Insulation industry news from Global Insulation

US: Roxul, a subsidiary of Denmark-based Rockwool International, has officially broken ground on its US$160m, 183,000m²/yr mineral wool plant in Byhalia, Mississippi. The facility, which was announced in June 2012, will create 150 jobs when it is completed in 2014. The location will be Roxul's first plant outside of Canada.

"Rockwool and Roxul are delighted to be locating and constructing our first United States plant and believe that this will enable us to meet the growing demand for our stone wool insulation product," said president of Roxul, Trent Ogilvie in a statement. He added that the company had analysed several possible sites in the south-eastern US before selecting Byhalia.

Turkey: Austrian insulation producer Austrotherm has said that its second insulation plant in Turkey will go into operation at the beginning of April 2013. Austrotherm has invested Euro4m in the project.

The new plant is located in Turgutlu, near Izmir and will be focused on the production of grey thermally insulated curtail panels from expanded polystyrene and rigid foams. The new plant will employ 40 workers.

Austrotherm saw its sales rise by 8% to Euro245m in 2012. Austrotherm's foreign sales grew stronger than those on the domestic Austrian market in 2012, according to its CEO Peter Schmid.

China: Danish insulation maker Rockwool International has announced that its board of directors have approved a plan to construct a plant in China costing around Euro110m. The new plant will be constructed in Tianjin, approximately 150km from Beijing in northern China. The plant is expected to be ready by the end of 2014 and will have a capacity of more than 120,000t/yr of mineral wool insulation.

"We have seen a good sales development since we acquired the Australian company CSR's insulation activities in southern China in 2010," said Rockwool division managing director for East Division Theo Kooij. "So far the majority of our sales have gone to industrial insulation. With the new plant in the northern part of China we can now target the promising market for building insulation, which has the potential to become the biggest in the world over time. High-rise buildings, where fire safety is a serious concern, stand out as a promising segment for our non-combustible insulation. The national and regional authorities in China are now expressing a high interest in improving the fire safety of insulated buildings."

In 2011, sales in Asia accounted for 5% of the total group sales for Rockwool and this share is expected to grow in the coming years. China is the group's biggest single Asian market.

Malaysia: PGF Insulation, a Penang based glass wool manufacturer, has completed its two phase plant upgrade. Starting in 2010, the plant has undergone a plant upgrade that involved changing its curing oven, fiberising technology, melting furnace and adding a new production line. The upgraded plant has a capacity of 20,000t/yr.

PGF says that the increased capacity is needed to cater for the expected growth in Asia Pacific, the Indian subcontinent and the Middle East due to increased awareness of energy efficiency and of the benefits of mineral wool insulation.

Other than the traditional building application, the plant is also able to mass produce superior quality glass wool for Vacuum Insulation Panels.

Egypt: GlassRock Insulation Company, part of regional mining platform Ascom, has reported the successful completion of the commissioning phase of its new production line for glass wool. The new production line will produce 20,000t/yr of glass wool increasing the plant's total production to 50,000t/yr, of which 30,000t/yr is mineral wool.

"We are exceptionally proud to be manufacturing these strategic insulation materials, which can be used as both residential thermal insulation and as acoustic insulation. Our products can help to significantly reduce the impact of the energy crisis that Egypt is currently facing," said chief executive officer Bechir Dardour. According to Dardour the glass wool insulation that will be produced in GlassRock's Sadat City Free Zone plant is being manufactured principally with local materials.

In September 2012 GlassRock announced the launch of its first mineral wool production line. The company is now targeting exports to key markets in Europe, North Africa, the Gulf Cooperation Countries and Turkey.

Latvia: JSC 'Valmieras stikla šķiedra' (VSS), a glass fibre manufacturer based in Valmiera, is expected to complete a US$8.38m expansion by December 2012. The new third one-stage glass furnace at the site is intended to decrease energy usage by 40% and increase production by 50%

"This investment enables us to continue to reduce the inefficient two-stage glass fibre production process or the 'glass marble technology', leaving glass marbles in the past," said VSS chief executive officer A.O. Brutāns. The project has been co-financed by the Latvian Investment and Development Agency which provided US$1.82m.

VSS, which was founded in 1959, produces glass fibre and derived products. The company exports 96% of its production to 32 countries for use in dielectric, sound and thermal insulation. It employs 850 personnel at present.

US/Denmark: The board of directors at Denmark's Rockwool have approved a plan to establish the group's first production facility in the United States. The new plant will be constructed in Marshall County, Mississippi, approximately 50km from Memphis, Tennessee. Subject to the successful completion of due diligence in the coming months, the plant is expected to be ready in 2014 and will, when reaching full capacity, be able to deliver more than 100,000t/yr of stone wool insulation. The investment is expected to total around Euro125m.

Commenting on the expansion, Rockwool CEO Eelco van Heel said, "We have seen strong interest from big DIY chains to offer our products to their customers. The unique thermal, acoustic and fire safe qualities of our stone wool insulation are appreciated by their customers. With this new plant in the southern part of the US, we are happy to expand our geographical coverage to new regions of the continent where we are currently not present. The additional capacity will also support our strong growth in other key insulation markets such as commercial buildings, flat roofs and industrial applications".

Rockwool has seen good sales growth in North America in recent years despite the otherwise troubled US construction sector. To date the US market has been serviced from the group's two factories in Canada. In 2011 sales in North America accounted for 8% of total group sales. This share is expected to grow in the coming years.

Russia: Denmark's Rockwool has opened a US$150m plant producing insulating materials in the Alabuga Special Economic Zone in Tatarstan. A second production line may be added to double capacity. The economic zone now has six plants from a variety of companies.

Eelco van Heel, Rockwool president and CEO, said at the opening ceremony that this was the group's biggest plant in the world with a capacity of 110,000t/yr, and its biggest investment in a new plant. Its products will supply the Volga region, Urals, Siberia and Kazakhstan. Russian Economic Development Minister Elvira Nabiullina said at the ceremony, "We aim to reduce the energy-output ratio of GDP to 40% by 2020 and that means using energy-saving technologies." Heat consumption is currently high in Russia - it takes roughly three times more energy per cubic meter to heat buildings in Russia than in Scandinavia, which has a comparable climate.

US: Dow Chemical Company, the world's second-largest chemical producer, plans to close four plants producing Styrofoam. Dow Chemical will close plants that make the insulation material in Portugal, Hungary and the US state of Illinois and it will idle a Styrofoam facility in the Netherlands.

The decision comes as part of a cost saving exercise, including a cut of 900 jobs and a US$350m restructuring charge, to counter weakness in the European construction market and exit a loss-making business in Brazil. The moves are aimed at saving US$250m/yr.

Dow Chemical had cut production during the final quarter of 2011 to levels not seen since early 2009. It cited concerns about ebbing demand in Europe and the outlook in China during a recovery that Chief Executive Andrew Liveris described as 'jagged'. The job cuts represent around 1.7% of Dow's global work force. The effort is part of a broader streamlining program unveiled by the chemical giant in 2011.

Uzbekistan: The Uzbek Metallurgical Plant, based in Bekabad in eastern Uzbekistan, has announced that it will start production of insulation materials by 2014.

The company has started a feasibility study of a US$12m project, which will allow the production of thermal insulating materials, such as mineral wool, mats, and plates. The estimated capacity of the plant will be 10,000t/yr. One of the basalt deposits in the Tashkent region will serve as a raw material base for the new production facility.

The production of thermal insulation is included in a list of investment projects approved by Uzbek President Islam Karimov. According to a representative of the plant, a tender for the purchase of the necessary equipment will be announced in the second half of 2012. The project will be financed through the plant's own funds worth US$3m and loans from Uzbek banks worth US$9m.