With an investment of HUF 5 billion, Masterplast starts the production of another thermal insulation material

The first Hungarian-owned XPS factory can start production in 2023.

Masterplast is developing its thermal insulation supply chain by producing one of the fastest growing types of insulation material. The use of XPS polystyrene thermal insulation materials is growing at an accelerating pace due to the needs of modern architecture and tightening energy requirements, while production capacities are currently concentrated in foreign hands. With the development, the production of another product of strategic importance will be realized, with which the largest Hungarian-owned building material manufacturer can reduce its exposure and ensure the supply of its products from its own resources. The modern, environmentally friendly plant, which will be established at the production base in Subotica from HUF 5.05 billion, can start operating at the beginning of 2023, with an annual production capacity of about 200,000 cubic meters. To finance the investment, the Ministry of Foreign Affairs provides a 50 percent non-refundable state subsidy under the HEPA program.


The use of XPS extruded polystyrene, a high-load-bearing, low-water-absorbing, boarded thermal insulation material in modern building culture is expanding rapidly and gaining more and more ground. Due to its favorable physical properties, it is excellently suitable for surfaces in contact with moisture or exposed to higher loads, such as plinth and civil engineering thermal insulation, thermal insulation of loaded substrates and flat roofs, as well as green roofs. XPS polystyrene is an important component of thermal insulation systems and due to stricter building energy requirements, the market is expanding rapidly and there is no substitution product alternative. It is therefore of strategic importance for Masterplast, which already sells a significant amount of its product range, to provide the supply chain with its own supply base to exploit its growth potential and reduce its exposure in a purely foreign-owned manufacturing environment.


With the new investment, the company will further expand its production complex in Subotica. In the new 3,600-square-meter plant, the state-of-the-art production line will provide an annual production capacity of 200,000 cubic meters. The factory, designed with environmental considerations in mind, will combine modern technology and a closed recycling system to ensure low environmental impact and minimal waste generation. In order to achieve full capacity and meet customer needs in connection with the plant, it is important to develop the right size of storage capacity. To this end, the construction of a 2,000-square-foot warehouse and about 6,000-square-foot outdoor warehouse will also be associated with the project, while a 400-square-foot office building will be built for workers and a quality control lab. Following the development, Masterplast can also produce two important types of insulation materials for its thermal insulation system, Hungarocell (EPS) and XPS, at a single production base, which strengthens its portoflio as a Hungarian manufacturer.


The value of the investment investment is HUF 5.05 billion, which is financed by the company’s own resources and a 50% non-refundable state subsidy provided under the HEPA program of the Ministry of Foreign Affairs.


“The launch of the first Hungarian-owned XPS production is an important strategic milestone for us, which fits exactly into our vision. The environmentally conscious approach also played an important role in the design of the plant and in the choice of technology, and we also take care of the life cycle of the manufactured products with the help of the Hungarocell Green Program, which operates with circular recycling. With this, we can already ensure the possibility of recycling the residues generated during use, offering consumers a unique, environmentally conscious alternative, ” added Tibor Dávid, President of Masterplast.