Insulation industry news from Global Insulation

US: Owens Corning has appointed Marcio Sandri as President, Composites with effect from 25 May 2018. Sandri will report to chairman and chief executive officer Mike Thaman. He succeeds Arnaud Genis who has decided to retire.

Sandri currently serves as Vice President, Global Strategy and Operations for the company’s Composites business. Prior to this role, he was Vice President and Managing Director of Glass Reinforcements, encompassing core glass fibre production, technical fabrics and specialty glass within the Composites business. He also had enterprise-wide responsibility for operations and supply chain activity. Since joining Owens Corning in 2000, Sandri had several commercial roles with responsibility for the US, Latin America, Canada, and Asia Pacific. Before Owens Corning, he worked at Dow Chemical in Latin America and the US.

Sandri holds a degree in chemical engineering from the Federal University of Parana and studied business administration at the University of São Paulo, Brazil.

US: Owens Corning’s net sales rose by 12.5% year-on-year to US$6.38bn in 2017 from US$5.68bn in 2016. Its earnings before interest and taxation (EBIT) rose by 5.4% to US$737m from US$699m. The building materials producer’s sales from its insulation division rose by 14.5% to US$2.00bn from US$1.75bn and its EBIT rose by 40.5% to US$177m from US$126m.

“Owens Corning had another great year. We were pleased by the continued momentum in our three businesses and the addition of Paroc and Foamglas to our portfolio,” said chairman and chief executive officer (CEO) Mike Thaman.

US: Owens Corning has completed its acquisition of Finland’s Paroc Group for Euro900m. Completion followed the US company obtaining all the necessary regulatory clearances to buy the mineral wool producer.

“We’ve had a strategic goal to broaden our product portfolio and diversify our geographic scope to better address our customers’ needs and support their growth. The acquisition of Paroc does both. We now have a leading position in Europe and in the global mineral wool business,” said Julian Francis, president of Owens Corning’s Insulation Business.

US: Owens Corning has appointed Adrienne D Elsner to its board of directors. Elsner joined Kellogg Company in August 2015. Prior to joining Kellogg Company, she served more than 20 years at Kraft Foods, including Executive Vice President and Chief Marketing Officer. Her experience also includes sales roles at Procter & Gamble and Johnson & Johnson. Elsner has served on the Board of Directors of the Ad Council as well as the Museum of Science and Industry in Chicago. She holds a bachelor's degree in Marketing and Entrepreneurial Studies from the University of Arizona and a MBA in Marketing and Finance from the University of Chicago.

US: Several of Owens Corning’s Thermafiber mineral wool insulation products and their supporting design and installation services have earned Safety Act Designation from the US Department of Homeland Security. The purpose of the act is to ensure the threat of liability doesn’t prevent companies from developing and commercialising products that could save lives in the event of an act of terrorism. It restricts liability where qualified anti-terrorism technologies, or QATTs, have been used.

“Owens Corning is the first insulation manufacturer to be listed publicly with the Department of Homeland Security as having qualified technology carrying the Safety Act Designation,” said Julian Francis, president, Insulation Business.

The designation covers a variety of Thermafiber products in perimeter fire barrier system, interior wall and floor ceiling systems, construction joint firestopping system and penetration firestopping system applications.

US: Three types of commercial and residential insulation produced by Owens Corning have been certified as made with renewable energy. These products represent the first ever to have met the requirements of SCS Global Services’ certification protocol to validate electricity used to make them is generated entirely from wind.

This certification follows a power purchase agreements Owens Corning signed in 2015 that enabled new wind capacity in Texas and Oklahoma. Both wind farms came online in late 2016 and can generate 1.1MWh/yr of electricity. For every MWh of renewable electricity generated, the company receives one Renewable Energy Credit (REC). It then applies the RECs toward the manufacture of more sustainable products.

“Reducing the embodied carbon in building products has long been a discussion across the building industry,” said Frank O’Brien-Bernini, Owens Corning vice president and chief sustainability officer. “We’re excited to see it come to life through certified products made with renewable energy and reduced embodied carbon.

The three types of insulation available with the wind power certification are EcoTouch Insulation, Thermafiber RainBarrier Continuous Insulation and Unbonded Loosefill Insulation.

US/Finland: Owens Corning has signed an agreement with CVC Capital Partners to acquire Paroc Group for Euro900m. The sale, which is subject to regulatory approvals and other customary conditions, is anticipated to close in early 2018. The company plans to finance the acquisition through a combination of long-term debt and pre-payable bank financings.

“The acquisition of Paroc delivers on Owens Corning’s strategy to provide our customers with a portfolio of insulation products that cover the full temperature spectrum in the three largest insulation markets – Europe, North America and China. Over its 80-year history, Paroc has earned a reputation for high-quality products and technical expertise,” said Owens Corning chairman and chief executive officer Mike Thaman.

The acquisition of Paroc is expected to expand Owens Corning’s mineral wool technology, grow its presence in the European insulation market, provide access to a variety of new end-use markets and will increase the company’s sales mix of the insulation business outside the US and Canada to 35%.

Paroc is a European manufacturer of mineral wool insulation solutions for a variety of end markets. Paroc manufactures building insulation for thermal, fire and acoustic applications in residential and commercial construction. The company also manufactures technical insulation for HVAC (heating, ventilation, and air conditioning) systems, industrial processes and the marine, offshore and original equipment manufacturer industries. It employs over 1800 people in 13 countries and operates facilities in Finland, Lithuania, Poland, Russia and Sweden.

US: Growth in insulation sales revenue and earnings have contributed to Owens Corning’s overall growth so far in 2017. Net sales from its insulation business grew by 10% year-on-year to US$1.41bn in the first nine months of 2017 from US$1.28bn in the same period in 2016. Its earnings before interest and taxation (EBIT) grew by 7% to US$98m. The group’s overall net sales rose by 11% to US$4.78bn.

“Owens Corning delivered another strong quarter, despite some isolated market challenges. We remain confident in our ability to finish the year with strong financial performance,” said chairman and chief executive officer (CEO) Mike Thaman. He added that the company was ‘particularly’ pleased with the contribution of the newly acquired Foamglas business within its insulation business.

In its insulation business, EBIT grew due to higher prices and sales volumes. US volume growth slowed in September 2017 but the company said the segment was experiencing a recovery so far in the fourth quarter of 2017.

US: Owens Cornings’ net sales from its insulation business rose by 5% year-on-year to US$838m in the first half of 2017 from US$799m in the same period in 2016. However, its earnings before interest and taxation (EBIT) fell by 24% to US$34m from US$45m. The company offered no reason for its declining earnings but it did mention a ‘greater than expected’ start-up impact of a newly commissioned mineral wool plant.

Despite this the company now expects to deliver revenue growth of more than US$250m and EBIT of about US$185m. It said that the improved outlook was driven by successful pricing actions in the US residential insulation business and the benefit of its Pittsburgh Corning acquisition.

“Owens Corning built upon the performance achieved in the first quarter and delivered strong second-quarter results. Through the first half, the company produced adjusted EBIT of US$401m and continues to generate strong operating cash flow,” said chairman and chief executive officer Mike Thaman. He also said the acquisition of Pittsburgh Corning and its Foamglas product line had expanded the geographic footprint and product portfolio of the company’s insulation business.

US: Owens Cornings has completed its purchase of Pittsburgh Corning for around US$560m. Originally the insulation producer expected the transaction and its regulatory approval to be completed in the third quarter of 2017. Pittsburgh Corning produces cellular glass insulation products, including Foamglas, and it has operations in the US, Belgium, the Czech Republic, and China.