Insulation industry news from Global Insulation

US: Installed Building Products’ (IBP) net revenue has risen by 40% year-on-year to US$404m in the first half of 2016 from US$290m in the same period of 2015. Its net income more than doubled to US$15.8m from US$7.7m. The insulation installation company attributed the strong result to growth in the residential building market.

"Our results continue to benefit from strength throughout the homebuilding industry, growth at our existing branch locations and the contribution of our recently acquired businesses,” said Jeff Edwards, chairman and chief executive officer of IBP.

UK: Knauf Insulation plans to spend Euro5m to upgrade its mineral wool plant in Queensferry in Flintshire, Wales. The investment will deliver thermal and mechanical improvements, along with an increased portfolio of insulation solutions. It will also support the group’s Ecose Technology binder product.

“We are especially pleased to announce this investment at Queensferry, given the uncertainty many other businesses and investors currently face. That uncertainty applies to wider concerns around the impact of Brexit on economic activity, but also to key sectors we service such as the construction industry, UK energy and energy efficiency businesses,” said John Sinfield, Managing Director at Knauf Insulation Northern Europe. “This decision demonstrates that a drive on energy efficiency will deliver greater energy security, increased UK economic competiveness and help address environmental commitments. We would hope that the new government, and especially the new Department for Business, Energy and Industrial Strategy, considers these outcomes when exploring what its new strategy is to be.”

Knauf Insulation acquired sole ownership of its UK business in 2002. It has since invested Euro179m at its UK plants.

South Korea: Air Products has been awarded a long-term contract by KCC Corporation, a construction material manufacturer, to supply oxygen to the new glass wool production line at its Gimcheon plant. The new production line is scheduled to become operational in 2017.

Air Products will install a Prism vacuum swing adsorption (VSA) oxygen generator at KCC Corporation’s Gimcheon site to supply on-site gaseous oxygen to the furnace for full oxy-fuel combustion, a technique to make glass manufacturing cleaner.

“We have been supplying different offerings to KCC Corporation, including at the Gimcheon site, and are honoured to have won their continued confidence,” said Kyo-Yung Kim, president of Air Products Korea.

Air Products supplies integrated solutions to the global glass industry, from gas supply to combustion systems, technology, customised control systems, technical and design expertise, commissioning service, safety and site training, maintenance contracts and project management. The company also specialises in oxy-fuel combustion technology.

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.

US: Owens Corning’s sales revenue has risen by 7% year-on-year to US$2.78bn in the first half of 2016 from US$2.61bn in the same period in 2016. Its net earnings rose by 78% to US$198m from US$111m. However, sales revenue for its insulation business fell by 4% to US$799m from US$830m. No reason for the decline in insulation revenue was given, but the company expects slightly negative revenue growth and relatively flat margins to continue for the full year.

Belgium: VIPA International, the Vacuum Insulation Panel Association, has said that the European Committee for Standardisation (CEN) is set to complete a final draft standard for the for the use of vacuum insulation panels (VIP) technology in building applications by the end of 2016.

“The VIP industry is looking forward to the publication of this standard. This was one of main motors driving the creation of the association and in the past year we commissioned three studies that will hopefully accelerate some of the technical discussions within Working Group 11. Standards are key tools to increase customer trust in new products so we hope this will impact very positively on the market acceptance of vacuum insulation panels,” said president of VIPA International, Roland Caps

The CEN Technical Committee 88 (thermal insulating materials and products) Working Group 11 (vacuum insulation products - VIP) is responsible for drafting the buildings specification for the factory made vacuum insulated panels. The Technical Committee 88, WG 11, has agreed on a general procedure to extrapolate the results of accelerated aging tests, both for silica and non-silica core materials like glass fibres. This allows determining the mean thermal conductivity values throughout the considered service lifetime of the panels, which for applications in the construction industry, similar to other insulation materials in this industry, is set to 25 years.

VIPA International plans to extend the procedures defined by the CEN TC88/WG11, which apply only to buildings, to other applications where VIPs are used like appliances, hot water tanks and containers or boxes for temperature sensitive goods. A separate quality and testing regulation already exists and is being reviewed together with an approved Inspection and Certification Body. A special VIP Quality Mark will be awarded to VIP manufacturers that comply with these rules.

For an article on the history of VIPs and VIPA see the May 2016 issue of Global Insulation

UK: Ken Munro, the chief executive officer of Superglass, has been appointed the chairman of the Mineral Wool Insulation Manufacturers’ Association (MIMA). He replaces David Travill, managing director of Isover Saint Gobain, in the role.

“I would like to thank David for his leadership and contribution, and I am pleased to be assuming the chair at such a critically important time for energy efficiency policy. Investment in the fabric of our homes and in their energy efficiency is good for the economy, increases productivity and attracts investment,” said Munro. “In Scotland, our government has already committed to making the energy efficiency of our homes an infrastructure priority and is supported by the influential Energy & Climate Change Committee, led by Scottish National Party Chair, Angus MacNeil. This is an encouraging position but we would like to see this realised across the United Kingdom.”

Sarah Kostense-Winterton, executive director of MIMA, added that the organisation aims to protect consumers from energy price volatility and from fuel poverty, whilst reducing the UK’s carbon emissions.

Germany: BASF has developed a new technology for welding insulation boards. The contactless, thermal welding process makes it possible to combine a variety of insulation materials. For example, Styrodur, an extruded rigid polystyrene foam from BASF, can be combined with polyurethane, inorganic insulation materials, or the melamine resin foam Basotect to form completely new insulation material solutions.

BASF ‘s Styrodur portfolio includes new, thick boards made using this process in the highly compression-proof varieties Styrodur 4000 CS and 5000 CS. The boards cover the thickness range from 60mm to 240mm with a consistently good insulation value (lambda = 0.035W/mK).

US: Demand for plastic foams in the US is forecast to rise 2.3%/yr to 4Mt in 2020, valued at US$25.2bn, according to a report by the Freedonia Group. A report summary stated that growth will decelerate from the rate posted during the 2010-2015 period and that the construction sector is anticipated to lead growth prospects, which will see additional opportunities for foam insulation products bolstered by increasing construction activity.

Elsewhere, rising consumer spending levels will bode well for foams used in household products such as bedding, furniture and appliances. In the motor vehicle market, advances will slow in tandem with slowing motor vehicle production and by trends towards smaller, more fuel efficient cars that require less foam on a per vehicle basis.