Insulation industry news from Global Insulation

US: Kingspan Insulation has started an expansion project at its Winchester plant in Virginia. The US$25m investment in the plant will be used to install a new extruded polystyrene insulation (XPS) insulation manufacturing line.

"We are pleased to announce that the installation is proceeding on time and on cost," said Kingspan Insulation North America's Managing Director Alswinn Kieboom.

Once the project is completed, it will allow Kingspan Insulation to continue to service demand for its GreenGuard line of XPS board products. The products feature moisture resistance, an R-value of 5.0 per inch of thickness and are suitable for a range of applications including cavity walls, continuous insulation, roofs, below-grade perimeter foundation and slab-on-grade.

As part of this investment programme, Kingspan Insulation has announced its intent to begin production of high performance, polyiso insulation in North America, providing an even greater choice for specifiers and contractors.

Kingspan Insulation is currently considering locations for three new production lines. Locations under consideration are at its existing plant in Virginia, at its sister company sites in California, Florida, Ohio, as well as sites in Nevada and Texas in the US, plus Ontario and British Columbia.

US: Toray Industries has released plans to increase the production capacity of Toraypef polyolefin foam manufactured at Toray Plastics (America). The Japanese chemical manufacturer will invest US$39m towards building a 3000t/yr unit at its TPA Virginia Plant. The new facility is expected to start operations in the beginning of 2018. The expansion of the production facility will boost TPA's Toraypef production to 7500t/yr.

Toraypef is a polyolefin foam developed using Toray's proprietary manufacturing method, and it is adopted for various purposes including thermal insulation. Principally the product is being targeted at car production.

US: Installed Building Products has acquired Southern Insulators & Specialties, a fibreglass and spray foam insulation installer based in Covington, Louisiana. No value for the purchase was released.

"Southern has a large presence in the state of Louisiana with trailing-12 month revenues of approximately US$5m," said Jeff Edwards, Chairman and Chief Executive Officer. He added that Installed Building Products has completed six acquisitions, representing nearly US$53m of annual revenue, since the start of 2016.

US: Installed Building Products’ (IBP) net revenue has risen by 40% year-on-year to US$404m in the first half of 2016 from US$290m in the same period of 2015. Its net income more than doubled to US$15.8m from US$7.7m. The insulation installation company attributed the strong result to growth in the residential building market.

"Our results continue to benefit from strength throughout the homebuilding industry, growth at our existing branch locations and the contribution of our recently acquired businesses,” said Jeff Edwards, chairman and chief executive officer of IBP.

US: Owens Corning’s sales revenue has risen by 7% year-on-year to US$2.78bn in the first half of 2016 from US$2.61bn in the same period in 2016. Its net earnings rose by 78% to US$198m from US$111m. However, sales revenue for its insulation business fell by 4% to US$799m from US$830m. No reason for the decline in insulation revenue was given, but the company expects slightly negative revenue growth and relatively flat margins to continue for the full year.

US: Demand for plastic foams in the US is forecast to rise 2.3%/yr to 4Mt in 2020, valued at US$25.2bn, according to a report by the Freedonia Group. A report summary stated that growth will decelerate from the rate posted during the 2010-2015 period and that the construction sector is anticipated to lead growth prospects, which will see additional opportunities for foam insulation products bolstered by increasing construction activity.

Elsewhere, rising consumer spending levels will bode well for foams used in household products such as bedding, furniture and appliances. In the motor vehicle market, advances will slow in tandem with slowing motor vehicle production and by trends towards smaller, more fuel efficient cars that require less foam on a per vehicle basis.

US: USA Insulation has opened a foam insulation plant in Cleveland, Ohio to meet increased demand for its products. The location was chosen because the injection foam franchise has its headquarters in the town.

"With over 50,000 homes insulated to date, our brand is now recognised as one of the premier residential retrofit insulation companies in America," said Patrick Pitrone, president of USA Insulation Franchise Corporation. "USA Insulation's proprietary injection foam has been used in the sidewalls of new and existing homes for over 30 years and boasts some of the highest R-ratings in the insulation industry."

Poland: Stepan Company has completed the relocation of its European R&D and Technical Service centre to new laboratories in Wroclaw. The expanded facilities will serve Stepan's business in insulation foams as well as the diverse Coatings Adhesives Sealants and Elastomers (CASE) business. In addition to providing increased space for its growing team of scientists, the expanded facilities include a wide range of test and production equipment to support Stepan's customers with innovation and technical development projects.

The specialist and intermediary chemical production company also confirmed that the expansion of its polyester polyol facility in Brzeg Dolny will be completed in mid-2016, with the addition of a new reactor. The new asset is required to support Stepan's growth in the CASE business for its European customers.

"The completion of this expansion to our facilities in Poland marks a significant milestone in our growth story within the European polyester polyol industry. Commitment to these plans by Stepan is an endorsement of our growth strategy,” said Roger Stubbs, Vice President, Polymers Europe.

Germany: Evonik Industries is acquiring the Performance Materials Division of Air Products and Chemicals for US$3.8bn. The products it is acquiring from Air Products include ingredients for insulation foams, sun lotion and paint as well as additives to harden aircraft and marine coatings. The transaction is intended to be completed by the end of 2016 subject to approval from relevant competition authorities.

“Evonik is already one of the leading producers of specialty & coating additives. Air Products’ Specialty & Coating Additives business perfectly complements this fast-growing segment. With this acquisition we are expanding our portfolio with precisely the right markets, products and innovations and continuing to invest in our growth and profitability,” said Klaus Engel, chief executive officer of Evonik Industries.

Air Products’ specialty and coating additives business will be integrated into the Nutrition & Care and Resource Efficiency segments of Evonik. The acquisition will also give Evonik a greater presence in North America, diversifying its markets outside of Europe. It also expects to generate savings of up to US$80m/year from the deal by 2020.

US: The Office of Environmental Health Hazard Assessment (OEHHA) in California has asserted that polystyrene is not the same as styrene and is not listed by the state as a substance that causes cancer. The OEHHA has added styrene to a list of a list of chemicals known to the state to cause cancer for purposes of the Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65).

"There is sufficient scientific information to demonstrate that the intended uses of these materials are safe,” said the OEHHA. "While free or unreacted styrene may be present in such products, only styrene exposures that pose a significant cancer risk would require a warning." Styrene is used to make expanded polystyrene (EPS) but the substances have different properties. The OEHHA's listing is based on the findings of the 12th edition of the National Toxicology Program's Report on Carcinogens that assesses the potential for risks associated with styrene, primarily in work environments where levels of styrene exposure may be higher.