Rockwool Russia to Invest Over 10 Billion Rubles in Development

ST. PETERSBURG, May 22. /TASS/. Russian divisions of Denmark's Rockwool (now controlled by the Development of Construction Assets Joint-Stock Company) will invest more than 10 billion rubles ($140 million) in the production's development and diversification until 2028, the company's CEO Timur Amirov said in response to a question about how the company's four factories would be working in the Russian Federation.

"We plan to invest more than 10 billion rubles within the next two years. These are our own funds, we will not attract government subsidies. The money will be used to restore competencies for the military-industrial complex and to launch a new line of prefabricated modular buildings," he said.

Additionally, the company's Russian division has announced restoration of production to make specialized products for the United Shipbuilding Corporation (USC) - rock wool with a special coating for noise and fire insulation of nuclear submarines and military vessels.

"We have released the first pilot batch of products, and it has confirmed: Rockwool's Russian enterprises have maintained technology and quality, despite Denmark's decisions. As for pricing, we are maximum flexible, taking into account the market and requirements of the state defense order. We are starting the procedure for obtaining necessary certification. This will take a few months, but the facilities are ready now," he added.

Production has resumed at the plant in Vyborg, the Leningrad Region. "Rock wool for shipbuilding will be produced at this plant [in Vyborg]. This is due to the technology process. It is here that we have the equipment to apply a special coating to the rock wool," he explained.

Rock wool (mineral wool, stone wool) is a thermal insulation material made from basalt group rocks.

Development plans

When commenting on plans for further development, the company's representative noted that the company intended to cut dependence on the classical construction sector. A new direction would be to make prefabricated modular buildings, where the company will create settlements with full infrastructure for the reunified territories, Siberia and the Arctic, including those to be used in development of the Northern Sea Route.

"Opening the veil, I would say we have been negotiating, and in the near future we will enter a partnership with a state corporation to make prefabricated modular buildings. We can see great potential in this direction, and for us it will also be a business diversification," he said.

Rockwool was founded in Denmark in 1909. The company has been operating in Russia since 1995. Production assets are located in the Moscow, Leningrad, Chelyabinsk and Tatarstan Regions. The company's Russian factories employ 1,250 people.