrites our previous strategy.”– added Mr. David Tibor, President of Masterplast Group.