Insulation industry news from Global Insulation

Ireland: Kingspan Group’s sales of insulation board and panels have grown strongly so far in 2017. Its board sales grew by 16% year-on-year in the first nine months of 2017 and its panel sales grew by 10%. Overall, the group’s sales revenue rose by 19% to Euro2.69bn. It attributed the growth in revenue for its insulation products to passing on costs from rising input costs. Its French market was reported as notably positive, although the UK market was described as ‘indecisive’ around order placement for board sales. It added that its Kooltherm product continues to outgrow its other insulation materials.

Singapore: Kingspan has officially opened an office in Singapore. Irish Deputy Prime Minster and Minister for Business, Enterprise and Innovation, Frances Fitzgerald, opened the site while leading a five-day trade and investment mission to Southeast Asia.

“Future growth will come from markets such as Asia, Latin America and maybe Africa at a later stage,” said Manuel Furer, Kingspan’s Regional Managing Director for Australasia and South East Asia.

Kingspan has listed its QuadCore insulation panels with the Singaporean authorities. The company also hopes to open an innovation centre in the region at some point.

Brazil: Kingspan has acquired a 51% stake of Isoeste Construtivos Isotérmicos (Isoeste). Isoeste, an insulated panel manufacturer, operates from four production sites with approximately 630 employees. No amount for the transaction has been disclosed.

"We are delighted to create this partnership with the founders of Isoeste, the number one player in Brazil's insulated panels market. Together with our recent investments in Colombia and Mexico, this acquisition firmly places Kingspan in a market leading position across Latin America, with a strong platform for further expansion in the region," said Gene Murtagh, Kingspan’s chief executive officer (CEO).

US: Kingspan Insulation has inaugurated the expansion of its Winchester plant in Virginia. An investment of US$25m was used to build an extruded polystyrene (XPS) insulation panel production line. The new line will double the plant’s production capacity by manufacturing GreenGuard XPS panels. The company has also announced spending US$1.1m on buying an additional 7.3 acres of land adjacent to the plant’s location.

UK: Gene Murtagh, the chief executive officer (CEO) of Kingspan Group, has called for a number of changes to be made to fire safety regulations for buildings in the UK. He called for large-scale testing under BS8414 to be extended to cover all cladding systems, a strengthening of the way desktop studies are used in fire safety compliance, improved training for installers of building facades and better control of fire safety through the design and construction process of buildings. His comments were made to Building Magazine following the Grenfell Tower fire in June 2017 and at the start of the Public Inquiry into the incident.

“So far as I am aware, polyethylene (PE) cored Aluminium Composite Materials (ACM) have never been successfully tested in a cladding system in a manner consistent with building regulations so it is hard to understand how this product ever ended up on Grenfell Tower,” said Murtagh. “Similarly, given the fire performance characteristics of these ACM cladding panels, it is no surprise in my view that they performed so poorly in combination with a range of insulation types in the recent series of large-scale tests by the Department for Communities and Local Government (DCLG).” said Murtagh added that fire safety is an ‘extremely complex’ field and that any investigation needs to consider a wide range of factors.

The majority of the insulation purchased for use in a refurbishment of Grenfell Tower prior to the fire was Celotex’s RS5000 polyisocyanurate foam (PIR) insulation board. However, Kingspan confirmed in July 2017 that a small amount of its Kooltherm K15 phenolic insulation product had also been used without its knowledge and that it had no involvement in the design or specification of the refurbishment.

Ireland: Kingspan is considering making further acquisitions in South America. Chief executive Gene Murtagh said that the insulation producer may follow up investment in the origin after its purchase of a controlling stake in Colombia's Panelmet and a production plant in Mexico, according to the Irish Times newspaper. Murtagh added that the insulation producer is ‘always’ considering buying new companies but that ‘unreasonable’ sellers were holding up potential deals.

Ireland: Sales in insulated panels have driven increases in sales revenue and earnings at Kingspan. Its revenue rose by 19% year-on-year to Euro1.75bn in the first half of 2017 from Euro1.47bn in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 6% to Euro209m from Euro197m. It attributed its growth to increasing demand for energy efficiency in Western Europe.

“The first six months of 2017 were strong for Kingspan,” said Gene Murtagh, chief executive of Kingspan. “We expect end market activity to be broadly positive for the remainder of the year and at current exchange rates to deliver a full-year result at least in line with consensus. While margins contracted somewhat, we anticipate further recovery of input increases in the second half. Our balance sheet is strong and ready to support our development agenda as the opportunities unfold.”

By region the group says it performed well in Western Europe, including the UK, as well as the US, Scandinavia and Australia. However, it reported problems in Central Europe and the Middle East.

UK: Kingspan has confirmed that a limited amount of its Kooltherm K15 phenolic insulation product was used in Grenfell Tower. In response to a report by Channel 4 News the insulation producer said that a ‘very small quantity’ of the product had been used without its knowledge in a façade refurbishment of the high-rise tower. The building subsequently suffered a fire in June 2017 in which at least 80 people are believed to have died or gone missing.

“Kingspan had no involvement in either the design or the specification of the refurbishment of the Grenfell Tower facade, and neither Kingspan insulated panels nor Kingspan façade systems were used on Grenfell Tower,” said Kingspan in a statement. It added that following the fire it became aware that a limited quantity of Kingspan Kooltherm K15, less than 5% of the estimated total amount of insulation used on the building façade, was sourced by a third party distributer and supplied to contractors involved in the refurbishment. It impressed that, “It appears that Kooltherm K15 has been used without our knowledge, as part of a combination for which it was not designed, and which Kingspan would never recommend.”

The majority of the insulation purchased for use in the building refurbishment was Celotex’s RS5000 polyisocyanurate foam (PIR) insulation board. This product has been stopped for use in rainscreen cladding systems for buildings over 18m tall whilst the investigation into the Grenfell fire continues.

Australia: Kingspan says that its Somerton insulation plant near Melbourne is making progress towards gaining a Green Star rating. If it does so it will the first manufacturing plant in the country to do so. Kingspan and the Green Building Council of Australia have collaborated to allow the rating tool to be used for production plants in the country. A Green Star certified rating provides independent verification that a building or community project is sustainable.

Ireland: Kingspan Group’s sales rose by 24% year-on-year to Euro831m for the first three months of 2017, boosted by the acquisitions that the company made in 2016. By market the group reported good performance in the UK, US and Australia, recovery in Europe and poor performance in the Middle East and Turkey. It also noted that all markets have experienced raw material price inflation. Both sales of insulation board and panels grew in the period. The company commissioned a new insulation board plant in Melbourne in early April 2017.