Wolf Group, an Estonia-based producer and exporter of polyurethane foams, joint sealants and facade solutions, has acquired 40 percent of the shares in Elasteq do Brasil Ltd.
Wolf Group buys stake in Brazilian building materials maker Elasteq
23rd April 2013, 16:49
Please note that the article is more than five years old and belongs to our archive. We do not update the content of the archives, so it may be necessary to consult newer sources.
Elasteq specializes in the manufacture and sale of water proofing products and its production plant is located near Sao Paulo, one of the largest cities in South America. The price of the transaction is confidential, Wolf Group said on Tuesday.
Wolf Group, which started exporting to Brazil in 2009, is satisfied with the results it has achieved in that country. "The popularity of construction foams has grown significantly there over the past five years," Wolf Group CEO Jaan Puusaag said.
In five years, Wolf Group's exports to Brazil have increased tenfold and its exports to South America amounted to more than a million euros in 2012.
"I believe this new cooperation is a win-win situation for both Wolf Group and Elasteq," said Kari Mikkonen, CEO of Elasteq. "This partnership gives us more muscle, products and strength. The Brazilian market is big and very competitive. In order to grow big you need to be very strong and know how to play the local game," he added.
The volume of the construction sector of Brazil is estimated to be around 55 billion reais, of which water proofing is seen to make up about 3 percent or 1.65 billion reais, or about 640 million euros.
Wolf Group brings together the sales and production enterprises of the producer of construction chemicals and materials Krimelte both in Estonia and abroad. Factories of Wolf Group are located in Estonia and Russia, and sales units in Estonia, Latvia, Lithuania, Ukraine, Romania, Bulgaria, Denmark and Kazakhstan. As of the end of 2012 Wolf Group employed a workforce of 270 people.