Kingspan expands Australian presence

KINGSPAN – the Cavan-headquartered building materials/insulation products specialist – has expanded its presence in Australia through the acquisition of Perth-based company, Air-Cell.

With sales of AU$23 million (€14.36m), Air-Cell is one of the leading distributors of flexible reflective insulation foil products in the Australian market and with its nationwide presence, will allow the Irish company to expand its product portfolio and boost its existing insulation board sales in both the Australian and New Zealand marketplaces.

As well as offices and distribution networks across Australia and New Zealand, Air-Cell is vibrant in the Middle East and the Asia-Pacific region.

Kingspan recently issued a positive enough trading update for business progress in the second half of the year, adding that it expects operating profit for 2009 to come in at around €60m, even though a widespread improvement in performance isn’t expected until 2011. Overall trading for the second half of the year, to date, has however been “steady”.

Kingspan already has an insulation panel business in the Australian market – after having acquired a 51% controlling stake in local company Eurobond Pacific three years ago. According to analyst estimates, the Cavan group could have up to €100m worth of a war chest to spend on developing its business still further.

Kingspan shares were down by 15c, yesterday at €6.20.