Unilin is ready for the Eastern European insulation market with new plant in Poland

In a nutshell:

Unilin builds new insulation plant in Poland, targeting the Eastern European growth market
The plant represents a €40 million investment and will be operational by late 2026.
This creates 40 new jobs, with an annual production volume of 8 million m² of insulation boards.

Why is Unilin building a new insulation plant in Poland?

Division President Jeroen De Temmerman: “Unilin Insulation is active in two major markets: the Western European market and the United Kingdom & Ireland. Our average market share is 20%. The Eastern European insulation market is still in full flux. Take Poland, a rapidly expanding market consisting of just two local players. A second reason is the central location of the new plant. Within a 500 km radius around Leśnica, we can service a large part of the Polish, East German, Czech, Slovakian and Hungarian markets. The expansion to a third large region is also of strategic importance. By investing in Eastern Europe we are also diversifying our risk for the future. Every market has its own specific character and cycles. By being active on several fronts, we can bolster the stability of our position.”

What is the importance of that 500 km radius?

“As soon as insulation needs to be transported over a distance of more than 500 kilometres, it is neither economically viable nor ecologically responsible. Insulation is a volume product. Trucks can carry 75 cubic metres of insulation. As soon as they have to drive more than 500 kilometres, this not only eats into your margin but the carbon footprint also becomes too large. Moreover, we have a reputation for great service. The greater the distance to your end customer, the greater the odds that the service will not be up to the standards you set for yourself.”

Is the time of delivery that important for insulation materials?

“Yes, especially for large worksites. When worksite managers rent a crane starting at 7 am on Monday morning to unload insulation and deliver it to the right location, our trucks have to be there at precisely that time, and neither sooner nor later. Period.”

How important is sustainability in this market?

“In Poland we see two evolutions that reinforce each other. Firstly, the market in and around Poland is growing rapidly. Secondly, in the Eastern European member states, insulation standards are tightening as well under pressure from the European Green Deal. In other words, the Polish government will drive a nationwide effort to better insulate buildings. It is Unilin’s ambition to play a prominent role in this evolution. At the new plant, PIR insulation boards under the Utherm range will be manufactured for both pitched and flat roofs, floors and walls. Insulation products such as these play a crucial role in the development of energy-efficient and futureproof housing.”

What kind of plant will Unilin build in Leśnica?

“This will be our ninth plant and it will be home to our eighth insulation board line. It’s a fully automated line that will produce up to 8 million square metres per year. This will be a state-of-the-art line capable of delivering top-quality products at a rapid pace. The line will support automatic dosing of recycled raw materials, making it completely future-proof!”

The site in Leśnica spans 12 hectares – large enough to expand storage space or perhaps even add a new activity or extra line. There will be forty people employed at the new site.”

Will this impact the other insulation lines in any way?

“No. The new plant is an expansion. It is not our intention to replace the activities from other sites. In anticipation of the construction of the new plant, the production lines in Belgium will work extra in preparation for the Polish market.”

When will the new plant be ready?

“In the coming months we will start the preparatory groundworks for the construction of an advanced, fully automated production facility. The goal is to be operational by late 2026.”