Insulation industry news from Global Insulation

US: Huntsman’s polyurethane business has contributed to its growing revenue and earnings so far in 2018. Its revenue grew by 18% year-on-year to US$4.7bn in the first half of 2018 from US$3.99bn in the same period in 2017. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 47% to US$820m from US$559m.

“Our polyurethanes business continues its growth in variants and systems and enjoys the back drop of good supply and demand fundamentals, foreseeable for the long term,” said Peter R Huntsman, chairman, president and chief executive officer (CEO). Prices and sales volumes rose year-on-year in the second quarter of 2018.

In late July 2018 the chemicals producer announced that its Polyurethane division was setting up a new subsidiary in Chile based in Santiago. The new company, Huntsman (Chile), will operate from a local warehouse and a customer service centre. It joins existing operations in Cartagena and Bogotá in Colombia, São Paulo and Taboão da Serra in Brazil and Buenos Aires in Argentina.

China: An investigation by non-government agency the Environmental Investigation Agency (EIA) has found that trichlorofluoromethane (CFC-11) is being widely used as a blowing agent in the rigid polyurethane (PU) foam insulation sector. The EIA contacted 25 precursor or foam producers and found that 18 of these plants were using CFC-11 in 10 different provinces.

In May 2018 the journal Nature revealed that CFC-11 emissions had increased by around 25% since 2012 despite reported production being close to zero in 2006. CFC-11, other chlorofluorocarbons (CFCs) and substances that damage the Ozone Layer were banned under the Montreal Protocol from 2010.

The EIA speculates that widespread use of CFC-11 by Chinese PU foam producers may be the source of the reported rise of emissions. It estimates that up to 3500 small and medium sized companies could have switched to using CFC-11 following a reduction in the supply of HCFC-141b, an alternative blowing agent, and lax enforcement of the ban on CFC-11. One company representative the EIA spoke to said that HCFC-141b was US$150/t more expensive than CFC-11.

“This is an environmental crime on a massive scale. How the Montreal Protocol addresses this issue will determine whether it continues to merit its reputation as the world’s most effective environmental treaty,” said Climate Campaign Leader Clare Perry.

The EIA has released its report ahead of the Open-Ended Working Group of the Montreal Protocol meeting in Vienna in mid July 2018.

France: Two workers have been seriously injured by an explosion at Soprema’s Saint-Julien-du-Sault polyurethane insulation plant in Yonne. A third worker was also injured in the accident, according to Le Monde newspaper. An external company was carrying out work at the site when the incident occurred. Sparks from a grinder are believed to have caused a holding tank to explode.

Belgium: Europur, the European association for polyurethane (PU) foam producers, has welcomed six new members to its organisation so far in 2018. Flexible PU foam producers Yataş from Turkey and Lusocolchao from Portugal have joined the association. Suppliers to the industry Mol Group, Lonza, Schill and Seilacher and Chemfoam have also become members.

US: Cal Dooley, the president and chief executive officer of the American Chemistry Council (ACC), has warned that a proposed Chinese response to US-imposed tariffs on imports of Chinese steel and aluminium could have negative implications for US exports of products including polyethylene.

“China is one of the US chemical industry’s most important trading partners, importing 11%, or US$3.2bn, of all US plastic resins in 2017. We are particularly concerned that 40% of the products to which China has assigned new tariffs are chemicals, including polyethylene, PVC, polycarbonates, acrylates, and others,” said Dooley in a statement. He added that nearly US$185bn in new chemical factories, expansions and restarts of facilities around the US are predicated on current tariff schedules, and market shifts caused by tariff increases may convince investors to do business elsewhere. He ‘strongly’ urged the US and China to reach an agreement.

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).