Insulation industry news from Global Insulation

US: Honeywell, an American multinational conglomerate that produces a variety of commercial and consumer products, engineering services and aerospace systems, has announced that it plans to increase its production of low global-warming-potential (GWP) materials (i.e. insulation materials, refrigerants, aerosols and solvents).

The company projects that use of its low-GWP hydrofluorocarbon (HFC) replacements will eliminate more than 350Mt in CO₂ equivalents by 2025, equivalent to removing 70 million cars from the road for one year. Prior to 2020, Honeywell will drive a 50%/yr reduction in the production of high-GWP HFCs on a CO₂ equivalent basis. In addition, Honeywell plans to spend US$900m on research and development and new capacity, mainly in the US, in the coming years to produce next-generation refrigerants, insulation materials, aerosols and solvents. These have global warming potentials at least 99% lower than most technologies used today.

US: USA Insulation, which specialises in retrofit insulation, opened a new franchise location in St Louis, Missouri on 9 September 2014. The new owner, Doug Graham, will provide homeowners in the Metro St Louis and Metro East areas with USA Insulation's proprietary Premium Foam, among other products.

"We are thrilled to have Doug head up our new franchise in an area of the country that has a large number of homes with insulation needs," said Patrick Pitrone, USA Insulation president. "With the winter and summer temperature extremes that Greater St Louis experiences, USA Insulation will be able to help homeowners be more comfortable in their homes while substantially lowering their energy bills."

USA Insulation's Premium Foam is injected as a liquid into wall cavities from small holes drilled in the home's facing, where it hardens quickly to provide a thermal barrier. USA Insulation also offers blown-in insulation for attic spaces and air sealing to close any openings around pipes and fixtures.

"St. Louis has a large number of old homes, including historical homes that can't be torn down, which are either under-insulated or not insulated," said Graham. "A home is probably the largest investment a person will ever make. Not only will our insulation help homeowners be more comfortable in their homes year-round, it can also enhance the home's resale value."

Vietnam: Dat Viet Ceramics Company has reported that despite a sluggish building materials industry, it has met its eight-month target thanks to its spearhead products. In the first eight months of 2014, Dat Viet Ceramics earned a revenue of US$6.56m, 5% higher than in the first eight months of 2013.

Dat Viet Ceramics' main products are Cotto bricks, brick cladding and fish scale tiles, with applications in sound and thermal insulation, among others. Its products are sold in 30 foreign markets. In 2014 Dat Viet Ceramics plans to expand its export markets into 40 countries and increase its revenue to US$3m.

Finland: A number of private equity firms, including TPG, Nordic Capital, CVC and Cinven, have made first round bids for Paroc, a Finnish manufacturer of insulation materials, according to Reuters. The bids value the company at between Euro700m and Euro750m. Paroc was acquired by Bahraini investment house Arcapita in 2006. The company underwent a debt restructuring three years later and is now owned by a consortium of banks and institutional investors.

Denmark: Rockwool has reported that during the first quarter of 2014, which ended on 31 March 2014, it generated sales of Euro485m, up by 15% year-on-year.

Earnings before interest and taxes (EBIT) were Euro28.4m, up by 39% year-on-year, including Euro7.40m from the insulation sector, which was a Euro4.9m increase on the same period of 2013. EBIT for holding companies was Euro11.8m, up by Euro1.7m. Net profit during the quarter was Euro19.1m, a Euro5.8m improvement on 2013. Costs were Euro1.6m, down by Euro0.5m in 2013.

External sales of insulation products were Euro374m, up by 9% compared to the same period of 2013. In Eastern Europe, sales increased by 20%, primarily due to continued positive growth in Russia and a good market recovery in Poland. Insulation sales were positive in all world regions except for China.

Rockwool expects to achieve Euro127m in net profit for the whole of 2014 off the back of continued market recovery in many regions, particularly Russia.

US: Owens Corning has reported second quarter 2014 profits of US$21m, down from US$49m in 2013. Its net sales were US$1.36bn, up slightly from US$1.35bn in 2013. Chairman and CEO Mike Thaman said that the insulation and composites business units met expectations for the first half of 2014, offsetting weaker financial performance in its roofing division.

Vietnam: The Vietnamese Ministry of Health has proposed that the government should add asbestos, which is widely used to produce roofing sheets in Vietnam, to the list of toxic chemicals subject to a full ban. There are 36 producers of asbestos cement (AC) roofing sheets in Vietnam, with an annual production capacity of 100Mm² of roofing sheets.

Vietnam has used asbestos since the 1960s and the country is among the world's 10 largest users of asbestos, consuming and importing some 60,000t/yr. More than 90% is used to manufacture AC roofing sheets, while the rest is for the production of car brakes and thermal insulation.

Deputy health minister Nguyen Thanh Long has said that the World Health Organisation (WHO) and international cancer research agencies have warned that all types of asbestos can cause lung, larynx and ovarian cancer, as well as mesothelioma and asbestosis. Asbestosis, a disease of the lungs caused by inhaling asbestos fibres, has been recognised in Vietnam as an occupational disease eligible for compensation since 1976. Ministry research has shown that people living near an area where asbestos is used, or those living under a roof made from asbestos, can also be affected.

The Research Institute of Technology for Machinery under the Ministry of Industry and Trade have developed a non-asbestos roofing sheet production line. Polyvinyl alcohol synthetic fibre (PVA) is used to replace the asbestos, while pulp additives increase stickiness. Prices of non-asbestos roofing sheets are 10 - 15% higher than those made from asbestos.

Germany: Austria's Austrotherm has inaugurated its first manufacturing base in Wittenberge, Brandenburg, Germany. The new plant for extruded polystyrene (XPS) required a Euro40m investment and will employ 70 people. The production capacity was not disclosed. The Austrotherm Group, which has 18 production units in 11 countries, reported a turnover of Euro250m in 2013.

US: South Korea's Toray Chemical Korea Inc has agreed to pay US$2m to settle a criminal complaint alleging attempted theft of a competitor's trade secrets.

The complaint against Toray was filed in the US District Court in Richmond, Virginia. In an accompanying deferred prosecution agreement, Toray has admitted that the allegations are true and has agreed to pay the penalty and take corrective actions. The government has agreed to drop the case after two years if Toray complies with the agreement.

According to court papers, Toray sought to develop a fibre used in protective fabrics, electrical insulation and other products that is similar to a fibre that is manufactured by E.I. du Pont de Nemours and Company. Toray tried to hire former DuPont employees as consultants to obtain information about the DuPont product.

US: PPG Industries has reported that its North American architectural coatings business has completed its acquisition of the Homax Group from Olympus Partners. Homax is a supplier of decorative aerosol wallboard and ceiling-texturing applications that are utilised primarily for home repair. Financial terms of the deal were not disclosed.