Insulation industry news from Global Insulation

Luxembourg: Armacell recorded consolidated net sales of Euro591m in 2020, down by 8% year-on-year from Euro644m in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 10% to Euro120m from Euro134m. During the year, the company completed a polyethylene terephthalate (PET) foaming line expansion in Suzhou, China, built an elastometric foams plant in Cheonan, South Korea and consolidated its Italian insulation activities at a new facility in Turin. It also made strategic investments in diversified areas.

President and chief executive officer Patrick Mathieu said, “In a complex and challenging environment our business model again proved resilient. With our global reach and multi-segment activity, we ended the year in relatively good shape. We took the appropriate measures to navigate changing circumstances and ensure we come out of the pandemic stronger than before. Our utmost priority was always to safeguard the health of our employees, maintain operations and continuously support our customers.” He added, “After the successful closure of our capital market refinancing in February 2020, our shareholders PAI Partners and KIRKBI expressed their commitment to our on-going growth strategy. In 2021, we look forward to partnering with our customers in adding value to their businesses.”

Luxembourg: Armacell recorded sales worth Euro288.4m in the first half of 2020, down by 10% year-on-year from Euro320m in the first half of 2020. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 17% to Euro52.5m from Euro63.3m. The company said that the effects of lower sales volumes “were not entirely offset by immediate cost control measures.”

President and chief executive officer (CEO) Patrick Mathieu said, “Strategically, we are well on track. Armacell has shown a steady performance in the first half of 2020, and our immediate measures to mitigate the risks arising from the pandemic are proving beneficial. Our good performance over the past months underlines the resilience of our business, which we continue to grow.”

Luxembourg: Armacell, which produces flexible insulation foams and engineered foams for the equipment insulation market, has successfully continued its international growth strategy in 2014.

Armacell increased its net sales by 8.8% year-on-year to Euro452m in its 2014 financial year. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 9.6% year-on-year to Euro71.2m in 2014. Adjusted earnings before interest, taxes and amortisation (EBITA) improved by 8.7% to Euro56.1m. Due to continued efforts to improve cost performance, Armacell maintained an EBITA ratio relative to net sales of 12.4%.

Important drivers of Armacell's positive development were the ongoing growth in the construction/HVAC (heating, ventilation and air conditioning) business as well as the growing demand for the substitution of existing insulation with high-performance materials. A number of other growth drivers, such as continuing urbanisation, greater energy-efficiency and a renewed focus on noise protection, are also driving demand for the company's technical solutions and products.

"2014 was a successful year for Armacell. Our profitable growth in both our business segments and across all of our regions underlines the significance of our consistent international growth strategy," said Patrick Mathieu, CEO of Armacell International SA.

In 2014, Armacell recorded net sales growth in both of its business segments and across all three regions. In the Advanced Insulation business, net sales were up by 8.9% to Euro356m. This division accounted for 79% of net sales in 2014. Advanced Insulation encompasses all company activities relating to the development of flexible insulation foam products for the insulation of equipment. These include markets in which energy distribution is required, such as in commercial and residential construction, industrial applications, or the oil and gas industry.

In the Engineered Foams business segment, net sales increased by 8.9% to Euro94.6m, accounting for 21% of net sales in 2014. In this division, Armacell develops light foams for use in a wide range of end markets in which both product weight and robustness are essential, such as the automotive and wind energy industry.

A core component of Armacell's international growth strategy is its presence in emerging markets, which Armacell was able to further reinforce in 2014. In June 2014, it purchased the remaining shares in Armacell Zamil Middle East Company (AZMEC) in Saudi Arabia, from its previous joint venture partner Zamil Industrial Investment Co. Armacell also purchased Armatech Co Ltd in Korea, a long-time distribution partner and leading provider of engineered foams for the heating, sanitation and air conditioning industry.

Armacell consistently pursued its international growth strategy in the first quarter of 2015. It acquired Turkish insulation materials manufacturer Das Yalitim Sanayi ve Ticaret Anonim Sirketi (OneFlex). Armacell also acquired Industrial Thermo Polymers Limited (ITP) in Canada.

In 2015, Armacell will continue to focus on expanding its strong market position, globally marketing its technologies and delivering on its international growth strategy.

Turkey/Luxembourg: Armacell International SA, a Luxembourg-based provider of insulation foams for the equipment insulation market, has acquired OneFlex, a Turkey-based manufacturer of insulation materials for building technology. OneFlex generated a revenue of US$11.2m in 2014. The acquisition will allow Armacell to strengthen its production capabilities and position in Turkey and to expand its footprint across the regions of Middle East, Africa and South-eastern Europe.

Benelux Region: Building insulation and packaging group Synbra is consolidating its position in the Benelux Region, which encompasses Belgium, Holland and Luxembourg, with the acquisition of the local expanded polystyrene (EPS) activities of Knauf Insulation.

Synbra's subsidiary, IsoBouw Systems, is set to take over the region's Knauf manufacturing and sales operations, including an EPS plant in Oosterhout Municipality, Holland, by 1 August 2014. The Oosterhout plant produces EPS and wood wool products, although IsoBouw Systems said that it plans to close the EPS unit.

Synbra's Etten-Leur said that the acquisition is a strategic move for IsoBouw, which will continue to supply EPS insulation products from its own plants in the Wijchen, Someren and Oldenzaal Municipalities in the Netherlands.

"IsoBouw is the EPS specialist in the Benelux Region," said IsoBouw's general manager, Will Kemperman. "The acquired business unit fits perfectly with our current activities. This gives us even more space to focus on innovative product developments." The move will also strengthen the position of its existing customers in the market.

Knauf Insulation retains a glass wool production facility at Visé, Belgium as well as EPS plants in Germany at Wadersloh, Bad Waldsee and Hermeskeil. The firm also operates extruded polystyrene (XPS) plants in France, Italy and the UK.