Insulation industry news from Global Insulation

Denmark: The Danish Society of Engineers has selected Rockwool as the European Business Award for the Environment winner in the Denmark category. The producer says that the award recognises its technology innovation and implementation of sustainable processes leading to more than 70% CO₂ emissions reduction. It said that its development of fuel-flexible melting technology has allowed a shift away from coal towards natural gas and biogas.

Group operations and technology senior vice president Bjørn Andersen said, “Winning this award testifies to the fact that sustainability is at the core of our business. The engineering and technology innovations this award recognises build on our decades-long efforts to improve the energy efficiency and reduce the environmental impact of our own operations. More than 50 engineers in Denmark have been working on the patented fuel-flexible melting technology being highlighted today. Ready-made solutions did not exist, so we invented them ourselves.”

He added, “Because we operate in many countries around the world, we also know that we cannot put all our technology eggs in one basket. That is why Rockwool has also developed a large-scale electric melting technology that is well-suited in countries where the electricity grid is already low carbon. At Rockwool’s factory in Moss, Norway, for example, we have recently inaugurated the industry’s largest electric melter, reducing emissions by approximately 80% compared to the previous technology used there.”

Denmark: Rockwool recorded net sales of Euro2.60bn, down by 4% year-on-year in local currency terms. Profit for the year fell by 12% to Euro251m. Sales were supported in regions where construction was able to remain active throughout the coronavirus lockdowns. The company noted a strong recovery in the fourth quarter of 2020.

Chief executive officer Jens Birgersson said, “Looking back on a turbulent year, we are proud of how well our colleagues handled the many challenges. Our teams ensured employees were safe while quickly adjusting operations, sales and service to match the changing needs of our customers.”

The company plans to make Euro370m of investments, excluding acquisitions in 2021. Planned investments include a new plant in the US and a plant relocation in China, in addition to capacity expansions for its Rockfon and Grodan stone wool businesses.

The group said, “The underlying medium to long-term structural growth drivers for stone wool products are even stronger today than at the start of 2020. On top of fundamental trends like urbanisation and increasingly tighter building regulations, we expect that several other trends will continue driving growth in our business. For example, the growing focus on energy efficiency, fire safety and circularity continues to influence the decisions of consumers, the building industry and policymakers, with the pandemic accelerating these trends in multiple ways.”

Denmark: Rockwool has received approval from the Science Based Targets Initiative (SBTI) for its new decarbonisation goals. The goals consist of a planned 38% reduction in plant greenhouse gas emissions and 20% reduction in absolute lifecycle greenhouse gas emissions between 2019 and 2034.

Chief executive officer (CEO) Jens Birgersson said, “We’re proud to be among the few energy-intensive manufacturing companies whose science-based emission reduction targets SBTI has verified and approved. These new targets build on the strong foundation that we are already a net carbon negative company. Though not many companies can make that claim, we also know it’s not enough, which is why we have committed to this ambitious decarbonisation pathway.” He added, “Achieving these emission reduction targets will be an important step in realising the global ambition to reduce society’s greenhouse gas emissions to net zero by 2050. By demonstrating that an energy-intensive manufacturing company can achieve these targets, we hope to inspire others to take actions to help create a greener, more sustainable future.”

Denmark: Rockwool’s insulation sales declined by 0.6% year-on-year to Euro483m in the first quarter of 2020 from Euro486m due to slowdowns in Asia, in technical insulation sales and in its sandwich panel business. Despite this its earnings before interest and taxation (EBIT) rose slightly to Euro56m. Overall the group’s net sales and EBIT rose slightly to Euro649m and Euro80m respectively.

“Despite turbulence from the COVID-19 pandemic whose impact we began to feel late in the quarter, we achieved solid first quarter results. Climate change isn’t going away, however. Energy renovation is a high-impact economic recovery measure that creates local jobs, a more resilient and healthy society while at the same time contributing to reaching long-term global climate ambitions,” said chief executive (CEO) officer Jens Birgersson.

The group reported that, due to coronavirus, its sales were affected in Asia and started to decrease during the last weeks of March 2020 in southern Europe. In China, production lines were temporarily closed early in the quarter and re-opened four weeks later. Factories in Malaysia, India, France and Spain were closed at different times in March 2020. It said that all these factories had now partly resumed production. The company is planning to adjust operations based on reduced demand and a decline in construction spending in future quarters. It also intends to seek, “market opportunities resulting from political and fiscal responses to drive economic recovery.”

Denmark: Rockwool International has appointed Jessica Jonasson as Senior Vice President for Group Human Resources and a member of group management. She succeeds Camilla Grönholm, who after eight years with Rockwool, has decided to return to Finland, spend more time with family and to pursue non-executive work.

Jonasson, a Swedish national, currently holding the position of Vice President for Human Resources at ASSA ABLOY Entrance Systems, based in Sweden. She is expected to start her new position at Rockwool in August 2020 after a transitional period following Grönholm’s departure at the end of May 2020.

Denmark/Canada: Rockwool has announced the retirement of long-standing North America regional president Trent Ogilvie and thanked him ‘for the successes he helped create in the North American business’ over his 25 years in the post. The company employed 60 people at a single facility in the region in Toronto, Canada, when Ogilvie took over as president in 1995. Its four facilities in Canada and the US now employ 1000 people and make sales of hundreds and millions of US Dollars.

Rockwool’s fifth stone wool production line, located in West Virginia, is due to open in early 2021.

Denmark: Rockwool’s post-tax profit for 2019 was Euro285m, up by 7.5% from Euro265m in 2018. Sales rose by 3.2% to Euro2.8bn from Euro2.7bn. The company’s insulation section saw ‘mixed market conditions’ but ‘showed modest growth’ over the period, thanks in particular to state-supported energy efficiency improvement in construction practices generating increased demand in the South-West Europe region.

Rockwool said that it invested in long-term growth, having opened a plant in Romania in late-2019, with a capacity expansion to a German plant due to come online in mid-2020 and a further plant in the US to follow in early 2021. Rockwool Group chairman Henrik Brandt and CEO Jens Birgersson said, “For the fifth year in a row, our customer satisfaction scores increased.” Satisfaction rose by 14% year-on-year.

Denmark: Rockwool’s sales for the nine months to 30 September 2019 were Euro2.0bn, up by 3.2% from Euro1.9bn in the corresponding period of 2018. Its earnings before interest and taxes over the period were up by 7.8% year-on-year at Euro278m in the first nine months of 2019 from Euro258m. The company forecast annual sales growth of 2% - 5% and no change in EBIT margin from 12.8% in 2018. Rockwool vice president Michael Zarin noted positively Rockwool’s stonewool insulation’s versality in tackling many of today’s biggest sustainability and development challenges.

Denmark: Rockwool has recorded second-quarter net profits of Euro79m in 2019, up by 14.5% year-on-year from Euro69m for the same period in 2018. The group’s first-half sales were Euro1.34bn, improving 4.4% year-on-year from Euro1.28bn in 2018, with a corresponding growth in Earnings Before Interest and Tax (EBIT) of 11.0% to Euro178m from Euro160m. Chief Executive Officer (CEO) Jens Birgersson has expressed praise at the growth of both the insulation and systems segments.

Germany: Covestro has signed an agreement with HIG Capital, a private equity company, for the sale of its European Systems Houses business. HIG Capital aims to position the business towards mid-sized customers. Covestro will retain its polyurethane markets in Asia where it will continue to serve its customers. The sale is part of Covestro’s ongoing portfolio optimization process that includes the sale of Covestro’s North American spray polyurethane foam systems home business in 2017.

The systems houses businesses are part of the Covestro’s Polyurethanes segment and sell tailor-made polyurethanes systems. The European Systems Houses business comprises facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy. Operations will continue at the current facilities while Covestro will continue to have strong ties with the systems houses business as a key polyurethanes supplier.

The closing of the transaction is expected for the second half of 2019 after the required antitrust clearance. No value for the sale has been disclosed.