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TechnoNICOL is a leader of the segment of Stone wool heat insulating materials, say the experts

13.06.2012

The research by ABARUS Market Research Agency, has revealed the existing balance of power among the major players of the segment of heat insulating materials based on Stone wool.

According to the data, collected by the Agency, the largest part of the segment at least 30%, belongs to TechnoNICOL Corporation. Its nearest competitor has about 20% of the segment. TechnoNICOL Corporation took the leading position by the volume of production of Stone wool insulation in 2007, and has been keeping it ever since. Its share in total production went up during the crisis period by up to 30%, whereas in 2005 - 2006 the share was about 15%.

At the same time, the share of the nearest competitor fell down from 25% in 2005 to 18% in 2007. Such impressive results have been achieved due to active marketing policy and intensive widening of production range for the last four years, say the experts.

‘Stone wool production has a trend to increase, as in the pre-crisis period, as well as after it’, is stated in the Agency report. ‘The dynamic of production had been showing high growth rates – by up to 25% - before the crisis stroked. It indicated the growing demand and the high potential of the market’.

This conclusion has been supported by the relatively small drop of the Stone wool during the recession (11, 7% vs. 25-40%), comparing to the other segments of the insulating materials market.

As is indicated in the analytical report by MA ABARUS Market Research, production of Stone wool has recovered quickly in the post-crisis period. Its volume in 2010 exceeded that of 2008. And if the dynamic of the market growth has gone down in percentage terms (from 22.6% in 2010 to 18.2% in 2011), the growth has remained in absolute terms stable at the level of around 2,800,000 m3 per year. By this, we can suppose that domestic companies will be able to produce at least 20,5 million m3 of the product in 2012. The analysts at the Agency predict the 15 - 16% rise in the market of Stone wool by the end of the current year.

As is explained in the report, the market growth is due primarily to companies, which practice rapid business expansion. In particular, it is due to the continuous widening of the product line, the growth of the production base and the integrated marketing policy. Market players, who demonstrate more cautious strategy, step by step give their positions away to their more active competitors, even if they manage to keep their production volumes stable. At the beginning of 2000s, the company with the annual production of 120,000 – 150,000 m3 could regard itself as "a medium-sized". Today those volumes are characteristics of small producers.

Our goal is to provide the market with high-quality and widely available Stone wool materials for heat insulation. To achieve the goal we use the latest technological innovations as well as up-to-date solutions in business process management, customer interaction, and marketing policy. In particular, the volume of company investments has been up to 9,544,670,000 rubles from 2007 to 2011.

TechnoNICOL has managed to greatly expand its product line of heat insulating materials for private house construction by the new construction season of 2012. There are roll mats TEPLOROLL, slabs TECHNOACUSTIC and TECHNOBLOK. As Roman Kolesnikov, the TechnoNICOL Corporation Director of Stone wool sales said, ‘We understand it very well that the market of insulating materials is very mobile and highly competitive. We need to make a lot of efforts to keep our leading positions in the segment of production of insulating Stone wool materials. However, we are ready for this. In 2012 we plan to keep investing in production development, and plan to release some brand new products’.