Insulation industry news from Global Insulation

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."

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.