Insulation industry news from Global Insulation

Russia: Paroc intends to expand its production in Russia by 1.5 times to 45,000t in 2015. So far in 2015, its capacity utilisation rate is 100%. In 2014, Paroc's Tver plant sold 29,000t of mineral wool.

Paroc is investing US$121m in a new thermal insulation production plant in Tver. The project will be implemented in three stages; 2011 - 2013, 2014 - 2016 and 2017 - 2020. The new plant will produce up to 50,000t/yr of mineral wool.

Finland: CVC Capital Partners has acquired Paroc Group for about Euro700m. Paroc produces stone wool insulation in the Nordic and Baltic regions, has approximately 2100 employees and a pan-European sales presence supported by nine production facilities in Finland, Sweden, Lithuania, Poland and Russia.

In a successful 5-year period under the ownership of its current shareholder group, Paroc has grown its revenues from Euro317m in 2009 to Euro433m in 2013 and EBITDA from Euro46m to Euro80m, which has been achieved through organic growth. The development of the group’s higher-value, higher-margin technical insulation division, aided by investment in the group’s production plant in Trzemeszno, Poland, has represented one of the group’s success stories during this period. Most recently, Paroc has invested in a new facility in Izoplit, Russia, enabling the expansion of existing sales into the rapidly growing Russian market.

“The last five years have been successful, especially given the challenging economic backdrop and we are grateful to our former owners for their support during this period,” said Kari Lehtinen, CEO of Paroc. “We see a strong future for our business, with recovery in many of our markets expected in the coming years, and with our presence in the fast-growing Russian market. We look forward to taking Paroc forward in close cooperation with CVC, which is supportive of our strategy. CVC offers us a depth of experience and a strong track record with value-creating investments, expertise in the building materials sector and in the Nordic region. We are excited to share with CVC the next phase of our growth.”

The transaction has been approved by Paroc’s current shareholder group and the completion of the transaction is subject only to the receipt of customary competition clearances.

Finland: A number of private equity firms, including TPG, Nordic Capital, CVC and Cinven, have made first round bids for Paroc, a Finnish manufacturer of insulation materials, according to Reuters. The bids value the company at between Euro700m and Euro750m. Paroc was acquired by Bahraini investment house Arcapita in 2006. The company underwent a debt restructuring three years later and is now owned by a consortium of banks and institutional investors.

Russia: Finish insulation producer Paroc is preparing to open an insulation plant in Tver in December 2013. The plant will primarily produce materials for the Russian market but technical insulation materials will also be exported to European Union members, according to Russian media.

"The demand for insulation is likely to increase in Russia. The growth here has been even more rapid than in Europe," said Kari Lehtinen, CEO of Paroc Group. "Our share of the Russian market is about 2%. After launching production at full capacity, we are planning to control 7 to 8% of the Russian market."

The new plant's location was chosen because of the railway links between Tver, near Moscow, and St Petersburg. Once opened, Paroc's new plant will be the third Finnish plant in the Tverskaya Oblast region of Russia. Paroc purchased the former mineral wool plant in late 2011 and has rebuilt around 90% of the production machinery. Currently 150 workers are employed by the plant and Paroc plans to increase that number to 400 by 2015 and to 600 when development of the site is complete.

Finland/Sweden: Stone wool producer Paroc Group intends to relocate its manufacturing of technical insulation and acoustic products from Lappeenranta, Finland to its plants in Hällekis and Skövde, Sweden creating 40 new jobs in Sweden. The company is investing approximagtely Euro8.06m in Hällekis and Skövde, according to the Finish business news service Esmerk.

Finland: The Finnish insulation firm Paroc has announced that Joakim Westerlund, aged 34, was appointed to the position of Senior Vice President for base production and as a member of the group's management team at the start of 2013. Westerlund has worked for Paroc since February 2008, working for its base division since the spring of 2012. He graduated as a doctor of Science in Technology from Åbo Akademi University in 2005.

"Westerlund is a genuine and skilful leader whom colleagues and subordinates respect, especially for his ability to motivate and inspire members of his team. Joakim is also known as an analytical and logical thinker whose strong strategic ability comes from thoroughly familiarising himself with issues. He brings an excellent addition to the Paroc Management Team," said Paroc Group CEO, Kari Lehtinen.

Finland: Paroc Group, a major supplier of insulation to the baltic market, has published its first sustainability report, which covers 2009 to 2011. The indicators presented in the report are tools for measuring and following Paroc's sustainable progress in all its production facilities in Finland, Sweden, Poland and Lithuania.

"Sustainability is a factor which strongly influences the development and renewal of our business because our products play a significant role in improving the energy efficiency of buildings," said Paroc Group's CEO, Kari Lehtinen. "We operate in an energy-intensive industry so the ecological efficiency and waste recyclability provide additional savings while minimising the burden on the environment and thus contributing to our common wellbeing."

Paroc considers its most important goals for the coming years to involve increasing the energy efficiency of its production facilities and reaching the occupational safety target of zero accidents by 2020.

At all of Paroc's production plants, processes operate according to the current regulations and standards. Beatrice Rantanen, Paroc Group's Sustainability Manager, emphasised that its production facilities in Finland and Sweden depend almost solely on green energy and that 75% of Paroc's waste is recycled.

"High-quality heat insulation is the most effective and inexpensive way to affect the energy efficiency of new buildings. The benefits will be emphasised even more when Europe shifts to zero-energy building by the year 2020," added Lehtinen.

Global Insulation recognised Paroc's attention to environmental effects in 2012, awarding the company the Global Insulation Company of the Year award at the Global Insulation Conference & Exhibition in Riga, Latvia in September 2012.

Finland/Lithuania: Paroc, which makes insulation materials, has given notice to 17 people in its financial administration departments at four locations in Finland. The company said that it will now concentrate its financial administration in Lithuania, where it will establish a service centre.

Paroc said that the move was not about looking for a country with cheaper labour, but about the need to concentrate employees in one location. Paroc operates in 13 countries and has manufacturing in Finland, Sweden, Lithuania and Poland.