Insulation industry news from Global Insulation

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."

UK: Veolia UK has introduced a new technology that it claims will transform non-recyclable paper and cardboard from household waste into a pulp called Pro-Fibre. The material can then be used in a range of products such as insulation and construction materials.

According to Veolia, the UK recycles about 815Mt/yr of recovered fibre, about 70% of the paper generated in the country. However, many different types of paper are rejected from recycling facilities because they have been contaminated with glass, sand, plastic, metal, food or grease. The contaminated paper has traditionally been sent to landfill or energy recovery facilities.

With its new system, Veolia will be able to convert the material into a recyclable material. It is investing Euro1.27m into the new technology at its facility in Sheffield, England, which will be able to treat up to 20,000Mt/yr and produce up to 14,000Mt/yr of Pro-Fibre. The process includes identifying and capturing the non-recyclable fibre fragments, pulping, cleaning, screening and a mechanical pressing stage.

The Pro-Fibre process includes five steps that will enable the removal contaminants to create a pulp that can replace virgin materials currently used in the construction and packaging industry, including insulation materials and biodegradable pots. Veolia is working with a specialist partner from the paper industry, which will analyse the properties of the Pro-Fibre so the companies can determine the product's commercial potential. The first batch of pulp is expected to be produced in early 2015. According to Veolia, Pro-Fibre can be manufactured either wet or dry and is suitable for businesses looking for a cost-effective and sustainable feedstock.

UK/Canada: Kingspan Group has announced that it will buy the building products division of Vicwest Inc for US$136m in cash, inclusive of debt and reorganisation costs.

Kingspan said that the acquisition will be structured as the purchase by Kingspan of Vicwest and the simultaneous transfer of the Westeel business and assets to Ag Growth International. The total estimated consideration payable is US$333m, of which Kingspan will fund US$137m and AGI will fund US$196m. The acquisition of the building products business will be funded from Kingspan's existing credit facilities.

The division being bought comprises three insulation panel production plants and a number of profiling facilities across Canada and the US. Revenues for the year that ended 31 December 2013 were US$224m and pro forma earnings before interest, taxes, depreciation and amortisation (EBITDA) was US$11.7m. The unit had gross assets of US$111m at 30 June 2014.