Insulation industry news from Global Insulation

US: Carlisle Construction Materials has awarded a contract to Germany-based polymers producer Covestro to supply its 99%-reduced CO₂ bio-circular methylene diphenyl diisocyanate (MDI). Carlisle Construction Materials plans to use the materials in its polyisocyanurate (PIR) insulation boards. Covestro says that it will supply its Mondur CQ 489 product, which will be suitable for use across Carlisle Construction Materials’ Hunter Panels, SynTec, Versico and WeatherBond product ranges. The supplier says that switching to this MDI will save 2.4t of CO₂ emissions per tonne used.

Carlisle Construction Materials president Steve Schwar said "Carlisle Construction Materials has always been at the forefront of developing high-performance construction products that lead the way in sustainability. With our new bio-based rigid foam insulation, we are demonstrating our unwavering commitment to environmental responsibility, while ensuring that our customers have access to the most advanced building materials available. Our partners play a pivotal role in the realisation of our bio-based isolation."

Covestro’s head of performance materials Hermann-Josef Doerholt said "Covestro’s vision to become fully circular requires research and development advancements that directly support the Scope 3 goals of our customers like Carlisle. Covestro has some of the most aggressive sustainability and climate targets in the chemical industry, and the further we progress in developing solutions to achieve them, the more the effects resonate along the supply chain.”

US: Sales revenue from Huntsman’s polyurethane division fell by 27% year-on-year to US$2.00bn in the first half of 2023 from US$2.74bn in the same period in 2022. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 66% to US$154m from US$453m. For the second quarter of 2023 the company attributed falling revenue to lower sales volumes, decreased average methyl diphenyl diisocyanate (MDI) prices and negative currency exchange effects. This trend was partially offset by higher equity earnings from a minority-owned joint venture in China and cost savings achieved from a cost saving plan.

Overall the group’s sales and earnings fell in the first half of 2023 with declines in sales and earnings reported across all main divisions. However, the company noted that it saw, “demand fundamentals in many of our core markets stabilise” in the second quarter of 2023.
Huntsman produces a range of chemicals including polyisocyanurate (PIR) and polyurethane (PUR) building insulation products.

Belgium: Germany-based Covestro has broken ground on the construction of a new Euro300m aniline plant in Antwerp. The plant will supply aniline for methyl diphenyl diisocyanate (MDI) production in the region. Forecasts cited by the chemicals producer posit global annual MDI demand growth of 6% into the medium-term future.

Covestro's chief technology officer Klaus Schafer said “Even in challenging times, we must not lose sight of our goals. With the expansion of our aniline production, we are addressing the further increase in demand from our customers for energy-efficient insulation." He added “By using state-of-the-art technology, we are increasing the energy efficiency of production, and thereby the competitiveness, of the Antwerp site.”

US: Huntsman Corporation has started commercial operation of a new US$180m methylene diphenyl diisocyanate (MDI) splitter at its Geismar plant in Louisiana. The new splitter will allow the chemical manufacturer to produce more grades of MDI than previously. Company president and chief executive officer Peter Huntsman attended an inaugural event as well as the Jeff Landry, the Attorney General of Louisiana.

“The new splitter reinforces our strategy of delivering value over volume by creating a more differentiated product portfolio,” said Tony Hankins, president of Huntsman’s Polyurethanes division. “It enables us to provide our customers in automotive, furniture, construction, adhesives and coatings markets with more options for innovative, sustainable polyurethanes products.”

Huntsman produces a range of chemicals including polyisocyanurate (PIR) and polyurethane (PUR) building insulation products.

Belgium: Recticel’s insulation division’s sales rose by 4% year-on-year to Euro62.5m in the first quarter of 2019 from Euro60.1m in the same period in 2018. It said that volume growth had overcome falling sales prices due to falling methylene diphenyl diisocyanate (MDI) costs. Polyurethane (PUR) and polyisocyanurate (PIR) have continued to gain market share following MDI shortages in mid-2017.

US: Germany’s BASF plans to launch the second phase of its methylene diphenyl diisocyanate (MDI) unit at its Verbund plant in Geismar, Louisiana. The first phase of the upgrade was set to double the company’s MDI production capacity to nearly 0.6Mt/yr from 0.3Mt/yr. The new US$87m investment will continue this process. Construction is expected to start in late 2019 with completion scheduled for 2021.

“With the development of the American market, BASF needs this investment to support the growth of our existing customers,” said BASF Senior Vice President Stefan Doerr. “The Geismar site is ideally suited for this investment thanks to the existing infrastructure, competitive raw materials and favourable business support from state and local governments. This investment also demonstrates our strong commitment to our employees, our community and our presence in Louisiana.”

US: Huntsman’s polyurethane revenue rose by 16% year-on-year to US$5.09bn in 2018 from US$4.40bn in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 11% to US$946m from US$850m. Overall, across all business segments, the company’s sales and earnings rose.

The chemicals producer said that its polyurethane segment had lost revenue in the last quarter of 2018 due to lower methylene diphenyl diisocyanate (MDI) prices. MDI sales volumes increased due to the start-up of a new Chinese MDI unit in 2018 and the acquisition of Demilec, a North American polyurethane spray foam company, in April 2018.

“2018 was another successful year for Huntsman as we reported record earnings and consistent robust free cash flow. We continued to expand in our downstream and differentiated businesses both through internal investments and bolt-on acquisitions,” said Peter R Huntsman, chairman, present and chief executive officer (CEO).

US: Germany’s Covestro plans to spend Euro1.5bn on building a new methylene diphenyl diisocyanate (MDI) plant at Baytown in Texas. The new plant will have a production capacity of 0.5Mt/yr and production is expected to start in 2024. The investment at the existing site in Baytown is the largest single investment in the history of the company. It will replace the 90,000t/yr MDI unit at the site.

“Demand for innovative MDI materials will continue to grow for the foreseeable future and likewise promises attractive capacity utilisation rates. We have already announced a significant increase in capital expenditures, now it’s time to put it into action”, said Markus Steilemann, chief executive officer (CEO) of Covestro. He added that the investment would strengthen the company’s ‘leading position’ in polyurethanes.

Covestro is also running a global investment programme in MDI production capacity, including plans to double its MDI production at Brunsbuettel, Germany to 0.4Mt/yr from 0.2Mt/yr by the second half of 2019. Other parts of this initiative include the continuation and expansion of plants in Tarragona in Spain, Caojing in China and Antwerp in Belgium.

Belgium: Recticel’s sales from its insulation division have rallied following the resumption on methylene diphenyl diisocyanate (MDI) supplies after a shortage in 2017 and poor weather in the first quarter of 2018. Its sales rose by 2.7% year-on-year to Euro129m in the first half of 2018 from Euro133m in the same period in 2017. Earnings before interest, taxation, depreciation and amortisation (EBTIDA) increased by 60.6% to Euro14.2m fro Euro22.8m. It attributed the growth in profitability to price rises and efficiency gains. The company also said that the construction of a new plant in Finland, dedicated to the supply of the Scandinavian and Baltics markets, is on schedule to start up in late 2018.

France: The National Union of Polyurethane producers (SNPU) says that the market is returning to normal following a shortage of methylene diphenyl diisocyanate (MDI) in 2017. Prices of polyurethane insulation panels rose due to the lack of MDI, according to the Le Moniteur trade newspaper. The SNPU added that the market had stabilised since the start of 2018.