The move confirms press rumours earlier this year, reported by TTJ, that the company was planning to expand its timber building business.
Jeff Tomlinson, national sales manager of Kingspan TEK, the structural insulated panel (SIP) home division, told TTJ that an announcement would be made in a couple of weeks. He said Kingspan was also planning to make a further acquisition in the near future.
The group is embarking on a three-year strategy to reach an output of 20,000 timber frame and TEK homes by 2010.
“We will not do that in organic growth,” said Mr Tomlinson. “It has to be through acquisition. We are actively looking to consolidate the market.”
He said Kingpsan saw timber frame and SIPs as the big growth areas in residential construction. Kingspan signalled its intentions in the timber construction sector by buying fellow Irish company Century Homes last year for €98m.
The company is also looking at creating product differential by using TEK panels as an external envelope in combination with timber frame party walls.
Mr Tomlinson said the TEK product, manufactured in Berlin, would eventually be produced in the UK.
Kingspan TEK has also been successful in securing a third site in the government’s Design for Manufacture competition as part of the SIXTYK Consortium, led by housebuilder Crest Nicholson. The company will provide 227 units for a site in Merton, London.
