Building materials company Kingspan Group has entered an agreement with Schramek to acquire 51% of the shares of German wood-based products manufacturing company Steico.

The agreement aksi includes a future option to buy a further 10% of Steico's shares.

Steico has an invested asset base, with four production sites totalling 27 lines in Poland and France, as well as additional capacity approaching completion with up to €200m in revenue headroom.

Steico reported audited operating sales of €445m for the year ending 31 December 2022.

Kingspan CEO Gene Murtagh said: “The acquisition of a majority stake in Steico represents an exciting next step in our strategy to provide the full spectrum of insulation products. 

“Its suite of wood-based building envelope solutions broadens our ability to enable our customers to meet their sustainability and energy performance needs.

“Kingspan’s global routes to market, paired with our drive to innovate and widen the applications of Steico’s current technologies, are key to our plans to bring Steico bio-based solutions to the next level.”

Kingspan develops insulation and building envelope solutions for the construction industry.

Earlier this year, Kingspan launched the first product in its lower embodied carbon (LEC) range, QuadCore LEC insulated panels.

The transaction is subject to regulatory approval and is scheduled to close in early 2024.