Insulation industry news from Global Insulation

US: Extech Building Materials, a provider of building materials and insulation products for professional builders and contractors, has completed the acquisition of Pasvalco, a natural stone supplier and custom stone fabricator in New Jersey.

US: Following earlier action by the EU, the US Environmental Protection Agency (EPA) is planning to publish guidelines on safer alternatives to the flame retardants that are currently used in consumer and commercial products, including building insulation and products with flexible polyurethane foam.

Flame retardant chemicals such as hexabromocyclododecane (HBCD) and pentabromodiphenyl ether (pentaBDE) raise concerns for human health and the environment, including potential reproductive, developmental and neurological effects that can be persistent, bioaccumulative and toxic to aquatic organisms.

The EPA has identified butadiene styrene brominated copolymer as a safer alternative to HBCD used in polystyrene building insulation. The substitute is currently in commercial production in the US. Additionally, oligomeric phosphonate polyol has been proposed as a safer alternative to pentaBDE.

The European Chemicals Agency (ECHA) is due to decide on 9 July 2014 whether exemptions can be granted to manufacturers of expanded polystyrene (EPS) to continue using HBCD as a flame retardant beyond the August 2015 phase-out deadline. Most international players are switching to the new non-halogen flame polymeric retardant PolyFR.

US: Owens Corning has lowered its full-year 2014 earnings outlook because of continued weakness in its roofing business. In its first quarter 2014 earnings release, the company stated that it expected US$500m in adjusted earnings before income tax for the whole of 2014, but added that weakness in the roofing business added risk to the financial outlook.

The weakness continued through April - May 2014 and the company now estimates that roofing volumes for the first half of 2014 may be 20% lower than during the first half of 2013. Owens Corning expects to recover a portion of the shortfall during the second half of 2014 and has projected that full-year 2014 adjusted earnings before income tax will be greater than 2013's US$416m.

According to Owens Corning, the insulation and composites market continues to show improvement compared with 2013. Earnings growth in those two areas is expected to more than offset the poor roofing performance.

Insulation sales increased from US$330m in the first quarter of 2013 to US$355m in 2014. The company's first quarter 2014 results reported insulation sales grew by almost 8% compared with 2013, following 11 consecutive quarters of improved earnings in the insulation business.

US: Specialty tape supplier ECHOtape has introduced four new products at the launch of its Insulation Tape Line for residential and commercial contractors. The line includes a variety of seaming and double-sided tapes that can be used in the mechanical insulation industry, including with reflective insulation systems.

"ECHOtape has a long history of selling pressure-sensitive tapes," said Risa Edelstein, director of marketing for ECHOtape. "Working with professional contractors over the past 40 years has given us the expertise and ability to develop products that can be used throughout the construction industry. These new insulation tapes offer residential and commercial contractors high performance, high-value options for their insulation needs."

The initial products launched in the line include All Purpose Aluminum Foil Tape, an All Purpose White Aluminum Foil Tape, All Temperature FSK Insulation Tape and Cold Weather Double Coated Polyester Tape. Over the next several months, additional Facing Tapes and All Service Jacketing (ASJ) Tape will be added to the line.

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.

US: 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."

US: 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."