Insulation industry news from Global Insulation
US: Rockwool has started production at its Marshall County, Mississippi mineral wool plant. The US$164m plant, the Danish insulation producer's first in the US, is expected to be fully operational by mid-2015. The plant will employ 150 people and produce more than 100,000t/yr for the North American market.
"The new plant will enable us to increase our sales for insulation products in the USA. We have been experiencing double-figure growth rates in the North American market over recent years and there is still considerable potential for growth in the market, which is mainly dominated by glass fibre and plastic foam products," said Trent Ogilvie, President of Roxul, Rockwool's subsidiary in North America. Over the last year the company has experienced such an increase in demand that the it has been forced to import from Europe.
NAIMA appoints Curt Rich as president and CEO
10 June 2014US: Curt Rich has been named as president and CEO of the North American Insulation Manufacturers Association (NAIMA), where he will be responsible for charting the strategic direction of the organisation as it leverages the role of insulation in achieving energy efficiency. NAIMA is the association for North American manufacturers of fibreglass, mineral wool, and slag wool insulation products.
Rich was most recently vice president of Energy and Environmental Policy for United Technologies (UTC), responsible for directing government affair objectives for UTC's building and industrial systems businesses. He will assume the leadership role at NAIMA effective 1 July 2014.
"Curt has more than 20 years of demonstrated success in the energy policy arena and has been a leader in ongoing efforts to advance energy efficiency policies through congress and the administration," said Fred Stephan, chairman of the NAIMA board and senior vice president and general manager of Insulation Systems at Johns Manville. "His leadership abilities will be invaluable in guiding NAIMA's future as it expands work within the energy-efficiency policy front through efforts such as collaborating with allied trade organisations and others to encourage the development and enforcement of strong building codes that promote energy-efficiency, lower greenhouse gas emissions and reduce energy costs."
Knauf Insulation to acquire Guardian Insulation
04 June 2014US: Knauf Insulation and Guardian Industries Corp have announced that a definitive acquisition agreement has been signed for Knauf Insulation to acquire Guardian Insulation. The transaction includes Guardian Fiberglass, a supplier of insulation products for the construction market, as well as Guardian Laminated Building Products. Closing of the transaction is subject to regulatory approvals and customary closing conditions.
"We are already one of the fastest-growing insulation companies globally and this deal will firmly establish our leadership position in what is the largest insulation market in the world," said Mark Andrews, CEO of Knauf Insulation in North America. "It is an important step in our mission to become the global leader in energy efficient systems for buildings."
"We are delighted to acquire such a high quality business that fits perfectly with our growth strategy and we look forward to welcoming the Guardian Insulation team into the Knauf Insulation family," said Andrews. "This is also great news for customers of both Guardian and Knauf Insulation due to the highly complementary nature of these businesses. The combined entity will have a dramatically expanded manufacturing footprint to help provide high levels of service."
Steve Ziessler, president and CEO of Guardian Building Products, said that the purchase by Knauf is exciting news for Guardian Insulation and its employees. "We are confident that our employees, customers and suppliers can look forward to an excellent future with Knauf Insulation. Guardian and Knauf share a culture of responsibility, accountability, safety, entrepreneurship, strong leadership, innovation and value creation," said Ziessler. "We want our customers and employees to know that we anticipate a smooth transition."
US: To cater to industry demands, Trelleborg's offshore operation has consolidated its range of high performance thermal insulation materials to house them all under one brand, Vikotherm™.
"As sub-sea environments become more demanding, going deeper and further than ever before, temperatures and hydrostatic pressure become much greater," said Ben Wait, customer group manager with Trelleborg Offshore and Construction. "The demand for more sophisticated products that can cope with harsher environments is growing. This is certainly the case with our thermal insulation materials, so we've taken the strategic decision to group all of our solutions together to allow for easier product selection and ensure that all customer needs can be met in one place."
Trelleborg has supplied the subsea oil and gas industry for three decades, continuously researching to ensure that its products consistently meet the growing demands placed on them. As such, all solutions in the Vikotherm™ range will guarantee maintained flow rates, optimum productivity, reduced costs and protection against wax and hydrate formations. The featured products in the new portfolio include R2 and S1 materials, E1 and E2 epoxy syntactic foams, P7 non-mercury catalysed polyurethane, PT syntactic polypropylene tape, and G3 non-mercury syntactic polyurethane.
US: Installed Building Products Inc (IBP) has announced that Todd R Fry has joined the company as chief accounting officer and principal accounting officer, reporting directly to Michael Miller, the chief financial officer. Fry was formerly chief financial officer of Champion Industries during 1999 – 2014.
"I am pleased to welcome Fry to IBP as we continue to expand our operations," said Miller. "Todd is a highly accomplished financial professional and we believe his over 20 years of experience in key leadership positions, including 17 years at publicly traded companies, will help continue to strengthen our financial management. We look forward to leveraging his financial expertise as we continue to grow our business."
US: Owens Corning (OC) has reported a weaker than expected first quarter in 2014. However, company officials said that they still believe that they can meet the financial goals they set at the start of 2014 over the rest of the year.
OC reported first quarter sales of US$1.3bn, down by 5% from the same period of 2013. The biggest trouble spot was in roofing, where sales fell by 18%. The company reported a net income of US$120m in the first quarter of 2014, more than five times what it reported for the same period of 2013, however, that figure included several one-time items, the largest among them a US$74m tax benefit. On an adjusted basis, OC said that it earned US$35m in the first quarter of 2014, unchanged year-on-year.
Mike Thaman, the company's chief executive officer, said that OC had anticipated roofing volumes to be down by about 10% in the first quarter of 2014 and slightly higher for the full year. While the company said margins on roofing materials remained solid, harsh weather in much of the US and aggressive pricing from competitors dragged on OC's volumes more than expected. Thaman said that he believes the company can make up the difference in the coming quarters and end the year on target, adding that he does not expect the effects of winter to linger on the business as milder weather comes in.
OC reported higher sales figures for its insulation and composites business, even as volumes were flat in the first quarter of 2014. Thaman said the insulation segment should continue to benefit as the pace of residential construction picks up.
"We're increasingly beginning to see those two businesses develop into the kinds of performers we know they can be," Thaman said. "Insulation is coming out of four or five years of very challenging losses into a year of profitability in 2013 and now into first quarter profitability in 2014, which speaks to continued improvement throughout the year. We have big expectations for what that business can do through a new construction recovery here in the US."
US: The insulation company Installed Building Products Inc (IBP) has announced that Robert H Schottenstein has been elected as an independent director to the IBP board of directors.
"I am extremely pleased to welcome Schottenstein to our board," stated Jeff Edwards, chairman and chief executive officer of IBP. "Schottenstein brings a wealth of experience to IBP, particularly related to residential construction markets and corporate management and complements the significant expertise and depth of our current board members."
Achilles to use Honeywell liquid blowing agent
03 March 2014Japan: Achilles Corporation has adopted Honeywell's Solstice(R) Liquid Blowing Agent (LBA) for use in its line of spray polyurethane foam (SPF) building insulation, which is sold under the trade name Achilles Airlon FR-FO.
"Honeywell is committed to developing technologies that help our customers to produce energy-efficient materials that are better for the environment," said Sanjeev Rastogi, business director for Honeywell Fluorine Products. "We are delighted to help Achilles introduce a new class of spray foam insulation in Japan that benefits from our expertise in developing and supplying high-performance, energy-efficient and low-global-warming-potential solutions."
US: PPG Industries has announced that it has reached a definitive agreement to acquire almost all of the assets of Hi-Temp Coatings Technology Co Inc, a privately-owned supplier of high-temperature-resistant and insulative coatings, based in Boxborough, Massachusetts. The transaction is expected to close in the first quarter of 2014, subject to customary closing conditions. Financial terms were not disclosed.
Hi-Temp is a global supplier of coatings that withstand extreme temperatures to protect both carbon steel and stainless steel substrates. The company's coatings are used widely in refineries, petrochemical plants, pulp and paper mills and power plants.
"PPG looks forward to integrating Hi-Temp coatings into our product offering," said Tim Knavish, PPG vice president, protective and marine coatings. "Hi-Temp's unique technologies bring multiple growth opportunities to PPG, particularly in the petrochemical segment. Combining their excellent corrosion-under-insulation coatings portfolio with PPG's legacy portfolio enables us to provide additional high-quality options to meet more of our customers' coatings needs."
Plastic foam demand mounts a healthy recovery
03 January 2014US: The demand for plastic foams is forecast to rise by 4.1%/yr to 3.90bn kg in 2017, valued at US$24.7bn. The market will mount a healthy recovery from the declines posted during the recession-impacted 2007-2012 period, according to a report by The Freedonia Group Inc.
Packaging will remain the leading outlet for plastic foams through 2017, accounting for nearly one-third of total volume. Increased levels of housing construction combined with rising consumer spending levels bode well for foams used in household products such as bedding, furniture and appliances. In the motor vehicle market, advances will be promoted by rising vehicle output and efforts to enhance safety and comfort.
Flexible polyurethane foam, the leading resin in the plastic foams market, will remain the dominant product throughout 2017, outpacing demand for rigid polyurethane, based on especially rapid growth in the bedding and carpet underlay markets. Strong gains for rigid polyurethane foam will be propelled by a healthy rebound in construction activity and by changes in building codes and construction practices that call for structures with increasing energy efficiency. However, polyurethane foam insulation will continue to encounter competition from fibreglass and polystyrene foam.
Polystyrene accounts for almost two-fifths of demand for plastic foam and will maintain a sizable share of the market through 2017 based on its excellent protective and insulating capabilities, moisture resistance and low cost. However, advances in the large packaging sector will be restricted by ongoing solid waste disposal concerns regarding the use of disposable foam products and rising competition from paper-based materials, which are viewed as more eco-friendly. Expanded polystyrene foam is projected to see more rapid gains through 2017, stemming primarily from its use in insulation, molded foam protective packaging and insulated shipping containers. Expanded polystyrene geofoam is predicted to exhibit especially rapid growth, albeit from a relatively small base.