LOGSTOR; a trusted partner in creating sustainable energy networks

As a result of over 50 years’ worth of research, development, and experience, LOGSTOR is one of the leading manufacturers, and inventor, of pre-insulated pipe systems. Besides these, the organization is also responsible for creating flexible pipes, and unique joints and fittings, in its mission to increase energy supply efficiencies, while simultaneously reducing energy losses, across the globe. Furthermore, the business was the first to introduce environmentally friendly insulation products, with extremely good heat-less properties, all of which is part of its effort to enhance the environment for everybody worldwide.

“LOGSTOR is responsible for establishing the entire pre-insulated pipe industry,” opens Andrzej Krämer, Chief Commercial Officer. “In 2021, we started a new chapter of the organization’s rich history, when we were acquired by Kingspan Group, a global leader in advanced insulation and building envelope solutions, based in Ireland. It came at an unexpected time, but ever since then, everything has accelerated a great deal. Prior to the acquisition, we’d been enjoying modest growth rates relative to the usual pace of the district heating market, until the tragic events that have taken place across Europe started to take their toll.

“These suddenly shed a lot more light on the concept of district heating, and brought it into the primary focus of many governments and smaller customers across the continent, as one of the key answers to the degasification of our means, and a roadmap to getting away from fossil fuels. As a result of this, we are expecting very significant growth in the near future, and we couldn’t be happier with having Kingspan as our owner. They are very focused on facilitating further expansions and business development, with the necessary investments in people and capital expenditure. Moreover, they believe in our product and sector, and have been in the industry for a very long time, meaning they are experts in long-term investment decisions. It’s a very happy marriage!

“Our key products and services, today, are centered around the distribution networks for district heating and cooling, and industrial applications that require environmentally friendly insulated pipe systems,” he continues, “for which we also provide digital solutions that enable our customers to monitor their networks’ health post installation. Despite being a historic member and thought leader of our sector, we must continue to challenge ourselves to create value and bring solutions to our clients. We are always happy to hear our customers praising the high quality of our products and the level of service that we provide, but we take great pride in never stopping or resting on our laurels.

“There are currently seven LOGSTOR factories across Europe, which are complemented by 15-to-20 sales offices, and a number of distributors. Although we do have some operations in the Middle East, the US and Canada, we are so busy with our commitments to the European energy transition that our appetite for work elsewhere has been quelled for the time being. Many countries, cities and governments around the world are looking at how best to transition from fossil fuels, particularly gas, to more sustainable and renewable options. These include everything from geothermal solutions, waste heat, and biomass, to heat pumps working with sea water, or industrial waste energy. We are in the midst of all of these heat sources, as the answer to how to connect them into the grid.”

Double-digit growth

In 2022, LOGSTOR experienced 35 percent growth, however Andrzej attributes at least part of this to Europe’s current economic climate: “Such annual growth is incredibly high for what we would have expected, but it’s not all necessarily what we would call volume growth. Almost half of this was the result of the inflationary climate that we’re operating in, as we all experienced a sizable increase in steel, chemicals, and other raw materials throughout the year. But regardless, the business is still into double-digit growth, which is a completely new phenomenon for us.

“Five years ago, we were a reasonably small and flat, single-digit growth enterprise,” he adds. “So now, our primary goal is to expand. We are employing more and more people and investing in new machinery for our production sites, and ultimately trying to shift from second gear up to at least fourth, if not fifth, which is much more fun. At the same time, it’s been a lot more challenging, but with that, comes greater rewards and a real sense that we are part of the European mission to transition from fossil fuels to more sustainable alternatives. This alone is a real privilege.”

A circular economy

Last year, and in collaboration with Kingspan Group, LOGSTOR set the wheels in motion to establish a large production campus in Western Ukraine. Although the timing for execution is still in question, the proposed facility will be a multipurpose factory, once it’s complete. “We are also contemplating a second similar investment elsewhere in Europe, for another dedicated plant, as we require a greater production capacity to facilitate our forecasted growth. Of course we are all hoping for a brighter tomorrow for the country as a whole, but fortunately it isn’t entirely under war. There is still ongoing business and production, and an economy, so hopefully we’ll be able to implement our plans soon.”

As Andrzej comes to a conclusion, the conversation turns to LOGSTOR’s environmental initiatives: “Around three years ago, we started to imbed a circular economy motion into our offerings, by utilizing recycled plastic in some of our products. We are also part of Kingspan’s Planet Passionate program, in which we are aiming to reduce our carbon footprint in a number of ways. Furthermore, we have recently started to plan how we can get involved with carbon capture technology going forwards, as we believe our products are applicable for transporting liquidized carbon around networks. When it comes to sustainability, there’s a wide range of interesting new opportunities for LOGSTOR to explore.”