Insulation industry news from Global Insulation

World: Market research firm Future Market Insights (FMI) has forecast a composite annual growth rate of 6% in the global polyisocyanurate (PIR) insulation market up to 2033. This will result in 81% decade-on-decade growth to US$25.6bn in 2033. FMI noted technical developments affecting the use of customised PIR boards in the prefabricated construction as a main driver of the growth. Nationally, the market will have a CAGR of 8% in China, 7% in India, 6% in the UK, 5% in Canada and 4% in Germany.

FMI said “In the rapidly changing world of PIR insulation, innovation and sustainability have emerged as dynamic forces reshaping the industry’s trajectory. The market is going through a fundamental shift, moving beyond its traditional role of providing insulation and into uncharted territory where cutting-edge technologies are poised to redefine its boundaries.”

UK: Saint-Gobain subsidiary Isover has installed water meters and monitoring technologies at its Runcorn insulation plant in Cheshire. The initiative aims to reduce the plant’s consumption of water by 30ML/yr, 30% of its use in 2030.

Plant sustainability champion Matt Hill said “Reducing water consumption in our production processes is central to our sustainability journey at Isover. Through investments such as these, we’re not only reducing our environmental impact but also demonstrating our unwavering commitment to building a more sustainable future." He added "By 2023, we had reduced our total water withdrawal by 22% compared to 2017, and thanks to these continuing improvements, we have already further reduced this by more than 20% in 2024 compared to 2023."

UK: Zotefoams has raised its sales by 14% year-on-year in the first four months of 2023. The company increased its insulation sales by 57% and its high-performance products sales by 46%.

CEO David Stirling will step down from his position in Zotefoams on 22 May 2024, when Ronan Cox will replace him.

UK: Knauf Insulation UK & Ireland is preparing to build a €200m rock mineral wool plant to supply the UK market. The company is currently discussing with the authorities where the plant will be situated. The unit will have a production capacity of over 100,000t/yr and will use low-carbon electric melting technology. It is anticipated the additional capacity will become available in 2026.

Neil Hargreaves, Knauf Insulation’s Managing Director for Northern Europe, said "Following the €50m investment across our two UK glass mineral wool plants in 2023 - 2024, this represents another exciting development for the business and our valued customers, as well as a further sign of confidence from Knauf Group in the future growth of the UK and Northern European mineral wool markets. The investment represents a step change in the capacity, capability, and sustainability of our UK rock mineral wool solutions, whilst significantly contributing towards Knauf Group’s ambitious sustainability goals."

UK: Only 18% of UK housing stock conforms with standards set in 2002, according to a study by utilities provider EDF and property data company Sprift. This represents a rise from 7.5% in the previous study conducted in May 2022. 41% of homes fail to meet standards set later than 1976, down from 60% in May 2022. The average ‘insulation age’ of UK housing is 41 years old, 11% younger than the age of 46 years old recorded in the previous study.

UK: SIG says that its full-year sales dropped by 2% year-on-year in 2023. Reuters has reported that the company nonetheless expects to record an underlying operating profit in the upper half of its forecast for the year. It said that restructuring and productivity initiatives carried out in the second half of 2023 saved an anticipated Euro11.6m. SIG expects ‘soft’ market conditions to continue in 2024.

UK: Recticel says that new requirements following the UK’s exit from the EU have created estimated extra one-time costs of Euro464,000. Local press has reported that UK-based laboratory testing is estimated to cost Euro325,000 across eight products, while new fire tests for the same products will add a further Euro130,000.

Senior technical manager Simon Blackham said “It’s the same standards, to the same test method, the same everything - and it would have to be paid for, ultimately, by the customer.”

UK: France-based waterproofing and insulation group Soprema has agreed to acquire a 75% stake in Celotex. Dow Jones Institutional News has reported that Celotex is presently a subsidiary of Soprema’s fellow France-based conglomerate Saint-Gobain. After completion of the deal in early 2024, Saint-Gobain says that it will retain a 25% stake in Celotex.

Celotex controls the Ipswich polyisocyanurate (PIR) insulation plant in Suffolk.

UK: SIG recorded US$1.81bn in sales in the first half of 2023, up by 5% year-on-year from US$1.73bn in the first half of 2022. The group noted a decline in its sales volumes, partly offset by positive tailwinds from cost inflation in the comparison period. Its profit after tax declined by 70% to US$5.98m from US$20.2m.

CEO Gavin Slark said “Our performance in the first half of 2023 reflects the challenging market conditions we are currently facing, with the group’s like-for-like revenue growth flat year-on-year. Despite these conditions, I’m very pleased with the progress we are making on many fronts to improve the business notably with the initiatives across our operating companies to improve our ability to drive higher levels of profitable growth when market conditions recover." Slark continued “Looking ahead, while we expect market conditions in the second half of 2023 to remain difficult, we remain confident the business will grasp the opportunities it has to continue to improve its underlying operational performance. This will, in turn, deliver higher levels of profitability as we drive towards our medium-term margin target of 5%. The group is financially and commercially well placed to drive meaningful shareholder value in the medium and long term.”

UK: Testing provider the Building Research Establishment (BRE) has informed Kingspan and Saint-Gobain subsidiary Celotex of its decision to break off its relationship with them due to perceived 'reputational risk.' Insulation supplied by Kingspan (Kooltherm K15 phenolic insulation) and Celotex (RS5000 polyisocyanurate insulation) was present in Grenfell Tower, London, when it burned down in June 2017. 72 people died in the fire. Both producers deny having contributed to the disaster. The Grenfell Tower Inquiry investigated the relationship between each company and the BRE during its inquest into the fire. A final report is currently in preparation following the conclusion of Phase 2 hearings in 2022.

The Grenfell Tower Inquiry heard that Kingspan had marketed its Kooltherm K15 panels for general use in high rise construction, relying on tests carried out at a BRE facility with a system involving external fibre cement panels, of a sort not used in Grenfell Tower. Subsequent tests of the product, carried out by Kingspan, included one which resulted in a 'raging inferno.' Meanwhile, Celotex added fire-resistant board to a rig used in testing in 2014, reportedly to increase its products' chances of passing.

Inside Housing News has reported that BRE said “BRE no longer accepts any new work on behalf of Kingspan or Celotex following evidence heard during the course of this inquiry.”

Kingspan clarified that "There is no product performance basis for [BRE's] decision,” adding that its panels had shown zero non-conformities in their most recent audit in December 2022. It said “Independently of BRE, whose certification is regionally focused on the UK and Ireland, Kingspan is certified by the globally recognised insurer testing regime FM Approvals, which carries out annual factory surveillance audits to verify our products comply with its global approval standards."