Insulation industry news from Global Insulation

UK: The six-year public inquiry into the Grenfell Tower fire, which claimed 72 lives in 2017, has issued its final report, finding fault with ‘dishonest’ companies, as well as former governments and a disorganised response from the fire service. The inquiry criticised the role of cladding manufacturers, notably US-based Arconic, for its ‘systematic dishonesty’ in concealing the true fire hazards of its products. Arconic, which produced the Reynobond 55 polyethylene cladding used on Grenfell Tower, was accused of having hidden ‘very poor’ fire safety test results from the public and certification bodies. In the report, the cladding is described as ‘extremely dangerous’ when used in folded cassette form, and was ‘by far the largest contributor’ to the Grenfell fire.

The inquiry also named both Celotex and Kingspan as contributors to the incident. Celotex was accused of making ‘false and misleading claims’ by presenting its product to cladding contractor Harley Facades as being safe and suitable for Grenfell, even though ‘it knew that was not the case.’ Insulation producer Kingspan reportedly ‘misled the market’ by not revealing the limitations of its product, which was used on a small section of the building. In response to these findings, the inquiry has called for a revision in testing materials and designs for fire safety, advocating for transparency by making these test results publicly accessible. The findings of this inquiry lay the groundwork for potential criminal charges, with police and prosecutors indicating that investigations will continue until the end of 2025, and decisions on criminal charges expected by the end of 2026, according to a report by the BBC.

Kingspan said in a statement “We welcome the publication of today’s report which is crucial to a public understanding of what went wrong and why. It explains clearly and unambiguously that the type of insulation (whether combustible or non-combustible) was immaterial, and that the principal reason for the fire spread was the PE ACM cladding, which was not made by Kingspan. Kingspan has long acknowledged the wholly unacceptable historical failings that occurred in part of our UK insulation business. These were in no way reflective of how we conduct ourselves as a Group, then or now. While deeply regrettable, they were not found to be causative of the tragedy and Kingspan has already emphatically addressed these issues.”

A spokesperson for Celotex said “The publication of the Grenfell Tower Inquiry report marks the conclusion of the inquiry’s work and we are considering its contents with care. This review was a significant and thorough undertaking, and the results of that work were disclosed promptly and proactively to relevant stakeholders, including the Grenfell Tower Inquiry. Independent testing commissioned following the review demonstrated that the cladding system described in the Celotex RS5000 marketing literature met the relevant safety criteria. That system was substantially different to that used at Grenfell Tower. Decisions about design, construction and the selection of materials for the Tower were made by construction industry professionals.”

A spokesperson for Arconic subsidiary Arconic Architectural Products (AAP), which Building News reports supplied aluminium composite material used for the rainscreen at Grenfell Tower, said “The company respects the Inquiry process. AAP cooperated fully with the work of the Inquiry and will continue to engage with further legal processes. Together with other parties, AAP has made financial contributions to settlements for those affected, as well as to the restorative justice fund. Throughout the Inquiry, AAP has maintained a number of points: AAP sold sheets of aluminium composite material as specified in the design process. This product was safe to use as a building material, and legal to sell in the UK as well as the more than 30 other countries in which AAP customers purchased the product. We reject any claim that AAP sold an unsafe product. AAP regularly conducted tests of its materials using third-party testing bodies. Reports on these results were all publicly available, and AAP made these reports available to its customers. AAP did not conceal information from or mislead any certification body, customer, or the public.”

North America: Kingspan Insulated Panels North America has released its second annual sustainability report, detailing progress in the third year of the company’s Planet Passionate sustainability initiative. In 2023, Kingspan advanced its use of renewable energy, converting its DeLand, Florida, insulation plant to 100% on-site solar power. The producer reduced its total Scope 1 and 2 CO₂ emissions by 5% year-on-year and its water consumption by 2.17ML compared to 2022. It partnered with Belter Tech to divert 454,000kg of polyisocyanurate (PIR) foam from landfill.

Director of Sustainability Brent Trenga said "Planet Passionate is transforming the business on all levels, recognised by our leadership, employees and the building professionals we collaborate with. We are proud of our 2023 achievements and continue to strive for new milestones in 2024."

Paraguay: Ireland-based Kingspan has announced the successful launch of a new joint venture (JV) with metal building products company MV Aceros. MarketLine News has reported that the JV will produce insulated metal panels, among other products, for the local Paraguayan market. Kingspan noted MV Aceros’ ‘significant experience in and knowledge of’ the market. The Competition Commission of Paraguay gave the deal unconditional clearance.

Czech Republic: Kingspan Czechia’s sales dropped by 22% year-on-year to €142m in 2023. Its profit also declined, by 42% to €6.27m. Throughout the year, the company produced 4.66Mm² of insulation panels, down by 4% from 2022 volumes. It reported total export sales of €108m, down by 23%. The main markets for the producer’s insulation were Germany, Austria, Switzerland and Slovakia. It holds a 25% market share in insulation sandwich panels in its native Czech Republic, up from 22% at the start of 2023. ČTK Business News has reported that Kingspan Czechia plans to begin construction of a new mineral wool insulation panels plant later in 2024.

General manager Stanislav Cihlar said "The new plant will be used to produce world-class insulation panels and will become an important pillar for our future growth.”

US: The US National Labor Relations Board (NLRB) has begun investigating Kingspan Insulated Panels following allegations of anti-trade union behaviour. The Irish Times newspaper has reported that the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART) lodged complaints citing unfair labour practices at a plant in California.

Kingspan rebutted the claims, which it says are designed to damage its reputation after it refused to sign a neutrality agreement with unions. The producer says that the agreement in question would infringe upon its employees' privacy and voting rights.

Ireland: Kingspan's sales were ‘close to €2bn’ in the first quarter of 2024, following a 1% year-on-year decline. The producer noted ‘positive’ volumes and ‘stable’ pricing, continuing trends from 2023. Raw material costs dropped, however Kingspan anticipates a new rise in its operating costs in the medium-term future.

Dow Jones Institutional Newswires has reported that Kingspan expects to record a first-half 2024 profit ‘roughly in line’ with the first-half 2023 figure of €436m.

Denmark: The Competition Council has approved Kingspan's acquisition of TreeTops Holding, in exchange for Kingpan’s undertaking to divest TreeTops Holding's business in wood concrete slabs for ceilings. Baltic Legal Updates has reported that TreeTops Holding is one of Kingspan subsidiary Troldtekt’s ‘main competitors’ in the sector.

Local investment company DEPO Holding has secured approval to purchase the divested operations from Kingspan.

Germany: Kingspan acquired the Ronneburg stone wool insulation plant in Thuringia from Karl Bachl on 4 April 2024. Karl Bachl says that the divestment will help it to concentrate more on its core business. Besides insulation, the company also supplies construction services, prefabricated buildings and stone and precast concrete elements.

Ireland-based Kingspan plans to use the acquisition to grow its production capacity and ‘complete’ its insulation product offering.

US: Kingspan Insulated Panels North America is building a new K-Roc mineral wool insulation plant in Mattoon, Illinois. The producer expects the plant to commence operations in early 2025. It will be equipped with a solar power plant and rainwater harvesting system, recycling system and electric vehicle charging stations. When operational, it will employ 50 people. Kingspan’s K-Roc mineral wool insulation offers a three-hour fire rating in wall applications and one-hour fire rating in ceiling applications.

Kingspan Insulated Panels North America president Alswinn Kieboom said "As a result of continued growth and optimism for the future, the addition of this new facility complements our existing footprint in North America, giving us better access to our customer base. We are looking forward to launching this new site and having a presence in the Midwest."

Sweden: Ireland-based Kingspan has raised its stake in Nordic Waterproofing to 35.7%, after the company's board and most shareholders rejected a takeover bid by the group. The Irish Times newspaper has reported that some Nordic Waterproofing shareholders accepted the offer, against the company’s recommendation. Following the conclusion of the offer period on 27 March 2024, Kingspan decided not to extend it.