Insulation industry news from Global Insulation

Germany: Xella International has announced changes to the management of its subsidiary Ursa. Jochen Friedrichs has been appointed as the chief executive officer (CEO) of its subsidiary Ursa. He will also join the Xella Group Executive Committee. Xella said Friedrichs was responsible for the acquisition of Ursa on the Xella side of and therefore holds ‘detailed’ knowledge of both Ursa and Xella.

Other appointments include the assignment of Björn Baum as the Chief Technology Officer (CTO) of Ursa. He will also remain as the Head of Xella Group’s Energy Management. Joaquín Lozano Agramunt will retain his position of Chief Financial Officer (CFO) at Ursa. In addition, Ana Lluch Martinez, Chief Legal and HR, and Gonzalo de las Alas-Pumariño, Head of Technology and Projects, will become members of the Ursa Executive Committee.

Xella International announced that it was buying Spain’s Ursa in August 2017. The European Commission approved the acquisition of the insulation producer by Xella in October 2017. The acquisition is expected to compete by the end of 2017.

UK: The British Rigid Urethane Foam Manufacturers’ Association has changed its name to the Insulation Manufacturers Association (IMA). The association said that the new name reflects the position that polyisocyanurate (PIR) and polyurethane (PUR) insulation manufacturers hold in providing the largest share of insulation products used in the UK market. It added that given expected growing market share of organic-based insulation products that, “…the trade association has a responsibility to ensure it is the principal point of contact for all audiences relevant to this sector with a name that reflects this responsibility.”

Simon Storer, Chief Executive of IMA said that the association need to move towards a wider audience that wasn’t necessarily used to technical or industry language. “Events of this year certainly brought this need into sharp focus, as many commentators and other interested parties were unable to immediately identify which trade association spoke for which part of the industry. We also wanted to be sure that as an association we are solely responsible for and have ownership of the messages coming from this sector.”

US/Finland: Owens Corning has signed an agreement with CVC Capital Partners to acquire Paroc Group for Euro900m. The sale, which is subject to regulatory approvals and other customary conditions, is anticipated to close in early 2018. The company plans to finance the acquisition through a combination of long-term debt and pre-payable bank financings.

“The acquisition of Paroc delivers on Owens Corning’s strategy to provide our customers with a portfolio of insulation products that cover the full temperature spectrum in the three largest insulation markets – Europe, North America and China. Over its 80-year history, Paroc has earned a reputation for high-quality products and technical expertise,” said Owens Corning chairman and chief executive officer Mike Thaman.

The acquisition of Paroc is expected to expand Owens Corning’s mineral wool technology, grow its presence in the European insulation market, provide access to a variety of new end-use markets and will increase the company’s sales mix of the insulation business outside the US and Canada to 35%.

Paroc is a European manufacturer of mineral wool insulation solutions for a variety of end markets. Paroc manufactures building insulation for thermal, fire and acoustic applications in residential and commercial construction. The company also manufactures technical insulation for HVAC (heating, ventilation, and air conditioning) systems, industrial processes and the marine, offshore and original equipment manufacturer industries. It employs over 1800 people in 13 countries and operates facilities in Finland, Lithuania, Poland, Russia and Sweden.

US: Growth in insulation sales revenue and earnings have contributed to Owens Corning’s overall growth so far in 2017. Net sales from its insulation business grew by 10% year-on-year to US$1.41bn in the first nine months of 2017 from US$1.28bn in the same period in 2016. Its earnings before interest and taxation (EBIT) grew by 7% to US$98m. The group’s overall net sales rose by 11% to US$4.78bn.

“Owens Corning delivered another strong quarter, despite some isolated market challenges. We remain confident in our ability to finish the year with strong financial performance,” said chairman and chief executive officer (CEO) Mike Thaman. He added that the company was ‘particularly’ pleased with the contribution of the newly acquired Foamglas business within its insulation business.

In its insulation business, EBIT grew due to higher prices and sales volumes. US volume growth slowed in September 2017 but the company said the segment was experiencing a recovery so far in the fourth quarter of 2017.