Insulation industry news from Global Insulation

UK: Leeson Polyurethanes’ adhesive and coatings plant in Leamington Spa, Warwickshire caught fire following a series of explosions on the morning of 27 August 2021. Worcester News has reported that one person known to have been working in the plant at the time remains unaccounted for on 31 August 2021. Emergency services extinguished the blaze but have been unable to enter the site so far. The smoke cloud from the fire was visible over 60km away. It resulted in an evacuation of neighbouring residential streets.

Ireland: Xtratherm has agreed to acquire Ballytherm’s Ireland and UK operations. The businesses include one polyisocyanurate (PIR) insulation plant in Ballyconnell, County Cavan and a new production unit that the company is preparing to open at Ross-on-Wye in the UK. The expansion is intended to expand the operations of Unilin Insulation, the owner of Xtratherm, in the UK and Ireland.

Barry Rafferty, the managing director of Xtratherm, said “The acquisition of Ballytherm, along with additional investment in new technologies will allow Xtratherm to deliver on operational excellence, new product innovations and improved service that will contribute towards a stronger and more sustainable future for our employees, customers and the construction sector in the UK and Ireland.” At present Xtratherm operates two foam insulation plants in Ireland and the UK respectively.

The proposed acquisition will be subject to the approval of competition authorities in Ireland. The transaction is expected to complete by the end of 2021.

UK: The Construction Leadership Council and Department for Business, Energy and Industrial Strategy have named Knauf Insulation UK & Ireland a ‘Business Champion’ under the CO₂nstruct Zero building industry decarbonisation transition initiative. The status signifies demonstrated leadership in promoting best practice to reduce construction’s carbon footprint.

Northern Europe regional managing director Neil Hargreaves said “Net zero is a colossal challenge, and to achieve it will require unprecedented collaboration. As the biggest supplier of insulation into newbuild homes in the UK and the nation’s only manufacturer of both glass and stone Wool, we have an important role to play.” He added “We look forward to working with our partners across the supply chain to create a built environment that’s fit for the future. Improved insulation will be at the heart of UK construction’s efforts to decarbonise.”

Ireland/UK: Knauf Insulation has launched a new packaging including new designs across the whole range, an upgrade to its compression technology and more environmentally-friendly packaging.

The new packaging designs feature bigger and clearer product names. Products are colour-coded into thermal conductivity groups consistent across the whole glass mineral wool range, and essential features such as the Euroclass A1 reaction to fire classification and Ecose Technology, Knauf Insulation’s unique bio-based binder, are more easily identifiable. The Earthwool brand has been phased out to simplify the branding structure, and a new brand, Rocksilk, has been introduced for its rock mineral wool product range. The insulation producer says that a further upgrade of the compression technology on the glass mineral wool range enables, on average, 15% more insulation per roll and 25% more packs on each pallet for slabs.

“We’ve listened to our customers, but we have also been proactive, trying to pre-empt future needs,” said Vanessa Rae, Marketing Director at Knauf Insulation Northern Europe. “We know how important it is to choose the right product for the application quickly, and move and store it efficiently, whether in-branch or on-site. We also know that sustainability matters more than ever, so we’ve taken these steps to reduce our products’ carbon footprint further so customers can rely on us to help them tick the green boxes for their projects.”

UK: YBS Insulation has received a loan worth Euro290,000. The producer plans to use the funds to realise planned growth. It plans to upgrade and increase capacity at its reflective insulation plant in Derbyshire. The Midland Investment Fund and East & South East Midlands Debt Finance Fund provided the loan.

UK: AMA Research has recorded a 16% year-on-year decline in UK insulation demand to Euro1.62bn in 2020 from Euro1.93bn in 2019. The researcher forecast a 3% year-on-year decline in 2021 to Euro1.57m. It said the demand would not recover 2019 levels before 2025. In the three years after 2021, the predicted annual growth rate is 4 - 6%.

UK: Insulation distributor Galaxy Insulation & Dry Lining has opened a new depot in North Shields, Tyne and Wear. Business Desk has reported that the company selected the location for the 3440m² to better serve customers in the North East of England. It currently employs 225 people across its eight locations in South Yorkshire, West Yorkshire, Merseyside, West Midlands, Bedfordshire and Greater London. Stephen Mann will direct operations at the new facility.

Managing director Tracy Shepherd said, “We have always wanted a presence in the North East but knew it was vital to have a local team with the right experience and understanding of what customers in the area expect. We are certain we now have the right team, led by Stephen, to deliver the competitiveness, expertise and service that the businesses in the area deserve.” He added, “Our model is to keep things as simple as possible so the team on the ground have everything they need to provide the best customer service possible.”

UK: The Construction Products Association and the Builders Merchants Federation have raised the issue of low short-term availability of polyurethane (PUR) and polyisocyanurate (PIR) insulation. The associations attributed the shortages to the effects of ‘historically’ high raw materials costs on production. These it said resulted from high international demand for raw materials and finished products and challenges as a result of the Covid-19 pandemic.

The associations expect PUR and PIR availability to improve in the third quarter of 2021. They said that long-term demand growth was set to continue, in part due to the government’s 2050 net zero carbon target.

UK: Avonside Group has appointed Bill Rumble as the managing director of its energy division. He first became the unit’s divisional director following the group’s acquisition of BillSaveUK. The company said that he had led a restructuring and refocusing of the operation resulting in a profitable and scalable business with industry leading levels of quality and service. Avonside Energy, the energy division of Avonside Group, suppliers insulation products to housebuilders in the UK.

Rumble holds a degree in manufacturing and engineering from the University of Nottingham followed by an apprenticeship with the Ministry of Defence. He held posts at the Ford, Aston Martin and Mark Group before setting up BillSaveUK in 2016.

UK: SIG recorded full-year sales of Euro2.1bn in 2020, down by 13% year-on-year on a like-for-like basis. In the fourth quarter of 2020, sales rose by 5% in the EU, by 2% in the UK and by 4% overall. The group said that this reflects the initial impact of its Return to Growth strategy. The strategy has delivered increased organic sales, supported by ‘robust demand’ in the Repair, Maintenance and Improvement segment. The company noted France and the UK as robust markets within the segment. It said that profitability improved throughout the second half of 2020, with ‘solid’ performance in the EU. Estimated full-year costs were Euro25m.

The group said “Whilst the evolving Covid-19 backdrop will continue to create uncertainty in the short term, the fundamentals of the group’s markets remain sound and the strong recovery in demand across territories and sectors through the second half was encouraging. Providing there is no material disruption to either our business or end markets as a result of the pandemic, the board expects the near-term benefits of the actions taken in 2020 to deliver organic revenue growth in 2021, including market share gains. The benefits of this will become increasingly evident as the year progresses and should enable us to return to underlying operating profitability during the second half.”