Insulation industry news from Global Insulation

Sweden: Owens Corning subsidiary Paroc has applied to expand its Hällekis insulation plant to 115,000t/yr of stone wool production capacity as part of an on-going upgrade. Nordic Daily News has reported that the company is also electrifying the plant and implementing recycled raw materials use. When commissioned, the upgraded plant will process 100,000t/yr of recycled minerals.

Sweden: Paroc has broken ground on the conversion of its Hällekis mineral wool insulation plant from coke-fired production to the use of electric furnaces. The producer says that the upgrade will eliminate 80% of the plant’s CO₂ emissions. It is additionally installing new raw materials handling and filtration equipment at the plant. Work is scheduled for completion in 2027.

Nico del Monaco, Insulation President of US-based parent company Owens Corning, said "We have seen that the landscape for our industry in the Nordics is undergoing significant changes, with new CO₂ restrictions and expectations from customers. By proactively addressing these changes through projects like this, we can turn them into opportunities. This significant investment is an important step for not only our plant in Hällekis, but it also reinforces Owens Corning's mission to build a sustainable future through material innovation."

US: Owens Corning’s net sales from its insulation division rose by 23% year-on-year to US$859m in the first quarter of 2022 from US$700m in the same period in 2021. Its earnings before interest and taxation (EBIT) grew by 15% to US$129m from US$82m. It attributed this to higher selling prices and sales volumes despite inflation and higher transport costs. Overall company net sales and adjusted EBIT increased by 23% to US$2.35bn and by 48% to US$417m respectively.

The light building materials producer also said that it made the decision to end its operations in Russia in March 2022 in response to the Russian invasion of Ukraine in February 2022. It halted all future investments in the country in April 2022. In 2021 its net sales in Russia represented approximately 1% of the company’s consolidated net sales. The company said it is “working to expedite its exit, while remaining committed to the safety and security of its employees in the country.” Owens Corning’s insulation subsidiary Paroc operates in Russia. The group also runs a composite materials plant at Gous in Russia.

Finland: Owens Corning subsidiary Paroc has committed to reduce CO₂ emission by 50%, reduce plastics use by 30% and achieve zero waste by 2030. The company that it will also “expand the use of the Rewool customer waste recycling solution and develop and offer new low carbon products,” as exemplified by its launch of the new carbon-neutral product Paroc Natura line in early 2021.

Owens Corning Insulation Europe regional sustainability leader Beatrice Hallén said, “Paroc is in the business of energy efficiency. For each tonne of CO₂ generated in the manufacturing of stone wool, about 200t of CO₂ is saved by stone wool’s thermal insulation properties over a 50-year period. That does not mean we are content. We want to turn every stone to find new ways to make our general footprint as small as possible. We want to be forerunners in developing sustainable buildings together with our customers. We also want to design our products and solutions for recycling and reuse. For us, sustainability is about meeting the needs of the present while leaving the world a better place for the future.”

Lithuania: Paroc plans to increase the production capacity of its stone wool plant in Vilnius to 115,000t/yr from 75,000t/yr. The subsidiary of US-based Owens Corning intends to make multiple minor upgrades to reach this goal, according to the Verslo Zinios newspaper. It hopes to achieve the increased production capacity by 2022 subject to market demand.

Finland: Paroc has started to introduce new logotype, updated packages and new communication material following its acquisition by Owens Corning. The insulation materials producer said that is was a ‘strong’ brand and that it would continue marketing its products under the red-and-white striped brand image. The company was purchased by US-based Owens Corning in early 2018.

US: Owens Corning’s insulation sales for the first quarter of 2018 has risen significantly followings its acquisition of Finland’s Paroc. Its net sales for its insulation business rose by 49% year-on-year to US$596m in 2018 from US$399m in the same period in 2017. Earnings before interest and taxation (EBIT) rose to US$32m from US$5m. It completed its acquisition of Paroc Group, and its range of European mineral wool insulation production plants, on 5 February 2018.

Poland: Paroc Group says that its Euro60m expansion project at its Trzemeszno plant is proceeding to plan. A new 70,000t/yr stone wool production line is being built at the site. The upgrade is expected to be completed in 2019. The upgrade is part of Paroc’s plan to support its growth strategy for Central and Western Europe.

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/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.