Insulation industry news from Global Insulation

UK: The shareholders of SIG have voted against the reappointment of Deloitte as auditor for the insulation materials producer. The board said that it took its shareholders’ views ‘extremely seriously’ and that it will find a new auditor as soon as practically possible. The shareholder discontent follows the discovery that the company’s profits were overstated in 2016.

In a trading statement covering the first four months of 2018, the company revealed that its sales fell slightly by 0.3%. Sales revenue fell by 4.4% year-on-year in the UK and Ireland due to poor weather in February and March. European sales rose by 3.8% due to good performance in Germany, the Benelux region and Poland.

UK: Celotex says that a rainscreen cladding system using its RS5000 polyisocyanurate foam (PIR) insulation board product has passed the BS 8414:2 safety test. The insulation producer previously announced in January 2018 that it had found errors between a previous test and the description of the system in the report of the test. It added that the rainscreen cladding system conformed to the BR 135 fire test. It is now notifying the relevant bodies and is contacting its customers about results of this latest test.

Celotex suspended supply of RS5000 PIR insulation board in June 2017 following its use as part of the rainscreen cladding system in the refurbishment of Grenfell Tower. The building had a fire in June 2017 that killed 71 people. The suspension remains in place.

UK: Knauf Insulation has appointed Luke Davies as product manager to lead the development of its rock mineral wool range. He joins from architectural aluminium manufacturer Kawneer and brings product marketing experience in sectors including construction, retail and technology.

UK: A leaked report by the by fire investigation specialists BRE Global has blamed a poor cladding refurbishment on a lethal fire at the Grenfell Tower in London on 14 June 2017. The document, leaked to the Evening Standard newspaper, found multiple deficiencies in the installation of the windows, cavity barriers and cladding system, and their failure to meet building regulations.

The report described insulation used in the refurbishment as ‘combustible’ and said that it provided a medium for the fire to, ‘spread up, across and within sections of the façade.’ BRE noted that the 75mm insulation foam used on most of the spandrel beams had, ‘no markings to identify the manufacturer of the foam.’ The Evening Standard says that 100mm Celotex foam insulation was also used in the columns but that the BRE report does not further distinguish between the two types.

71 people were killed in the fire that took place on 14 June 2017. The draft BRE report was submitted to the Metropolitan Police Service as part of its investigation.

UK: Knauf Insulation and Veolia have officially opened a Euro11m glass-recycling unit at Knauf’s St Helens mineral wool plant. The unit will be able to recycle over 60,000t/yr of used glass that will then be used as a glass cullet source for glass mineral wool production.

"We have been using recycled glass in our manufacturing process for some time already. As well as securing our glass supply, the quality and consistency that we are getting now from the new facility will enable us to increase further the percentage of glass cullet we use in the manufacture of our glass mineral wool insulation solutions, taking us one step further in our sustainability journey,” said John Sinfield, Managing Director at Knauf Insulation Northern Europe.

Veolia's unit sorts and separates glass to produce pure glass cullet. Machinery at the unit includes vibrating screens for size sorting, magnets to extract ferrous materials and eddy current separators for non-ferrous materials. The new facility enables Knauf Insulation to secure its glass supply and maximise the use of recycled materials instead of using virgin minerals. The closeness of the new unit to the St Helens plant is also expected to save around 600,000km of road journeys. Glass mineral wool products from the plant contain up to 80% recycled materials, the vast majority of which now comes from the glass cullet supplied by Veolia. The new recycling unit has also created 18 jobs.

Ireland: Kingspan Group’s revenue grew in 2017 due to strong European sales despite a ‘weakening’ UK market. Its revenue rose by 18% year-on-year to 3.67bn in 2017 from Euro3.12bn in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 9.3% to Euro442m from Euro404m. Sales of both insulation boards and panels grew.

“We have continued our globalisation strategy with several significant acquisitions, including establishing a market leading presence in Latin America. Our new Light & Air division is performing ahead of expectations and expanding the range of product solutions the business offers. The challenge of increased input costs has been effectively managed to minimise the impact on profit margins. Notwithstanding the weakening UK market our well diversified business is well placed for the longer term,” said Gene M Murtagh, the chief executive of Kingspan.

UK: Celotex has found errors in a safety test for its RS5000 polyisocyanurate foam (PIR) insulation board product that was used as part of the rainscreen cladding system in the refurbishment of Grenfell Tower. As part of a review of the product the company has determined that there were differences between the system as tested for BS 8414:2 and the description of that system in the report of the test. The BS 8414:2 safety test was originally conducted prior to the RS5000 product being launched.

The insulation producer is exploring whether any safety issues arise from the differences in the test. It says it has notified the relevant bodies and is contacting its customers.

“It is a matter of real regret for us that this issue has arisen: we fully recognise its potential seriousness and that it will give rise to concern. We are working hard to arrange the further testing as quickly as possible and we will make a further announcement once the results of that testing are available,” said Celotex in a statement.

Celotex suspended supply of RS5000 PIR insulation board in June 2017 following a fire at Grenfell Tower in London that killed 71 people.

UK: SIG has suspended a ‘number of individuals’ from its staff following the discovery of an intentional effort to overstate the company’s profit in 2016. The discovery followed allegations by a whistle-blower concerning financial irregularities whereby the group’s profit was overstated by up to Euro4.2m in 2016. The affected financial statements will be restated following an audit by Deloitte and KPMG.

According to the Daily Telegraph newspaper, the discrepancies relate to work carried out in 2016 under previous chief executive officer (CEO) Stuart Mitchell. He resigned in November 2016 by ‘mutual agreement’. The group’s former finance director, Doug Robertson, retired in early 2017.

UK: SIG’s revenue from continued operations rose by 7.5% on a like-for-like basis to Euro3.2bn in 2017. This was supported by a rise in the group’s Insulation & Interiors revenue in the UK, bolstered by rising prices. Reviving construction markets in Europe also aided performance. The group will announce its full financial results in March 2018.

UK: Russia’s TechnoNicol is to spend Euro42m towards upgrading its mineral wool plant in Stirling operated by Superglass. The investment will double the plant’s production capacity to 60,000t/yr. The upgrade work will include installing a new 187t furnace and curing ovens. Cooling, cutting and milling equipment will be replaced and an automatic packing system will be installed. Construction will start early in 2018.

“TechnoNicol’s backing is a real vote of confidence in Scottish manufacturing, both in terms of the quality of the work we do here and the expertise of the workforce. It is a validation of our strategy within Superglass over recent years and very personally satisfying for me to see further consolidation of the initial investment at our regional headquarters,” said Ken Munro, chief executive officer (CEO) of TechnoNicol UK, Ireland and USA which incorporates the Superglass business.

TechnoNicol operates 52 manufacturing facilities across Russia and Europe.