Insulation industry news from Global Insulation

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.

US: Owens Corning has appointed Prith Gandhi its chief financial officer (CFO). He will take over from Michael McMurray on 23 October 2019, and serve until an external search produces a permanent successor. Gandhi, current vice president of corporate strategy, has 25 years’ financial services experience. The company announces its third quarter results for 2019 on 23 October 2019.

US: Owens Corning has announced its 2030 sustainability goals. These represent the company’s third set of long-term goals and are designed to expand the company’s business impact through sustainability, continuing its commitment to incorporate material environmental, social and economic initiatives into its global practices and operations.

“These goals advance our business priorities by pushing us to discover increasingly more sustainable solutions, which is becoming more important to our customers and other key stakeholders,” said chief executive officer (CEO) Brian Chambers.

Owens Corning’s 2030 sustainability goals include reducing greenhouse gas emissions by 50%, sourcing 100% renewable electricity to reduce product embodied carbon, maximising product sustainability and building and supporting inclusive and diverse teams that reflect the communities where they live, work and serve. The greenhouse gas emission goal is in line with guidance to hold global warming to 1.5°C degrees and it was approved by the Science Based Target Initiative.

US: Owens Corning has appointed the former Cabot Corporation executive vice president, chief financial officer and president of the Americas region Eddie Cordeiro to its board of directors. He will be tasked with bringing his 25 years’ financial and operational experience to the operations of the global insulation, roofing and fibreglass composite materials leader.

Ireland: Kingspan’s revenue rose by 12% year-on-year to Euro2.24bn in the first half of 2019 from Euro2.01bn in the same period in 2018. Its profit grew by 18% to Euro173m from Euro147m. Sales of its panel and boards products increased but panel sales growth was faster, supported by most territories with the exception of the Middle East.

“We have delivered a record first half with revenue growth in all our business units and a strong trading profit performance. We continue to expand our global production footprint with new facilities under construction in the US, Brazil and Sweden. The near-term outlook is solid although the political uncertainty in the UK, weakness in Serling, and weaker German economy are amongst risks we are monitoring closely,” said Gene Murtagh, the chief executive of Kingspan.

The building materials company is close to completing a new insulation panel plant at Modesto, California in the US. A new panel plant is also being considered in Pennsylvania, US and a new panel plant in Cambuí, Brazil is expected to be operational by the fourth quarter of 2019. A new board plant in Sweden is scheduled to start production in mid-2020.