Insulation industry news from Global Insulation

Japan: To more effectively serve customers in western Japan, Saint-Gobain plans to build a new glass wool production facility near Osaka in the Kansai region through its local subsidiary Mag-Isover, Japan's leading insulation manufacturer. With a planned capacity of 60,000t/yr, the plant is scheduled to be commissioned before the end of 2013.

Representing a total investment of around Euro140 million, the plant will directly employ more than 100 people. Its output will add to the 90,000t/yr of glass wool currently being produced by the Mag-Isover facilities located near Tokyo in the Kanto region. This will bring the company's total production capacity across its four plants to 150,000t/yr.

This investment comes at a time when Japan is aiming to reduce its energy consumption. Buildings account for 30-40% of the energy consumed in the country and therefore offer an enormous combined energy saving potential, particularly in the areas of heating and air conditioning.

Russia: Saint-Gobain is also pursuing its expansion in Russia, where it has acquired Linerock, a company based in Tcheliabinsk, Ural region. Linerock is the Ural region's leading manufacturer of rockwool products, the most widely used insulation materials in the Commonwealth of Independent States (CIS). The company employs over 500 people and reported consolidated revenues of around Euro25 million in 2010.

China/Japan: The first overseas base of Japanese fibreglass producer Asahi Fiber Glass, which was formed in Shanghai in April 2011, will enter full-scale operation at the end of June 2011, supporting the company's goal of developing its business in the high-growth Asian market as well as the domestic market.

The new base will initially focus on supplying the local operations of Japanese companies with imports from Japan and carry out trading functions, under the supervision of manager Manabu Suzuki. In the future it will explore the establishment of local processing bases for thermal-insulation building materials, vacuum insulation materials and automotive sound-absorbing materials through partnerships with Chinese companies and mergers and acquisions.

Asahi Fiber Glass regards China as an ideal foothold for entry into the southern Asian region, where demand is growing for glass wool as a vacuum insulation material and a sound-absorbing material for automobiles. The Chinese market for glass wool has already expanded to more than double the size of the Japanese market and its expansion looks set to continue.