Insulation industry news from Global Insulation

US: Knauf Insulation has been granted a building permit to construct an US$8.7m warehouse and logistics facility in Shelbyville in the US state of Indiana. At a tax abatement hearing, local attorney Lee McNeely, who represented Knauf, told the Shelbyville Common Council that the building is part of an expansion that will bring back a major line producing light fibreglass to the insulation producing plant, known as the 602 line.

"The warehouse will replace an old manufacturing building," said Joey Viselli, vice president of marketing for Knauf. "It just gives us a lot more flexibility to have a warehouse on site," he said.

The building was the subject of a tax abatement request in November 2011, which was granted by the council. According to the tax abatement documentation, Knauf plans to tear down an existing building and then build the new 285,000ft², pre-fabricated metal warehouse and office space. Knauf's main US office is located in the same town.

The abatement documentation further added that, "Knauf intends to demolish an existing structure and build a new warehousing and office facility in order to support additional production for a growing customer base."

Knauf reported the total cost of the project to be US$10.9m. The City of Shelbyville permit is for US$8.7m in construction. The project is expected to add about eight jobs, creating an additional payroll of US$319,000.

In June 2011 Knauf closed its plant in Lanett, Alabama with the loss of 146 jobs. At the time, a company spokesman had said that Knauf was affected by an ongoing slump in housing construction. Viselli said that the closure of the Alabama plant is one element that changes the demands placed on the Shelbyville location.

US: Demand for insulation in the US is forecast to rise by 7.8%/yr to reach US$8.9bn in 2016, according to a new report by the Freedonia Group. The report says that the advance will be driven by a rebound in building construction expenditures from a depressed 2011 base. Further growth will be spurred by changes in building codes and continuing consumer interest in reducing energy consumption and utility bills. It also says that home and building owners will add or upgrade insulation to achieve these goals.

Freedonia says that the residential market will post the most rapid gains until 2016, advancing at a double-digit pace as housing starts to rebound. Moreover, builders will construct homes with larger amounts of insulation to make them more desirable to potential buyers. Residential insulation demand will also be supported by the attic re-insulation and home improvement and replacement markets. Insulation demand in the non-residential market will reportedly also see solid advances. Rebounding non-residential building construction expenditures, particularly in the office and commercial segments, will promote gains.

Fibreglass insulation accounted for the largest share of insulation demand in 2011 with 48%. The report says that fibreglass insulation will remain the market leader in 2016, with demand rising by 8.1%/yr to US$4.4bn. Growth will be spurred by a rebound in the residential market.

Demand for foamed plastic insulation, which accounted for the second largest share of the market in 2011, is expected to rise by 7.3%/yr to US$3.9bn in 2016. Advances will be driven by the rebound in building construction spending.

Demand for radiant barrier and reflective insulation is anticipated to grow by 8.7%/yr to US$190m in 2016. The rebounding housing market will boost demand, with further gains supported by increases in industrial and non-residential building construction spending. Growth will be concentrated in the south and west of the country regions, as structures in those regions are more often exposed to sunlight.

US: Owens Corning (OC) has swung to a fourth-quarter profit due to prior-year acquisition-related costs as the company continued to see stronger sales in its building materials. OC saw sales improve for its roofing and insulation materials in 2011 despite the ongoing slump in the US housing market. A focus on costs has helped support its bottom line.

OC reported a profit of US$50m for the fourth quarter of 2011 from a year-earlier loss of US$110m. The year-earlier period included a net US$135m in asset-sales losses and acquisition and restructuring-related charges. Its revenue increased by 2.4% to US$1.2bn and its gross margin rose to 19.2% from 17.1%. The building materials segment, OC's biggest area, reported net sales growth of 8%, including an increase of 8.7% in insulation sales.

Chairman and Chief Executive Mike Thaman said that OC anticipates improved US housing starts and modest growth in the global economy in 2012. The company expects that a strong performance in its building materials business will more than offset impacts of near-term market challenges in its composites business.

US: CalStar Products has appointed Joel Rood as its new CEO. Rood's experience includes senior roles at industry leaders in the gypsum wallboard, insulation and fiber-cement industries. CalStar develops and manufactures sustainable masonry products that reduce the energy and carbon footprint of the built environment.

Prior to joining CalStar, Rood was General Manager for CertainTeed Canada. Earlier, he was the general manager of the Southern US Division at James Hardie Corp. "We're thrilled to have Joel joining us," said CalStar Products Chairman Paul Holland. "Joel's executive skills, strong core values and record of managing growth and innovation across the building products industry make him the perfect fit to lead CalStar as we scale-up the business."

US: The Environmental Claims Service of UL Environment (ULE) has certified that Knauf Insulation's products contain 55.7% of post-consumer waste.

"As one of the first manufacturers in our industry to work with ULE on this type of initiative, we are proud to announce the validation of environmental and sustainability claims for our glass wool products," said Scott Miller, director of sustainability at Knauf Insulation. "Independent, third-party validation provides our customers with confidence in the sustainable attributes of our insulation products. Knauf Insulation, as a company, will continually adapt to the constantly changing atmosphere of environmental sustainability and stay in the forefront with our sustainability platform."

Steven Wenc, president of ULE, said, "We applaud Knauf Insulation for their commitment to diverting waste to make insulation. Knauf Insulation is also committed to building confidence and trust in the marketplace by validating their claims with an independent, third party."

US: Johns Manville (JM) officially broke ground on a new commercial roofing single ply membrane manufacturing facility in Milan, Ohio on 8 July 2011. The production facility will manufacture ethylene propylene diene monomer (EPDM) roofing products beginning in the second quarter of 2012.

During the groundbreaking ceremony - which hosted local officials, members of the Milan community, media and JM leadership - JM Chairman, President and CEO, Todd Raba noted that "This is a great day for JM and it's really incredibly gratifying to see the level of community support. JM has a strong presence in the state of Ohio and we are excited to be part of the Milan community." This facility marks the company's third facility in Ohio, with representation in three lines of its North American businesses of Insulation Systems, Engineered Products and Roofing Systems.

Raba also noted that, "This is the right time to invest in enhancing our product portfolio and JM now has one of the broadest offerings of commercial roofing products in the industry."

"Everything starts with our customers," stated Bob Wamboldt, vice president and general manager of JM's Roofing Systems business. "With over USD125m invested in our commercial roofing business over the past five years, this is really the crowning jewel of a five-year effort. JM has dedicated substantial resources to underscore our commitment to the single ply business and ensure a strong future for our customers in this segment of the commercial roofing industry."

US: Owens Corning has released its 5th annual Sustainability Report, outlining the company's environmental footprint reduction performance. "Our 2010 Sustainability Report demonstrates Owens Corning's continued focus on and progress towards improvements in greening our operations and products and accelerating energy efficiency and renewables penetration in the built environment," said Vice President and Chief Sustainability Officer Frank O'Brien-Bernini. "We have met three of our seven goals already and are confident that six of the seven goals will be achieved by 2012."

Among the key accomplishments highlighted in the report is a 24% intensity reduction in greenhouse gas (GHG) emissions compared to 2009 levels. The company removed 950,000t of CO2 from its operations in 2010, which is equivalent to eliminating the CO2 impact of more than 170,000 passenger cars. The report also detailed progress towards intensity reductions in energy usage, and reductions in nitrogen oxides, volatile organic compounds, particulate matter, waste-to-landfill contributions and water usage.

The company took the opportunity to launch a new set of 2020 goals designed to raise the bar on its commitment to sustainability. The announced 2020 goals will target reductions in energy, greenhouse gas, water, toxic air emissions, particulate matter and waste-to-landfill measures, as well as supplier sustainability and life cycle assessments.

"These new goals raise the bar on our commitment to sustainability and reflect an increasingly holistic approach that encompasses how our company operates, the attributes of our products and our desire to affect change by partnering with our customers and suppliers to deliver sustainable solutions," added O'Brien-Bernini.

The disagreement comes at the same time as the publication of an article in the journal Respirology that warns of massive rises in deaths from asbestos-related lung diseases in Asia in the coming decades. Dr Ken Takahashi, Acting Director of the World Health Organisation Collaborating Centre for Occupational Health (WHOCCOH) and his team put together data on asbestos use in 47 Asian countries for the report.

Asian countries accounted for 64% of the global consumption of asbestos in 2001-2007, a striking increase from 14% between 1920 and 1970. This is the result of unregulated asbestos import and use in many Asian countries.

US: Knauf Insulation, a manufacturer of fibreglass insulation used in new homes, is halting production at its plant in nearby Lanett, Alabama a move that will see layoffs for 146 employees. Joey Viselli, Knauf's vice president of marketing, said that the 800,000ft² facility would be shuttered because of the continued and extreme downturn in demand in the home construction sector.

The workers impacted by the move will be will be paid through to 18 August 2011, according to an official notice filed with the Alabama Department of Economic and Community Affairs. Workers were informed of the closure on 14 June 2011, with most being released from their jobs immediately.

"The building economy has taken a turn for the worse in a fairly dramatic way," said Viselli. "At the peak of the market, (the industry was) starting about 1.7 million homes a year in the US. This year we'll be lucky to start 500,000 homes." A report released last month by the US Department of Housing and Urban Development and the US Census Bureau showed privately owned housing starts were at a seasonally adjusted annual rate of 523,000.

Viselli said severance deals would be offered and that some workers will be given opportunities to relocate to other Knauf facilities in Shasta, California and Shelbyville, Indiana, where Knauf Insulation North America is headquartered. He added that there were no plans to sell the Lanett plant at this time.

"It is a difficult decision to mothball a plant," said Mark Andrews, CEO of Knauf Insulation. "It is our sincere regret that we must take this action at this time. We will re-examine the status of the Lanett facility as market conditions change."

US: The global headquarters of Owens Corning in Toledo, Ohio, has become the third existing building in Ohio to earn the prestigious gold certification under the US Green Building Council's (USGBC) Leadership in Energy & Environmental Design (LEED) Existing Building (EB) programme.

To achieve the award, the building's design and operation has met stringent standards as an energy-efficient, environmentally responsible and healthy place to live and work. The building was first recognised for silver certification under the LEED-EB program in 2007.

The LEED certification of an existing building is a significant achievement because it is generally easier to design these features in new construction. The Owens Corning global headquarters building has already earned an Energy Star rating, which ranks it among the top 25% of energy-efficient buildings in the United States.

"The gold-certified LEED-EB status of our global headquarters building in Ohio is an iconic representation of Owens Corning's deep commitment to sustainability and energy efficiency," said Chief Sustainability Officer Frank O'Brien-Bernini. "It's also an example of the operating cost advantages that are achievable through sustainable building practices. There are significant economic and environmental benefits to ensuring that new and existing buildings exceed today's energy efficiency standards through the use of insulation, air-sealing solutions and many other energy-saving technologies."

US: The Occupational Safety and Health Administration (OSHA) had imposed a penalty of US$1.2m on Cicero-based AMD Industries, because it failed to protect its workers effectively from loose asbestos fibres during a 2010 abatement process.

The Assistant Secretary of Labour for Occupational Safety and Health Dr David Michaels notified that the asbestos exposure to humans can be deadly and blamed AMD for negligence. The company was aware of its lethal effects but had failed to offer the most basic safety precautions. Further, he accused the company of not providing efficient respirators or even any warnings to the workers about the health disorders that could be encountered. The material removed at the site was particularly hazardous because the material removed was up to 50% asbestos.