Insulation industry news from Global Insulation

US: Stepan has acquired Invista’s aromatic polyester polyol business and associated assets. The business produces polyols for use in polyurethane (PUR) and polyisocyanurate (PIR) foam insulation. It operates two production sites, at Wilmington, North Carolina, US and at Vlissingen in Zeeland in the Netherlands. Its annual sales are US$100m. Stepan plans to finance the acquisition with cash on hand and expects it to be accretive to its 2021 earnings before interest, taxation, depreciation and amortisation (EBITDA) margins.

Chair and chief executive officer Quinn Stepan said, "We are excited to add Invista's polyester polyol capabilities to Stepan. This acquisition expands our manufacturing capability in both the US and Europe, enhances our business continuity capabilities for the market and supports the growth of our global rigid polyol business. We expect that Invista's available spare capacity, plus debottlenecking opportunities in both plants, will allow Stepan to support market growth in a capital efficient way. We believe the long-term prospects for rigid polyol use in insulation remain strong as energy conservation efforts and more stringent building codes should continue to drive market growth. Additionally, we believe the acquired technology will accelerate our product leadership initiatives, drive manufacturing efficiencies and output, and create increased value for the overall market. We look forward to providing the highest level of service to our new customers and are excited to add the new employees and the two new sites to our global polyester polyol manufacturing network."

US: Stepan has appointed Scott Behrens to the roles of president and chief operating officer (COO) with effect from January 2021.

Behrens began working for Stepan in 1995 as a senior product development chemist. He has held managerial roles since 1998 and gained a Master of Business Administration (MBA) from Northwestern University in 2003. He also holds a Bachelor of Science (BSc) degree from Illinois State University.

US: Stepan has recorded a first-half income before tax of US$63.4m, up by 15% year-on-year from US$55.2m in the first half of 2020. Net sales were US$910m, down by 5.4% year-on-year from US$962m. Polymer sales, which includes sales of Stepan’s rigid foam insulation polyols, fell by 20% to US$112m from US$141m due to lower North American and European demand, “reflecting Covid-19 construction project delays,” according to the company. This was partly offset by increased sales volumes of 41% from its China division.

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.

US: The board of directors of Stepan Company has unanimously appointed F Quinn Stepan, Jr, the company's president and CEO and a director, to succeed F Quinn Stepan as chairman. Stepan, Jr will assume the role upon his father’s retirement on 31 December 2016. Stepan, Sr has served as chairman since 1984, and previously served as CEO of the company from November 1984 to December 2005. The company also announced that Edward J Wehmer will serve as lead independent director, effective upon Stepan Sr's retirement.

Poland: Stepan Company has completed the relocation of its European R&D and Technical Service centre to new laboratories in Wroclaw. The expanded facilities will serve Stepan's business in insulation foams as well as the diverse Coatings Adhesives Sealants and Elastomers (CASE) business. In addition to providing increased space for its growing team of scientists, the expanded facilities include a wide range of test and production equipment to support Stepan's customers with innovation and technical development projects.

The specialist and intermediary chemical production company also confirmed that the expansion of its polyester polyol facility in Brzeg Dolny will be completed in mid-2016, with the addition of a new reactor. The new asset is required to support Stepan's growth in the CASE business for its European customers.

"The completion of this expansion to our facilities in Poland marks a significant milestone in our growth story within the European polyester polyol industry. Commitment to these plans by Stepan is an endorsement of our growth strategy,” said Roger Stubbs, Vice President, Polymers Europe.

US: Stepan plans to sell its speciality polyurethanes business to J6 Polymers. In 2014, the business generated sales of US$2.8bn. Stepan expects to make US$2.5 - 2.8m from the deal.
The sale includes intellectual property, formulations and production units, as well as client and supplier lists. Stepan makes polyurethanes at its plant in Millsdale, Illinois. It also uses custom manufacturers. Stepan will continue making polyurethanes on J6 Polymers' behalf at its Millsdale plant during the transition period. Stepan's polyurethanes are used in thermal insulation, coatings, adhesives, insulation materials and elastomers.