INFOCENTER
Contemporary trends of the sandwich panels market
Director of Rauta Andriy Ozeychuk told the specialized magazine KAPconstruction about the development, innovations, competitive environment and prospects of the sandwich panel market in Ukraine.
What do you see as the main trends of the sandwich panel market in 2023-2024?
In 2023 there was a slight increase of the sandwich panel market size, which totally reached to approximately 3 million sqm. At the same time, the share of Ukrainian manufacturers significantly increased to approximately 2/3 of the market size. This happened due to the lower price of locally produced panels compared to imported ones by about 25-30%, as well as logistics difficulties due to the closure of the border with Poland. At the same time Romanian manufacturers of sandwich panels increased the supply of their products to Ukraine due to the fact that the border with Romania remained open.
The construction of new premises is actively developing only in the West of Ukraine, while in other regions it is limited to few projects and the reconstruction of destroyed buildings.
The market share of sandwich panels with mineral wool has been decreasing in the last few years, while the demand for panels with PIR core has been increasing. This happened due to the raise of DBN B.2.6-31 for the thermal insulation of buildings requirements, as well as an increase in demand for projects with low requirements for the fire resistance of envelope structures up to EI45.
At the end of 2024 we expect the sandwich panel market to remain at the level of 2023.
Which business segments were the main buyers of sandwich panels in 2023?
The main consumer of sandwich panels in 2023 was agrarian business, which invested in new facilities mainly in the west and at occasionally in the center of Ukraine. Sandwich panels were also in demand for the construction of warehouse and commercial real estate premises, but mostly such projects were built quite rarely.
What innovations have recently appeared in the sandwich panel market?
In 2022-2023 Rauta developed a technology for installation of frameless houses from sandwich panels, which allows the construction of residential and commercial buildings within just couple of weeks.
Another innovation of the company was the development of a technology for the construction of multi-story buildings with sandwich panels as external walls, which allows the developer to get up to 5% additional area for sale.
An interesting novelty of recent years, which today is exclusively offered by Rauta in Ukraine, are sandwich panels with an external facing made of weathering steel Cor-Ten. In addition to the ability to change its color over the years, a unique property of such sandwich panels is the ability to cure small scratches of the surface due to the new patina formation.
In 2023 Rauta continued to invest in advanced energy-efficient solutions and introduced a new air-tight technology based on sandwich panels, which allows to save of up to 30% for heating and air conditioning costs.
A new trend in the construction industry is using services based on artificial intelligence. Rauta is already using its capabilities in communications with customers and is working on a wider implementation of AI technologies in other business processes.
What changes in technological processes are observed in the production of sandwich panels?
In 2023 Ruukki introduced a robotic stage of laying mineral wool boards into the sandwich panel production line, which increased the productivity, improved product quality and reduced its cost.
Also Ruukki significantly updated the sandwich panels portfolio with mineral wool core, which are manufactured on an upgraded line in Poland. The new sandwich panels have increased fire resistance due to the improved configuration of the joint. The production of such sandwich panels is carried out with a reduction of steel and mineral wool consumption, which has increased the environmental friendliness of the products.
The trends of recent years stimulate the leading European manufacturers of building materials to implement CO2 emission reduction programs. In 2023 Ruukki introduced the world’s first sandwich panels made of SSAB steel, which is produced without using of fossil fuels. The company plans to start production of “green steel” products on a commercial scale in 2026.
What are the key criteria for choosing sandwich panels?
Today the majority of Ukrainian customers primarily pay attention to the price, but not to the quality of products. However leading companies, mostly with foreign capital, use high-quality and more durable products of European production, realizing that these investments will pay off within 3-4 years due to better energy efficiency of such sandwich panels.
Another criterion how customers choose a supplier of panels is a comprehensive approach to the construction project – the contractor’s ability to select products with the necessary characteristics, make design and install envelope structures.
The third criterion is a short delivery time and high speed of installation.
Describe the main factors of market pricing?
The price of sandwich panels is primarily influenced by the cost of steel, core, production and delivery. Therefore, when an investor uses cheap sandwich panels, he needs to understand which of these cost components he is saving on.
What challenges do sandwich panel manufacturers face?
The implementation of EU Regulation №305 in Ukraine obliges all suppliers of sandwich panels to declare product characteristics. This can become a problem for Ukrainian manufacturers and suppliers who have not yet thought about the sustainable quality of panels. Rauta has been working with European products since its foundation in 2014 and all this time has been providing customers with declarations for Ruukki sandwich panels that confirm the high quality of products.
The updated industry standard DSTU EN 14509 increases the requirements for the characteristics of sandwich panels, which allows buyers to receive products of higher quality. Its widespread implementation should reduce the dumping of unscrupulous manufacturers offering low-quality products on the Ukrainian market.
Today Ukrainian-made sandwich panels do not meet the requirements of European standards and quality control systems, that’s why they are not imported to EU countries.
What factors will be crucial in the formation of the market in 2024-2025?
The victory of Ukraine will be a key stage for the significant growth of the construction market and, in particular, the sandwich panels segment because not only large-scale reconstruction will begin, but also active investments in new construction projects.
