ROXUL Asia, the Malacca-based firm, has been in the red since it was set up in 1999 as it had invested a lot to build its local market, its managing director Thomas Heldgaard says.
“Our revenue has grown by more than 500 per cent since 2000. We hope to net our first profit this year as we have a good focus on our earnings and are consolidating the business,” Heldgaard explaines.
Roxul’s focus is in installing stone wool insulation for fire, thermal and acoustic protection in buildings in Asia Pacific including Malaysia. Stone wool is used in acoustic ceilings to reduce noise nuisance, and in walls, roofs and under floor as fire safe protection.
Roxul has a factory in Malacca that produces 20,000 tonnes of stone wool per annum. Two-thirds of the production are sold in Malaysia and Singapore.The rest are sold in India, the Middle East, China, Taiwan, Indonesia, Vietnam, Turkey, Australia and Japan.
Roxul is looking for new markets as it foresees that demand for stone wool insulation will grow. “More than half of the world’s new building construction is taking place in Asia-Pacific. There’s huge potential to tap for energy improvement,” Heldgaard says.
At the group level, Rockwool wants to set up more factories in Europe, Russia and Asia Pacific. It now has 19 factories in Europe, two in North America and the one in Malacca, producing two million tonnes of stone wool per year for building insulation and marine and offshore insulation.
“We are waiting to ride through this storm before we set up the factories. Currently, the group’s focus is to improve cash flow and look at opportunities to come out of this crisis,” he says.
Heldgaard adds that Rockwool’s overall revenue is expected to drop by 15 per cent this year, from RM9 billion last year. He expects the situation to improve next year.
