Insulation industry news from Global Insulation

US: Huntsman has announced an agreement to acquire Icynene-Lapolla, a North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, for US$350m from an affiliate of FFL Partners. Icynene-Lapolla operates two manufacturing facilities located in Houston, Texas and Mississauga, Ontario. The transaction is expected to close in the first half of 2020.

“I am delighted that Icynene-Lapolla is joining our downstream, high-growth MDI urethanes insulation business. Icynene-Lapolla is well recognised by architects, builders and contractors as a market leader in the manufacture and supply of high-performance, energy-efficient building envelope solutions,” said Tony Hankins, the president of Huntsman's Polyurethanes division. He added that the combination of Icynene-Lapolla, with its SPF product range and reflective roof coatings, with Demilec, the SPF business that Huntsman acquired in 2018, would ‘significantly’ strengthen its energy-saving insulation business.

US: Huntsman has published its third quarter results showing a 30% fall in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$215m from US$308m. Sales volumes and prices fell in the polyurethanes and advanced materials sections, with a strong US Dollar pushing down the latter’s profit margin in the European region, where customer destocking also occurred.

Turkey: A fire broke out in an outside area and spread to the main factory and adjacent commercial property at Hunter’s Istanbul polyurethane (PU) plant. The company has stated that nobody was harmed and monitoring for any offsite environmental impacts is underway.

UAE: Huntsman Corporation has opened its new polyurethanes systems house at the Jebel Ali Free Trade Zone (JAFZA) in Dubai. The unit comprises a production area with manufacturing equipment plus blenders, reactors, filling stations, control room, offices and quality control laboratories. It will manufacture polyurethane foams for construction, insulation, appliances, bedding and furniture applications. It will also produce systems for the footwear industry; and prepolymers for coatings, adhesives, sealants and elastomers applications.

The site will also serve as the regional base for Huntsman's Demilec spray polyurethane foam (SPF) business. The new systems house is equipped with a dedicated spray foam application and training centre and will provide customers in the region with local technical and training assistance, fully supported by the global Demilec organisation.

"This investment is the latest step in the expansion of our worldwide systems house capabilities, which underpin our downstream growth strategy. Constructing the new systems house at JAFZA brings us closer to our customers and gives us everything we need to expand our business in the Middle East and North Africa, including manufacturing competitiveness, infrastructure links and speed of response," said Tony Hankins, President of Huntsman's Polyurethanes division.

Huntsman's other downstream businesses in the Middle East include Huntsman EMA, a systems house in Turkey, and Huntsman Arab Polyols Company in Saudi Arabia, a joint venture with the BCI Group of Companies, in which Huntsman is the majority shareholder.

US: Huntsman’s polyurethane revenue rose by 16% year-on-year to US$5.09bn in 2018 from US$4.40bn in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 11% to US$946m from US$850m. Overall, across all business segments, the company’s sales and earnings rose.

The chemicals producer said that its polyurethane segment had lost revenue in the last quarter of 2018 due to lower methylene diphenyl diisocyanate (MDI) prices. MDI sales volumes increased due to the start-up of a new Chinese MDI unit in 2018 and the acquisition of Demilec, a North American polyurethane spray foam company, in April 2018.

“2018 was another successful year for Huntsman as we reported record earnings and consistent robust free cash flow. We continued to expand in our downstream and differentiated businesses both through internal investments and bolt-on acquisitions,” said Peter R Huntsman, chairman, present and chief executive officer (CEO).

Belgium: Huntsman Polyurethanes has launched its DaltoPIR XHFR product for composite panels. The polyisocyanurate (PIR) insulation product was introduced at a panels and profile conference in Greece.

The product uses DaltoPIR insulation technology to offer a different viscosity build up in rising foam. The company says that this enables more stable and more consistent processing, which in turn can help panel producers achieve better panel planarity and quicker line speed. The resulting foam has very low friability, which Huntsman says contributes to the long-term properties of the panels.

US: Huntsman’s polyurethane business has contributed to its growing revenue and earnings so far in 2018. Its revenue grew by 18% year-on-year to US$4.7bn in the first half of 2018 from US$3.99bn in the same period in 2017. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 47% to US$820m from US$559m.

“Our polyurethanes business continues its growth in variants and systems and enjoys the back drop of good supply and demand fundamentals, foreseeable for the long term,” said Peter R Huntsman, chairman, president and chief executive officer (CEO). Prices and sales volumes rose year-on-year in the second quarter of 2018.

In late July 2018 the chemicals producer announced that its Polyurethane division was setting up a new subsidiary in Chile based in Santiago. The new company, Huntsman (Chile), will operate from a local warehouse and a customer service centre. It joins existing operations in Cartagena and Bogotá in Colombia, São Paulo and Taboão da Serra in Brazil and Buenos Aires in Argentina.

US: Huntsman Corporation has acquired Demilec, a manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of Sun Capital Partners for US$350m. The transaction is expected to close by the end of second quarter of 2018.

“Demilec has pioneered MDI SPF insulation and coating technologies for over 30 years, building a strong market reputation with architects, builders and designers. Demilec and the entire SPF industry has delivered strong double digit growth, which we expect to be sustained as their technology provides outstanding insulation performance in a world which is increasingly concerned with improving energy efficiency," said Tony Hankins, president of Huntsman's Polyurethanes division. He added that the company would be used to ‘aggressively’ expand the business into international markets.

Demilec has revenues of approximately US$170m/yr and two manufacturing plants located in Arlington, Texas and Boisbriand, Quebec where it produces a products from methylene diphenyl diisocyanate (MDI) based SPF formulations. It markets these directly to applicators as well as through distributors. Demilec specialises in both closed cell and open cell formulations, with a focus on products with renewable and recyclable content.

US: Huntsman Corporation’s Polyurethane division has increased its sales revenue by 9% year-on-year to US$1.98bn in the first half of 2017 from US$1.81bn in the same period in 2016 due to raised prices. It increased its prices of methylene diphenyl diisocyanate (MDI) to counter higher raw material costs and to benefit from a ‘strong’ market. However, sales volumes of MDI decreased in the reporting period due to maintenance outages. This caused its divisional adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) to fall in the second quarter of 2017 although it rose as a whole for the half year. Amongst other products the chemical manufacturer produces polyurethane, which is used by the insulation industry.

UK: Texas’ Huntsman Corporation has completed its acquisition of IFS Chemicals, a manufacturer of methylene diphenyl diisocyanate (MDI) based systems. The purchase price has not been disclosed.

“With its highly experienced team and loyal customer base, IFS provides us with excellent access to the UK’s growing downstream MDI systems market. It will serve as a strategic platform to expand our business and consolidate our position as a market leader. The acquisition represents the latest step in our plan to strengthen our differentiated downstream capabilities and we now have more than 25 facilities worldwide, reflecting our confidence in the long-term growth prospects for MDI-based urethanes, ” said Tony Hankins, president of Huntsman’s Polyurethanes division.