Insulation industry news from Global Insulation

US: Johns Manville’s Corbond open cell spray foam (oc SPF) has met the requirements for application without a prescriptive ignition barrier in sealed unoccupied attics for commercial and residential projects. The approval eliminates the need to apply a separate fire protective coating. The achievement is detailed in a code compliant research report, CCRR-1079, from Intertek.

“We are committed to providing the highest quality service and products to our customers, which is why we are constantly improving upon our broad range of insulation solutions,” said Bob Wamboldt, senior vice president and general manager of Insulation Systems at Johns Manville. “By optimising JM Corbond oc SPF to achieve new code compliance, we are helping our customers achieve performance goals in less time and with fewer materials.”

JM Corbond oc SPF is a two-component, low-density, non-structural insulation system designed for commercial, residential and industrial applications.

Finland: Following negotiations with staff Paroc has decided to shut down its Oulu stone wool plant in July 2017. The closure will involve the transfer and centralisation of support functions currently in Oulu to other Paroc plants and locations. Production of building insulation will be moved mainly to the Paroc plant in Parainen and support functions will be moved to other Paroc locations. 64 members of staff will lose their jobs, including all of the production workers at Oulu, and five staff will be moved to other locations.

“The decision to shut down the factory was difficult due to the considerable impact it will have on the personnel. However, the utilisation rate of the current capacity of Finnish stone wool factories is too low to ensure competitive operations in Finland. The factory located in Oulu is old and, in addition to the already high cost structure, continuing operations would require significant investments in the near future,” says Kari Lehtinen, chief executive officer of Paroc Group.”

US: Installed Building Products’ (IBP) net revenue rose by 30% year-on-year to US$863m in 2016 from US$663m in 2015. Its net income rose by 45% to US$38.4m from US$26.5m. The company has attributed the growth to its presence in strong housing markets.

"IBP achieved many milestones during 2016, including record revenues and earnings, the addition of nearly US$100m in acquired revenues and the announcement of the acquisition of Alpha Insulation and Waterproofing, the largest acquisition we have made to date," said Jeff Edwards, chairman and chief executive officer of IBP.

Finland: Paroc has described 2016 as ‘fairly challenging’ as its net sales fell slightly to Euro376m and its earning before interest, taxation, depreciation and amortisation (EBITDA) rose by 4% to Euro76.5m in 2016 from Euro73.3m in 2015. Despite reporting an improvement in construction activity in the second half of the year, sales fell in Russia. The insulation producer solid its Paroc Panel System (PPS) business to Kingspan Group in December 2016 and it announced plans to shut its Oulu stone wool plant in January 2017.

Denmark: Rockwool Group has launched a new brand identity including a new corporate symbol, a graphic representation of a volcano. It says that the symbol stands for the, ‘commitment to enrich modern living through processes and products that exist harmoniously.’ It will be used across all of the group’s brands. It is also intended to demonstrate to customers and stakeholders how the company uses volcanic stone to ‘enrich and transform modern living.’ The group has also adopted a new motto – ‘Release the natural power of stone to enrich modern living’ – to compound the theme.

“I am proud of the Rockwool Group’s long heritage in harnessing the power of one of the world’s most abundant natural resources in sustainable and innovative solutions that help solve the challenges of modern living. The updated brand identity marks an important evolution in the way we talk about our company, conveying a consistent vision and shared heritage across our diverse product portfolio’s full range,” said Mirella Vitale, Rockwool’s Senior Vice President for Group Marketing, Communications & Public Affairs.

US: William W Boeschenstein, the former chairman and chief executive officer of Owens Corning has died. He joined the company in 1950 and served as chief executive officer from 1973 to 1990, and chairman from 1981 to 1990. He was the son of Owens Corning's first chief executive officer, Harold Boeschenstein. These two men led the company for more than 50 years.

"Bill's strong values and commitment to integrity created a culture that is still thriving today at Owens Corning," said Mike Thaman, Owens Corning chairman and chief executive officer. "As a former colleague and personal friend, Bill will be missed for his contributions to the company, and for his generous support to our community."

Boeschenstein graduated from Yale University and served in the US Army Air Force during World War II, prior to joining Owens Corning. Under his leadership as chief executive officer, Boeschenstein shaped both the direction of the company and its industries. During this tenure, Owens Corning grew its annual sales from approximately US$615m to approximately US$3bn. Highlights of Boeschenstein career include resisting a hostile takeover in the 1980s and maintaining the company’s independence. He was also instrumental in Owens Corning's decision to utilise the Pink Panther in its advertising to link the colour of its insulation to the cartoon character.

Denmark: Bjørn Høi Jensen, the chairman of Rockwool, has announced that he will not be standing for re-election at the company’s annual general meeting in April 2017. He said that as he had met his goals to review the management group, start a new growth plan and introduce an ‘extensive’ improvement in results that he was standing down earlier than planned. He originally became chairman in 2014.

Rockwool’s external net sales for its insulation division dropped by 2% to Euro1.63bn in 2016 from Euro1.66bn in 2015. In local currencies the company calculated a slight rise of 0.7% for its net sales. However, its overall profit nearly doubled to Euro166m from Euro90m and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 21% to Euro389m from Euro322m. It blamed the poor sales on the industrial and technical insulation industries and the slow development of construction in Russia in both new build and renovation. In a statement Jensen described 2016 as a year ‘marked by tough conditions.’

The insulation and building materials producer also announced that it was planning to build three new production plants including a stone wool factory in Mississippi, US. Land acquisitions for the projects are expected to be completed in 2017.

Germany: Saint-Gobain has purchased the Augustdorf glass plant in North Rhine-Westphalian from Teuto-Glasveredelung. The unit produces thermal insulating glass products as well as sound-insulating glass and other glass products. The purchase is planned to be completed in March 2017, subject to approval by the government.

Ireland: Kingspan’s sales revenue has risen by 12% year-on-year to Euro3.11bn in 2016 from Euro2.77bn in 2015. Its profit after tax rose by 34% to Euro256m from Euro191m. It attributed the sales growth to ‘strong’ performance in the UK and a recovery in Western Europe. However it noted that its US market was subdued in the second half of the year.

“2016 was another record year for Kingspan. Through our organic initiatives and acquisition strategy we are developing a truly global business well placed to capitalise on the transition towards a lower energy future. We are encouraged about the outlook for the first half of 2017, with the current order book solidly ahead of the same point last year,” said Gene Murtagh, chief executive of Kingspan.

Russia: TechnoNicol increased its production of stone wool by almost 10% to 11Mm³ in 2016 due to new plants, new products and an expanded export portfolio. The company opened two new plants in Rostov-on-Don and Khabarovsk as well as upgrading its equipment at its existing plants. Over US$103m was invested in the production of basalt insulation in 2016.

The insulation producer opened its Khabarovsk plant in the Far Eastern Federal District of the country in August 2016. It announced in late January 2017 that the plant reached its projected production capacity of 0.75Mm³/yr of basalt insulation. Since this plant was opened the company has started exporting insulation materials to China and Canada. It also plans to target Japan, South Korea, Mongolia and Vietnam.