China: Demand for insulation materials in China is projected to grow 9.4%/yr to meet US$10.6bn in 2016, according to a new study from the Beijing office of The Freedonia Group. The Cleveland, US based industry research firm has also predicted in its report 'Insulation in China' that continued increases in building construction and output in the manufacturing sector will drive gains. Further growth will be spurred by changes in building codes to reduce energy consumption in building applications as well as efforts to reduce energy use in manufacturing processes.
The study valued demand in China for insulation in 2011 at US$6.74bn. This broke down into foamed plastic (US$5.52bn, 82%), fibreglass (US$386m, 6%), mineral wool (US$386m, 6%) and other products (US$450m, 6%). Predicted demand for 2016 was broken down as follows: foamed plastic (US$8.62bn, 82%), fibreglass (US$627m, 6%), mineral wool (US$643m, 6%) and other products (US$675m, 6%).
Building construction markets will continue to account for more than two-fifths of China's total insulation demand. The residential and non-residential segments will each expand at 10%/yr until 2016, supported by healthy growth in building construction. New multi-family housing starts, driven in large part by China's continuing urbanisation, and strong fixed investment activity in office, commercial, institutional and other highly insulated structures such as power and petrochemical plants will boost market gains for insulation materials. In addition, improvement and replacement of insulation in existing housing in order to raise energy efficiency, as well as to enhance comfort, will continue to promote market gains. Concerns about energy loss will lead to gains in all markets as the intensity of use of insulation increases.
Demand for insulation in the industrial and heating, ventilation and air conditioning (HVAC) equipment market will rise 8.4%/yr until 2016, trailing overall growth. Strong increases in investment in industrial and HVAC equipment as a result of continued industrialization in China will boost demand. Efforts to reduce energy consumption and costs in these applications - by both producers and the government - will also spur demand gains in this market. Demand in other important markets will be driven by rapidly expanding output of insulation-containing appliances (e.g., refrigerators and freezers) and transportation equipment.
New Zealand splits Christchurch US$34m rebuild contract between Winstone and Knauf
New Zealand: A US$34m New Zealand government procurement deal to supply wallboard for the rebuilding of Christchurch has been split between New Zealand's only wallboard manufacturer, Winstone Wallboards, and multinational manufacturer Knauf. Home affordability and a lack of competition for building supplies in the country were cited by a Productivity Commission report as key issues in making the decision
"Having Knauf set up shop in New Zealand will see increased industry competition that will provide consumers with more choice and could potentially drive down prices," said Economic Development Minister Steven Joyce. The government expects to save around 6% on wallboard costs.
Knauf, the world's second-largest wallboard manufacturer and one of only seven firms that dominate four-fifths of global production, already has a New Zealand operation, selling wool-based insulation material. The contracts will cover wallboard and associated fasteners, adhesives and jointing compounds being used in the Earthquake Commission and Southern Response Earthquake Services Limited reconstruction programmes. The contracts were let after a competitive tender that attracted nine bids.
