Insulation industry news from Global Insulation

Germany: The German cartel office has started a probe into the country's producers of insulating materials due to suspicions of possible prohibited price agreements. A spokesman of the cartel office in Bonn, North Rhine-Westphalia revealed that there had already been a large-scale raid with the support of the police in mid-March 2014. The investigators are trying to find out whether the companies held illegal talks concerning prices and sales regions for hard-resistance foam, which is used for insulation in new buildings. 

UAE: Rockwool International has won a new order to supply insulation to Abu Dhabi's Takreer refinery project. The refinery will have a 30,000 barrels/day capacity for crude oil and will produce 40,000t/yr of carbon black. The refinery is due for completion in December 2015.

Vietnam: Vietnam will completely abolish the use of more than 500t of hydrochlorofluorocarbon HCFC-141b, a chemical that damages the ozone layer, in the production of thermal insulation foam by the end of 2014.

The move is part of the country’s efforts to reduce the use of HCFC substances by 10% from 1 January 2015 onwards, according to Nguyen Van Tue, director of the Department of Meteorology, Hydrology and Climate Change under the Ministry of Natural Resources and the Environment.

Between now and 2019, Vietnam plans to cut the use of HCFC substances, mainly HCFC-22, by 900t from 3600t at present. The chemical is mainly used in refrigeration facilities. Van Tue added that that Vietnam had already successfully eliminated the import and use of CFCs, halons and CTCs, which are also ozone-depleting substances, between 1995 and 2010. As part of the project, Vietnam will choose alternative technologies and substances that are considered safe for the ozone layer and the climate, as set out by the Montreal Protocol on ODS.

To assist Vietnam’s efforts, the United Nations Industrial Development Organisation (UNIDO) worked with the department to design the project. UNIDO’s Representative in Vietnam, Patrick Gilabert, said that as part of the project UNIDO and equipment suppliers would deliver hydrocarbon technology to businesses that use refrigeration facilities.

US: Unifrax Corp, a producer of ceramic fibre insulation materials, is getting 3.3MW of low-cost hydropower from the New York Power Authority for a pair of expansion projects in the Town of Tonawanda, New York. The work is expected to create 75 new jobs.

The low-cost electricity, about 40% below wholesale power prices, is in addition to US$1.4m in tax credits that the company could receive through the State’s Excelsior Jobs Programme and US$2.5m in tax breaks approved earlier in 2014 by the Erie County Industrial Development Agency.

In one project, Unifrax plans to spend US$18m to build and equip a new 76,000ft² manufacturing plant in the North Youngmann Commerce Centre, a business park next to its current operations. The IDA in August 2014 approved US$1.2m in tax breaks for the expansion project, which Unifrax will use to expand production of polycrystalline fibre that it currently produces in Japan. The company, which needs more capacity for that product, had considered options such as expanding the Japanese plant or building a new plant at one of its other sites before settling on the Tonawanda site. 

In July 2014 the IDA approved US$1.27m in tax breaks for a separate US$33m project in Tonawanda that involved acquiring facilities on Fire Tower Drive that the company already leased, as well as building a new facility there and installing machinery and equipment.

US: Unifrax Corp, a producer of ceramic fibre insulation materials, is getting 3.3MW of low-cost hydropower from the New York Power Authority for a pair of expansion projects in the Town of Tonawanda, New York. The work is expected to create 75 new jobs.

The low-cost electricity, about 40% below wholesale power prices, is in addition to US$1.4m in tax credits that the company could receive through the State’s Excelsior Jobs Programme and US$2.5m in tax breaks approved earlier in 2014 by the Erie County Industrial Development Agency.

In one project, Unifrax plans to spend US$18m to build and equip a new 76,000ft² manufacturing plant in the North Youngmann Commerce Centre, a business park next to its current operations. The IDA in August 2014 approved US$1.2m in tax breaks for the expansion project, which Unifrax will use to expand production of polycrystalline fibre that it currently produces in Japan. The company, which needs more capacity for that product, had considered options such as expanding the Japanese plant or building a new plant at one of its other sites before settling on the Tonawanda site. 

In July 2014 the IDA approved US$1.27m in tax breaks for a separate US$33m project in Tonawanda that involved acquiring facilities on Fire Tower Drive that the company already leased, as well as building a new facility there and installing machinery and equipment.

US: Owens Corning, a producer of fibreglass reinforcements for composite systems, is building a new advanced technology facility in Gastonia, North Carolina, that will help meet demand for bio-based products. The new, state-of-the-art equipment will add manufacturing flexibility to produce different widths of the company's new Sustaina® non-woven fibreglass fabric. This will enable more customers to use the product in their applications.

Sustaina surfacing and reinforcing glass non-wovens were introduced to the European market in June 2013. The Sustaina solution uses a bio-based binder system with high tensile strength performance and does not contain any formaldehyde. The new plant will be able to produce 4m widths of Sustaina fabric, rather than the narrower width currently produced on existing assets.

"Building a new site is a great opportunity for us to install the newest, most advanced manufacturing technology," said Steven Vermeulen, vice president and managing director, Engineered Solutions. "The line is designed to facilitate the highest level of quality and efficiency and the flexibility to produce the wider veil will help us to get better yields and reduce waste." Sustaina fabric is designed for use in residential and commercial building applications, like cushion vinyl flooring, ceiling backings and insulation facers. 

Germany: Austrian heat insulation specialist Austrotherm GmbH has launched its first production plant in Wittenberg, Saxony-Anhalt. The new 114,000m² plant, which produces its characteristic pink extruded polystyrene (XPS) foam insulation board, was built in 10 months with an investment of Euro40m. The plant specialises in the production of XPS substrate specifically for high-pressure loads and high insulation thickness board. Located midway between Berlin and Hamburg, the site is well placed to supply growing markets in Germany and abroad.

“With the new plant, we are much closer to the market and, by eliminating the long transport routes, it will be faster and more flexible for the customer,” said Austrotherm’s sales and internationalisation executive director Gerald Prinzhorn. “It also allows us to export to northern Europe, Poland and the Benelux countries.” The site location is also set to benefit soon from the construction of the A14 motorway at Wittenberg.

Austrotherm, which also manufactures expanded polystyrene (EPS) insulation, operates other XPS production units in Austria, Serbia and Romania. In its 2013 financial year annual sales grew by 2% to Euro250m. 

“The fact that we were able to increase sales last year is due to our international activities, such as the new EPS insulating plant in Izmir, Turkey,” said CEO Peter Schmid. He predicted a further sales rise in 2014 with further exports from the Wittenberg plant.

The company has also invested Euro4m to establish its second insulation material plant in Turgutlu, Turkey. 

Russia: The St Petersburg market for sound insulation has been estimated at Euro78.5m at the end of 2013. The largest growth in demand was recorded for mineral wool at 7-10%/yr and for polystyrene at >10%/yr. Sound insulation demand is expected to grow by 15-20% in 2014.

World: A new report from The Freedonia Group has forecast that global demand for insulation will rise by 5%/yr to 24.9Bnm2/yr of R-1 value in the period to 2018. This represents a significant increase from the rate of the 2008 - 2013 period. The foamed plastic insulation sector will post the fastest gains and strong growth in residential building construction activity will be the primary driver of demand.

In developing countries, rising building construction and industrial activity will lead to increased demand for insulation. In many high-income countries, insulation demand will rebound from downturns during the 2008 - 2013 period that were caused, in part, by sharp declines in housing construction. Government efforts, particularly in Western Europe, to reduce energy consumption will lead to the adoption of new building codes that require increased amounts of insulation.

The Asia-Pacific region is forecast to have the fastest growth in insulation demand in the period to 2018, aided by advances in building construction activity as well as manufacturing and industrial output. Over 58% of new global insulation demand generated between 2013 and 2018 will be attributable to this region. Among the regional countries that are expected to post solid growth are China, India and Indonesia.

In North America demand for insulation in residential construction applications will grow 6.5%/yr in R-1 value through 2018, due primarily to a partial recovery in housing construction in the United States. Rural-to-urban migration in developing countries in the Asia, Africa, the Middle East and Central and Southern America will stimulate building activity in urban areas and therefore insulation demand.

US: Roxul Inc, part of Rockwool International, has opened its first US manufacturing facility near Byhalia, Mississippi. The 600,000ft², US$160m plant was first announced in 2012 and broke ground in May 2013. Production began on Roxul's stone wool insulation products in June 2014. The company will employ 150 people when it reaches full capacity.

"When conducting our site selection due diligence, it was clear the state of Mississippi and Marshall County provided us the optimal location from both a manufacturing and distribution standpoint," said Trent Ogilvie, Roxul's chairman and managing director. "The support that Roxul has received from the community and the state has been terrific. We couldn't have found a better place to call home."