Insulation industry news from Global Insulation

US: Huntsman has reorganised its spray polyurethanes foam (SPF) insulation business, combining subsidiaries Demilec and Icyene-Lapolla under a new leadership team. The company has named as divisional presidents Simon Baker, who will oversee operations in Canada and fast-growing global markets, and Doug Kramer, who will be responsible for the United States. Huntsman polyurethanes president Tony Hankins said, “To bring the two businesses together as one enables Huntsman to provide an unmatched offering of open- and closed-cell insulation products and accelerates the globalisation of our SPF platform.”

Denmark: Rockwool’s post-tax profit for 2019 was Euro285m, up by 7.5% from Euro265m in 2018. Sales rose by 3.2% to Euro2.8bn from Euro2.7bn. The company’s insulation section saw ‘mixed market conditions’ but ‘showed modest growth’ over the period, thanks in particular to state-supported energy efficiency improvement in construction practices generating increased demand in the South-West Europe region.

Rockwool said that it invested in long-term growth, having opened a plant in Romania in late-2019, with a capacity expansion to a German plant due to come online in mid-2020 and a further plant in the US to follow in early 2021. Rockwool Group chairman Henrik Brandt and CEO Jens Birgersson said, “For the fifth year in a row, our customer satisfaction scores increased.” Satisfaction rose by 14% year-on-year.

UK: Global not-for-profit organisation CDP has included Owens Corning on its Climate Change A-List 2019 for environmental transparency and performance aimed at facilitating a zero-net carbon economy. Only a handful of industrial producers achieved inclusion on the list, including France-based Saint-Gobain and Germany-based HeidelbergCement and steel producer Thyssenkrupp.

US: Huntsman has acquired the spray polyurethane foam (SPF) insulation producer Icynene-Lapolla from an affiliate of FFL Partners for US$350m. Icynene-Lapolla operates production facilities in Houston, US, and Mississuaga, Canada and made sales in excess of US$200m in 2019. Huntsman chairman, president and CEO Peter Huntsman said, “This combination of companies will provide Huntsman with the largest global array of spray foam technology, integration of raw materials and associates, improving energy efficiency.”

US: The board of directors of Owens Corning has elected Brian Chambers as its new chairman. He succeeds Mike Thaman, who has decided to retire in April 2020. Chambers became chief executive officer (CEO) and was elected to the board in April 2019. He has been with the company for over 15 years, and throughout his career, has held a number of senior operating roles across a range of businesses and locations.

US: Huntsman has announced an agreement to acquire Icynene-Lapolla, a North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, for US$350m from an affiliate of FFL Partners. Icynene-Lapolla operates two manufacturing facilities located in Houston, Texas and Mississauga, Ontario. The transaction is expected to close in the first half of 2020.

“I am delighted that Icynene-Lapolla is joining our downstream, high-growth MDI urethanes insulation business. Icynene-Lapolla is well recognised by architects, builders and contractors as a market leader in the manufacture and supply of high-performance, energy-efficient building envelope solutions,” said Tony Hankins, the president of Huntsman's Polyurethanes division. He added that the combination of Icynene-Lapolla, with its SPF product range and reflective roof coatings, with Demilec, the SPF business that Huntsman acquired in 2018, would ‘significantly’ strengthen its energy-saving insulation business.

US: The building products manufacturer Johns Manville has announced its acquisition of ITW Insulation Systems, which specialises in low-temperature polyisocyanurate foam insulation and metal jacketing solutions, for an undisclosed price. Business Wire has reported that the deal is scheduled for closure in December 2019. Johns Manville CEO and president Mary Rhinehart said that the acquisition ‘will give greater versatility to Johns Mansville’s robust and well-rounded portfolio of insulation solutions.’

US: Huntsman has published its third quarter results showing a 30% fall in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$215m from US$308m. Sales volumes and prices fell in the polyurethanes and advanced materials sections, with a strong US Dollar pushing down the latter’s profit margin in the European region, where customer destocking also occurred.

US: In the third quarter of 2019, Dow experienced a price decline of 12% on its volumes which fell 2%, yielding net sales of US$9.4bn, down by 15% compared to US$10.8bn in the three months to 30 September 2018. Its operating earnings before interest and taxes declined by 18% year-on-year to US$1.1bn from US$1.3bn.

US: Owens Corning’s net earnings in the third quarter of 2019 took a dive to US$333m from US$376m, down by 11% year-on-year. Its insulation section reported earnings before interest and taxes of US$84m, down year-on-year by 11%. The section’s sales in the quarter amounted to US$693m, down by 2% year-on-year from US$710.