Insulation industry news from Global Insulation

US: Kingspan Insulation has inaugurated the expansion of its Winchester plant in Virginia. An investment of US$25m was used to build an extruded polystyrene (XPS) insulation panel production line. The new line will double the plant’s production capacity by manufacturing GreenGuard XPS panels. The company has also announced spending US$1.1m on buying an additional 7.3 acres of land adjacent to the plant’s location.

US: Roxul, the North American division of Rockwool Group, will fully rebrand as Rockwool on 1 January 2018. The rebranding exercise will apply to all segments of Roxul’s North America insulation business including residential, commercial, roofing, original equipment manufacturer (OEM) and technical (industrial, marine & offshore) sectors, as well as all product lines.

“Roxul is soon to be Rockwool in North America,” said Trent Ogilvie, president of Roxul. “The rebrand creates a unified identity for our company, its solutions and benefits on a global scale. It reinforces Rockwool’s position as a world leader in a diverse range of stone wool solutions, while unlocking significant potential for our business.”

The rebrand follows an April 2017 announcement from the Rockwool Group that all its global subsidiaries have assumed a new, cohesive brand identity. This marked the introduction of the Rockwool symbol, a graphic representation of a volcano, as well as a new purpose statement. The rebranding only applies to the group’s North American insulation business. Its Rockfon and Grodan subsidiaries will continue to operate under their respective brand names.

US/Canada: Johns Manville (JM) has launched JM CladStone Water & Fire Block Insulation in the US and Canada. The mineral wool product is for use in cavity wall and rain screen applications. JM says that the product allows for the drainage of water from an exterior wall cavity system.

“We are committed to providing our customers with an array of products to meet the needs of any project, and that’s why we’re introducing JM CladStone Water & Fire Block Insulation, a non-combustible product designed to aid in managing moisture in continuous insulation systems,” said Tommy Knappich, Vice President and General Manager of Building Insulation at JM.

US: Huntsman Corporation’s Polyurethane division has increased its sales revenue by 9% year-on-year to US$1.98bn in the first half of 2017 from US$1.81bn in the same period in 2016 due to raised prices. It increased its prices of methylene diphenyl diisocyanate (MDI) to counter higher raw material costs and to benefit from a ‘strong’ market. However, sales volumes of MDI decreased in the reporting period due to maintenance outages. This caused its divisional adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) to fall in the second quarter of 2017 although it rose as a whole for the half year. Amongst other products the chemical manufacturer produces polyurethane, which is used by the insulation industry.

US: Stepan’s Polymer division sales volumes fell by 7% year-on-year in the second quarter of 2017. This was due to lower phthalic anhydride (PA) and global rigid polyol volumes, although it was partially offset by higher Specialty Polyol volumes. The division’s sales revenue rose by 8% to US$268m in the first half of 2017 from US$248m in the same period in 2016. However, its operating income fell by 20% to US42.7m from US$53.1m due to rising costs and falling volumes.

"The second quarter adjusted net income exceeded prior year as the company continued to benefit from our diversification strategy, increased productivity and improved margins within our Surfactants and Specialty businesses. Rising raw material costs and increased competitive pressure contributed to a disappointing quarter for our Polymer business. The global market for rigid polyols continues to be strong," said F Quinn Stepan, Jr, chairman, president and chief executive officer (CEO).

The company produces aromatic polyester polyols for use in rigid polyisocyanurate and polyurethane foams that are used in insulation and other products.

US: Lapolla Industries’ spray foam sales revenue increased by 21% year-on-year to US$41.7m in the first half of 2017 from US$34.4m in the same period in 2016. Overall its sales including its smaller coatings business rose by a similar amount and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% to US$4.26m from US$3.98m. It attributed the result to increased uptake of spray foam insulation in the market.

US: Owens Cornings’ net sales from its insulation business rose by 5% year-on-year to US$838m in the first half of 2017 from US$799m in the same period in 2016. However, its earnings before interest and taxation (EBIT) fell by 24% to US$34m from US$45m. The company offered no reason for its declining earnings but it did mention a ‘greater than expected’ start-up impact of a newly commissioned mineral wool plant.

Despite this the company now expects to deliver revenue growth of more than US$250m and EBIT of about US$185m. It said that the improved outlook was driven by successful pricing actions in the US residential insulation business and the benefit of its Pittsburgh Corning acquisition.

“Owens Corning built upon the performance achieved in the first quarter and delivered strong second-quarter results. Through the first half, the company produced adjusted EBIT of US$401m and continues to generate strong operating cash flow,” said chairman and chief executive officer Mike Thaman. He also said the acquisition of Pittsburgh Corning and its Foamglas product line had expanded the geographic footprint and product portfolio of the company’s insulation business.

US: Rockwool is planning to build a US$150m mineral wool plant at Ranson in West Virginia. Construction is scheduled to start in October 2017 with production expected to commence in the first quarter of 2020. The new unit will have an area of 43,000m² and employ 150 workers.

“This new production site places us close to major population centres in the north-eastern, mid-Atlantic, and mid-western US. We’re growing along with the market, and we look forward to serving our customers’ needs from this new facility,” said Trent Ogilvie, president of Roxul, Rockwool Group’s subsidiary in North America.

US: Owens Cornings has completed its purchase of Pittsburgh Corning for around US$560m. Originally the insulation producer expected the transaction and its regulatory approval to be completed in the third quarter of 2017. Pittsburgh Corning produces cellular glass insulation products, including Foamglas, and it has operations in the US, Belgium, the Czech Republic, and China.

US: Owens Corning has signed an agreement to acquire Pittsburgh Corning, a producer of cellular glass insulation systems for commercial and industrial markets, for around US$560m in cash, on a cash free and debt free basis. The transaction, which is subject to regulatory approvals, is anticipated to close in the third quarter of 2017.

“The acquisition of Pittsburgh Corning will further expand Owens Corning’s commercial and industrial product offering and grow our presence in Europe and Asia,” said Julian Francis, president of Owens Corning’s Insulation Business. “The addition of Pittsburgh Corning will build on our core glass technologies and accelerates our progress in making Owens Corning the leading provider of insulation solutions with fiberglass, foam, mineral fibre, and cellular glass.”

Pittsburgh Corning produces cellular glass insulation products for commercial and residential buildings and energy and industrial applications. Its productions include Foamglas. The company also produces a range of complementary accessory products including sealants, adhesives, and jacketing. Pittsburgh Corning employs over 1100 people in 17 countries. It operates facilities in the US, Belgium, Czech Republic and China. It reported sales of over US$240m in 2016.