Insulation industry news from Global Insulation

US: Johns Manville has launched Cavity-Shield, a formaldehyde-free fibreglass batt insulation product intended for use in the concealed spaces of multifamily buildings. The National Fire Protection Association-approved product is being marketed as an alternative solution to sprinklers in the interstitial space. The batts are designed to serve as a passive fire solution for limiting potential flame spread between and through floors. It is also intended to reduce construction costs by reducing the time and resources required for installers to complete the job.

US/China: The Office of the US Trade Representative has started implementing a 10% tariff on mineral and other products from China, including mineral wool products, following a consultation period. Mineral products affected by the proposed tariffs of interest to the insulation industry include: slag wool, rock wool and similar mineral wools, in bulk, sheets or rolls; and nonwoven glass wool insulation products. The latest tariff list follows an earlier decision by the US government to tax imports from China worth US$34bn that came into force in early July 2018.

US: Owens Corning has earned a place in the Dow Jones Sustainability World Index (DJSI World) for its sustainability performance for the ninth consecutive year. For the sixth straight year, Owens Corning was named the Industry Leader for the DJSI World Building Products group.

“We are honoured to be recognised on the Dow Jones Sustainability World Index for the ninth straight year and as the Industry Leader for the sixth year,” said chairman and chief executive officer (CEO) Mike Thaman. “Our 19,000 employees continue to take action and drive real impact for the betterment of our business, employees, customers, partners and the world around us.”

Owens Corning also earned placement on the Dow Jones Sustainability North America Index, which includes the top sustainability leaders from the largest 600 North American companies in the S&P Global BMI.

North America: A survey by the North American Insulation Manufacturers Association (NAIMA) has revealed that its members used over 0.9Mt of recycled glass to produce residential, commercial and industrial thermal and acoustical insulation in 2017. The survey included data from both US and Canadian production plants.

Producers also used over 0.3Mt of recycled blast furnace slag in the production of thermal and acoustic insulation. Since the industry’s recycling program began in 1992, NAIMA estimates that its members’ plants have diverted an estimated 26Mt of recycled materials from the waste stream.

“Our industry is tremendously proud of the substantial use of recycled content in the production of energy saving insulation products,” said Curt Rich, president and chief executive officer (CEO) of NAIMA. “These products ultimately reduce building energy use and decrease our carbon footprint. Over the long term, the fibre glass and mineral wool insulation industry expects to continue using substantial amounts of recycled content in the production of insulation products.”

US: Sixty protestors have met with the Charles Town City Council in West Virginia to complain about a new stone wool plant being built in Ranson, Jefferson County. They asked that the council do more research into the effects the plant would have on the local environment, according to the Martinsburg Journal. Rockwool broke ground on the project in late June 2018 and it is expected to open in early 2020.

US: The Reflective Insulation Manufacturers Association International (RIMA) is celebrating its 40th anniversary. Don Roy of Roy & Son’s, Pat Mascari of Infra and Robert Dittemore of Superior first met in Los Angeles in 1978 to discuss forming a trade association for their industry. An invitation to attend the DOE/FTC hearings on insulation products to represent reflective insulation in Washington DC followed in 1979 with RIMA member Raymond Urias of AIM also joining.

Later, RIMA became an internal association in 2007 with a meeting held in Paris, France. This led to the formation of the International Reflective Insulation Manufacturers Conference (I-RIM Conference).

RIMA-I members represent the association and the industry ASTM Standards, American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), ICC and IBC participating in code development and changes and participating in meetings and code hearings throughout the year.

New Zealand/US: US company Havelock Wool has secured sheep’s wool supplies from Pāmu Farms of New Zealand and the New Zealand Merino Company for its insulation products. The suppliers will provide strong (coarse) wool farmed on Pāmu properties throughout the country to the insulation producer. Havelock Wool targets its products at high-end residential installations with a focus on sustainability and health benefits of its products.

US: Huntsman’s polyurethane business has contributed to its growing revenue and earnings so far in 2018. Its revenue grew by 18% year-on-year to US$4.7bn in the first half of 2018 from US$3.99bn in the same period in 2017. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 47% to US$820m from US$559m.

“Our polyurethanes business continues its growth in variants and systems and enjoys the back drop of good supply and demand fundamentals, foreseeable for the long term,” said Peter R Huntsman, chairman, president and chief executive officer (CEO). Prices and sales volumes rose year-on-year in the second quarter of 2018.

In late July 2018 the chemicals producer announced that its Polyurethane division was setting up a new subsidiary in Chile based in Santiago. The new company, Huntsman (Chile), will operate from a local warehouse and a customer service centre. It joins existing operations in Cartagena and Bogotá in Colombia, São Paulo and Taboão da Serra in Brazil and Buenos Aires in Argentina.

US: Owens Corning has appointed Brian Chambers as its president and chief operating officer (COO). Mike Thaman, chairman and chief executive officer (CEO) said that the creation of a COO and Chambers’ appointment would create, “additional senior management capacity to accelerate our progress on growing the company.”

Chambers, aged 51 years, has been president of Owens Corning’s Roofing business since 2014. Prior to his current position, he was vice president and general manager for Roofing, a role he held since 2013. Chambers returned to Owens Corning in April 2011 as vice president and managing director, Engineered Solutions in the Composites business. He had spent almost four years prior as president of Saint-Gobain’s Distribution business in North America after Owens Corning’s divestiture of its Siding Solutions business where he served as president of the Siding and Building Material Distribution businesses. Over the course of his career, Chambers has held a number of senior commercial and operational roles across a range of businesses and geographies.

Gunner Smith will succeed Chambers as President, Roofing. Smith has been with Owens Corning since 2008 and has served in his current role, as Vice President of Sales, Roofing, since 2013. He will report to Chambers and will serve as a member of the company’s executive committee.

US: Owens Corning’s insulation business sales rose by 53% year-on-year to US$1.28bn in the first half of 2018 from US$838m in the same period in 2017. Overall, the company’s net sales rose by 14% to US$3.52bn from US$3.08bn. However, its earnings before interest and taxation (EBIT) fell by 6.4% to US$360m from US$337m.

“Owens Corning grew revenue by 14% on the contribution of Insulation acquisitions and successful pricing actions in both Roofing and Insulation. The company made significant commercial progress in the first-half of the year, partially offset by operational headwinds,” said chairman and chief executive officer (CEO) Mike Thaman. He added that the company expects continued commercial execution and improved operational performance with ‘strong’ financial results in 2018 and into 2019.