The acquisition complements Kingspan's core building insulation business in a sector that will see strong growth.
LOGSTOR has a particular expertise in district heating, which is the most energy-efficient way of heating residential and commercial properties and seen as a key measure for meeting climate targets.
District heating connects heat sources, including waste heat from industrial processes, with homes and businesses through a network of pre-insulated pipes. In one LOGSTOR project in Stockholm waste heat from fridges, freezers and supermarkets are connected to district heating systems, saving 1,187 tonnes of CO2 every year.
District heating has an attractive value proposition and can compete without any government support.
The technology is well-established in Europe and LOGSTOR, which is headquartered in Løgstør, Denmark, counts Scandinavia, Germany, Netherlands, Poland and France as its key markets. It also operates in other parts of Europe as well as North America and the Middle East.
The global district heating market was estimated to be worth $181 billion in 20201 and there is a growing belief that accelerated expansion of district heating systems will be required to meet climate change targets. The UK Government, for example, estimates that around 18% of UK heat will need to come from district heating networks by 2050 in order to meet carbon reduction targets cost effectively. Currently district heating provides about 2 per cent of the overall UK heat demand across the domestic, public, industrial and commercial sectors2.
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Alan Lawlor, Managing Director Kingspan Insulation, said LOGSTOR shares Kingspan's values and vision for the planet.
He continued: "LOGSTOR enhances our technical insulation offering by broadening both our product range and geographical reach. "We've been making high-performance pipe and duct insulation for many years. This acquisition allows us to grow at scale and to increase our focus on getting energy into the ecosystem of buildings.
"There is a strong strategic logic to the acquisition, but just as important is the cultural fit. LOGSTOR people are ambitious and driven and like us they have a real passion for the planet and how their products and services can be a force for good."
LOGSTOR and Kingspan both started as family businesses and share a passion for talent development, giving their people the skills and support they need to grow.
Founded in 1960 with the invention of the pre-insulated pipe technology, LOGSTOR has a strong heritage of supplying complete pre-insulated pipe systems and related services having delivered more than 200,000 km of pre-insulated pipes – that's five times around the equator! The company employs around 1,100 people in 14 countries.
Kim Christensen, President & CEO of LOGSTOR, said: "We share Kingspan's drive towards green transformation and we are influenced by the same macro drivers.
"Kingspan offers some of the most thermally efficient insulation materials. The development of these materials for piping systems would be a step change in district energy systems. With better thermal performance we can minimize heat loss, bring down energy bills and reduce CO2 emissions even further
"In addition to district energy we have pre-insulated solutions in sectors like Food and Beverages, Marine, and Petrochemicals. These are sectors where Kingspan is very strong so there are tremendous opportunities to collaborate.
"We've focussed heavily on Europe but there are many opportunities in China, Russia and North America, while the Middle East is very attractive when it comes to District cooling."
