Insulation industry news from Global Insulation

France: The National Union of Polyurethane producers (SNPU) says that the market is returning to normal following a shortage of methylene diphenyl diisocyanate (MDI) in 2017. Prices of polyurethane insulation panels rose due to the lack of MDI, according to the Le Moniteur trade newspaper. The SNPU added that the market had stabilised since the start of 2018.

US: Israel Chemicals Limited (ICL) is preparing a new flame retardant for use in rigid polyurethane foams. Executives at ICL made the announcement at the Polyurethanes Technical Conference in New Orleans, according to ICIS. VeriQuel R100 is a non-halogenated reactive flame retardant intended to replace tris (chloroisopropyl) phosphate (TCPP) in case of any changes to existing government regulations. The new product will be targeted at building and construction applications.

US: Stepan’s Polymer division sales volumes fell by 7% year-on-year in the second quarter of 2017. This was due to lower phthalic anhydride (PA) and global rigid polyol volumes, although it was partially offset by higher Specialty Polyol volumes. The division’s sales revenue rose by 8% to US$268m in the first half of 2017 from US$248m in the same period in 2016. However, its operating income fell by 20% to US42.7m from US$53.1m due to rising costs and falling volumes.

"The second quarter adjusted net income exceeded prior year as the company continued to benefit from our diversification strategy, increased productivity and improved margins within our Surfactants and Specialty businesses. Rising raw material costs and increased competitive pressure contributed to a disappointing quarter for our Polymer business. The global market for rigid polyols continues to be strong," said F Quinn Stepan, Jr, chairman, president and chief executive officer (CEO).

The company produces aromatic polyester polyols for use in rigid polyisocyanurate and polyurethane foams that are used in insulation and other products.

UK: The British Rigid Urethane Foam Manufacturers’ Association (BRUFA) has warned against ‘misleading’ claims being made in relation to the Grenfell Tower fire ahead of a government investigation. In a statement the body for the rigid polyisocyanurate (PIR) and polyurethane (PUR) Insulation Industry in the UK said it would challenge and correct any misleading allegations about the incident and provide information to assist an ‘accurate’ analysis. It added that the PIR and PUR insulation industry is an established and responsible one with a usage of over 50 years in the construction sector.

“We have a growing concern that misleading claims, supported by selective data are gaining traction and being reported as facts. If this supposition takes hold before the enquiry has established the truth of the matter, there is a danger it will lead to the wrong conclusions and decisions, that will do nothing to improve the future safety of buildings, including high-rise tower blocks. It may also lead to behavioural changes that could be detrimental to the future welfare of the built environment,” said BRUFA.

The UK government has appointed Martin Moore-Bick, a former judge, to head the public inquiry into the fire. As well as investigating the incident, the inquiry is expected to recommend changes to national building regulations.

Finland: Recticel plans to build a new Euro23m polyurethane (PUR) foam insulation board plant. Production at the site is scheduled to start in the second half of 2018. The site will manufacture thermal insulation products for sale in Finland, Norway, Sweden, Denmark and the Baltic countries

“This investment is an additional step in the execution of the growth strategy of our Insulation business. It offers an attractive expansion in the Nordic region, which is a growing market for high performance insulation materials,” said Olivier Chapelle the company’s chief executive officer (CEO).

Russia: EuroChem, a fertilizer producer, and China’s ChemChina have signed a memorandum at the 2017 St Petersburg International Economic Forum on the creation of a joint venture to produce chemical industrial products including isocyanates, a precursor of spray polyurethane foam insulation. The cost of the project is estimated to be US$500m, according to the Tass News Agency. The joint venture will also produce propylene oxides for the use in the development of synthetic lubricants.

The companies plan to start the collaboration by forming a working group to further evaluate the technical possibilities of the project and will carry out a financial and legal examination of the project. Once complete the first project will be an upgrade to EuroChem’s Novomoskovskiy Azot plant in the Tula region. Products from the plant will be targeted at the Russian market.

US: Lapolla Industries has launched a new version of its Foam-Lok 500 spray polyurethane foam insulation product. The updated version has passed the AC 377 End Use Configuration Criteria and the producer says it meets the building code requirements for use with no additional ignition barrier required. The open cell insulation is being marketed for use in sealing the building envelope in both residential and commercial applications.

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.

US: Armacell has acquired the insulation business of Nomaco, a manufacturer of extruded polyethylene (PE) insulation foam products. The acquisition of the Yukon, Oklahoma-based manufacturing facility will strengthen Armacell’s domestic production capacity and regional distribution network. No purchase price has been disclosed.

“The expansion of our manufacturing footprint into Oklahoma increases our distribution power and service levels in the Midwest and the West. Our customers will benefit both from a broader product portfolio as well as from stronger technical support,” said Patrick Mathieu, president and chief executive officer of Armacell International.

Ukraine: The interdepartmental commission on international trade has temporarily introduced special import duties on flexible porous slabs, blocks and sheets made of polyurethane foam classified for three years. The tariff follows an investigation started in July 2015, according to Interfax. The investigation concluded that an increase of polyurethane foam goods imported to the country at below local market prices took place in 2013 and 2014.