Insulation industry news from Global Insulation

US: Johns Manville (JM), a Berkshire Hathaway company, has announced that it will increase its glass microfibre capacity by early 2016 at its plant in Waterville, Ohio.

"We have initiated several productivity projects and line modifications that will noticeably increase our microfibre capacity," said Martin Kleinebrecht, marketing and portfolio management leader for JM Engineered Products. "We continue to experience a strong global demand for glass microfibre and we fully expect this trend to continue over the next several years." Kleinebrecht added that JM is exploring a number of additional investments in its glass microfibre business and plans to announce more details in the near future.

JM has maintained a large presence in Waterville since 1958. In addition to glass microfibre, JM manufacturers a variety of premium-quality products at this location, including wet and dry chop glass fibres, single-end rovings and nonwoven fibreglass mat. These materials are used in roofing, gypsum wallboard and specialty applications, as well as in plastic reinforcement and weaving. Glass microfibre products are widely used in filtration and advanced lead-acid battery applications.

US: Johns Manville (JM), a Berkshire Hathaway company and building products manufacturer, has been named 'Supplier of the Year' for 2015 by Insulate America Inc, a US insulation contractor association.

JM is the first company to receive the award three years in a row, having previously accepted the award in 2013 and 2014. Insulate America's 'Supplier of the Year' award recognises companies for the overall value they provide to the organisation through technical expertise, customer support in the field and lead referrals.

"For the third straight year, Johns Manville has risen to the top of the building products industry by demonstrating an unmatched ability to provide customers with the highest level support and innovative product solutions," said David Beam, president and CEO of Insulate America. "We are proud to recognise the JM team once again and appreciate the company's ongoing support of our organisation."

Insulate America is a cooperative group of locally-owned, independent insulation contractors that provide and install insulation and other building products for residential and commercial construction. It is the largest independent insulation contracting organisation in the US with 200 locations in 46 states. Representatives from each of the locations vote on the 'Supplier of the Year' award.

"Winning this award even once is a tremendous accomplishment and we feel humbled to be the first company ever to be named 'Supplier of the Year' three years in a row," said Fred Stephan, senior vice president and general manager of insulation systems for JM. "This recognition from Insulate America's network of professionals across the country serves as further motivation for our team to provide our customers with the industry-leading insulation products and solutions to meet their ever-changing needs."

US: According to Recycling Today, American Fiber Green Products Inc (AFBG), based in Tampa, Florida and Owens Corning, a Toledo, Ohio-based developer and manufacturer of insulation, roofing and fibreglass composites, have entered into a five-year agreement for recycling services. The deal calls for AFBG to recycle the fibreglass-related material generated at Owens Corning's Amarillo, Texas plant, which is currently being landfilled.

"The recycling plan in Amarillo represents continued progress toward Owens Corning's 2020 environmental footprint goals," said Doug Pontsler, Owens Corning's vice president of environment, health and safety and operations sustainability. "Concurrent with our progress to reduce waste generation, we've made securing more reliable recycling for fibreglass waste a top priority. The solution from American Fiber Green Products, which will convert our waste into useful, marketable products, will help us achieve our sustainability goals."

"AFBG is excited to provide recycling services to this market leader through our Amour Fiber Core subsidiary," said AFBG Chairman Kenneth McCleave. "This contract has been in negotiation for over a year and a half and will substantially boost revenue for AFBG. The project will commence upon completion of construction of our recycling and manufacturing facility in the Amarillo area. Construction is expected to take about 12 months. We expect a successful recycling program in Amarillo to be the catalyst to an expanded relationship between our firms and potentially include other Owens Corning facilities around the country."

US: Distribution International Inc (DI), a portfolio company of global private equity firm Advent International active in the mechanical insulation market, has acquired Insulation Fabricators Inc (IFI), which produces and distributes thermal and acoustical insulation products.

Headquartered in Hammond, Indiana, IFI expands DI's Midwestern footprint with additional locations in Ohio and West Virginia. The acquisition also extends DI's service range and features fabrication capabilities for a wide range of applications such as pipes, vessels, ductwork and boilers. The acquisition complements the existing breadth and depth of DI's inventory and enhances its ability to source any product for its customers.

"Outstanding customer experience has always been our mission," said Celeste Mastin, DI CEO. "The acquisition of IFI reinforces our dedication to providing clients with critical products and services anywhere across our growing footprint. Having completed 12 acquisitions over four years strengthens our strategy and supports our service goals."

"DI's customer centric focus parallels our own commitment and service philosophy at IFI. Since founding IFI in 1979, we have made customer service the hub of this business and we are proud of what we have built with the help of our employees. The opportunity to join DI, coupled with the resources that will now be available, allows us to further enhance the customer experience and better serve project needs," said IFI founder Larry McNabb and president and CEO Ted McNabb in a joint statement.

US: Installed Building Products has acquired Layman Brothers Contracting based in Powhatan, Virginia and Bluegrass Insulation of Bowling Green, Kentucky.

US: Carlisle SynTec Systems, a major manufacturer and supplier of premium roofing products, has formed a strategic partnership with Columbia Green Technologies, a leading supplier of roof garden components. The partnership provides customers with single-source solutions for the entire roof garden system.

"Carlisle is committed to providing comprehensive building envelope solutions that meet the unique challenges associated with sustainable design," said Michael DuCharme, Carlisle's director of product marketing. "Together, Carlisle and Columbia Green will provide expert design assistance, high-performance materials and industry-leading warranties," said DuCharme.

"We are excited to partner with Carlisle. Columbia Green offers innovative green roof systems engineered for stormwater management and optimal plant health. Our partnership allows Carlisle to offer a single-source warranty that inspires confidence in the implementation of our systems," said Vanessa Keitges, president and CEO of Columbia Green Technologies.

Roof gardens, also known as green roofs or vegetative roofs, provide numerous environmental benefits, including enhanced stormwater management, improved air and water quality, reduction of the urban heat island effect and decreased energy consumption.

US: Installed Building Products Inc (IBP), which produces and installs insulation and complementary building products, has announced its results for the first quarter of 2015, which ended on 31 March 2015.

For the first quarter of 2015, net revenue grew by 22.7% year-on-year to US$130m. On a same branch basis, net revenue improved by 14% from the prior year quarter, 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 29.2% to US$34.1m and gross margin expanded to 26.3% from 24.9% in the same period of 2014. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 78.9% year-on-year to US$7.6m, largely due to higher gross profit. Operating income improved to US$3m from US$0.9m in the prior year quarter. Adjusted net income from continuing operations was US$1.4m compared to US$0.1m in the same period of 2014. Selling, general and administrative expenses as a percentage of net revenue was stable at 23.4% compared to the same period of 2014, primarily due to higher net revenues that partially offset additional costs associated with being a public company and personnel costs to support growth.

"We continue to effectively execute our growth strategy, producing solid increases in net revenue, same branch sales and profitability," said Jeff Edwards, chairman and CEO. "In the first quarter 2015, our branches continued to exhibit growth trends above the rate of improvement in US residential construction and we further benefitted from our local leadership across our national network of locations. We remained focused on actively managing our costs to achieve another quarter of improved profitability while we further expanded our operations. Since the beginning of 2015, we have significantly expanded our geographic reach with the addition of market-leading insulation installers. We are especially pleased with the addition of BDI, which further strengthens our presence in the western US. As we move forward in 2015, we expect our branches to continue to perform well in their local markets and we are firmly positioned to capitalise on improving residential end markets. Additionally, we remain focused on pursuing select accretive acquisitions and leveraging our cost base to further enhance our margins and cash flow."

US: Knauf Insulation's plant in Huguley Industrial Park, Alabama will double its production capacity in June 2015, according to Aaron Wine, plant manager. The plant currently produces 200t/day of insulation. With the expansion, that capacity will grow to 400t/day.

During the housing slowdown Knauf shuttered its Lanett plant, which was put back into operation in 2013. According to Wine, the plant makes batts of insulation and blow-in wool. With the new line that is being installed, the Lanett plant will have the capability to produce rolls of insulation as well. When the new line goes online, employment will grow to 215.

US/UK/Germany: US-based RPM International Inc has announced that its German tremco illbruck Group has acquired Firetherm Intumescent & Insulation Supplies Ltd, the UK market leader in fire-stopping solutions for the construction industry. Based in Kent, England, Firetherm has annual net sales of approximately Euro6.61m. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.

Firetherm manufactures and supplies a broad range of fire-stopping products, intumescent coatings and fire-rated sealants and fibreboards. They are primarily sold to specialist fire-stopping contractors, general contractors and home-builders.

"Firetherm, with its high degree of fire-stopping technical expertise, is a good strategic fit with our tremco illbruck Group and its existing Nullifire intumescent coatings business. The acquisition expands tremco illbruck's product range and capabilities for fire-stopping products and propels it to the leading position for passive fire protection in the UK," said Frank C Sullivan, RPM chairman and CEO. "We expect to grow Firetherm in the UK and internationally by leveraging its products across the tremco illbruck distribution network."

US: Owens Corning's consolidated net sales for the first quarter of 2015 have fallen to US$1.21bn year-on-year from US$1.28bn in the same period in 2014. Adjusted earnings fell by US$13 to US$22m for the same period. The results was attributed to a weak roofing business.

"Owens Corning had a good start to 2015. Insulation continues to benefit from growth in US housing starts. Results in Composites reflect strong execution and operational performance. In Roofing, first quarter revenues and margins were weak. However, the Roofing business did not experience the discounting and inventory build in the channel that we saw in the same quarter last year, positioning the business to deliver higher volumes for the remainder of the year," said chairman and chief executive officer Mike Thaman.

To support growth in the North American mineral wool insulation business, the company's board of directors has approved a US$90m investment in a new mineral wool plant, to be operational in late 2016.

For its outlook the US based insulation, roofing and composites manufacturer said that it continues to expect to benefit in 2015 from sustained improvement in the US housing market and moderate global growth. Insulation should continue to benefit from growth in US residential new construction, improved pricing and operating leverage. Composites and roofing businesses are also expected to improve or remain stable respectively.