Insulation industry news from Global Insulation

UK: SIG’s revenue has fallen in the three months to October 2018 due to a weakening construction market in the UK. Its revenue in the UK and Ireland fell by 8.7% year-on-year. It said that commercial construction demand had remained dampened by macro-economic uncertainty, house price inflation was slowing and secondary housing market transactions had continued to fall. Its sales in Europe were mixed with quarterly declines in France and Germany but strong gains in Poland, the Benelux region and in its Air Handling business.

US: Germany’s Covestro plans to spend Euro1.5bn on building a new methylene diphenyl diisocyanate (MDI) plant at Baytown in Texas. The new plant will have a production capacity of 0.5Mt/yr and production is expected to start in 2024. The investment at the existing site in Baytown is the largest single investment in the history of the company. It will replace the 90,000t/yr MDI unit at the site.

“Demand for innovative MDI materials will continue to grow for the foreseeable future and likewise promises attractive capacity utilisation rates. We have already announced a significant increase in capital expenditures, now it’s time to put it into action”, said Markus Steilemann, chief executive officer (CEO) of Covestro. He added that the investment would strengthen the company’s ‘leading position’ in polyurethanes.

Covestro is also running a global investment programme in MDI production capacity, including plans to double its MDI production at Brunsbuettel, Germany to 0.4Mt/yr from 0.2Mt/yr by the second half of 2019. Other parts of this initiative include the continuation and expansion of plants in Tarragona in Spain, Caojing in China and Antwerp in Belgium.

Germany: Dennert Poraver has developed an insulating render formulation by using Poraver expanded glass aerogel granules from Cabot in 0.01 - 4mm sizes. The expanded glass granules producer says that aerogel thermal insulation renders are ultra-light, water-repellent, open to diffusion and achieve high thermal insulation even with small layer thicknesses.

The new product is targeted for the interior and exterior renovation of historic buildings. Due to the thin application layer, the producer says that the characteristics of the building remain largely unchanged. The building material can also be used for rendering masonry in new buildings. The insulating renders are also classified as ‘non-combustible, smoke-development free, non dripping.’ This means that they can also be used for facades, where previously only mineral wool-based insulating materials could be used due to increased fire protection requirements.

Poraver and Aerogel were combined for the development of a mineral thermal insulation render in order to combine the advantages of both lightweight aggregates. Cabot Aerogel supplied aerogel in the form of 0.01 - 4mm granules for the insulation render. Poraver was added to the render as a mineral aggregate with a grain size of 1 - 2mm. Various proportions of aerogel and Poraver were tested. After the tests, it could be determined that the compressive strength and processing properties had improved ‘significantly’ with the addition of Poraver. The most economical and practicable formulation has a thermal conductivity of 0.037W/mK with a dry bulk density of 199 kg/m³.

Germany: Saint-Gobain has acquired HKO, a manufacturer of very high temperature thermal insulation and fire protection solutions made from various types of glass fibres to cover temperature resistances between 600 and 1000°C. The French building materials company said that the purchase was in line with its strategy of developing technological niches. It will join the ADFORS business within the High-Performance Materials Activity.

Founded in the 1970s, HKO employs 225 people and has two plants in Germany with sales affiliates in France, USA and China. It reported sales of Euro39m in 2017. With mostly customised solutions. It serves the construction, industrial and automotive markets.

Germany: BASF’s Performance Products division’s sales fell by 5% year-on-year to Euro7.94bn in the first half of 2018 from Euro8.4bn in the same period in 2017. Its earnings before interest and taxation (EBIT) fell by 41% to Euro879m from Euro920m. The company blamed the falling sales and earnings on negative currency effects as well as reduced sales volumes from its Nutrition & Health division. The chemical producer manufactures polyurethane-based insulation foams as part of its Performance Products division. Overall, BASF’s sales and its EBIT grew in the reporting period.

Germany: Va-Q-Tec has nearly completed the expansion of its Kölleda plant in Thuringia. A new second plant at its Kölleda site has increased the production area by 3000m2 and created additional space for storage, laboratories and offices. Production capacity at the site will be tripled following the upgrade. Va-Q-Tec manufactures vacuum isolation panels at Kölleda for use in pharmalogistics, cooling units and in the construction industry for thermal isolation or cold chain logistics. The expansion is expected to be completed in June 2018.

India: Wacker Metroark Chemicals has officially opened a 6000t/day hydrosilylation plant for manufacturing functional silicone fluids at Amtala near Kolkata. The plant cost Euro6m. The expansion is Wacker’s response to growing regional demand for specialty silicones for use in the textile, personal care, rigid and flexible polyurethane foam and agrochemical sectors. Polyurethane foams produce at the unit will be used to make insulation materials and other products.

“Our new hydrosilylation plant enables us to address promising new markets where we haven’t been represented in India and Southeast Asia until now – for example the market for silicone functional fluids with its many sales opportunities,” said Soumitra Mukherjee, Managing Director of Wacker Metroark Chemicals.

Wacker Metroark Chemicals is a joint venture between Germany’s Wacker and Metroark. The company is responsible for all marketing and sales activities in the India relating to Wacker silicones. Wacker owns a 51% share in the joint venture, which was set up in 1998.

Germany/Poland: Rockwool plans to build new production lines at its stone wool insulation plants at Malkinia in Poland and Neuburg in Germany. The expansions are intended to target demand in new builds and renovation for non-combustible stone wool insulation, particularly in the external wall system and flat roof insulation segments. The upgrade work at Malkinia also includes improved environmental measures.

“Demand for stone wool insulation is expected to grow in key European markets, and expanding existing facilities lets us add capacity relatively quickly. We are also making good progress on multiple initiatives to optimise and upgrade other of our manufacturing facilities to boost output and reinforce our market-leading position,” said Rockwool Group chief executive officer (CEO) Jens Birgersson.

The new production capacity is scheduled to come on line in the second quarter of 2019 in Poland the second quarter of 2020 in Germany. The cost of the investment is approximately Euro175m. The insulation producer is also planning to increase production capacity at other plants through modifications to equipment and workflow to eliminate bottlenecks.

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.

Germany: Matthias Hau has been appointed as the Regional President Eastern Europe for Evonik. He succeeds Thomas Müller, who has been leading the activities of the European Region since 2011 and has now retired.

Hau joined Evonik in 1982 while completing a vocational training at the former Degussa, followed by a commercial trainee program in Germany and the UK. After working as a sales employee in Melbourne, Australia he was delegated to Singapore and Malaysia. Afterwards he held various responsibilities in sales, product management, and marketing, before he took over as head of the BioActives Business Unit. In 2005 he became the president of the India Region. After being head of the Agrochemicals & Polymer Additives Business Line at Performance Materials, he became responsible in 2016 for a sales programme across the group.