Keeping out the weather Krimelte

KEEPING OUT THE WEATHER

Krimelte is a global technology leader in the development and manufacture of joint sealants, coatings and facade solutions. Philip Yorke talked to Jaan Puusaag, the company’s CEO, about its latest innovative products and move into new markets.

Krimelte OU is part of the Estonian Wolf Group, and a leading European producer of joint sealants, applicators and insulating foams. The company was founded in 1994 and full production began in Estonia in 1998. Krimelte made a very quick transition from a retailer to bring a major manufacturer, and today exports its products to over 50 countries worldwide.

Due to the extreme climatic conditions in Estonia, the company set itself the highest quality standards from the outset in terms of both products and materials. Around 50 per cent of all Krimelte products are manufactured as private-label brands for many of the world’s leading retailers. The company’s historic involvement in the retail sector has provided it with a unique insight into the global retail market. Today, Krimelte is a major global player and employs over 250 people and in 2012 recorded sales approaching €100 million. Strong growth in export markets

In 2012, Krimelte delivered its best financial results to date, thanks to a combination of high-quality, innovative products and strong sales to its export markets. As part of the Wolf Group, the company exports construction foams, joint sealants and breathable facade solutions to over 50 countries worldwide. Sales rose by 12 per cent last year to approach €100 million, with results being enhanced by a significant increase in pro-

duction efficiency and the number of new export countries attracted by the quality and unique benefits of Krimeltes’ products. The market that has demonstrated the most significant growth to date is Russia, which remains the biggest export destination for the company. In addition, excellent growth was also recorded in Poland and the Baltic states, as well as in Bulgaria and Romania.

Krimelte continues to strengthen its position in the South American market, expanding its reach to include Argentina, Chile, Columbia and Peru. Mr Puusaag said, “Our export momentum continues unabated with many of the countries that we export to then re-exporting our products in turn to their own overseas markets. For example, the UK is an important market for us, and one of our customers there exports private label products produced by us to Cyprus and Malta. With our continuing focus on South America, we recently entered into a joint venture there with a manufacturer called Elasteq do Brazil, which in turn will significantly boost our sales in the region.”

Emerging markets embrace new technology

It is worth noting that the company’s fortunes really changed in the late 1990s when many emerging markets discovered the benefits of professional insulation and modern sealants. As a result, Krimelte has been proactive in educating and training both the consumers and wholesalers in these fast-growing markets.

Most people tend to believe, for example, that South American cities like Sao Paulo are always sunny and warm but this is not at all the case. In fact, often at night and during the winter season temperatures drop below 10oC and, like everyone else, people there prefer to stay warm in winter and cool in summer. City and country dwellers welcome the new high-tech sealants, coatings and foams from Krimelte, which not only significantly improve thermal insulation but also offer UV protection and resistance to other extreme weather condi-

tions. These are regions where coatings and sealants can transform the thermal efficiency of a building and there is a recognisable sea change in perceptions in these South American markets.

Product innovation driving sales

Since the company was founded in 1994, Krimelte has placed a high priority on new product development. This commitment to innovation has resulted in the launch of many new products and variants, and Mr Puusaag was keen to explain more about his company’s latest high-tech creation. “Thanks to the innovative capabilities of our in-house R&D department, we recently launched a new straw applicator which offers major benefits over other similar applicators on the market. This is an entirely new design which makes the use of straw foams easier and more economical. Based on tests in everyday practice, our new Easy-Gun ensures better results under a variety of conditions, with 34 per cent better outflow, 40 per cent more accurate measures and a 20 per cent smaller post-expansion. What’s more, its new straw trigger has a special nozzle for attaching the straw during pauses of up to 1.5 hours to avoid the problem of clogging.

“You ask me which of our products is special and technically superior to those of our competitors. In fact, all our products are special as they have all been developed inhouse and are part of a programme of continuous improvement and upgrading. We are never resting on our laurels when it comes to our past successes, and we prefer to stay one step ahead of the competition and well in advance of any forthcoming legislation.

“Another major point of difference between us and our competitors is that we are a privately owned company where all our shareholders are stakeholders and involved in ensuring the continuing success of the company. We are therefore able to be very flexible on a day-to-day basis, and to make fast decisions and quick turn-rounds. Currently, we have one facility in Russia and three factories in Estonia. The latest are all located in close proximity to each other, but each is responsible for a different range of products. All of them employ the latest automated technology.”

Today, Krimelte’s broad product range comprises of gun foams, manual adapter foams, cleaners, silicone and acrylic sealants, as well as adhesives. In addition, the company’s product portfolio also includes: gun and straw applicators, tools and selfadhesive expanding tapes. n

For further information about any of these products visit: www.krimelte.ee