Insulation industry news from Global Insulation

Germany: Jean-Claude Carlin has been appointed as the chief executive officer (CEO) of Knauf Insulation with effect from 1 February 2017. Carlin is a member of the Knauf Group leadership team having led the Knauf Industries business as Group CEO since 2009. He succeeds Thies Knauf.

Carlin joined Knauf Industries in 2008 after almost 20 years working for Timken, a manufacturer of bearings and mechanical power transmission products. At Timken he held various operations and management positions in Europe, India and the US. Carlin is a French national and has degrees in Mechanical Engineering and Economics. He will be based in Knauf Insulation’s new global headquarters in Visé, Belgium.

Knauf Insulation has also established an Executive Committee that will define and implement the group’s strategy and manage of its operations worldwide. Carlin will be joined on the Executive Committee by David Ducarme, appointed as Group Chief Operating Officer (COO) and Deputy CEO, and Jens Nilsson, Group Chief Financial Officer (CFO).

Germany: Steico, a manufacturer of thermal insulation made from wood, has reported that its sales rose by 10.6% year-on-year to Euro209m in 2016 from Euro189m in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 34.4% to Euro33.2m from Euro24.7m. The company said that ‘very pleasing growth’ was noted for its wood-fibre insulation materials in 2016 but it didn’t specific any volumes. It did mention ‘continued price pressure’ in the period as well as increased exports.

US: Owens Corning has received asthma and allergy friendly certification for its Pure Safety insulation product. It says it is the first such product to earn the certification from the Asthma and Allergy Foundation of America (AAFA). The product has less dust than comparable products and is mould and mildew resistant.

"We saw an opportunity to address the needs of over 70 million people with asthma and allergies. Caring about indoor air quality is just one way Owens Corning is committed to leveraging our building science expertise and insulation systems to create better, more sustainable and more comfortable homes," said Julian Francis, president of insulation, Owens Corning.

The Asthma and Allergy Friendly Certification Program was created in 2016. It is administered by the AAFA and Allergy Standards Limited. The program independently tests and identifies consumer products that are more suitable for those living with asthma and allergies using the Synthetic Home Insulation Products Standard, which addresses a product's effect on indoor air quality and capacity to resist mould growth.

US: Sika has completed the acquisition of Rmax Operating, a US-based producer of polyiso insulation products, on 31 January 2017. The deal was originally announced in mid-December 2016. Sika has said that the purchase is intended to bolster its presence in North America, particularly in roofing, sealants and waterproofing markets.

Belgium: BASF has increased the methylene diphenyl diisocyanate (MDI) production capacity to 0.65Mt/yr from 0.56Mt/yr at its Verbund plant in Antwerp. MDI is used to manufacture polyurethanes, which are used in insulation production and other materials.

UK: MDF Recycling has completed proof of concept trials to develop a process to recover wood fibre from waste medium-density fibreboard (MDF). The solution generates a new raw material source for the wood and natural fibre industries. The company says that the recovered fibre is of the same quality as standard wood fibre and that it can provides feedstock to the manufacturers of MDF board, insulation products and horticultural growing products.

“We have already begun discussions with a number of leading companies and organisations operating in the MDF production and waste industries and look forward to progressing these during the early part of 2017,” said co-founder and Managing Director Craig Bartlett. He added that the recycling process was a ‘genuine world first.’

MDF Recovery has set up an advisory panel to help it commercialise the company’s technology.

Kyrgyzstan: The Russian-Kyrgyz Development Fund plans to expand a thermal foam insulation plant at Besh-Kungei in the Chui region in 2017. The project will cost US$1.67m, with 66% of the funding provided by the Russian-Kyrgyz Development Fund and the remainder by local businesses. The upgrade is part of a umbrella of investments being made by the fund in 2017.

UK: Simon Storer has been appointed as the chief executive of the British Rigid Urethane Manufacturers Association (BRUFMA) with effect from 9 January 2017. Previously, Storer was the Head of Communications at BACTA, the trade body representing the British amusement industry. Before this he worked as the External Affairs Director at the Construction Products Association (CPA) for seven years. He has also worked for the architect Levitt Bernstein, Shoreditch New Deal for Communities project and for the Channel Tunnel project during its construction phase.

UK: SIG’s sales rose by 0.3% on a like-for-like basis, the building materials distributor has said in a trading statement. Sales rose by 11% year-on-year to Euro3.4bn in 2016 but they were mainly driven by foreign exchange rates and acquisitions. In the UK & Ireland like-for-like sales increased by 1.1%, with SIG Distribution up by 1.2% and SIG Exteriors down by 1.5%. In mainland Europe life-for-like sales declined by 0.5%, with France and Germany down by 2.0% and 1.3% respectively.

"2016 was a disappointing year for SIG. While the competitive environment, particularly in the UK, was challenging, our transformational change programme, although taking the group in the right strategic direction, distracted us somewhat from our customers,” said chief executive Mel Ewell. He added that the company is planning to focus on customers, place added emphasis on sales growth and reduce its leverage in 2017.

SIG will announce its full year results for 2016 on 14 March 2017.

Finland: Paroc Group is planning to shut down the operations of its stone wool plant in Oulu. The decision has been blamed on overcapacity of Finnish production without a similar increase in consumer demand. The plan also includes transferring and centralising support functions to other Paroc factories at other locations. Approximately 70 workers at the site will be affected by the decision and negotiations are on going.

“Starting the cooperation negotiations is very unfortunate. However, the utilisation rate of Finnish stone wool factories’ current capacity is too low to ensure competitive operations in Finland. The factory located in Oulu is an old one, and, in addition to the already high cost structure, continuing its operations would require significant investments in the near future,” said Kari Lehtinen, chief executive officer of Paroc Group.