Insulation industry news from Global Insulation

France: Saint-Gobain says it has been preparing continuity plans for its gas-consuming insulation plants in Europe to ensure the flexibility of production to operate using less energy or that from alternative sources. Over half of its 25 insulation plants in Europe have an electricity-powered furnace and additional investments are being undertaken to use alternative power sources. The group noted that raw materials, freight and energy costs were growing, especially in Europe. It said that it had hedged around 80% of its natural gas and electricity purchasing needs for 2022 and around 60% for 2023.

The group’s sales grow by 14.5% on a like-for-like basis to Euro38.4bn in the first nine months of 2022 compared to Euro32.9bn in the same period in 2021. Strong sales growth was reported in all business lines although sales were driven in particular by the group’s High Performance Solutions business and its Asia-Pacific and North America regions.

By business segment the group said that businesses serving global construction customers in its High Performance Solutions division reported record sales. It added that they continued to benefit from strong trends in textile solutions for external thermal insulation systems (ETICS) due to demand for sustainable construction.

France: Saint-Gobain subsidiary Isover has begun construction of a prototype glass wool recycling plant in Chemillé-en-Anjou. Contractor Eiffage Génie Civil is executing the project, which is scheduled for commissioning in 2023.

Isover France and Switzerland technical director Jérôme Saulnier saud "The realisation of this revolutionary industrial prototype with fusion by immersed burners will make it possible to recycle glass wool in industrial quantities, transforming it into cullet. This cullet will be used in the manufacturing process of our insulating products and will also reduce our energy consumption, our carbon emissions and improve the life cycle of our products."

France: Saint-Gobain’s sales were Euro25.5bn in the first half of 2022, up by 15% year-on-year from the same period in 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 13% to Euro3.68bn. Sales rose by 15% in Northern Europe, by 14% in Southern Europe, Middle East and Africa, by 17% in the Americas and by 30% in Asia-Pacific. The producer ends the period with a net debt of Euro8.3bn, up by 9.2% from Euro7.6bn.

Chief executive officer (CEO) Benoit Bazin said, “Over the coming quarters, we are ready to adapt as needed to the consequences of rising interest rates and inflation along with the geopolitical and energy situation in Europe. Each country CEO has designed action plans, focusing especially on margins and cash flow. In this more uncertain environment, our target is to continue to outperform our markets and our deep transformation will enable us to demonstrate greater resilience. Over the past three years, our teams have successfully risen to the challenges of the coronavirus pandemic, supply chain disruptions and a strong inflationary environment. With portfolio rotation of almost Euro10bn in sales since the end of 2018, and with a local organisation keenly aware of immediate realities on the ground, Saint-Gobain has significantly increased its value creation. Against this backdrop, I am confident in the group’s 2022 outlook, which targets a further increase in operating income compared to 2021 at constant exchange rates.”

Germany: Saint-Gobain has appointed Danijel Lučić as the head of sales for its Germany-based subsidiaries Saint-Gobain Isover G+H and Rigips. He succeeds Dirk Borgmann, who has decided to leave the company. Lučić will take up his new positions from July 2022.

Lučić has worked for nearly 30 years with Saint-Gobain Group with much of it in the insulation sector. This has included roles with Saint-Gobain HES and Superglass Dämmstoffe.

US: ADFORS Americas, a Saint-Gobain subsidiary, plans to invest US$28m in expanding its Dublin, Georgia, glass wool products plant. Dow Jones Institutional Newswires has reported that the facility serves Saint-Gobain’s glass wool insulation production. Once completed in 2024, the expansion will create 400 new local roles in serving the plant’s operations.

The Georgia state government has contributed US$12m in tax credits towards the project’s funding.

US: Saint-Gobain plans to spend US$32m towards to upgrade to CertainTeed’s Chowchilla glasswool plant in California. The investment is part of a US$400m expansion package planned for four US plants previously announced in November 2021. The upgrade work at Chowchilla will include the addition of a new furnace and other equipment that will use less natural gas and electricity. It is the largest investment in the site since its creation in 1978. Saint-Gobain Group estimates that these improvements will reduce CO₂ emissions by 4000t/yr at the site.

France: Isover plans to spend Euro120m on increasing the production capacity of its existing production lines and building a new line by 2025. The subsidiary of Saint-Gobain says the move will add over 70,000t/yr to its glass wool production capacity. The move is in response to “very strong demand driven by energy renovation.”

Euro20m of the planned investment will be targeted at decarbonising production and developing the circular economy. Isover intends to install a treatment unit for deconstruction waste to be reincorporated into the production process as a substitute for virgin raw materials. It also wants to increase in the proportion of recycled glass used in the production process to 80% by 2025.

Isover operates three glass wool plants in France, at Chalonsur-Saône, Chemillé and Orange respectively.

France: Saint-Gobain’s sales grew by 15.8% year-on-year to Euro44.2bn in 2021 from Euro38.1bn in 2020. Its earnings before taxation, interest, depreciation and amortisation (EBTIDA) rose by 41% to Euro6.20bn from Euro4.42bn. Sales and earnings increased by 4% and 27% compared to 2019 levels before the coronavirus pandemic started. Sales revenue and operation income was reported up in all geographical regions.

“The records achieved in 2021 confirm that the group has entered a new post-transformation trajectory in terms of performance: market-beating sales growth, record earnings and margins, a high level of free cash flow generation that has more than doubled compared to previous years, and strong value creation for our shareholders thanks to strict capital allocation and the determined execution of our portfolio optimisation,” said Benoit Bazin, the chief executive officer of Saint-Gobain.

The group completed or signed 37 acquisitions in 2021, including Chryso and GCP Applied Technologies (GCP), marking its rapid expansion into the construction chemicals market. In India the group announced it was buying stone wool producer Rockwool India in December 2021. The acquisition is expected to be completed by the end of the first quarter of 2022.

Saint-Gobain also reported that an ongoing investigation by the French competition authority into the building insulation productions market has reached the appeal stage. The group says that allegations of anti-competitive behaviour from 2001 to 2013 were dismissed in 2021, but that competitor insulation producer Actis appealed the decision and Saint-Gobain issued incidental appeals. The next hearing is expected by the end of 2022.

In relation to the ongoing public inquiry into the Grenfell Tower fire that took place in London, UK in 2017 the group said, “The extent to which Celotex may incur civil or criminal liability in connection with the production, marketing, supply or use of its products is currently unclear and Celotex and Saint-Gobain Construction Products UK are currently unable to make a reliable estimate of their potential liability in this respect.” Public hearings are anticipated to continue into mid-2022 with a final report to follow thereafter.

US: CertainTeed and parent company Saint-Gobain North America have joined the US Department of Energy’s Better Climate Challenge initiative. The platform is intended to encourage companies and organisations to reduce their portfolio-wide greenhouse gas emissions by 25% or more over the next decade. Saint-Gobain’s new global Grow and Impact strategy includes a goal of reducing the company’s global carbon emissions by 33% by 2030.

US: CertainTeed plans to invest US$32m in a capacity-expanding upgrade to its Chowchilla, California, glass wool insulation plant. The producer will install a new furnace, kiln and oxygen generation unit at the facility. It says that the upgrade will increase the plant’s capacity by 13% and reduce its carbon footprint by 4000t/yr.