Insulation industry news from Global Insulation

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.

UK: Michael Gove, the Secretary of State for Housing, Communities and Local Government, has told parliament that the government intends to make building materials producers and developers pay to fix all fire-safety issues at high-rise buildings. In a statement Gove said, “We will make industry pay to fix all of the remaining problems and help to cover the range of costs facing leaseholders. Those who manufactured combustible cladding and insulation, many of whom have made vast profits even at the height of the pandemic, must pay now instead of leaseholders.” Flat owners in buildings over 11m tall will no longer be forced to pay for their own repairs under the proposed plans, according to the Times newspaper. Manufacturers and developers face a potential Euro4.8bn bill for the remedial work.

India: France-based Saint-Gobain has agreed to buy Rockwool India from Alghanim Group for an undisclosed amount. The acquisition will see Saint-Gobain enter the insulation sector directly in the country adding to its existing presence in the gypsum, glass and construction chemical sectors. The deal is subject to the completion of conditions set out in the agreement and approvals from the relevant authorities. It is expected to be completed in first quarter of 2022.

Rockwool India is a manufacturer of stone wool in India with a wide range of insulation products for thermal, acoustic and fire safety applications. It is also a licensee of Saint-Gobain technology for the manufacture of stone wool in the country. The company operates two production plants, one in Hyderabad and another in Silvassa, with a total capacity of around 50,000t/yr. Saint-Gobain also said that it has a ‘strong’ marketing network across the country.

Germany: CertainTeed plans to build a 312kW solar power plant at its Berlin insulation centre. Construction is set to begin in 2022. Along with a similar project in its US plastic operations in Wayne, New Jersey, US, the plant’s construction aligns with the aims of parent company Saint-Gobain’s newly announced Grow and Impact sustainable expansion strategy.

CertainTeed CEO Mark Rayfield said “The new solar projects at our sites in Berlin and Wayne will reduce our company’s energy costs at these locations and support the broader transition to renewable, zero-carbon sources of power.”

US: Saint-Gobain plans to invest a total of US$400m in expansions to its operations including insulation operations at four US sites. The group says that the sites are located in California and the Southeastern US. It said that the new capacities will apply the most advanced available technologies for industrial performance, safety and sustainability. This will reduce waste by 50% and CO2 emissions by 20% from current levels, according to the company.

Saint-Gobain said it hopes that the investments will strengthen its leadership in North America and accelerate its growth in the region by enriching its comprehensive range of solutions for light and sustainable construction.

Romania: France-based Saint-Gobain has completed its acquisition of adhesives and construction chemicals producer Duraviz for an undisclosed sum.

The group said that the acquisition will enable it to expand its interior and exterior finishing product range. Saint-Gobain employs 1800 people at 12 sites in Romania.

France: Saint-Gobain’s sales grew by 24.6% year-on-year to Euro22.1bn in the first half of 2021 from Euro17.8m in the same period in 2020. Earnings before interest, taxation, depreciation and amortisation (EBITDA) nearly doubled to Euro3.25bn from Euro1.64bn. Both sales and earnings were also higher than the comparable period in 2019.

“These first-half 2021 record results surpass even our second-half 2020 performance. This success reflects the profound positive changes in our organisation from Transform & Grow,” said Benoit Bazin, chief executive officer of Saint-Gobain. “It also reflects structural changes in our markets, which should show an acceleration in growth over the coming years.”

The group added that it had integrated its Strikolith subsidiary into the main business. It acquired the Netherlands-based exterior insulation systems producer in late 2020.