Insulation industry news from Global Insulation

US: Honeywell has announced that increasing global adoption of its range of low-global-warming-potential (GWP) products will reduce global greenhouse gas emissions by an equivalent of 475Mt of carbon dioxide by 2025, the equivalent to removing 100 million cars from the road for one year.

The projections represent an increase of 36% over projections the company made a year ago when it committed to reducing the production of high-GWP hydrofluorocarbons (HFCs) used in applications ranging from refrigeration to air conditioning to aerosols.

"In just the last year, Honeywell has started two production facilities in the US to manufacture two of its new low-GWP Solstice® HFC replacements and completed 17 long-term supply agreements with a range of customers," said Ken Gayer, Vice President and General Manager of Honeywell Fluorine Products. "We continue to see strong demand for these environmentally-preferable technologies as we continue to invest in new production here in the US."

In September 2014, Honeywell said that it would increase production of its low-GWP refrigerants, insulation materials, aerosols and solvents, and, prior to 2020, would drive a 50% reduction in its annual production of high-GWP hydrofluorocarbons (HFCs) on a CO₂ equivalent basis. In the past year, Honeywell has shipped enough low-GWP Solstice products to replace HFCs with 10Mt of CO2 equivalent.

US: GLT Products has announced its expansion into the Gulf Coast Region with the addition of new production plants in La Porte, Texas. The new building and facilities will be under the GLT Fabricators name.

The new plant will enable GLT Fabricators to meet the North American demand for ASTM standard industrial insulation solutions and products. Additionally, the company will offer a number of V-Groove pipe insulation choices, which is new to the GLT Products Company. GLT Fabricators will also offer other fabricated pipe insulation products, including:Pipe covering - 90º elbows, 45º elbows, tees and curved segments; Cellular glass; Extruded polystyrene; Mineral wool; Polyisocyanurate; Phenolic. 

"We needed new production facilities closer to our customers and end users. The inherent advantages of being able to meet tight delivery deadlines will help reduce our fabrication cost and lead-times. We needed a plan for 2015 and beyond to address the growth forecast we are predicting," said Timothy F Scott, president of GLT Fabricators.

US: USI, a national construction services provider of installed insulation and related services to builders, contractors and homeowners, has announced the acquisition of Smith Insulation, a Louisburg, North Carolina-based full-line insulation services contractor.

Founded in 1979 by Timothy Smith, family-run Smith Insulation has shown steady growth. The company employs approximately 35 personnel and serves the Raleigh, Durham and Roanoke Rapids markets. After closing, Smith will become branch manager and Duane Smith will maintain his current role as production manager.

In addition to the North Carolina markets served by Smith Insulation, USI has an existing branch serving western North Carolina and parts of Virginia. "We are excited how this acquisition further increases our presence in North Carolina," said Bill Varner, president and CEO of USI. "Bringing Smith's expertise, valued people and assets to USI is a significant opportunity for us. We expect a smooth transition and enhanced value for both our current and future customers."

"Joining forces with USI provides us with a whole new level of resources. USI shares our values of teamwork, trust and integrity that are so crucial in a relationship-driven industry. Our combined best practices and focus on service leaves me very optimistic about the future," said Timothy Smith.

US: For the sixth year in a row, Owens Corning has earned placement in the Dow Jones Sustainability World Index (DJSI World) in recognition of its sustainability initiatives.
For the third straight year, Owens Corning was named the Industry Leader for the DJSI World Building Products group. The DJSI World is a listing of the world's largest companies based on long-term economic, environmental and social criteria.

"We are honoured to have earned placement again in 2015," said chairman and CEO Mike Thaman. "Our people and products make the world a better place. That simple and powerful purpose defines Owens Corning today, as well as the company we are building for the future."

"Continuing our steady progress toward shrinking our environmental footprint, we are even more energised as we expand our impact through our positive handprint," said chief sustainability officer Frank O'Brien-Bernini. "Collaborating up and down the value chain, we make buildings more energy-efficient, roofs more durable and resistant to extreme weather, cars more fuel-efficient, renewable energy more cost-effective and our company a better corporate citizen."

US: Installed Building Products (IBP) has acquired Eastern Contractor Services based in New Jersey, which also operates as Parker Insulation and Building Products in Nederland, Texas, according to Dow Jones.

Eastern is a well-established company with locations in Flanders and Tuckerton, New Jersey, with a primary focus on fibreglass and spray foam insulation installations. Parker's product offerings include fibreglass and spray foam insulation as well as garage doors and other complementary products, in the south-eastern Texas market. Both Eastern and Parker focus on new single-family and multi-family residential construction end markets.

"We are pleased to announce our sixth acquisition of 2015 with trailing twelve month sales of approximately US$23m," said Jeff Edwards, chairman and CEO. "We have created a compelling acquisition platform and these established branch locations will deepen our presence in New Jersey, the New York metropolitan area and Texas. This acquisition brings our total acquired revenue in 2015 to approximately US$85m as we continue to pursue excellent acquisition opportunities in our target markets. We remain confident in our ability to execute on our growth strategy of utilising a disciplined approach to valuations and pricing."

US: Engineered thermal solution providers Thermon Group Holdings Inc has announced that one of its wholly-owned, indirect subsidiaries, Thermon, has acquired 100% of the equity interests of Industrial Process Insulators Inc (IPI) for US$21.75m, effective from 31 July 2015, according to Dow Jones.

IPI is an insulation contractor serving the refining, petrochemical, power and energy, marine and pulp and paper industries in the US, with a significant presence in the Texas and Louisiana Gulf Coast region. For the unaudited 12 month period that ended on 30 June 2015, IPI generated around a revenue of around US$22m. The IPI management team, led by Darrell Kunk and Brian Kunk, will continue to operate the business following the closing of the transaction.

"For over 15 years, IPI has been delivering high quality, responsive and, most importantly, safe, thermal insulation solutions to its industrial customers in the Gulf Coast region, including as a subcontractor of Thermon. We believe that IPI is an ideal complement to Thermon's existing installation services offering and will enhance our ability to execute turnkey heat tracing solutions. We expect the acquisition of IPI to enhance our ability to sell our core heat tracing products and grow our installed base. The acquisition is consistent with our strategy of pursuing organic and inorganic growth opportunities within and adjacent to our core thermal solutions business," said Rodney Bingham, president and CEO of Thermon. "We have known and worked with Darrell and Brian Kunk since the early 1990s and are pleased that they have agreed to multi-year employment agreements with Thermon. We look forward to welcoming IPI employees into the Thermon family."

"We have a great deal of respect for the Thermon organisation given the long track record of involvement between our two companies. We are excited to be partnering with Thermon and look forward to continued success," said Darrell Kunk, CEO of IPI.

US: Installed Building Products (IBP) has announced strong results with growth in net revenue, adjusted earnings before income, taxes, depreciation and amortisation (EBITDA) and operating income for the second quarter of 2015, which ended on 30 June 2015.

For the second quarter of 2015, net revenue grew by 26.4% year-on-year to US$159.7m. On a same branch basis, net revenue improved by 10%, with approximately half of the growth attributable to an increase in the number of completed jobs and the remainder through price gains and a 'more favourable customer and product mix.' Gross profit improved by 33% to US$46.3m and gross margin expanded to 29% from 27.6%, primarily due to favourable leverage on higher net revenue and increased cost efficiencies. Adjusted EBITDA grew by 77.4%year-on-year to US$17.7m, largely due to higher net revenue and improvements in gross margin. Operating income grew by 148.5% to US$11.4m. Adjusted net income from continuing operations was US$7.2m compared to US$3.5m in the same quarter of 2014.

"The second quarter reflects further momentum of our business strategy, which produced another quarter of year-on-year growth in net revenue, same branch sales and profitability," said Jeff Edwards, chairman and CEO. "Our financial results are benefitting from continued improvements in the housing market, as well as the strong local market performance of our branches. Our core single family same branch sales outperformed the growth in single family residential completions during the second quarter and we expect this trend will continue. I am very pleased with our acquisition strategy, pipeline, integration and performance. IBP has built an exciting platform that offers a compelling option for local builders. During 2015, we have already acquired US$63m of annual revenues and these acquisitions are quickly contributing to both revenues and earnings. Our capital position remains strong and we have a robust pipeline of potential acquisitions for the remainder of 2015 and through 2016. We expect positive momentum to continue throughout the remainder of the year as we continue to benefit from improving residential end markets."

US: Owens Corning has reported that in the second quarter of 2015, its revenue rose by 4.4% to US$1.42bn. It expects to benefit in 2015 from sustained improvement in the US housing market and moderate global growth.

In the composites sector, the company now expects a full-year earnings before income and taxes (EBIT) improvement of about US$60m based on current volume and pricing strength, including the impact of US$25m in currency headwinds. In roofing, Owens Corning continues to expect that the full-year US shingle market will be in line with 2014. Based on the decline in first-half shipments, the market is expected to grow by the mid-single digits in the second half of 2015. Insulation should continue to benefit from growth in US residential new construction, improved pricing and operating leverage. The company has estimated an effective tax rate of 30 – 32% and a cash tax rate of 10 - 12% on adjusted pre-tax earnings, due to the company's US$2.2bn tax net operating loss carry-forward. Owens Corning expects general corporate expenses to be at the bottom of the range of US$120 – 130m in 2015 and capital expenditures of approximately US$380m. Interest expenses are expected to be about US$110m.

US: According to local media, Owens Corning plans to open a US$90m production plant in Joplin, Missouri, which is expected to create more than 100 jobs. The plant will manufacture Thermafiber, mineral wool insulation for commercial, residential and industrial applications. Owens Corning expects the plant to be fully-operational in 2016.

"As a company that only operates in markets with attractive long-term macro drivers such as global industrial production, material substitution, US housing and energy efficiency, our decision to locate in Joplin says a lot about the region and the state. Our new location puts us close to attractive markets and accessible raw materials, a decision we believe will result in higher productivity and an increase in efficiency," said Julian Francis, president of Owens Corning Insulation. "We will benefit from Missouri's reputable workforce. As demand for mineral wool increases, we will need many hands on deck to fulfil orders and we are eager to tap into the state's talent."

As an incentive to assist Owens Corning with its expansion, the Department of Economic Development has offered a strategic economic incentive package that the company can receive if it meets strict job creation and investment criteria. The City of Joplin, the Joplin Area Chamber of Commerce, Carl Junction School District, Jasper County and the Missouri Partnership also are assisting with the company's expansion.

"This announcement is terrific news for families in the region that will benefit from these new jobs," said Governor Jay Nixon. "Owens Corning's decision is a testament to our strong manufacturing sector, which has seen tremendous growth over the past few years. While some states are losing manufacturers to other countries, we are attracting new companies and selling more Missouri-made products around the globe."

US: Dow Jones Institutional News has reported that Installed Building Products (IBP) has acquired EcoLogic Energy Solutions, which is based in Stamford, Connecticut.

EcoLogic is primarily an installer of spray foam and fibreglass insulation serving the Connecticut, New York and Northern New Jersey markets. Approximately half of EcoLogic's sales are in the new residential end market with the remainder split between commercial and repair and remodel activity. EcoLogic's sales for the 12 months that ended on 30 April 2015 were approximately US$6m.

"We are pleased to announce the addition of the EcoLogic team as we continue to strengthen our position in the New York Metropolitan area," said Jeff Edwards, chairman and CEO of IBP. "EcoLogic complements our strategic growth objectives and further diversifies our product and end market exposure. We expect this transaction to be immediately accretive as we integrate these assets onto our platform. Building on our robust acquisition activity to date, we remain committed to further capitalising on the significant expansion opportunities in our strong deal pipeline to continue improving our business."