Insulation industry news from Global Insulation

US: Owens Corning has reported a rise in adjusted earnings of 5% to US$69m in the second quarter of 2013 compared to US$67m in the same period of 2012.

The company's consolidated net sales fell slightly to US$1.35bn from US$1.39bn. The building materials manufacturer's adjusted earnings before interest and taxation (EBIT) improved by 6% to US$124m in the second quarter of 2013 from US$17m in the same period in 2012. Also of note in the quarter, in June 2013 Owens Corning acquired Thermafiber, a mineral wool insulation manufacturer.

"We are pleased with our progress in the second quarter and the first half of 2013, with strong margin performance in our Roofing business, price increases and operating leverage in Insulation and improved performance in Composites," said chairman and chief executive officer Mike Thaman.

In its outlook the company expected profitability to improve in 2013 compared to 2012 due to company action, an improving US housing market and moderate global growth. The company expects stronger insulation volumes in the second-half of 2013 driven by residential construction, high capacity utilisation and improved pricing.

Denmark: Danish insulations materials producer Rockwool International has agreed to acquire BASF Wall Systems, which is owned by the BASF Group. The group's German subsidiary Deutsche Rockwool will acquire all of the German external façade insulation producer including a factory in Marktredwitz and the HECK MultiTherm and Rajasil brands.

"This is a major leap forward for the Rockwool Group's strategy of offering customers more complete solutions consisting not only of insulation but also all the other necessary elements of a total facade system such as paint, render, etc. The BASF Wall Systems business is in this respect a great asset," said division managing director of the Rockwool Group's Europe division, Henrik Frank Nielsen. He added that purchase enhances the group's façade strategy and gives it a 'significant' foothold in the German External Thermal Insulation Composite Systems (ETICS) market.

Rockwool declined to comment on the value of the deal, saying that the deal was too small to have any impact on the buyer's valuation. The transaction is expected to be completed by the end of 2013. BASF Wall Systems had a turnover of Euro68m in 2012 and it had 190 employees.

UK: Building materials supplier SIG expects its profit for the first half of 2013 to fall year-on-year due to the extended winter, according to a trading update. In the first half of 2012 SIG reported a profit before tax of Euro41m. In the first half of 2013 it is likely to be Euro34 – 36m. The company plans to reduce costs to support full-year profit.

SIG reported that in mainland Europe sales per day fell by around 4% in constant currency. Sales in the UK more than halved, falling by around 1%, due to the end of the Carbon Emissions Reduction Target (CERT) scheme and the slow start of the Green Deal.

"There are signs that market conditions are starting to improve in the UK, although construction activity in mainland Europe remains weak," said SIG in its report.

US: Owens Corning has met all seven of its self-declared environmental footprint goals, the company announced as it released its seventh Sustainability Report. The fibre-glass manufacturer is now reporting against its 2020 goals.

"Our accomplishments are representative of the progress we have made this past year, but we clearly recognise that we have much more to do on the path to becoming a more sustainable, and preferably, a net-positive company," said Vice President and Chief Sustainability Officer Frank O'Brien-Bernini. "Across our company, these goals inspire innovation, creativity, external collaboration and broad engagement."

Progress towards the 2020 goals include the completion of several greenhouse gas reduction projects whilst preparing for others, including diesel-to-natural gas transportation fuel-switching, fuel cells, waste heat recovery, biomass, solar, and combined heat and power. The company has partnered with the World Resources Institute on its Aqueduct project to conduct a global water stress assessment of Owens Corning's global operations and completed several successful major water use reduction projects in stressed areas. It has released the first Environmental Product Declarations (EPD) for fibreglass insulation in North America. It has also highlighted sustainability expectations in its Supplier and Employee Code of Conducts.

Saudi Arabia: Saudi International Insulation Manufacturing Company (SIIMCO), a joint venture equally owned by Alghanim Industries and Saint-Gobain, has signed an agreement with the Yanbu Royal Commission to lease a 65,000m² site at Yanbu Al-Sinaiyah, Saudi Arabia for 30 years. Construction of plant is expected to begin in August 2013 and it is planned to be operational by early 2014.

"Our joint venture investment at Yanbu will supply local and regional industrial and building areas with a reliable source of high quality insulation, which is both environmentally-friendly and will assist in improving the fire safety of buildings," said Omar Alghanim, chief executive of Alghanim Industries. The agreement follows a comprehensive review of the environmental impact and approval for plant layouts, building structure and utilities from the Yanbu local authorities.

SIIMCO has invested about Euro45m in the project. When completed it will have a production capacity of 60,000Mt/yr, building minderal wool, thermal and acoustical insulation materials. The plant is intended to serve markets in Saudi Arabia and other regional markets in the Gulf Cooperation Council region such as Egypt and Iraq.

UK: Experts have warned that the UK's Green Deal scheme to promote higher levels of insulation in buildings could inadvertently generate potentially lethal overheating in some residences.

Researchers from Loughborough University and the University of Reading have highlighted that Green Deal-inspired changes may be unsuitable for top-floor flats (especially in 1960s constructions) and modern detached houses. In both cases, southerly aspects could add even more to summer temperatures, creating potentially unbearable conditions for occupants.

Speaking to the BBC's website, Professor Chris Goodier of Loughborough University said that it was 'vital' that the UK improved insulation in its housing stock for the sake of lower fuel costs and carbon emissions, but said that the 'big rush to insulation and make homes airtight' risked overheating.

"Overheating is like the little boy at the back of the class waving his hand," he told the BBC website. "It is forgotten about because the other challenges are so big."

Goodier, along with Professor Li Shao of the University of Reading, said that the elderly were among the most at risk of overheating effects as they are more likely to remain indoors during the day and are more susceptible to the effects of extreme temperatures.

The Department for Energy and Climate has now said that it has issued new guidelines regarding overheating to its Green Deal partners in the insulation industry.

The Green Deal has come in for much criticism in the UK since it launch at the start of 2013. The scheme targets the insulation of 14 million homes by 2020 but so far only 38,259 assessments have been carried out. Of these, only 241 homes have committed to proceeding with the installation of insulation.

Tajikistan: Knauf is seeking to expand its operations in Tajikistan, according to the Tajik Ministry of Foreign Affairs (MFA).

According to the Tajik MFA information department, issues related to cooperation between Tajikistan and Knauf International were discussed at a meeting of the Tajik Ambassador to Germany, Imomuddin Sattorov, with Alexander Blumhardt, Executive Manager CIS, Knauf International that took place in Berlin, Germany on 18 June 2013. The sides reportedly discussed participation of Knauf in projects for production of building materials in Tajikistan.

Blumhardt briefed the Tajik diplomat on investment policy of the company and prospects of further expansion of its operations in Tajikistan. He noted that Knauf was interested in participation in development of gypsum deposits in Tajikistan and production of building materials from domestic raw materials with getting local labour resources involved in the work. The sides also discussed the upcoming visit of the Knauf delegation to Tajikistan.

US: Owens Corning has appointed Edward Lonergan, the CEO of Chiquita, to its board of directors. The appointment is effective from 18 September 2013.

"We welcome Ed to our board of directors," said Owens Corning chairman and chief executive officer Mike Thaman. "His global experience and strong commercial background make him a valuable addition to the board. We are delighted to have recruited such an outstanding director."

Lonergan was named CEO of Chiquita in 2012 and currently serves on the company's board of directors. Chiquita is a leading international marketer and distributor of bananas, packaged salads and other fresh produce. He previously served as director, president and CEO of Diversey, a leading global provider of sustainable cleaning, sanitation and hygiene solutions, from February 2006 through the sale of the company to Sealed Air Corporation in October 2011.

Lonergan has also held positions at the Gillette Company and Procter & Gamble from 1981 to 2002. He is a graduate of Union College in Schenectady, New York.

Saudi Arabia: Arabian Fiberglass Insulation (AFICO), a joint-venture between Owens Corning and Zamil Industrial Investment, has inaugurated its new fibreglass manufacturing plant costing US$50m in Dammam, Saudi Arabia.

The plant has an installed insulation production capacity of 24,000Mt/yr, increasing the company's total capacity to 37,000Mt/yr. The additional capacity is intended to assist local governing authorities in the Gulf Cooperation Countries with on-going efforts to implement more stringent building code requirements aimed at increased energy efficiency and fire safety standards.

AFICO has been a leading regional manufacturer of fibreglass insulation products since 1982, utilising the know-how and technical specifications of Owens Corning under license.