Insulation industry news from Global Insulation

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.”

UK/Ireland: Kingspan UK head of insulation boards Peter Wilson will retire from the company at the end of 2020. Wilson will also step down from his position on the producer’s board of directors.

Chief executive officer (CEO) Gene Murtagh has also apologised for ‘process shortcomings’ that have been highlighted by the ongoing Grenfell Tower Inquiry. The Irish Times newspaper reports that the company used flawed safety tests to market its Kooltherm K15 insulation product, some of which was used on the building. Murtagh used his Christmas 2020 address to staff to pledge trust-rebuilding action. He said that the company will treat the issues raised in the inquiry with the ‘utmost seriousness.’

In other personnel changes, Alan Lawlor has been appointed Divisional Managing Director of Kingspan's Insulation Boards Division with responsibility for its global activities. He is currently chief financial officer of Kingspan's Insulation Boards Division and managing director of Kingspan Insulation, Southern Europe.

Jim Carolan has been appointed as Group Head of Compliance & Certification with immediate effect, reporting to the Group chief executive officer (CEO). The group said that in this newly created role he will be responsible for ensuring a rigorous approach to certification, testing and product compliance across all Group divisions. Carolan's prior role was as Operations Director in Kingspan's Insulated Panel's Division.

Ireland/UK: Mannok says that it has undertaken extensive preparatory measures to help its operations transition smoothly when the Brexit transition period ends on 31 December 2020. While keeping operations unchanged, the group has formed new legal entities such as Mannok GB, which will deal with UK customers. The group acknowledged that prices would depend on the future tariff arrangement between the UK and the EU, but would remain in line with market pricing. It added that the same effects would impacts competitors, who import significant amounts of raw materials from Europe.

The group said that it has been working closely with suppliers for over 18 months to ensure the security of its supply chains. It has capacity at its sites to store enough raw materials for polyisocyanurate (PIR) insulation for a ‘number of weeks’’ of production.

Chief financial officer Dara O’Reilly said, “A key priority for us in all of this was to ensure that the service we can provide to our customers in a post-Brexit environment is as seamless as possible. We’ve made the changes to our structures; we’ve made the changes to how we operate and as a result of that, regardless of the outcome of the Brexit negotiations, we’re ready.”

UK: The International Living Future Institute (ILFI) has awarded Knauf Insulation’s Supafil range of blowing glass wool insulation with Declare Red List Free Certification. The label signifies that the products contain none of a list of agreed harmful chemicals. The company says that its Supafil range, which is produced using 80% recycled glass, is the first blowing wool solution in Europe to receive the certification.

Director of housing and specification Matt Prowse said, “For the first time, people can see the environmental impact of individual construction products at a glance, in a clear and transparent way. For architects and housebuilders, using products with the Declare label – like the Supafil range – is good for business. It ensures installer wellbeing and is a powerful point of difference to customers in a competitive market.”

UK: Jonathan Roper, a former assistant product manager at Celotex, has described the company as ‘dishonest’ by ‘overengineering’ a cladding fire safety test to achieve a pass for its RS5000 insulation product. After a first test failure in January 2014, a second system passed in May 2014, which the firm used to erroneously market the combustible rigid foam boards as being safe for use on high-rise buildings, the inquiry has heard, according to the Press Association. Covert changes were allegedly made to the set-up of the second test to make the outcome more favourable. Roper added that the motivation for getting the RS5000 product to market was to compete with rival firm Kingspan and its K15 insulation.

Celotex, part of the French multinational Saint-Gobain group, has maintained it promoted RS5000's use on buildings taller than 18m only on a "rainscreen cladding system with the specific components", used when it passed the fire safety test. The inquiry has previously heard Celotex saw Grenfell as a "flagship" for its product and exploited the "smoke of confusion" which surrounded building regulations at the time.

The current stage in the inquiry is examining the production, testing and sale of the materials used in the tower's refurbishment which resulted in the June 2017 fire, killing 72 people. The proceedings continue.