Insulation industry news from Global Insulation
Germany: Saint-Gobain has purchased the Augustdorf glass plant in North Rhine-Westphalian from Teuto-Glasveredelung. The unit produces thermal insulating glass products as well as sound-insulating glass and other glass products. The purchase is planned to be completed in March 2017, subject to approval by the government.
Brazil/Finland: Saint-Gobain Isover has obtained Environmental Product Declarations (EPD) for its products in Brazil and Finland. It has obtained five EPDs in Brazil where it has become the first insulation company in the country to obtain EPDs registered with Environdec. In Finland it has published three new verified EPDs through the Norwegian EPD platform EPD Norge.
France: Saint-Gobain’s sales revenue has fallen by 1.6% year-on-year to Euro19.6bn in the first half of 2016 from Euro19.9bn in the same period of 2015. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 3.8% to Euro1.89bn from Euro1.96bn. The group blamed the loss in sales revenue on negative currency changes, especially in Latin American, and to a lesser extent, in the UK following its decision to leave the European Union. Saint-Gobain’s Interior Solutions division, which includes gypsum wallboard and insulation production, reported a 3.1% rise in sales revenue to Euro3.3bn from Euro3.2bn.
“Saint-Gobain’s sales for first-half 2016 confirm our February forecasts, with France stabilising and all regions making strong contribution to growth. Our strategy of investing in emerging markets provides us with a diversified platform for profitable growth. Our first-half results also benefited from efforts to optimise our operations, particularly in Western Europe, and from upbeat trading in the US. The results are in line with our objectives and we expect alike-for-like improvement in operating income for second-half 2016 versus second-half 2015. While the 23 June 2016 Brexit vote in the UK has created a climate of uncertainty, it does not affect our objectives,” said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.
Russia: Saint-Gobain has increased its share in the Tambov-based heat insulation producer Isoroc from 74.9% to 100%. The plant's capacity exceeds 100,000t/yr. The French company obtained permission from the Federal Antimonopoly Service to increase its share of Isoroc in late 2015.
France: Saint-Gobain’s net income has risen by 36% year-on-year to Euro1.3bn in 2015 from Euro953m in 2014. Its sales revenue rose by 3.3% to 39.6bn from 3.4bn. However, its overall sales volumes remained static with only 0.1% growth. Growth in the company’s Flat Glass and Interior Solutions divisions, including wallboard and insulation, held up sales despite sharp declines in sales in France.
“Saint-Gobain delivered improved earnings in 2015 in a sharply contrasted economic climate. The improvement was dampened by continued weak trading in France, hurt in particular by the sharp contraction in our Pipe division in the second half of the year, despite the first signs of an upturn in construction indicators. The group completed a key stage in the reorganisation of its business portfolio, with the sale of Verallia on very favourable terms, and continues to pursue its plan to acquire a controlling interest in Sika after obtaining all antitrust approvals prior to closing the deal,” said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.
The group’s Interior Solutions division reported a 7.1% rise in sales revenue to Euro6.49bn from Euro6.06bn. Reduced volumes and prices in the French market slowed growth in Western Europe, although this impact eased in the fourth quarter of 2015. Trading in North America was dented by a slight dip in prices in the second half and by the decline in the Canadian market. Asia and emerging countries continued to deliver growth.
UK: Celotex has launched a new range of flat roofing insulation solutions. It comprises three products: Celotex Crown-Bond, Crown-Up and Crown-Fix. The products were developed with contractors, installers and distributors, following an 18-month testing period.
“The new product range from Celotex perfectly demonstrates the commitment that British Rigid Urethane Foam Manufacturer’s Association (BRUFMA) members have to improving product quality and driving up standards for insulation in the UK,” said Mel Price, Assistant Chief Executive of BRUFMA.
BRUFMA represents most of the major companies in the Polyisocyanurate (PIR) and polyurethane (PUR) industry in the UK, including manufacturers of finished products, suppliers of the various raw materials and associated services.
Russia: Saint-Gobain has obtained the Federal Antimonopoly Service's permission to purchase 74.9% of the voting shares in the heat insulation materials producer Isoroc, based in Tambov Oblast. When the sale completes the French company will own 100% of Isoroc.
Brazil: Saint-Gobain has acquired a 70% stake in Brazil-based British Indústria e Comércio Ltd for an undisclosed amount. Saint-Gobain said that the deal with the Brazilian group, which manufactures and sells non-woven abrasives for industrial applications, would strengthen its position in the industry and add new customers to its portfolio.
US: Officials of CertainTeed Corp, part of Saint-Gobain, have announced that the company will renovate its plant in Kansas City, Kansas, creating more than 70 new jobs over the next three years.
CertainTeed said that it has begun renovating its plant to begin production of fibreglass insulation products during the second quarter of 2015. Greg Silvestri, president of CertainTeed Insulation, said that the company is investing more than US$30m to re-engineer the plant's furnace and restart related production lines to give it greater flexibility to support its growing business needs.
Turkey: Saint-Gobain has finalised a deal to buy Atlas Zimpara, a longstanding partner company that makes sandpaper, sanding belts, discs and other abrasive materials. The company operates from a plant in Gebze, an industrial area close to Istanbul. Its products are supplied to the construction, automotive repair and industrial supplies.
Saint-Gobain said that the deal will strengthen its presence in Turkey, where it recently began operating a new organic grinding wheel plant at Eskiehir, 300km south-east of Istanbul. It added that the deal allows it to serve customers from a local industrial base and ‘marks an important stage in the Group's development in fast-growing countries.’