Insulation industry news from Global Insulation
US: Lapolla Industries’ spray foam sales revenue increased by 21% year-on-year to US$41.7m in the first half of 2017 from US$34.4m in the same period in 2016. Overall its sales including its smaller coatings business rose by a similar amount and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% to US$4.26m from US$3.98m. It attributed the result to increased uptake of spray foam insulation in the market.
Owens Cornings grows sales in first half of 2017
28 July 2017US: Owens Cornings’ net sales from its insulation business rose by 5% year-on-year to US$838m in the first half of 2017 from US$799m in the same period in 2016. However, its earnings before interest and taxation (EBIT) fell by 24% to US$34m from US$45m. The company offered no reason for its declining earnings but it did mention a ‘greater than expected’ start-up impact of a newly commissioned mineral wool plant.
Despite this the company now expects to deliver revenue growth of more than US$250m and EBIT of about US$185m. It said that the improved outlook was driven by successful pricing actions in the US residential insulation business and the benefit of its Pittsburgh Corning acquisition.
“Owens Corning built upon the performance achieved in the first quarter and delivered strong second-quarter results. Through the first half, the company produced adjusted EBIT of US$401m and continues to generate strong operating cash flow,” said chairman and chief executive officer Mike Thaman. He also said the acquisition of Pittsburgh Corning and its Foamglas product line had expanded the geographic footprint and product portfolio of the company’s insulation business.
US: Rockwool is planning to build a US$150m mineral wool plant at Ranson in West Virginia. Construction is scheduled to start in October 2017 with production expected to commence in the first quarter of 2020. The new unit will have an area of 43,000m2 and employ 150 workers.
“This new production site places us close to major population centres in the north-eastern, mid-Atlantic, and mid-western US. We’re growing along with the market, and we look forward to serving our customers’ needs from this new facility,” said Trent Ogilvie, president of Roxul, Rockwool Group’s subsidiary in North America.
US: Owens Cornings has completed its purchase of Pittsburgh Corning for around US$560m. Originally the insulation producer expected the transaction and its regulatory approval to be completed in the third quarter of 2017. Pittsburgh Corning produces cellular glass insulation products, including Foamglas, and it has operations in the US, Belgium, the Czech Republic, and China.
Owens Corning to buy Pittsburgh Corning for US$560m
15 June 2017US: Owens Corning has signed an agreement to acquire Pittsburgh Corning, a producer of cellular glass insulation systems for commercial and industrial markets, for around US$560m in cash, on a cash free and debt free basis. The transaction, which is subject to regulatory approvals, is anticipated to close in the third quarter of 2017.
“The acquisition of Pittsburgh Corning will further expand Owens Corning’s commercial and industrial product offering and grow our presence in Europe and Asia,” said Julian Francis, president of Owens Corning’s Insulation Business. “The addition of Pittsburgh Corning will build on our core glass technologies and accelerates our progress in making Owens Corning the leading provider of insulation solutions with fiberglass, foam, mineral fibre, and cellular glass.”
Pittsburgh Corning produces cellular glass insulation products for commercial and residential buildings and energy and industrial applications. Its productions include Foamglas. The company also produces a range of complementary accessory products including sealants, adhesives, and jacketing. Pittsburgh Corning employs over 1100 people in 17 countries. It operates facilities in the US, Belgium, Czech Republic and China. It reported sales of over US$240m in 2016.
Belgium: Knauf Insulation’s chief executive officer (CEO) Jean-Claude Carlin says he is committed to increasing production investment in Europe and North America. The group’s Visé plant in Belgium plans to restart its second line by the end of 2017 as well as adding new capacity to meet increasing demand for blowing wool. An upgrade to a line at St Egidien in Germany is underway following mineral wool production line upgrades at Nova Bana in Slovakia and Skofja Loka in Slovenia in 2014 and 2015 respectively. Another as yet unannounced European production line upgrade is planned for 2018. The group is also restarting the second line at its Inwood plant in West Virginia to support growing residential demand in the North East of the US.
“The first few months of the year proved to be highly promising for the industry and in good times it is vital that we focus on doing an even better job of providing the best possible service and quality for our customers. That is why we are planning on maximising our global footprint through investing in improvements and increasing our production capacity across the globe,” said Carlin. He has conducted a fact-finding mission visiting plants and customers since he took up the post in February 2017.
US: Johns Manville has won Insulate America’s supplier of the year award. The insulation producer has won the award four times in five years since 2013. Insulate America is a cooperative group of locally owned, independent insulation contractors. It is the largest independent insulation contracting organisation in the US with 200 locations in 46 states. Representatives from each of the locations vote on the award.
US: Owens Corning has signed an agreement to acquire Pittsburgh Corning, a producer of cellular glass insulation systems for commercial and industrial markets. Upon closing, the company will pay approximately US$560m in cash, on a cash free and debt free basis. The transaction, which is subject to regulatory approvals, is anticipated to close in the third quarter of 2017.
“The acquisition of Pittsburgh Corning will further expand Owens Corning’s commercial and industrial product offering and grow our presence in Europe and Asia,” said Julian Francis, president of Owens Corning’s Insulation Business. He added that the purchase will build Owen Corning’s core glass technologies.
Pittsburgh Corning employs over 1100 people in 17 countries. It operates facilities in the US, Belgium, Czechia and China. It produces Foamglas cellular glass, an insulation used for low-temperature industrial applications and in commercial buildings. The company also offers a line of accessory products. Pittsburgh Corning reported sales of over US$240m in 2016.
US: TopBuild will pay Owens Corning US$30m to settle a contract dispute from mid-2016. Owens Corning has also agreed to dismiss a lawsuit it filed in May 2016 against the insulation distributor and installer. Additional details of the settlement agreement remain confidential. Following the agreement both companies plan to resume a ‘productive and normalised’ commercial relationship whereby Owens Corning will sell residential insulation to TopBuild and its subsidiaries, including TruTeam.
US: Lapolla Industries has launched a new version of its Foam-Lok 500 spray polyurethane foam insulation product. The updated version has passed the AC 377 End Use Configuration Criteria and the producer says it meets the building code requirements for use with no additional ignition barrier required. The open cell insulation is being marketed for use in sealing the building envelope in both residential and commercial applications.