Insulation industry news from Global Insulation

Russia: TechnoNICOL has installed a new glass furnace and polymerisation chamber at its Serpukhov glass wool plant in Moscow Oblast. AK&M News has reported that that the upgrade will expand the plant’s glass wool capacity to just under 2Mm³/yr and enable it to produce a total of 300 different types of insulation. TechnoNICOL is investing US$18m in the project, which uses equipment from Russian suppliers and is intended to reduce the sanctioned nation’s reliance on imports.

Russia: TechnoNICOL has announced plans for a third stone wool insulation plant in the eastern Krai of Khabarovsk. The plant will have a production capacity of 400,000m³/yr of stone wool, and will produce thermal and acoustic insulation and technical insulation, including stone wool substrates for use in hydroponic plant cultivation. Together with an on-going upgrade to an existing stone wool insulation plant at the site, the project will cost US$37.6m, AK&M News has reported. Pre-design construction, land leasing and procurement of ‘key equipment’ for the new plant are currently underway, with commissioning scheduled for late 2026. TechnoNICOL then expects to complete the upgrade to the existing plant in 2027.

Russia: Knauf is seeking to transfer its ‘entire business in Russia’ to its local management, pending the approval of Russian authorities. The Kyiv Independent newspaper has reported that Knauf elected for the transfer in order to protect the jobs of 4000 employees in the country.

Germany/Ukraine: The Würzburg Prosecutor's Office has opened a preliminary investigation into Knauf over its alleged involvement in the on-going reconstruction of Russian-occupied Mariupol. The investigation will seek to establish whether an ‘initial suspicion’ of criminal activity exists. Germany-based media outlet ARD published its allegation of Knauf’s involvement in the reconstruction via the use of its materials earlier in April 2024.

The producer denied the allegations, adding that it complies with relevant laws and sanctions.

Russia/Kazakhstan: TechnoNICOL plans to invest US$109m in capital expenditure (CAPEX) in Russia and Kazakhstan throughout 2024. The sum is triple TechnoNICOL’s 2023 CAPEX, according to the company. US$27.3m will go towards two projects in Kazakhstan: the completion of the upcoming Almaty insulation plant, scheduled for September 2024, and the start of construction of the upcoming Karaganda insulation plant. The remainder of the sum will fund other projects, including the construction of the upcoming Rostov insulation plant and an expansion to the Chelyabinsk insulation plant, both in Russia.

Belgium: Etex reported sales of €3.81bn in 2023, up by 2.5% from 2022 levels. The company's recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) rose by 10% to €712m. It also raised its capital expenditure for the year, to €371m. Etex used 47% recycled polystyrene in its operations throughout the year. In mid-2023, Etex exited Russia through the sale of two URSA insulation sites. The group is also ‘actively preparing’ to help rebuild Ukraine as soon as conditions permit.

CEO Bernard Delvaux said “Even more so than 2022, 2023 was a challenging year marked by volatility, uncertainty and severe drops in demand across the world, as we observed the continued impacts of increased energy prices and interest rates. Combined with tougher financing possibilities by banks, all these circumstances meant that both renovation and new construction levels dropped globally. Devaluation of some foreign currencies and hyperinflation accounting also had significant effects on our results. Despite all these challenges, I am extremely proud to share that Etex navigated these difficult waters very well and delivered yet again another record year. This includes our highest ever revenue and REBITDA, among others. This strong performance stems from our anticipation in making strategic decisions and changes at global, regional and local levels, ensuring continued proximity with our customers. This is also a result of even tighter cost monitoring in 2023, without ever losing sight of our long-term ambitions and continuing to improve our strong industrial footprint.”

Russia: Denmark-based Rockwool addressed the reasoning behind its decision to keep its Russian business operating, in light of the on-going Russian invasion of Ukraine since February 2022. Rockwool's Russian subsidiary continues to operate four stone wool insulation plants, without receiving any investments or supplies from the parent company. Esmerk M-Brain News has reported that Rockwool described itself as a 'passive shareholder' in the business.

Speaking at Rockwool's annual general meeting, chair Thomas Kähler said that the group's continuing ownership of its activities in Russia is the group’s 'least bad option.' Addressing the purported possibility of nationalisation of any assets abandoned by Rockwool, Kähler reportedly added "It will not benefit Ukraine to send value in the amount of between US$722m and US$877m into the hands of Russia."

In February 2023, The Danish Business Authority announced an investigation into Rockwool's alleged supply of its products to the Russian military, in breach of existing sanctions, between 2015 and 2020. The agency confirmed its launch of its investigation in a statement to Reuters. In a statement of its own, Rockwool said "We fully respect all sanctions applicable at any given time," adding that it is 'impossible for us to know or have any control over' the final destinations of its products.

Kazakhstan/Russia: The government of Kazakhstan says that it now expects Germany-based Knauf Group to relocate its Russian business to Kazakhstan. It says that this is due to the on-going Russian invasion of Ukraine, which initially led Knauf to freeze investments in the sanctioned state and suspend its trade between it and the EU from March 2022.

Deutsche Welle News has reported that Knauf Group ‘did not confirm’ the Kazakh government’s contention. In defending its decision to so far remain in Russia, Knauf Group’s chair Alexander Knauf said “It’s not about money for us, it’s about 4000 employees. Loyalty to these people means to me that I won’t send them off into an uncertain future.” Russia reportedly contributed 10% of the group's turnover in 2022.

Russia: TechnoNicol expects to commission its upgraded Khabarovsk stone wool insulation plant later in 2023. Local press has reported that the on-going upgrade involves replacement of the plant's rock melting furnaces and fibreisation chambers. When commissioned, the upgraded plant will produce insulation using a biopolymer bonding agent. The producer expects to export its products to the Japan and South Korea markets.

Belarus/Russia: US-based Owens Corning has agreed to sell its Belarusian and Russian assets to materials and technologies company Umatex. Umatex is a subsidiary of Russian state-owned nuclear power provider Rosatom. World Service Wire News has reported that the assets in question include the Gus-Khrustalny glasswool plant in Vladimir Oblast and the Tver mineral wool insulation plant in Tver Oblast, both in Russia.

Owens Corning chair and CEO Brian Chambers said "This announcement represents the final step in our process to fully exit our operations in Russia. I would like to thank our colleagues in Russia for their contributions to our company and customers over the years."