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Rockwool Group's Expansion into Turkey

The Turkish construction market is moving full steam ahead, making the ROCKWOOL Group turn its eyes towards the country that connects the east to the west.


When you are living in a country that fluctuates between extremely hot summers and freezing winters, there are massive demands on the insulation of buildings. This makes the ROCKWOOL Group and Turkey a perfect match – even though insulation may not be the very first thing that comes to mind when thinking about Turkey. High energy taxes and government mandates are a positive influence on the demand for insulating materials in this country with a population of more than 70 million. There are several centres where growth is particularly strong, in particular around the metropolis of both Istanbul and Ankara, as well as the coastal tourist areas towards the south.

“The Turkish insulation market is today valued in excess of DKK 3 billion and growing move right now in order to position ourselves in relation to our competitors,” says Thomas Juul Jensen, Managing Director ofthe subsidiary company ROCKWOOL Turkey.

East and West connectionBeing itself a part of the Balkan peninsular, Turkey shares close historical, cultural and commercial ties in the region whilst at the same time an almost equivalent relationship with those countries of the Middle East. The ROCKWOOL Group has been active in Turkey for several years, but has only recently boosted its business development.
“Turkey has a buoyant construction market with continued growth forecast way above the normal trends seen in Europe today, attracting of course international attention. The insulation sector growth is also expected to outstrip construction market growth, and we should of course not just let that ship pass us by,” Thomas Juul Jensen explains.

Because of this, it was decided to establish a subsidiary company in 2012. Today that company is the focal point for all of the Group’s activities, not just in Turkey but also in the south-eastern Balkans – Romania, Bulgaria, Greece, Albania, Macedonia and Cyprus – as well as the Middle East. The aim is to capitalise on the obvious synergies that exist between the countries in this part of the world – in total the region has a population of more than 315 million.

The road to market


The company has been undergoing rapid development and today operates from sales offices in Bucharest, Sofia and Dubai with the head office in Istanbul. Notably in Turkey, the company is gaining market share in the important area of exterior facade insulation (ETICS) – and is also experiencing growth in other product categories.

“In the longer term, we will need to decide if it’s viable to establish production in Turkey. Today, manufacturing takes place at our factories in the EU, which is not optimal because of long distance transportation,” Thomas Juul Jensen says and continues: “In this part of the world, a lot of business is built on long term relationships. So investing in a production facility, would be an important signal to our customers that we’re here to stay.”




Training and education

Thomas Juul Jensen reports that there are already 8 local stone wool manufacturers in Turkey today, which means there’s some solid awareness to build on. The market is, however,
first and foremost dominated by foam insulation, which today accounts for 65%-70% of the market.

“We are currently focusing on positioning the ROCKWOOL brand in the market and generating awareness of stone wool’s unique properties. We are, among other things, currently setting
up a training and educational facility in Istanbul, where experts can increase their knowledge in the field. This will help build the ROCKWOOL brand and create credibility in the market,” Thomas Juul Jensen concludes.


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