Insulation industry news from Global Insulation

Russia: TechnoNicol plans to invest US$62.2m in the construction of two plants to produce insulation products in the Karaganda region of Russia. The company intends to invest US$48m in the construction of a 80,000t/yr capacity basalt insulation plant and US$13.1m in the construction of a 300,000m²/yr capacity extruded polystyrene insulation plant.

The two projects are to be implemented in 2014 - 2016 in the Saryarka special economic zone in Karaganda, creating a total of 285 jobs. The relevant memorandum has been signed by the governor of Karaganda Region Nurmukhambet Abdibekov and TechnoNicol's president Sergei Kolesnikov.

US: Unifrax Corp, a producer of ceramic fibre insulation materials, is getting 3.3MW of low-cost hydropower from the New York Power Authority for a pair of expansion projects in the Town of Tonawanda, New York. The work is expected to create 75 new jobs.

The low-cost electricity, about 40% below wholesale power prices, is in addition to US$1.4m in tax credits that the company could receive through the State’s Excelsior Jobs Programme and US$2.5m in tax breaks approved earlier in 2014 by the Erie County Industrial Development Agency.

In one project, Unifrax plans to spend US$18m to build and equip a new 76,000ft² manufacturing plant in the North Youngmann Commerce Centre, a business park next to its current operations. The IDA in August 2014 approved US$1.2m in tax breaks for the expansion project, which Unifrax will use to expand production of polycrystalline fibre that it currently produces in Japan. The company, which needs more capacity for that product, had considered options such as expanding the Japanese plant or building a new plant at one of its other sites before settling on the Tonawanda site. 

In July 2014 the IDA approved US$1.27m in tax breaks for a separate US$33m project in Tonawanda that involved acquiring facilities on Fire Tower Drive that the company already leased, as well as building a new facility there and installing machinery and equipment.

US: Unifrax Corp, a producer of ceramic fibre insulation materials, is getting 3.3MW of low-cost hydropower from the New York Power Authority for a pair of expansion projects in the Town of Tonawanda, New York. The work is expected to create 75 new jobs.

The low-cost electricity, about 40% below wholesale power prices, is in addition to US$1.4m in tax credits that the company could receive through the State’s Excelsior Jobs Programme and US$2.5m in tax breaks approved earlier in 2014 by the Erie County Industrial Development Agency.

In one project, Unifrax plans to spend US$18m to build and equip a new 76,000ft² manufacturing plant in the North Youngmann Commerce Centre, a business park next to its current operations. The IDA in August 2014 approved US$1.2m in tax breaks for the expansion project, which Unifrax will use to expand production of polycrystalline fibre that it currently produces in Japan. The company, which needs more capacity for that product, had considered options such as expanding the Japanese plant or building a new plant at one of its other sites before settling on the Tonawanda site. 

In July 2014 the IDA approved US$1.27m in tax breaks for a separate US$33m project in Tonawanda that involved acquiring facilities on Fire Tower Drive that the company already leased, as well as building a new facility there and installing machinery and equipment.

US: Less than a year after reopening a shuttered plant, Knauf Insulation has announced plans to double production at its Chambers County plant in Alabama, adding up to 100 new workers. The expansion, which should be complete by the middle of 2015, will make the 800,000ft² plant one of the largest insulation plants in the USA.

The US$30m expansion includes a significant upgrade in equipment, according to Joey Viselli, Knauf's vice president for corporate and public affairs. "When this expansion is through, the plant will produce more insulation than it has ever produced before," said Viselli.

Knauf shuttered the plant in 2010 in response to the collapse of the housing market. Company officials credited Alabama State with recruiting them to return when the market began to improve. Viselli said that the decision to expand was based on continued positive growth in the national economy, the growth of Knauf’s business and an inviting business culture in Alabama.

US: Owens Corning, a producer of fibreglass reinforcements for composite systems, is building a new advanced technology facility in Gastonia, North Carolina, that will help meet demand for bio-based products. The new, state-of-the-art equipment will add manufacturing flexibility to produce different widths of the company's new Sustaina® non-woven fibreglass fabric. This will enable more customers to use the product in their applications.

Sustaina surfacing and reinforcing glass non-wovens were introduced to the European market in June 2013. The Sustaina solution uses a bio-based binder system with high tensile strength performance and does not contain any formaldehyde. The new plant will be able to produce 4m widths of Sustaina fabric, rather than the narrower width currently produced on existing assets.

"Building a new site is a great opportunity for us to install the newest, most advanced manufacturing technology," said Steven Vermeulen, vice president and managing director, Engineered Solutions. "The line is designed to facilitate the highest level of quality and efficiency and the flexibility to produce the wider veil will help us to get better yields and reduce waste." Sustaina fabric is designed for use in residential and commercial building applications, like cushion vinyl flooring, ceiling backings and insulation facers. 

New Zealand: Fletcher Building will close its Christchurch insulation plant, as it consolidates its Tasman Insulations operations in a ‘highly competitive market.’ The proposal would see 29 Christchurch factory workers lose their jobs manufacturing Pink Batts insulation, while its Auckland factory will become a round-the-clock operation. Current Christchurch-based customer service, sales and warehousing roles will be unaffected, with two new jobs created, while nine further positions at the Auckland plant will be offered.

"Consolidation is in the best interest of our people and our customers," said Tim Richards, chief executive of building products. "We are operating in a highly competitive market, impacted by an increase in volume of imported product and a general reduction in demand for insulation following changes to EECA's home insulation programme in 2013."

US: Knauf Insulation will close a Mississippi plant it recently acquired because of the high cost to upgrade the facility. Knauf has announced that 110 employees at the plant in Mineral Wells, Mississippi, had been given notice that production would end at the site.

“In the two months since the acquisition of Guardian Insulation, we have conducted a detailed analysis of our new footprint,” Knauf Insulation North America CEO Mark Andrews said. “The analysis examined the investments required to upgrade and expand both the quality and quantity of product being manufactured in our facilities. Unfortunately, the results of this analysis have led us to make the difficult decision to close the Mineral Wells plant. This morning, we started sharing the news with Mineral Wells employees that we are ending all production at the plant today.”

According to Andrews, the main drivers were the structure and condition of the Mineral Wells facility. No reasonable amount of capital investment in the plant could bring it up to the expected standards. The closure will allow Knauf to invest in its remaining facilities. Andrews added that Knauf was committed to retaining and serving its customers out of its other plants.

US: Roxul Inc, part of Rockwool International, has opened its first US manufacturing facility near Byhalia, Mississippi. The 600,000ft², US$160m plant was first announced in 2012 and broke ground in May 2013. Production began on Roxul's stone wool insulation products in June 2014. The company will employ 150 people when it reaches full capacity.

"When conducting our site selection due diligence, it was clear the state of Mississippi and Marshall County provided us the optimal location from both a manufacturing and distribution standpoint," said Trent Ogilvie, Roxul's chairman and managing director. "The support that Roxul has received from the community and the state has been terrific. We couldn't have found a better place to call home."

Russia: TechnoNicol Corporation is expanding its insulation materials capacity at an existing plant in Yurga in the Kemerovo Region of southern Russia with investments totalling Euro18.6m. This includes the launch, which is due in 2015, of a new 200,000m³/yr XPS line. The line cost around Euro7.45m and will produce the company's full range of TechnoNicol XPS products. Its installation is set to meet growing demand for insulation products associated with major regional infrastructure projects, including the 29th Winter Universiade being held in Krasnoyarsk in 2019, as well as road construction and oil and gas industry infrastructure schemes.

In September 2014 TechnoNocil is due to complete another Euro9.4m investment at Yurga plant with the upgrade of its basalt wool insulation, leading to a 29% increase in output. Products from the plant will be targeted at Russian regions including western and eastern Siberia and the central Khanty-Mansiysk Autonomous region, as well as eastern Kazakhstan, north-western China and Mongolia, according to TechNicol's CEO Vladimir Markov.

Russia: Germany's Knauf has launched a new insulation materials plant in the Tyumen Region of the Urals Federal District in Russia at a total investment cost of US$83m. The installed capacity of the enterprise is 45,000t/yr. It will create 200 jobs.