Insulation industry news from Global Insulation

Germany: Netherlands-based FALK Bouwsystems has agreed to purchase Salzgitter Bauelemente from Salzgitter Group for an undisclosed price. Steel construction element manufacturer Salzgitter Bauelemente will continue to do business as a independent subsidiary with its existing managing director Kai Bohmbach. Under the terms of the acquisition, Salzgitter Bauelemente’s plant in Lower Saxony will continue to be supplied with raw materials from Salzgitter Flachstahl. However, its building and storage area will remain the property of Salzgitter Flachstahl and are leased to the purchaser for a minimum rental period of 10 years, with an option to extend.

FALK Group said, “With the acquisition of Salzgitter Bauelemente, we are pursuing the goal of entering the German market independently. To this end, we will build on the existing know-how and intend to expand the production volume at this location. The investment measures planned by management are also to be continued.”

Salzgitter Bauelemente produces steel construction elements, including sandwich panels made with polyurethane and mineral wool cores. Sandwich panel producer FALK Bouwsystems produces around 5Mm²/yr, about twice that of Salzgitter Bauelemente.

Belgium: Knauf Insulation has officially opened a new Euro15m glass mineral wool recycling plant in Visé. It will recycle the glass mineral wool as part of its ‘Resulation’ service. The site will also recycle production off-cuts from Knauf Insulation’s Visé glass mineral wool production plant using a dedicated production line and furnace. The inauguration event was attended by Olivier de Wasseige, managing director of the Walloon Enterprise Network.

Dominique Bossan, member of Knauf Group’s management committee and head of Knauf Insulation Europe, Middle East and Asia, said, “The new facility is an important step towards achieving Knauf Insulation’s commitment to generate zero waste to landfill by 2025 as part of the company’s ‘For A Better World’ sustainability strategy.

Knauf Insulation says that around 85,000t/yr of glass mineral wool waste are generated in France, while in Belgium and the Netherlands the figure is around 30,000t/yr with 26,000t of that total coming from demolition.

Netherlands: Belgium-based Triple Helix has signed an agreement as one of the first concessionaires at the NextGen District at the Port of Antwerp. It plans to build a plant to convert polyurethane foam, from insulation panels and other sources, into polyols. These chemicals can then be reused, for example in the production of new polyurethane products. The plant is intended to be fully circular and self-sufficient in terms of energy.

Steven Peleman, the chief executive officer of Triple Helix, said “To drastically reduce emissions and waste pollution, we want to show the principle of material reincarnation to the world. In our plant at NextGen District, we want to recover polyurethane foams at the end of their life and transform them into their main components to be used again in new products. This is innovative and challenging, but with Port of Antwerp, BlueChem and our industrial and knowledge partners, we are ready to fight this battle. Not words but deeds!”

The Port of Antwerp has set aside the former 88 hectare General Motors site to develop into a future circular economy hotspot. Rubber and plastics recycling company US-based Bolder Industries has also signed up for an early place at the port.

US: Stepan has acquired Invista’s aromatic polyester polyol business and associated assets. The business produces polyols for use in polyurethane (PUR) and polyisocyanurate (PIR) foam insulation. It operates two production sites, at Wilmington, North Carolina, US and at Vlissingen in Zeeland in the Netherlands. Its annual sales are US$100m. Stepan plans to finance the acquisition with cash on hand and expects it to be accretive to its 2021 earnings before interest, taxation, depreciation and amortisation (EBITDA) margins.

Chair and chief executive officer Quinn Stepan said, "We are excited to add Invista's polyester polyol capabilities to Stepan. This acquisition expands our manufacturing capability in both the US and Europe, enhances our business continuity capabilities for the market and supports the growth of our global rigid polyol business. We expect that Invista's available spare capacity, plus debottlenecking opportunities in both plants, will allow Stepan to support market growth in a capital efficient way. We believe the long-term prospects for rigid polyol use in insulation remain strong as energy conservation efforts and more stringent building codes should continue to drive market growth. Additionally, we believe the acquired technology will accelerate our product leadership initiatives, drive manufacturing efficiencies and output, and create increased value for the overall market. We look forward to providing the highest level of service to our new customers and are excited to add the new employees and the two new sites to our global polyester polyol manufacturing network."

Netherlands: France-based Saint-Gobain has announced its acquisition of internal finishing and exterior insulation systems specialist Strikolith for an undisclosed price. Strikolith employs 50 people at its Raamsdonksveer, North Brabant plant and generated sales of Euro19.5m in 2019.

Saint-Gobain said, “The complementarity of Strikolith with Saint-Gobain's existing businesses enhances the group's solution offering and in particular allows it to strengthen its offering in External Thermal Insulation Composite Systems (ETICS) and in construction chemicals in the Netherlands, reinforcing Saint-Gobain's leading position in energy-efficient renovation in Europe.”

Netherlands: Recticel reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of Euro17.4m in the first half of 2020, down by 43% year-on-year from Euro30.4m in the first half of 2019. Net sales fell by 18% to Euro374m from Euro454m. Insulation sales during the period were Euro113m, down by 13% from Euro130m.

Chief executive officer (CEO) Olivier Chapelle said that, “volumes were heavily affected by the Covid-19 lockdown measures from mid-March until May 2020. Accelerating activity levels in the building markets led to June volumes exceeding the level of 2019. Selling prices remained under pressure as a consequence of lower raw material costs.”

Netherlands: Germany-based Knauf has rolled out a waste glass mineral wool insulation recycling pilot project across the Netherlands. At a small cost, a Knauf partner company will take back leftover insulation from customers’ projects, which is remotely quantified and scheduled for collection by Knauf’s software system. The partner company recycles the insulation for use in bricks and tiles. Knauf Western Europe circular economy manager Marc Bosmans said, “The scheme saves our customers costs, gives them peace of mind that waste is being dealt with responsibly and lowers the environmental impact of their projects.”

Knauf has also launched a pallet pick-up pilot project. Under the scheme, customers can contact a Knauf partner company in order to have the pallets on which Knauf products were delivered collected for reuse, in line with the principles of the circular economy. Bosmans said, “Customers, particularly those on large sites, see a huge added value in this service and appreciate that it is a one-stop solution that is good for business and good for the environment.”

Netherlands: Nine-month restated sales for Recitel fell by 7.3% year-on-year to Euro924m in September 2019 compared to Euro997m in the corresponding period of 2018. Despite ‘double-digit’ volume growth, insulation sales over the period fell by 4.5% to Euro193m from Euro202m due to pricing issues stemming from the loss of market share to fibre insulation as a lingering after-effect of the isocyanate shortage of 2017. The company noted the ‘ramping-up’ of production at its new plant in Finland, with all products now certified for sale in the Nordic countries. Recticel CEO Olivier Chapelle noted the continued substantial decrease in debt as a positive in the period.

Germany: Covestro has signed an agreement with HIG Capital, a private equity company, for the sale of its European Systems Houses business. HIG Capital aims to position the business towards mid-sized customers. Covestro will retain its polyurethane markets in Asia where it will continue to serve its customers. The sale is part of Covestro’s ongoing portfolio optimization process that includes the sale of Covestro’s North American spray polyurethane foam systems home business in 2017.

The systems houses businesses are part of the Covestro’s Polyurethanes segment and sell tailor-made polyurethanes systems. The European Systems Houses business comprises facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy. Operations will continue at the current facilities while Covestro will continue to have strong ties with the systems houses business as a key polyurethanes supplier.

The closing of the transaction is expected for the second half of 2019 after the required antitrust clearance. No value for the sale has been disclosed.

US: Knauf Insulation has won a 2019 Greenbuild Leadership Award for outstanding contributions to sustainable building by the US Green Building Council (USGBC). The insulation producer was recognised for providing innovative solutions that both reduce energy consumption and save resources. The USGBC said that Knauf set an ‘outstanding’ example for the international green construction industry through its commitment to Leadership in Energy and Environmental Design (LEED) and other green building practices and its corporate social responsibility commitment.

“Knauf Insulation serves as a model for the international community. Your commitment to corporate social responsibility and improving the quality of life is an inspiration," said Mahesh Ramanujamm, the president and chief executive officer (CEO) of USGBC and Green Business Certification.

The award was received on behalf of Knauf Insulation by its Sustainability and Product Regulatory Affairs Director Vincent Briard at Greenbuild Europe, an annual USGBC forum for sustainable building experts held in Amsterdam, Netherlands.