Insulation industry news from Global Insulation

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.

US: Officials of CertainTeed Corp, part of Saint-Gobain, have announced that the company will renovate its plant in Kansas City, Kansas, creating more than 70 new jobs over the next three years.

CertainTeed said that it has begun renovating its plant to begin production of fibreglass insulation products during the second quarter of 2015. Greg Silvestri, president of CertainTeed Insulation, said that the company is investing more than US$30m to re-engineer the plant's furnace and restart related production lines to give it greater flexibility to support its growing business needs.

US: Bayer MaterialScience has appointed Bill Brengel as the general manager for the spray polyurethane foam (SPF) insulation and roofing materials business. In this role, Brengel will lead the sales, customer service, product and application development, and manufacturing groups with a focus on excellence and profitable growth.

Brengel has over 25 years of operations and business leadership experience in industries such as chemicals, plastics and building materials. He also has experience in business strategy and organisational growth and has led various business improvement initiatives. He holds a mechanical engineering degree from Virginia Polytechnic Institute and State University and a business degree from Coe College. He has served on a variety of boards and industry associations

"Bill has an excellent combination of strategy and process," commented Jerry MacCleary, President of Bayer MaterialScience NAFTA region. "His hands-on work ranges from production, to sales and marketing and overall health of the business. He is extremely goal oriented with a constant focus on quality. With his experience, Bill will be a champion for both our customers and our internal team."

US: Installed Building Products (IBP) has acquired Florida's CQ Insulation. CQ Insulation is primarily an installer of fibreglass and cellulose insulation, with a 12 year operating history serving the Florida market through its two branch locations in Tampa and Orlando. It primarily focuses on new multi-family residential and commercial end markets. CQ Insulation's sales for 2014 were approximately US$6.9m.

"We are excited to announce the addition of CQ Insulation to our company as we continue to expand our national footprint," said Jeff Edwards, chairman and CEO of IBP. "The addition of these two established branch locations deepens our presence in the southeast and provides us with an attractive platform to pursue additional multi-family projects in our markets. As we move forward in 2015, we continue to see excellent acquisition opportunities in our target markets and we are well situated to further execute on our growth strategy."

US/Canada: Armacell International SA, which produces flexible insulation foams for the equipment insulation market, has completed the acquisition of Industrial Thermo Polymers Limited (ITP), a producer of extruded polyethylene (EPS) foam products in North America.

"We are pleased and excited to welcome the employees of ITP into the Armacell family," said Thomas Himmel, vice president of the Americas and engineered foams for Armacell. "The acquisition of ITP supports our strategy to expand our manufacturing capability of polyethylene foam products. The Brampton facility will be the base for our future investment into the manufacture of polyethylene terephthalate (PET) foam in North America."

ITP was founded in 1980 and maintains headquarters in Toronto, Canada. Under the brand name Tundra, it manufactures self-sealing pipe insulation, insulating foam filler and water toys. In 2014, ITP generated US$23.5m in revenue.

US: Installed Building Products has reported strong results for both the fourth quarter of 2014 and the entire 2014 year.

"The positive momentum in our business continued through the fourth quarter of 2014, resulting in solid growth in our net revenue and profitability for the full year of 2014," stated Jeff Edwards, chairman and CEO. "In the fourth quarter, we were especially pleased with our 21.7% increase in net revenue which resulted in another quarter of significant operating leverage. Into 2015, we expect housing completions to continue improving at a steady pace and we are energised by our prospects to continue scaling our business in a disciplined manner to further expand our national network of attractively positioned branch locations."

Installed Building Products' fourth quarter 2014 net revenue increased by 21.7% year-on-year to US$145m. Its branch sales increased by 16.2% year-on-year due to higher volume, price gains and a more favourable customer and product mix. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 65.3% year-on-year to US$15.2m. Its operating income rose by 105% year-on-year to US$9.3m.

In the entirety of 2014, Installed Building Products' revenue increased by 19.9% year-on-year to US$518m. Branch sales increased by 16.4%, with approximately 75% of the increase due to growth in the number of completed jobs and the remainder achieved through price gains and a more favourable customer and product mix. Adjusted EBITDA improved by 73.6% to US$44m.

US: Installed Building Products Inc has acquired BDI Insulation (BDI) for an aggregate purchase price of about US$36m. Funding for the acquisition is being provided by availability under the company's line of credit and cash on hand.

US: Johns Manville (JM) has announced plans to expand the capacity at its Scottsboro, Alabama, thermoplastic polyolefin (TPO) plant. The state-of-the-art TPO plant was first opened in October 2008. JM will complete the expansion in April 2015, increasing its total TPO production capacity by 20%.

JM's TPO formulation has remained unchanged since its launch and has proven to be durable under real-world conditions of heat and ultra-violet (UV) exposure. "Commercial Roofers Inc began installing TPO more than 10 years ago. We have found it to be installer-friendly and energy compliant. It has a long, useful life expectancy and is cost effective. This provides great benefits for the building owner," said Scott Howard, president of Commercial Roofers Inc.