Insulation industry news from Global Insulation

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.

Australia: Kingspan Australia has opened an insulation plant at Somerton near Melbourne. The US$30m plant will manufacture rigid board insulation, including Kingspan Kooltherm a rigid thermoset phenolic insulation. The 14,000m² unit has created 26 new jobs and 24 additional jobs will be added as production increases. Following the opening of the plant Kingspan aims to export 20% of its production to the Asia Pacific region. This is expected to grow to 35% by 2020.

“The market for high-performance insulation is growing rapidly around the world in response to government policies aimed at making buildings more energy efficient. This facility gives Australia world leading technical capability in a sector that is experiencing significant sustained domestic and international growth,” said Gene Murtagh, the chief executive officer of Kingspan Group.

Architect Tone Wheeler designed the plant with a focus on environmentally sustainable design. It has a 750kW solar system designed into its roof structure which, when installed, will provide most of its daytime shift energy requirements. It also uses Kingspan lighting and insulation products to reduce energy requirements and optimise comfort for employees. Other sustainable features at the site include the use of sustainably sourced or manufactured building materials, the use of energy renewing ventilators and the use of rainwater harvesters for bathroom and landscape use. Kingspan says that the plant is on track to be Australia’s first Green Star-rated manufacturing facility.

Ireland: Kingspan says it has beaten its target of generating at least half its aggregate energy use from renewable resources by 2016. The Irish insulation producer’s aggregate renewable energy use was 57% of its total energy use in 2016, suggesting that the it is on track to hit its goal, set in 2011, of operating at Net Zero Energy (NZE) by 2020. Key drivers to reaching this goal have included saving energy through measures such as a cutting lighting and heat costs, genreating more renewable energy through solar, wind and biomass sources and buying more renewable energy where it can’t be produced on-site.

“In the five years since launching this initiative we have seen multiple benefits including reductions in costs, less reliance on fossil fuels and demonstrating the business case for our systems and solutions. Without more action from the corporate sector, greenhouse gas emissions will continue to rise and the impact of global warming will become a bigger threat for future generations,” said Gene Mutagh, the chief executive officer of Kingspan.

Finland: Paroc has described 2016 as ‘fairly challenging’ as its net sales fell slightly to Euro376m and its earning before interest, taxation, depreciation and amortisation (EBITDA) rose by 4% to Euro76.5m in 2016 from Euro73.3m in 2015. Despite reporting an improvement in construction activity in the second half of the year, sales fell in Russia. The insulation producer solid its Paroc Panel System (PPS) business to Kingspan Group in December 2016 and it announced plans to shut its Oulu stone wool plant in January 2017.

Ireland: Kingspan’s sales revenue has risen by 12% year-on-year to Euro3.11bn in 2016 from Euro2.77bn in 2015. Its profit after tax rose by 34% to Euro256m from Euro191m. It attributed the sales growth to ‘strong’ performance in the UK and a recovery in Western Europe. However it noted that its US market was subdued in the second half of the year.

“2016 was another record year for Kingspan. Through our organic initiatives and acquisition strategy we are developing a truly global business well placed to capitalise on the transition towards a lower energy future. We are encouraged about the outlook for the first half of 2017, with the current order book solidly ahead of the same point last year,” said Gene Murtagh, chief executive of Kingspan.

Finland: Paroc Group has agreed to sell sale its Paroc Panel System (PPS) business to Kingspan Group. The personnel of PPS will all be transferred to the new owner. Along with the transaction, the parties have agreed on commercial cooperation in stone wool supply to the PPS factory in Parainen. No value for the deal has been disclosed.

"The arrangement supports the focus of Paroc on building and technical insulation. We will continue to seek market expansion and growth possibilities in those areas,” said Kari Lehtinen, chief executive officer of Paroc Group.

PPS is a subsidiary of Paroc Group Oy. In 2015, PPS sales totalled Euro47m, with about 100 employees in Finland, Sweden, Norway, Denmark, and Germany. Paroc Panel System panels are manufactured in Parainen, Finland.

Ireland: Kingspan’s sales have risen by 13% year-on-year to Euro2.27bn for the first nine months of 2016 from Euro2bn in the same period in 2015. Sales by its insulated panels division rose by 17% driven by good markets in the UK, France and Benelux, although slowdowns were reported in Germany and the US. Sales by its insulation board division rose by 6% with positive performance noted in the UK, Ireland, Scandinavia and the US. The insulation producer noted in its interim trading report that the weakening Pound Sterling against the Euro was negatively impacting its Sterling denominated earnings.

US: Kingspan Insulation has launched Kooltherm, its rigid thermoset insulation, in the US. The line offers a range of products for wall, floor, soffit and rainscreen applications. It has a fibre-free rigid thermoset phenolic insulation core that resists both moisture and water vapour ingress.

"Kingspan is committed to bringing its globally-innovative technology to the North American market," said Alswinn Kieboom, managing director, Kingspan Insulation North America. "As part of this continuing effort, we are excited to offer our Kooltherm insulation to the construction marketplace. Our class-leading R-value and fire resistance properties will prove to be beneficial to the construction community."