Insulation industry news from Global Insulation

UK: Energy efficiency products group entu UK has reported a fall in its interim pre-tax profit amid weakness in insulation and solar power products, but said that it is on target to meet full year expectations, according to Dow Jones. Pre-tax profit for the six months fell to Euro5.42m from Euro7.99m in the same period of 2014, as revenues fell to Euro75.5m from Euro80m.

UK: Industry leaders have attacked the EU's decision to outlaw Britain's reduced 5% VAT rate on energy-saving products such as insulation and solar panels, calling it 'perverse' and 'hypocritical.'

The European Court of Justice recently ruled that Britain's longstanding reduced rate on the supply and installation of energy-saving products breached its VAT directive, which allows a reduced rate only in energy-saving products used in social housing projects, or as part of a social policy. It means millions of households could now have to pay the 20% rate when installing insulation, solar panels, wind turbines, controls for central heating and wood-fuelled boilers.

"The government will study the judgment carefully and consider next steps," said a government spokesperson.

Dave Snowden, chief executive of the Sustainable Energy Association, accused the EU Commission of 'the most astonishing hypocrisy' and said the ruling was 'perverse.' Snowden added that the EU's decision is, "Contrary to almost every principle and policy created to reduce consumers' energy consumption, cut emissions and help boost economic recovery across the EU."

John Sinfield, Northern Europe managing director for Knauf Insulation, called the ruling 'perverse' and 'nonsensical' and said it was a, "Contradiction where consumption of a valuable resource is rewarded and efficiency penalised."

Pedro Guertler, head of research at the Association for the Conservation of Energy, criticised the European Court of Justice for taking a 'very narrow interpretation' of the VAT directive and said the ruling meant that, "Everything will cost 14% more."

Richard Twinn, policy adviser at the UK Green Building Council, said that the ruling was 'ultimately bad news' for the UK. He added that the ruling would, "Push up the cost of ECO, reduce the measures that can be funded through the Green Deal and could deter people from installing solar PV and heat pumps."

"While it is true, as asserted by the UK, that a policy of housing improvement may produce social effects, the extension of the scope of the reduced rate of VAT to all residential property cannot be described as essentially social," said the European Court of Justice in a statement.

UK: According to Builders Merchant Journal, an open letter to prime minister David Cameron published in the Financial Times on 10 June 2015 warned that a failure to tackle climate change could put the economy at risk, while decisive action could create jobs and boost competitiveness. The letter was sent by 80 UK businesses, including Knauf Insulation, Rockwool, Baxi, Akzonobel and Worcester and Bosch.

The businesses have called on the new administration to:

• Seek a strong global climate deal in Paris in December 2015 that limits temperature rises to below 2°C;

• Set an ambitious 5th carbon budget covering 2028 – 2032 to drive forward UK emissions reductions;

• Establish a long-term framework for investment in the low-carbon economy, giving industry much-needed clarity over what is expected in terms of low-carbon development and boost the confidence of green investors.

"British business is ready to step up. From construction and energy to retail, the best British enterprises know that green growth is the future," said Worldwide Fund for Nature (WWF) UK chief executive David Nussbaum. "They take on board that it's no longer credible to base a sustainable economy on fossil fuels, so the government should put us on track for a low-carbon world. As we approach international climate talks, Britain should be a global champion for change, but a lack of consistent long-term policies sends a confusing message to business and undermines our attractiveness to investors. The prime minister should send a clear message that the only way forward is a green economy and support forward-looking firms that want to build a clean economy."

UK: Two Sika-Trocal projects were nominated in the single ply category of the NFRC UK Roofing Awards 2015.

At Lancaster and Morecambe College, a Fully Adhered Type SGK membrane was applied by MAC Roofing to re-cover an existing roof as part of a Euro20.6m redevelopment. For the second phase of the project, the renovation of a complex 3000m2 domed roof situated on required a high performance and flexible membrane. Due to the age of the building, the failing felt roof had failed to meet BREEAM requirements and expected U-values.

On a smaller scale, a new-build four bedroom house in Hammersmith, London incorporates a unique roofing solution. Designed to accommodate restrictions on the use of exterior windows in the perimeter wall, the roof included seven pyramids of varying sizes with a vaulted roof light in each section. With such a complex pyramid design, a neat finish around the edges was crucial. The mechanically fixed Sika-Trocal S system proved to be the optimum roofing solution for contractor Ithaca Roofing.

UK: Gloucester-based Advanced Insulation, which manufactures technical coatings and specialised passive fire protection and thermal insulation materials, has acquired Nottinghamshire-based Covertherm Limited, a manufacturer of insulation jackets. Covertherm's range of bespoke thermal insulation jacket and cover solutions will complement Advanced Insulation's range of flexible fire protection jackets.

"At a time when many manufacturers are looking abroad for low-cost production solutions, we're looking to reverse that trend. This acquisition will provide a UK manufacturing base for our ContraFlex range of passive fire insulation jackets, which will now be produced by Covertherm for the UK and export markets," said Advanced Insulation's managing director Andrew Bennion. "It is also an opportunity for Covertherm's own portfolio to be introduced to Advanced Insulation's other jacket manufacturing bases and we expect the company to grow significantly over the next 12 months."

The new UK manufacturing facility adds to already established production plants in the UAE, Kazakhstan and South Korea and will provide increased production capacity that will help to cope with the increasing demand for ContraFlex products.

UK: Two management buyouts (MBOs) at Synbra Group have resulted in the establishment of the UK's largest expanded polystyrene (EPS) producer.

With the financial backing of Mobeus Equity Partners, the management of Styropack and Jablite have successfully completed MBOs. The new company is owned by Richard Lee, the former CEO of Styropack, as well as Ken Hutchins, who now acts as finance director. The two other owners are Wayne Brown, who will oversee operations and Mobeus' John Colley, who has been named chairman.

The new owners have assured customers that business will proceed as usual, adding that they plan to further strengthen the two companies' market share in the future. "We are absolutely determined to grow our new company into a larger, thriving business whose products are always the first choice for insulation and packaging in the UK," said Lee. Styropack produces packaging solutions for the shipping, automotive, pharmaceutical, fishery and gardening segments, while Jablite specialises in the manufacture of EPS insulation.

US/UK/Germany: US-based RPM International Inc has announced that its German tremco illbruck Group has acquired Firetherm Intumescent & Insulation Supplies Ltd, the UK market leader in fire-stopping solutions for the construction industry. Based in Kent, England, Firetherm has annual net sales of approximately Euro6.61m. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.

Firetherm manufactures and supplies a broad range of fire-stopping products, intumescent coatings and fire-rated sealants and fibreboards. They are primarily sold to specialist fire-stopping contractors, general contractors and home-builders.

"Firetherm, with its high degree of fire-stopping technical expertise, is a good strategic fit with our tremco illbruck Group and its existing Nullifire intumescent coatings business. The acquisition expands tremco illbruck's product range and capabilities for fire-stopping products and propels it to the leading position for passive fire protection in the UK," said Frank C Sullivan, RPM chairman and CEO. "We expect to grow Firetherm in the UK and internationally by leveraging its products across the tremco illbruck distribution network."

Ireland: Kingspan has reported a rise in its full year pre-tax profit as strength in the UK and North America lifted its revenue. The pre-tax profit in 2014 rose to Euro128m from Euro102m in 2013. Its 2014 revenue rose to Euro1.9bn, up from Euro1.8bn in 2013.

UK: Kingspan Group has agreed with Ergon Capital Partners II NV and Bremhove NV to acquire Steel Partners NV, a holding company of the Joris Ide Group. Joris Ide is a pan-European manufacturer and supplier of insulated panels, profiles and related accessories, with leading market positions in France, Belgium, the Netherlands and Luxembourg.

The acquisition will cost Euro315m, inclusive of debt. It will be satisfied on completion partly in cash and by the assumption of debt, with the balance of the consideration satisfied by the issue of three million shares in Kingspan Group to Bremhove NV, which is the holding company of the founder and major shareholder Joris Ide.

UK: Following a successful pilot launch during 2014, Dow Building Solutions has announced the commercial roll-out of XENERGY^TM, a brand new, flame-retarded, XPS roof insulation product. In a departure from the blue STYROFOAM^TM boards that the company is widely known for, the XENERGY^TM boards manufactured by Dow Building Solutions' King's Lynn production site in Norfolk County, will be steel grey in colour.

Dow, the inventor of STYROFOAM, has developed XENERGY to achieve a significantly improved λ insulation performance and to deliver a global warming potential (GWP) of less than five. Through combining a manufacturing process which uses CO₂ as the blowing agent and adding infra-red blocking particles to scatter and reflect heat radiation within the foam board, λ values have been increased by 11%.

XENERGY SL, the first XENERGY product available in the UK, is designed to offer highly moisture-resistant flat roof insulation at thinner thicknesses than conventional XPS alternatives. XENERGY SL offers 4mW thermal conductivity gains in various thicknesses.

"The UK is leading the way with the commercial roll-out of XENERGY, a product that has numerous benefits, including significantly improved thermal performance," said Chris Gimson, head of commercial at Dow Building Solutions. "It signifies a new era for the business and demonstrates our commitment to formulating and manufacturing the highest standard insulation materials."