STEICO SE announced that the board has resolved to create new production capacity at the recently acquired facility at Gromadka (Poland). An insulation materials plant with three production lines will be set up. Two lines will be built for flexible wood fibre insulation mats, with a combined total annual capacity of over 1 million cbm. Another line with an annual capacity of around 500,000 cbm will produce stable wood fibre insulation boards using the dry process. According to current forecasts, the total investment volume will amount to around 75 million. Construction is scheduled to start in mid-2021. The group intends to take production live at the end of 2022. The possibility of further expanding capacity in future is already included in the current project design, so that a future-oriented further expansion of the site is possible. The Gromadka facility is located about 70 km east of Grlitz, conveniently situated directly on the Polish A4 motorway, and is part of a former airport that is currently being converted into an industrial estate. The space was acquired in November 2020. The company is responding to the rapidly increasing demand for wood fibre insulating materials by continuously expanding its production capacities, and this trend is also enjoying dynamic growth in the first quarter of 2021. Current capacity enhancement projects include: Increase in capacity for flexible wood-fibre insulation mats by 45% by going live with a production line in France (Casteljaloux site) and conversion of a production line in Poland (start of regular operations March 2021); Increase in capacity for stable wood-fibre insulation boards using the wet method by 15% by optimizing production lines (project already completed at the start of 2021); Doubling of capacity for wood fibre air injected insulation and 50% increase in capacity for cellulose air injected insulation (start of regular operation March 2021); Construction of a production line for stable wood fibre insulation boards from the dry process in France (Casteljaloux site) with an annual capacity of around 250,000 cbm (expected to go live in the second half of 2021 with possibility for further enlargement); Construction of a production line for stable wood-fibre insulation boards using the wet process in Poland (Czarna Woda site) with an annual capacity of 135,000 cbm (expected to go live in the second half of 2021).