Insulation industry news from Global Insulation

Australia: Kingspan Australia has opened an insulation plant at Somerton near Melbourne. The US$30m plant will manufacture rigid board insulation, including Kingspan Kooltherm a rigid thermoset phenolic insulation. The 14,000m² unit has created 26 new jobs and 24 additional jobs will be added as production increases. Following the opening of the plant Kingspan aims to export 20% of its production to the Asia Pacific region. This is expected to grow to 35% by 2020.

“The market for high-performance insulation is growing rapidly around the world in response to government policies aimed at making buildings more energy efficient. This facility gives Australia world leading technical capability in a sector that is experiencing significant sustained domestic and international growth,” said Gene Murtagh, the chief executive officer of Kingspan Group.

Architect Tone Wheeler designed the plant with a focus on environmentally sustainable design. It has a 750kW solar system designed into its roof structure which, when installed, will provide most of its daytime shift energy requirements. It also uses Kingspan lighting and insulation products to reduce energy requirements and optimise comfort for employees. Other sustainable features at the site include the use of sustainably sourced or manufactured building materials, the use of energy renewing ventilators and the use of rainwater harvesters for bathroom and landscape use. Kingspan says that the plant is on track to be Australia’s first Green Star-rated manufacturing facility.

France: Actis plans to invest Euro3m towards building a second production line of ‘alveolar’ insulation products at its plant in Limoux. The second line is scheduled to start production in 2018, according to La Tribune newspaper. The new production capacity is planned to allow expansion in Europe. The producer is also considering building an insulation plant in the UK. Actis’ alveolar products include Hybris, a hybrid product that uses a honeycomb structure polyethylene foams plies on metallised films.

Germany: Panattoni Europe has held the groundbreaking ceremony for a new roofing insulation plant in Heinsberg for Firestone Building Products. Panattoni Europe is responsible for the planning and implementation of the projecy and Goldbeck International has been commissioned as the general contractor for construction of the unit. The plant is scheduled to start production in the summer of 2018.

US: A fire reported at Owens Corning’s insulation plant in Newark, Ohio on 25 March 2017 is the latest in a series of such events at the site. The fire is believed to have started in the plant’s insulation system before spreading to a few rooms and the roof of a building, according to the Newark Advocate newspaper. It is the third significant fire at the site since 2013 following incidents in November 2013 and January 2014. Owens Corning has said that it takes the safety of its employees seriously and that it has taken ‘numerous’ actions to minimise the risk of fires at the plant.

UK: Knauf Insulation has entered into a long-term contract with Veolia to support the construction of a glass cullet-processing unit next to its insulation production plant in St Helens, Merseyside. The unit will be constructed and operated by Veolia on land owned by Knauf Insulation. It will provide recycled glass for use in Knauf’s insulation products. Veolia has invested Euro11.6m into the unit it plans to build by the end of 2017.

“We are delighted to be working with Veolia on this project, which perfectly aligns our goals for sustainability and the circular economy. Given recent shortages impacting the construction sector, our customers can be reassured that we are working proactively upstream to further enhance the security of our supply,” said John Sinfield, managing director at Knauf Insulation Northern Europe.

The new facility will dry and refine glass into a ‘furnace ready cullet’, a recycled standard of glass that has been cleaned and crushed into small fragments. The cullet is then fed into a furnace where it is melted and spun into glass mineral wool.

UK: Belgium’s Recticel plans to invest at least Euro20m towards increasing its production capacity by at least 50% of rigid polyurethane foam (PIR) panels for thermal insulation for the construction market. Start of production is planned for the third quarter of 2018. The polyurethane foam producer plans to take advantage of stricter insulation standards and regulations, higher energy prices and the growing market awareness for the product.

“This investment is consistent with the growth strategy of our Insulation business. It brings substantial additional production capacity to enable Recticel to continue to serve its customers in the United Kingdom and to grow with them,” said chief executive officer Olivier Chapelle.

Belgium: Ursa’s plant in Desselgem has gained ISO 140001 certification for the design, production and sales of glass wool insulation. The international standard specifies all the necessary requirements to establish an Environmental Management System, which will aid the environmental performance of the company. In addition the certification allows the company’s products to be sold more easily in the UK as they can now be readily specified in buildings being assessed under BREEAM, the Building Research Establishment Environmental Assessment Method.

Finland: Following negotiations with staff Paroc has decided to shut down its Oulu stone wool plant in July 2017. The closure will involve the transfer and centralisation of support functions currently in Oulu to other Paroc plants and locations. Production of building insulation will be moved mainly to the Paroc plant in Parainen and support functions will be moved to other Paroc locations. 64 members of staff will lose their jobs, including all of the production workers at Oulu, and five staff will be moved to other locations.

“The decision to shut down the factory was difficult due to the considerable impact it will have on the personnel. However, the utilisation rate of the current capacity of Finnish stone wool factories is too low to ensure competitive operations in Finland. The factory located in Oulu is old and, in addition to the already high cost structure, continuing operations would require significant investments in the near future,” says Kari Lehtinen, chief executive officer of Paroc Group.”

Denmark: Bjørn Høi Jensen, the chairman of Rockwool, has announced that he will not be standing for re-election at the company’s annual general meeting in April 2017. He said that as he had met his goals to review the management group, start a new growth plan and introduce an ‘extensive’ improvement in results that he was standing down earlier than planned. He originally became chairman in 2014.

Rockwool’s external net sales for its insulation division dropped by 2% to Euro1.63bn in 2016 from Euro1.66bn in 2015. In local currencies the company calculated a slight rise of 0.7% for its net sales. However, its overall profit nearly doubled to Euro166m from Euro90m and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 21% to Euro389m from Euro322m. It blamed the poor sales on the industrial and technical insulation industries and the slow development of construction in Russia in both new build and renovation. In a statement Jensen described 2016 as a year ‘marked by tough conditions.’

The insulation and building materials producer also announced that it was planning to build three new production plants including a stone wool factory in Mississippi, US. Land acquisitions for the projects are expected to be completed in 2017.

Thailand: Eastern Polymer Group is set to spend US$2.8m upgrading its Aeroflex insulation production lines with automation technology. The investment is part of a total of US$14.3m being spent by the company on cost efficiency, according to the Bangkok Post. It previously spent US$11m in 2015 towards improving production costs in order to increase its profit margin.
Deputy chief executive Challeo Vitoorapakorn said that, although Aeroflex demand had slowed over the past few years, the company is expecting the construction industry to grow in 2017.