Insulation industry news from Global Insulation

New Zealand: The Court of Appeal has confirmed that the term 'batts' is not in common usage in New Zealand as part of a fight over whether Pink Batts' trademark of the word should be revoked.

Fletcher Building's unit Tasman Insulation makes Pink Batts and sued rival Knauf Insulation for trademark infringement because it used the words 'batt' and 'batts' on its Earthwool products and also on the earthwool.co.nz website. Tasman has owned the Batts trademark for insulation materials in New Zealand since 1973. The term 'batts' is not covered by trademark protection outside New Zealand and is used in Australia and the USA to describe pre-cut pieces of insulation material.

Knauf started exporting some of its Earthwool products to New Zealand in 2011 with packaging that used the words 'batt' and 'batts' in the installation instructions. In November 2011, Knauf applied to revoke Tasman's 'batts' trademark and in December 2015, Tasman started trademark infringement proceedings. Knauf claimed that Tasman's trademark registration was not valid because the word 'batts' had also become generic in New Zealand. To succeed, Knauf had to prove that 'batts' had become a common name in general use by New Zealanders and that this came about by Tasman's acts or omissions.

In his decision in May 2014, the High Court's Justice Brendan Brown did not believe it had. Even if he was wrong on this point, Justice Brown said, Knauf had fallen 'significantly short' of establishing that it was the acts and inactivity of Tasman that caused the trademark to become a common name in general use. The judge also made ruling claims from both sides that the other had breached the Fair Trading Act.

Parts of the case went to the Court of Appeal, which has now largely upheld Justice Brown's rulings. "Our analysis of the origins of the word 'batts' suggests that, at least in New Zealand, the word was not widely used or understood by the general public as a descriptive term and that it did not become a term in general public use until it began to be promoted by Tasman's predecessor after the trade mark was registered in 1973," said Justices Tony Randerson, Christine French and Mark Cooper. "Thereafter, in consequence of the marketing campaigns undertaken, the word 'batts' became strongly associated in the public mind with Tasman's Pink Batts insulation products. We conclude that the judge was correct to find that the term 'batts' had not become a common name in general public use."

The Court of Appeal confirmed that Knauf's use of the word 'batts' on the earthwool.co.nz website did not infringe Tasman's trademark. However, the three judges also found that Justice Brown was right to decide that the Earthwool brand and online marketing were misleading and deceptive. The trio differed with the High Court on one aspect; on whether Knauf's use of the word 'Batt' in the website's code infringed Tasman's trademark. It is understood this was at issue because the website showed in internet searches for 'batts.' While the High Court believed the use of the code did infringe the trademark, the three appeal judges said that this was wrong.

UK: According to Builders Merchant Journal, an open letter to prime minister David Cameron published in the Financial Times on 10 June 2015 warned that a failure to tackle climate change could put the economy at risk, while decisive action could create jobs and boost competitiveness. The letter was sent by 80 UK businesses, including Knauf Insulation, Rockwool, Baxi, Akzonobel and Worcester and Bosch.

The businesses have called on the new administration to:

• Seek a strong global climate deal in Paris in December 2015 that limits temperature rises to below 2°C;

• Set an ambitious 5th carbon budget covering 2028 – 2032 to drive forward UK emissions reductions;

• Establish a long-term framework for investment in the low-carbon economy, giving industry much-needed clarity over what is expected in terms of low-carbon development and boost the confidence of green investors.

"British business is ready to step up. From construction and energy to retail, the best British enterprises know that green growth is the future," said Worldwide Fund for Nature (WWF) UK chief executive David Nussbaum. "They take on board that it's no longer credible to base a sustainable economy on fossil fuels, so the government should put us on track for a low-carbon world. As we approach international climate talks, Britain should be a global champion for change, but a lack of consistent long-term policies sends a confusing message to business and undermines our attractiveness to investors. The prime minister should send a clear message that the only way forward is a green economy and support forward-looking firms that want to build a clean economy."

Saudi Arabia: Knauf Exeed Insulation has won a contract to provide insulation to reduce the noise levels at Saudi Arabia's Grand Mosque as it undergoes extension.

"We are proud to be part of this historic project. The Grand Mosque is the main attraction for over 16 million pilgrims who enter Makkah each year. Our challenge is to provide noise reduction for the worshippers using the most sustainable eco-friendly insulation materials," said Daniele Cerutti, general manager of Knauf Exeed Insulation. "The consultants and the contractors opted for KB blanket insulation, a lightweight blanket of glasswool bonded with Ecose technology. In line with sustainable practices, Ecose uses natural and more sustainable organic materials than the non-renewable, phenol-formaldehyde or acrylic based resins traditionally used."

US: Knauf Insulation's plant in Huguley Industrial Park, Alabama will double its production capacity in June 2015, according to Aaron Wine, plant manager. The plant currently produces 200t/day of insulation. With the expansion, that capacity will grow to 400t/day.

During the housing slowdown Knauf shuttered its Lanett plant, which was put back into operation in 2013. According to Wine, the plant makes batts of insulation and blow-in wool. With the new line that is being installed, the Lanett plant will have the capability to produce rolls of insulation as well. When the new line goes online, employment will grow to 215.

Slovenia: Germany's Knauf Insulation, which is switching from coke to natural gas as part of an upgrade at one of its three stone wool production lines, will be the main user of what is to be Messer's first oxygen production plant in Slovenia and one of around 30 in Europe.

"This will be the most technologically-developed line in Europe and will mean a great competitive edge for the company," said Knauf Insulation boss Tomaž Lanišek.

Using natural gas requires oxygen and Lanišek described the investments of Knauf and Messer Slovenija as complementary. He pointed out that CO₂ and sulphur and nitrogen oxides emissions would be halved. "Messer is becoming a partner company in our future plans at our location," said Lanišek.

Messer said that this was its biggest investment in the country to date and was expected to generate 15 to 20 new jobs. The company's CEO Danilo Lukač explained that the plant would produce oxygen, nitrogen and argon.

US: Less than a year after reopening a shuttered plant, Knauf Insulation has announced plans to double production at its Chambers County plant in Alabama, adding up to 100 new workers. The expansion, which should be complete by the middle of 2015, will make the 800,000ft² plant one of the largest insulation plants in the USA.

The US$30m expansion includes a significant upgrade in equipment, according to Joey Viselli, Knauf's vice president for corporate and public affairs. "When this expansion is through, the plant will produce more insulation than it has ever produced before," said Viselli.

Knauf shuttered the plant in 2010 in response to the collapse of the housing market. Company officials credited Alabama State with recruiting them to return when the market began to improve. Viselli said that the decision to expand was based on continued positive growth in the national economy, the growth of Knauf’s business and an inviting business culture in Alabama.

US: Knauf Insulation will close a Mississippi plant it recently acquired because of the high cost to upgrade the facility. Knauf has announced that 110 employees at the plant in Mineral Wells, Mississippi, had been given notice that production would end at the site.

“In the two months since the acquisition of Guardian Insulation, we have conducted a detailed analysis of our new footprint,” Knauf Insulation North America CEO Mark Andrews said. “The analysis examined the investments required to upgrade and expand both the quality and quantity of product being manufactured in our facilities. Unfortunately, the results of this analysis have led us to make the difficult decision to close the Mineral Wells plant. This morning, we started sharing the news with Mineral Wells employees that we are ending all production at the plant today.”

According to Andrews, the main drivers were the structure and condition of the Mineral Wells facility. No reasonable amount of capital investment in the plant could bring it up to the expected standards. The closure will allow Knauf to invest in its remaining facilities. Andrews added that Knauf was committed to retaining and serving its customers out of its other plants.

US: A fire was reported at Knauf Insulation’s insulation plant, which was formerly a Guardian Industries plant, in Albion, Michigan on 8 October 2014. According to local media, the fire started in one of the ovens and spread through the ducts to the smoke stack. Damage is thought to be minimal, although the equipment remains to be fully inspected. 

Denmark: Knauf's Danish operations has posted weaker than expected 2013 results. Net profit declined to Euro10.2m from Euro17.8m in 2012 and for the first time in many years turnover did not exceed Euro134m. The decline in turnover and profit was attributed to financial crises in some of the company's export markets. Knauf's managing director, Morten la Cour Ørnstrand-Søborg, expects export markets to pick up and that Knauf will post better results in 2014.

US: Knauf Insulation has completed its acquisition of Guardian Insulation. The transaction includes Guardian Fiberglass and Guardian Laminated Building Products. Guardian Fiberglass will be integrated into Knauf Insulation and Guardian Laminated Building Products has become Silvercote, LLC.

"This is a landmark day for Knauf Insulation. This acquisition is an important step in our mission to become the global leader in energy efficient systems for buildings," said Mark Andrews, CEO of Knauf Insulation in North America. "Combining the talent from two complementary organisations will help to create an exceptional company with leadership in technology, innovation and sustainability. Our customers are going to see clear benefits, not the least being greater flexibility that comes with an expanded manufacturing footprint. With more than double the production capacity of glass mineral wool at our disposal, this integration will certainly position Knauf Insulation as a leading manufacturer throughout North America that is more than capable of meeting the needs of a growing market."