Insulation industry news from Global Insulation

US: A proposed Californian state legal bill threatens to phase out potentially toxic flame-retardants in foam insulation. The chemical industry has opposed the bill arguing that the move jeopardises energy-efficiency measures and doesn't take into account forthcoming legislation.

The sponsor of the bill, the US Green Building Council of California, said in a supporting letter that the bill is necessary because the adverse effects on health by halogenated organic compounds in flame-retardants are well documented.

However, the American Chemistry Council (ACC) has stated that the bill will unnecessarily circumvent the Department of Toxic Substances Control's forthcoming green chemistry regulations, which will identify potentially problematic chemicals in consumer products. The ACC added that, "Since buildings account for an estimated 36% of total energy use and 30% of greenhouse gas emissions in the United States, California should be encouraging, not discouraging, the use of energy-saving building materials."

The bill is scheduled to be heard by the Assembly Natural Resources Committee on 29 April 2013.

US: Johns Manville (JM), the global manufacturer of energy-efficient building products, has announced the publication of its 2012 Sustainability Report, 'We Build Environments.'

"We intend to capitalise on our commitment to sustainability to ensure that we are better prepared to meet both the opportunities and challenges of our dynamic world and that we continue to deliver safe products that delight our customers," said Mary Rhinehart, JM president and CEO. The 2012 report includes 18 fully reported performance indicators applying the Global Reporting Initiative 3.1 guidelines.

Key indicators from JM's 2012 performance summary for the insulation market include a 19% increase of average fibreglass insulation compared to 2011. Total energy use for the company rose by 0.9% and total production fell by 0.4%.

US: Johns Manville (JM), a Berkshire Hathaway company and global building products manufacturer, has announced that it has hired H MacGregor (Greg) Clarke, aged 52, as Senior Vice President and Chief Financial Officer, effective from 4 April 2013. In this role Clarke will be responsible for JM's global finance and supply chain organisations.

"The position has been vacant since November (2012) when I accepted my current role," said Mary Rhinehart, JM president and CEO. "We took our time to ensure we found exactly the right person to fill this key position."

Clarke most recently was CFO of AeroGrow International, Inc. in Boulder, Colorado. Prior to that he was president and CEO of Ankmar, LLC, and earlier in his career held financial leadership and strategic planning roles with The Coleman Company, Inc., PepsiCo, Inc., and Manufacturers Hanover Trust Company. From 1997 to 2002 Clarke was Director of Finance for JM's Insulation Group, followed by vice president and general manager for JM's Building Insulation and Commercial & Industrial Insulation Divisions.

"We are excited to welcome Greg back to Johns Manville and to add his talents, experience and leadership to the company," said Rhinehart. "He will be critical to driving many of our key initiatives and business strategies for our future. I look forward to re-introducing him to our employees, customers, suppliers and other key stakeholders."

US/Japan: Huntsman Corporation has announced that it has acquired a 20% stake in Nippon Aqua, a spray polyurethane foam (SPF) insulation company based in Yokohama, Japan. The chemical manufacturer has entered into a ten-year supply agreement with the company. The financial terms of the deal were not disclosed.

Nippon Aqua is the SPF market leader in Japan, with business operations in over 30 locations across the country, and is a subsidiary of leading residential home builder Hinokiya Holdings. Huntsman supplies various advanced MDI-based polyurethanes systems to Nippon Aqua.

"Following the regrettable accident at the Fukushima Daiichi nuclear plant in 2011, there's a great focus on how the country will source its energy needs and a growing demand amongst consumers for more effective insulation. Nippon Aqua is well-positioned to satisfy this demand," said Huntsman's president of its polyurethanes division, Anthony P Hankins.

US: Owens Corning has lost US$56m in the fourth quarter of 2012, pulled down by hefty debt-related and restructuring charges. In the same period of 2011 it reported earnings of US$50m. The construction and industrial-materials company said it expects to get a boost in 2013 from an improving US housing market and moderate global growth.

Net sales for the fourth quarter of 2012 fell year-on-year by 3% to US$1.16bn from US$1.20bn. For 2012 as a whole Owens Corning posted a slight decline in net sales to US$5.17bn from US$5.34bn.

Net sales for the company's insulation business rose by 7% to US$413m in the fourth quarter of 2012 from US$US$387m. For 2012 as a whole net sales in insulation rose by 7% to US$1.47bn from US$1.37bn. The company said that its insulation business should benefit from the growth in residential construction, along with higher utilisation rates and better pricing. Yet Owens Corning noted that prices remain significantly below historical levels.

US: Chemical maker Huntsman Corp has seen revenue from its polyurethane division rise by 10% to US$4.89bn in 2012 from US$4.43bn in 2011. The company attributed this to higher sales of the foam insulation constituent. The polyurethane division also benefitted from increased prices, although this was partly offset by the strength of the US Dollar against the Euro.

Overall revenue stayed stable at US$11.2bn in 2012 compared to US$11.2bn in 2011. Gross profit rose by 11% to US$2.03bn from US$1.84bn. Adjusted earnings before non-recurring items, depreciation and amortisation (EBITDA) rose by 15% to US$1.40bn from US$1.21bn.

"Our 2012 adjusted EBITDA of US$1.40bn represents record earnings for our current configuration of businesses. I am very enthusiastic about the direction in which the company is headed. Within our largest division, Polyurethanes, our MDI business is growing at attractive rates and future prospects are pointing towards tighter market conditions," commented president and CEO Peter R Huntsman.

US: After exploring a number of options, building products manufacturer Johns Manville (JM) has signed a new 12-year lease for its global headquarters in the JM Plaza building in downtown Denver, beginning January 2013.



The decision to remain at JM Plaza involved a thorough evaluation of the economics and employee and business logistics of several locations, including alternate sites downtown and in the Denver Technical Center.



"There were several excellent choices in the Denver metro area where we could conduct our headquarters operations," said Mary Rhinehart, JM president and CEO. "However, at the end of the day, our current location provided the greatest benefit across all of the factors we considered."

US: Johns Manville (JM), a Berkshire Hathaway company and global building products manufacturer, has announced that Todd Raba, its president and CEO, will relinquish his position with the company. Effective 13 November 2012, Mary Rhinehart will be the new president and chief executive officer of JM.

"I thank Todd for his leadership. He has worked diligently during a tough economic environment to effectively position the company for future success. Todd spent the last five years focusing on positioning JM for the future and I thank him for the work he did in moving the business forward," commented Warren Buffett, chairman and CEO of Berkshire Hathaway.

Rhinehart is currently the senior vice president and chief financial officer of JM. She has been with the company since 1979. Her background includes management and bottom-line responsibility for a business unit, global treasury and strategic business development, including directing a variety of acquisition activities. She has held finance leadership roles in most of JM's businesses. Additionally, during her career at JM, Rhinehart has had responsibility for compensation, benefits management, community relations, global supply chain and organisational planning.

Rhinehart has spent her long and successful career focusing on the interests of JM employees and customers. "I am proud to have worked for this great company for over 30 years," she said. "Throughout it all we have succeeded as a company due to our people and the powerful relationships we have with our customers. I am excited about this new opportunity and am committed to continuing to move us forward. JM is a great company. We could not have a better owner than Berkshire Hathaway and I could not have a better role model than Warren Buffett."

Buffett added, "Mary is exactly the CEO we like to hire. She is passionate, smart and she truly cares about JM customers and employees. She'll add tremendous value to JM going forward, and I couldn't be more enthused to have her taking on this role after all that she's already accomplished at JM."

US: Masco Corp has agreed to pay US$75m to settle a massive price-fixing case in the US. The settlement was agreed on the eve of a trial in US District Court in Atlanta to settle the antitrust class action with 369 independent fibreglass insulation contractors who are the company's competitors in the insulation installation business.

Masco's settlement augments an earlier US$37m settlement with four other fibreglass insulation manufacturers - Johns Manville, CertainTeed Corp, Knauf Insulation and Guardian Fiberglass Inc - who were accused of colluding with Masco and had also been named as defendants in the suit. Another manufacturer, Owens Corning, filed for bankruptcy protection before the suit was filed and was not named as a defendant.

In a news release Masco said that it has reached 'an agreement in principle' to settle the litigation. "While we continue to deny that the challenged conduct was unlawful and we do not admit to any wrongdoing this business decision eliminates the considerable expense and uncertainty of continued litigation and is in the best interest of the company and its shareholders."

US: Johns Manville (JM) has announced that it has purchased Industrial Insulation Group, LLC (IIG), a manufacturer of insulation for industrial, commercial and fireproofing applications.

IIG was formed in 2002 as a joint venture between JM and The Calsilite Group. JM previously owned a minority interest in IIG, but will now be wholly-owned by JM. IIG's product line complements JM's portfolio of insulation products, allowing JM to offer an even broader range.

"Expanding JM's interest in IIG is another way we are addressing customers' needs by offering the industry's most complete line of insulation products," said Todd Raba, JM's chairman, president and CEO. "IIG has a consistent track record of product performance, in keeping with the quality our customers expect from JM. We look forward to exploring opportunities to build on IIG's strong market position and expand its product portfolio."

IIG manufactures a wide range of insulation products for use in industrial, commercial and fireproofing applications and offers a portfolio of high-temperature insulation, ranging from mineral wool to perlite to calcium silicate.

"With our increased investment in IIG, JM will be able to offer the most complete line of mechanical insulation solutions to a broader commercial and industrial customer base," said Dave Skelly, director of sales for JM's Performance Materials business. "We look forward to continuing IIG's tradition of superior product performance and customer service."

JM does not plan to significantly change the operations at IIG. JM says that the existing IIG plants located in Brunswick (Georgia), Grambling (Louisiana), Fruita (Colorado), Phenix City (Alabama) and Houston (Texas) are a key part of its future commercial and industrial strategy. IIG chairman and chief executive Philippe Delouvrier will remain involved with the company in an advisory role.

"IIG is pleased to join the Johns Manville and Berkshire Hathaway families," said Delouvrier. "This next chapter in IIG history sets us up for continued success with greater opportunity for growth in existing and new markets."

"Philippe Delouvrier and his team have made IIG a recognised leader in industrial insulation," said Fred Stephan, vice president and general manager of JM's Insulation Systems business. "We're delighted that Philippe will remain involved with the business as we work to build on the success his team has established."