Insulation industry news from Global Insulation
China/Germany/US: The Mannheim Court in Germany has found that Chinese companies Guangdong Alison Hi-Tech and Nano Tech infringed one of Aspen Aerogels’ European patents by selling infringing aerogel insulation products. As part of the judgments, the Mannheim Court issued injunctions prohibiting the offer, distribution, use or import of infringing products in Germany and held Nano and Alison liable to Aspen Aerogels for damages, court costs and some of Aspen's legal fees and expenses. The Mannheim Court's decision is subject to an appeal to the Higher Regional Court of Karlsruhe. In a related lawsuit, the Mannheim Court had previously issued a series of judgments against Hiltex Techniche Weefsels, a Dutch reseller of the infringing Chinese aerogels.
In addition, the German Federal Patent Court in Munich found the Aspen patent to be valid as granted in a patent nullity action initiated by Nano. The Munich Court's decision follows other unsuccessful challenges to the validity of Aspen's patents by Nano and Alison in the US and China.
"Our core strategy is to invest in the research, development, commercialisation and protection of our aerogel technology platform worldwide. These European patent wins, along with our 2018 victory at the US International Trade Commission, reinforce the scope and strength of Aspen's patent portfolio," said Don Young, President and chief executive officer (CEO) of Aspen Aerogels.
Explosion at Xinhong Thermal Insulation kills eight
05 November 2018China: An explosion at the Xinhong Thermal Insulation Materials Company plant in Lankao county in Henan province has killed eight people and injured another. An initial investigation has found that it was caused by a propane leak, according to the Xinhua News Agency.
US commences tariffs on Chinese mineral wool products
19 September 2018US/China: The Office of the US Trade Representative has started implementing a 10% tariff on mineral and other products from China, including mineral wool products, following a consultation period. Mineral products affected by the proposed tariffs of interest to the insulation industry include: slag wool, rock wool and similar mineral wools, in bulk, sheets or rolls; and nonwoven glass wool insulation products. The latest tariff list follows an earlier decision by the US government to tax imports from China worth US$34bn that came into force in early July 2018.
China: An investigation by non-government agency the Environmental Investigation Agency (EIA) has found that trichlorofluoromethane (CFC-11) is being widely used as a blowing agent in the rigid polyurethane (PU) foam insulation sector. The EIA contacted 25 precursor or foam producers and found that 18 of these plants were using CFC-11 in 10 different provinces.
In May 2018 the journal Nature revealed that CFC-11 emissions had increased by around 25% since 2012 despite reported production being close to zero in 2006. CFC-11, other chlorofluorocarbons (CFCs) and substances that damage the Ozone Layer were banned under the Montreal Protocol from 2010.
The EIA speculates that widespread use of CFC-11 by Chinese PU foam producers may be the source of the reported rise of emissions. It estimates that up to 3500 small and medium sized companies could have switched to using CFC-11 following a reduction in the supply of HCFC-141b, an alternative blowing agent, and lax enforcement of the ban on CFC-11. One company representative the EIA spoke to said that HCFC-141b was US$150/t more expensive than CFC-11.
“This is an environmental crime on a massive scale. How the Montreal Protocol addresses this issue will determine whether it continues to merit its reputation as the world’s most effective environmental treaty,” said Climate Campaign Leader Clare Perry.
The EIA has released its report ahead of the Open-Ended Working Group of the Montreal Protocol meeting in Vienna in mid July 2018.
China: Owens Corning has completed the acquisition of Guangde SKD Rock Wool Manufacture. SKD produces mineral wool insulation for the building and technical insulation market. No value for the purchase has been disclosed.
“We see great opportunity to provide our customers in China with products in both the mid temperature building and high-temperature industrial-application markets. This acquisition furthers our strategy to expand Owens Corning’s technology portfolio across the three largest insulation markets in the world,” said Owens Corning’s Insulation President Julian Francis.
Owens Corning now has seven insulation manufacturing facilities across China, that provide customers with a full temperature range of products including fiberglass, extruded polystyrene foam, cellular glass and mineral wool insulation.
American Chemistry Council warns of risk of US-Chinese trade war on polyurethane exports
05 April 2018US: Cal Dooley, the president and chief executive officer of the American Chemistry Council (ACC), has warned that a proposed Chinese response to US-imposed tariffs on imports of Chinese steel and aluminium could have negative implications for US exports of products including polyethylene.
“China is one of the US chemical industry’s most important trading partners, importing 11%, or US$3.2bn, of all US plastic resins in 2017. We are particularly concerned that 40% of the products to which China has assigned new tariffs are chemicals, including polyethylene, PVC, polycarbonates, acrylates, and others,” said Dooley in a statement. He added that nearly US$185bn in new chemical factories, expansions and restarts of facilities around the US are predicated on current tariff schedules, and market shifts caused by tariff increases may convince investors to do business elsewhere. He ‘strongly’ urged the US and China to reach an agreement.
Luyang Energy-Saving Materials to expand mineral wool plant
05 February 2018China: Luyang Energy-Saving Materials plans to spend US$19m on a new mineral wool production line. The upgrade will increase its production capacity to 80,000t/yr from 50,000t/yr, according to Reuters.
BASF reports disruption to MDI production at Chongqing plant
15 December 2017China: BASF has blamed ‘force majeure’ for a disruption to the production of methylene diphenyl diisocyanate (MDI) at its Chongqing plant due to a supply shortage of natural gas from its syngas supplier. BASF says it is unable to determine when it will be able to resume production as its syngas supplier has been unable to tell it when the input will be restored. The German-headquartered chemical multinational uses MDI to manufacture a number of products including insulation.
China: Javier Gimeno, head of Saint-Gobain’s business in Asia-Pacific, has blamed production overcapacity for the company’s decision to stop manufacturing glass wool. He said that overcapacity had forced prices down and lowered margins, according to the Wall Street Journal. He added that the company is targeting profits over 10% and that it wants its business in China to grow faster than the national economy. Subsequently, the group has focused on products such as mortars, plastics and car windows. Gimeno also raised the issue of environmental regulations being stricter for foreign firms in China, although this is changing.
China: Luyang Energy-Saving Materials plans to spend US$11m towards upgrading its mineral wool insulation plant in the Yiyuan Economic Development Zone in Shandong. The upgrade will add 25,000t/yr production capacity to the plant, increasing its total output to 50,000t/yr, according to Reuters. Construction is scheduled to start in July 2017 with completion in June 2018.