Business Irish

Monday 24 October 2016

Kingspan establishes Iranian presence

Published 08/05/2016 | 02:30

Kingspan chief executive Gene Murtagh
Kingspan chief executive Gene Murtagh

Building-materials giant Kingspan has made an investment in Iran, seeking to take advantage of future upgrades in the country's airport infrastructure.

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Kingspan 's chief executive, Gene Murtagh, said the company's facility would be in production within months and was 100pc owned by Kingspan.

"It's step one, there won't be many steps coming after this for quite some time, but at least it's step one, and it'll be run out of our UAE-based businesses," he said.

Murtagh said large aircraft orders placed by Iran would require big upgrades in airport infrastructure and that Kingspan had been "at the forefront of aviation projects right around the Middle East".

Murtagh said the investment was in the area of ducting insulation.

"A huge source of energy loss is blowing cold and hot air around buildings... [the investment] is very small, we've been exporting in and around there for a number of years.

"Obviously, it's opening up as a market. It's become more investment-friendly and the world is looking more favourably on it as a country.

"I think the reality is that's going to lead to investment and growth," he added.

Murtagh was speaking after Kingspan's AGM on Thursday. The company announced that sales for the first four months of 2016 were 25pc ahead of the previous year, at €903.1m.

He said the company's spending power for acquisitions in the 2016 financial year was likely to be around €400m, and that he expected the revenues to top €3bn this year for the first time.

He said the impact of a Brexit on the business was unquantifiable. "There are any amount of scenarios that Brexit can lead to, and I think let it develop first before we try and guess".

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