Insulation industry news from Global Insulation

Ireland: Kingspan’s sales for the first nine months of 2019 rose by 8% year-on-year to Euro3.43bn. However, its sales in the third quarter fell by 2% year-on-year due to slowing sales in the UK. Sales of insulated panels saw a ‘substantial’ reduction in order intake in the UK in the third quarter reducing by more than 15% in volume versus the same period in 2018. European and American markets were stable with the exception of Germany. Insulation board sales were affected by slowing sales in the UK, Ireland and Germany. The group expects these market trends to continue into the first quarter of 2020 at least.

UK: SIG has agreed to sell its Building Solutions division to Kingspan Group for Euro42m. Building Solutions is a UK manufacturer and distributor of building envelope solutions operating through brands including Steadmans, United Roofing Products, Trimform Products, and Advanced Cladding & Insulation. SIG decided to sell the division following a strategic review in 2017. Proceeds from the sale will be used to reduce SIG’s debts.

Ireland: Kingspan’s revenue rose by 12% year-on-year to Euro2.24bn in the first half of 2019 from Euro2.01bn in the same period in 2018. Its profit grew by 18% to Euro173m from Euro147m. Sales of its panel and boards products increased but panel sales growth was faster, supported by most territories with the exception of the Middle East.

“We have delivered a record first half with revenue growth in all our business units and a strong trading profit performance. We continue to expand our global production footprint with new facilities under construction in the US, Brazil and Sweden. The near-term outlook is solid although the political uncertainty in the UK, weakness in Serling, and weaker German economy are amongst risks we are monitoring closely,” said Gene Murtagh, the chief executive of Kingspan.

The building materials company is close to completing a new insulation panel plant at Modesto, California in the US. A new panel plant is also being considered in Pennsylvania, US and a new panel plant in Cambuí, Brazil is expected to be operational by the fourth quarter of 2019. A new board plant in Sweden is scheduled to start production in mid-2020.

US: Kingspan Insulated Panels has appointed Quincy McBride as its director of marketing for North America. He will be based out of Kingspan's DeLand headquarters in Florida.

Previously, McBride served as marketing communications manager at Morris Group International. He also worked as a marketing communications manager at Proactive Management Consulting, event sales manager at InterContinental Hotels Group and as an account executive at Pearson.

Ireland: Kingspan Group sales rose by 18% year-on-year to Euro1.06bn for the first quarter of 2019. It attributed this to ‘strong’ volumes across its key markets. Its insulated panel sales grew by 22% driven by growth in Europe. Its insulation board sales increased by 12% due to growth in Europe.

Belgium: Recticel has rejected an offer from Kingspan to buy its insulation division and flexible foams division for Euro700m. The board said that it did not believe that the offer was not in the interest of its stakeholders. It added that the sale of these divisions was not in line with its strategy and that the offer ‘significantly’ underestimated the value of the divisions.

Belgium: Recticel says that Kingspan Group has made a non-binding offer to buy its insulation division and flexible foams division for Euro700m. Kingspan says it has entered into a back-to-back agreement with an unnamed third party for the disposal of all of the flexible foams business. Recticel’s board of directors will analyse the proposal in line with its fiduciary duty and update the market. Any purchase would be subject to regulatory approval.

Ireland: Kingspan’s revenue grew by 19% year-on-year to Euro4.37bn in 2018 from Euro3.67bn in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 18% to Euro521m from Euro442m. Insulated panels sales rose by 21% to Euro 2.82bn due to good sales in the Americas and Europe. Insulation boards sales grew by 12% to Euro 864m due to the group’s acquisition of Synthesia Insulation in Spain, on-going growth of its Kooltherm product and general market buoyancy.

“2018 was a year of strong growth for Kingspan, with the company delivering revenues of over Euro4bn for the first time. Performance has been robust in most of our major markets, and momentum has improved through the year,” said Gene M Murtagh, chief executive of Kingspan.

Australia: Kingspan Insulation is preparing to discontinue its Kooltherm K10 FM Soffit Board rigid insulation product ahead of changes to the National Construction Code (NCC) set to be enforced on 1 May 2019. The standard introduced in 2016, AS 5637, requires foil faced internal lining materials to be installed on both walls and ceiling when undertaking the full-scale room fire test ISO 9705.

To prepare for the change Kingspan will promote its Kooltherm K10 FM G2 Soffit Board product. It features a thicker foil lining and has already undergone the ISO 9705 test, achieving a Group 2 rating. The product has been supplied to the New Zealand market and it will now be launched in Australia.

“Kingspan Insulation have been preparing for this transition for some time. We are confident in our ability to supply a product that will not only adhere to the new NCC standard but will also provide the same great thermal performance that our customers have come to expect from us,” said Kingspan Insulation’s Sales Director, Craig Burr.

US: Kingspan Insulation has appointed Doug Crawford as its new Managing Director in charge of operations for North America. Crawford's appointment became effective on 2 January 2019.

Crawford has held numerous roles in corporate development and line management for Oldcastle (CRH) over the last decade. He most recently served as Vice President of Sales and Marketing for Meadow Burke Products, a manufacturer and supplier of accessories for concrete construction. Prior to joining Oldcastle, Crawford was a consultant with the Boston Consulting Group (BCG). He holds a Bachelor of Science in Finance from Pennsylvania State University and an MBA from Northwestern University's Kellogg School of Management.