Insulation industry news from Global Insulation

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. 

Russia: Germany's Knauf has launched a new insulation materials plant in the Tyumen Region of the Urals Federal District in Russia at a total investment cost of US$83m. The installed capacity of the enterprise is 45,000t/yr. It will create 200 jobs.

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 and Guardian Industries Corp have announced that a definitive acquisition agreement has been signed for Knauf Insulation to acquire Guardian Insulation. The transaction includes Guardian Fiberglass, a supplier of insulation products for the construction market, as well as Guardian Laminated Building Products. Closing of the transaction is subject to regulatory approvals and customary closing conditions.

"We are already one of the fastest-growing insulation companies globally and this deal will firmly establish our leadership position in what is the largest insulation market in the world," said Mark Andrews, CEO of Knauf Insulation in North America. "It is an important step in our mission to become the global leader in energy efficient systems for buildings."

"We are delighted to acquire such a high quality business that fits perfectly with our growth strategy and we look forward to welcoming the Guardian Insulation team into the Knauf Insulation family," said Andrews. "This is also great news for customers of both Guardian and Knauf Insulation due to the highly complementary nature of these businesses. The combined entity will have a dramatically expanded manufacturing footprint to help provide high levels of service."

Steve Ziessler, president and CEO of Guardian Building Products, said that the purchase by Knauf is exciting news for Guardian Insulation and its employees. "We are confident that our employees, customers and suppliers can look forward to an excellent future with Knauf Insulation. Guardian and Knauf share a culture of responsibility, accountability, safety, entrepreneurship, strong leadership, innovation and value creation," said Ziessler. "We want our customers and employees to know that we anticipate a smooth transition."

Russia: Knauf Insulation expects its mineral wool insulation factory in Tyumen Oblast, Russia to reach its design capacity of 45,000t/yr in late 2014. More than Euro64.3m was invested in the project. The plant sells its products in the Ural district, Siberia, the Far East and Kazakhstan.

UK: The Construction Products Association (CPA) has appointed John Sinfield as its new chairman. Sinfield is managing director of Knauf Insulation in Northern Europe. The CPA represents the Euro48.6bn-turnover UK construction products and materials sector.

Sinfield replaces Geoff Cooper, chief executive of Travis Perkins, in the role. Sinfield said, "Given all the political uncertainty over the coming year, with regulatory doubt over energy security, costs and carbon measures, we need manufacturing to be underpinned by a vibrant, long-term, cross-party industrial strategy which enables the UK to capture supply chain advantages for firms here in this country. I look forward to leading efforts to help bring key players together to find a way forward."

UK: A Salford housing association has begun a pilot project to trial a new type of party cavity wall insulation. The project will see the new mineral wool insulation fitted to separating walls between terraced and semi-detached houses in City West Housing Trust's properties in Greater Manchester, UK.

The housing association, which owns and manages 14,600 homes in Salford, is undertaking the project with Knauf Insulation using the company's ECOSE Technology, which creates insulation using formaldehyde-free binder technology and naturally occurring and recycled raw materials.

If the pilot is successful, customers could save Euro73 - 109/yr on their energy bills. Additionally, household carbon emissions will be reduced by between 0.33 - 0.50t/yr per home. The performance of the insulation will be monitored by Leeds Metropolitan University, the Mineral Wool Insulation Manufacturers Association and Knauf Insulation.

"Through our commitment to the green agenda we are ensuring our properties can be as energy efficient as possible and offer value for money for our customers," said City West head of supply chain and sustainability Garry Vaughan.

UK: Knauf Insulation has announced that from August 2013 all four of its UK manufacturing plants will send zero waste to landfill.

The achievement marks a significant milestone in the manufacturer's sustainability journey, in which it is constantly developing its products and processes to contribute towards greener and more energy efficient environments.

At its glass mineral wool sites in St Helens (where the company's headquarters are also based) and at Cwmbran in Wales, Knauf Insulation has introduced a number of measures to divert both production and office-generated waste. Baled glass wool waste is re-used by a ceiling tile manufacturer, while mixed glass wool and incidental packaging waste is collected by a recycling partner and re-processed for use as underground bedding.

Other waste is segregated at source to enable efficient recycling. A 'Bin the Bin' campaign was introduced as part of EcoWorks, an employee initiative designed to encourage best practice techniques and education around sustainable behaviour. Clearly marked recycling bins, desktop recycling folders and skips for cardboard and polythene have been distributed throughout the facilities, so that the waste can then be collected and recycled.

Kevin West, Health, Safety, Security and Environmental Manager at Knauf Insulation's St Helen's plant, commented, "As the UK's leading insulation manufacturer and the third largest manufacturer of insulation in the world, we take our social and environmental responsibilities seriously. True sustainability is about much more than simply producing 'green' products. It must be an integral part of the business, which is what we have sought to accomplish with our waste management strategy. Reaching zero waste to landfill is a fantastic achievement and is a clear demonstration of Knauf Insulation's commitment to improving our environmental performance."