Insulation industry news from Global Insulation

UK: Doug Robertson will retire as Group Financial Director and from the board of SIG in the first quarter of 2017. He will be succeeded by Nick Maddock, currently Chief Financial Officer at McCarthy & Stone. Precise dates will be announced once determined. Robertson has worked at SIG since 2011.

UK: Knauf Insulation has developed a new robust detail for aircrete blocks, which has been included within the latest edition of the Robust Detail handbook. The new detail E-WM-30 comprises two leaves of 100mm aircrete blocks, with a 100mm cavity that has been fully filled with the blown mineral wool insulation Supafil Party Wall. It is the first Robust Detail for aircrete blocks, with a blown retrofit solution that negates the need for a wet parge coat. Only a plasterboard lining is required. The detail will also achieve three points in the Health and Wellbeing section of Code for Sustainable Homes assessments.

“We are always striving to develop cost-effective solutions for our customers to make their life easier and this new robust detail is no different. We have developed this detail without a parge coat to deliver greater process efficiencies, and it offers high levels of acoustic and thermal performance, which can satisfy the requirements of the building regulations for a zero U-value party wall,” said Stephen Wise, Glass Product Manager at Knauf Insulation.

Aircrete is a lightweight aerated concrete material that provides thermal performance and is primarily used for the inner skin of external walls. The Robust Details scheme is the alternative to pre-completion sound testing for satisfying Part E of the Building Regulations in the UK.

UK: TechnoNicol intends invest up to Euro5.9m to double the production capacity to at least 55,000t/yr at Superglass’ mineral wool plant in Stirling. The upgrade will involve building a new furnace at the site to come online by 2020, according to the Scottish Herald. The investment is intended to boost the insulation producer’s sales in markets in the UK and western Europe. The decision follows shareholder approval of TechnoNicol’s purchase of Superglass.

UK: Kingspan’s sales revenue has risen by 19% year-on-year to Euro1.47bn in the first half of 2016 from Euro1.24bn in the same period in 2015. Its net profit rose by 83% to Euro126m from Euro82.4m. The insulation and building products manufacturer attributed the result to increased market penetration and growth though new acquisitions.

“These results reflect our strongest ever six month performance, underpinned by solid organic growth and a robust contribution from the Joris Ide and Vicwest businesses acquired last year. The expansion in profit margin has helped deliver a 50% increase in trading profit and, with good order intake momentum in the second quarter continuing into the current trading period, we expect a solid performance in the second half,” said Gene Murtagh, Chief Executive of Kingspan.

The company’s sales revenue from insulated panels rose by 26% to Euro950m from Euro753m, supported by sales in mainland Europe. Sales revenue from insulated boards rose by 9% to Euro947m from Euro319m driven by the UK

UK: SIG’s revenue has risen by 11% year-on-year to Euro1.61bn for the first half of 2016 from Euro1.45bn in the same period in 2015. Its operating profit rose by 37% to Euro53.8m from Euro39.3m. The insulation producer attributed the increase in sales revenue on acquisitions and foreign exchange effects.

“The group delivered a solid first half performance with good progress on its Strategic Initiatives offsetting the twin pressures of variable trading conditions, particularly in Mainland Europe, and a competitive market environment,” said Stuart Mitchell, Chief Executive. He added that the company had observed a slowing of UK construction market activity following the country’s decision to leave the European Union. However, SIG’s risk to Brexit should be minimised as its mainly buys and sells its products within each country.

UK: Knauf Insulation plans to spend Euro5m to upgrade its mineral wool plant in Queensferry in Flintshire, Wales. The investment will deliver thermal and mechanical improvements, along with an increased portfolio of insulation solutions. It will also support the group’s Ecose Technology binder product.

“We are especially pleased to announce this investment at Queensferry, given the uncertainty many other businesses and investors currently face. That uncertainty applies to wider concerns around the impact of Brexit on economic activity, but also to key sectors we service such as the construction industry, UK energy and energy efficiency businesses,” said John Sinfield, Managing Director at Knauf Insulation Northern Europe. “This decision demonstrates that a drive on energy efficiency will deliver greater energy security, increased UK economic competiveness and help address environmental commitments. We would hope that the new government, and especially the new Department for Business, Energy and Industrial Strategy, considers these outcomes when exploring what its new strategy is to be.”

Knauf Insulation acquired sole ownership of its UK business in 2002. It has since invested Euro179m at its UK plants.

UK: Sergei Kolesnikov, president of construction materials producer TekhnoNicol, will acquire Superglass. Kolesnikov has made an offer of US$11.49m for the Scottish glass mineral wool insulation producer via his company Inflection based in Cyprus. The board of directors of Superglass unilaterally recommended approving the purchase proposal. The shareholders who own 63.5% in Superglass have already submitted irrevocable obligations to sell their stakes.

"This transaction and the commercial partnership between Superglass and TekhnoNicol, is a strategic opportunity for all parties, providing TekhnoNicol, with a presence in the UK and Irish insulation markets. We are impressed with Superglass' management team and look forward to working with them," said Sergei Kolesnikov, the sole shareholder of Inflection.

UK: Ken Munro, the chief executive officer of Superglass, has been appointed the chairman of the Mineral Wool Insulation Manufacturers’ Association (MIMA). He replaces David Travill, managing director of Isover Saint Gobain, in the role.

“I would like to thank David for his leadership and contribution, and I am pleased to be assuming the chair at such a critically important time for energy efficiency policy. Investment in the fabric of our homes and in their energy efficiency is good for the economy, increases productivity and attracts investment,” said Munro. “In Scotland, our government has already committed to making the energy efficiency of our homes an infrastructure priority and is supported by the influential Energy & Climate Change Committee, led by Scottish National Party Chair, Angus MacNeil. This is an encouraging position but we would like to see this realised across the United Kingdom.”

Sarah Kostense-Winterton, executive director of MIMA, added that the organisation aims to protect consumers from energy price volatility and from fuel poverty, whilst reducing the UK’s carbon emissions.

UK: Kingspan Insulation will launch four low lambda insulation products for floors, walls and soffits on 1 August 2016.

Kingspan Kooltherm K103 Floorboard, K110 and K110 PLUS Soffit Board and K118 Insulated Plasterboard feature a fibre-free insulation core, enabling them to achieve a thermal conductivity of 0.018W/m.K. The launch of the new products follows the release earlier in 2016 of Kingspan Kooltherm K106 and K108 Cavity Board.

All Kooltherm, Therma and KoolDuct insulation products and cavity closers manufactured at Kingspan Insulation’s facilities in Pembridge and Selby are certified to BES 6001 (Framework Standard for the Responsible Sourcing of Construction Products) ‘Excellent’.

UK: Superglass has appointed Stuart Rowell as its business development director. He will take responsibility for all domestic sales and exports, marketing and commercial strategy, according to the Herald newspaper. Rowell joins Superglass from the Positive Momentum consultancy.