Insulation industry news from Global Insulation

US: Installed Building Products’ net revenue grew by 37% year-on-year to US$1.26bn in the first half of 2022 from US$925m in the same period in 2021. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 54% to US$204m from US$133m. The insulation installation company said that its sales increased in the second quarter of 2022 due to “strong growth” across its residential new construction, repair and remodel and commercial markets.

US: Owens Corning has agreed to sell the site of its Santa Clara, California, insulation plant to property company Panattoni Development. Local Press has reported that the plant’s closure ‘on or around’ 31 October 2022 will result in the loss of 225 jobs.

US: Global cement producer Holcim has successfully acquired leading US independent spray foam producer SES Foam. SES Foam has a track record of double-digit growth and expects to record sales revenues of US$200m in 2022, according to Holcim. The group says that the producer stands out for its value-added services to contractors, including onsite technical instruction, business consulting, branding and lead generation support.

Global head of solutions and products Jamie Gentoso said “I warmly welcome all SES employees into the Holcim family. With SES’ leadership in thermal insulation, we are expanding our range of innovative systems for sustainable buildings, from roofing to insulation, to enhance buildings’ energy-efficiency. We look forward to entering our next era of growth together.”

US: Owens Corning’s first-half sales were US$4.95bn in 2022, up by 19% year-on-year from US$4.15m in 2021. It increased its insulation sales by 16% year-on-year to US$934m. The producer recorded adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of Euro1.2bn, up by 24% from US$929m.

US: Huntsman Corporation has started commercial operation of a new US$180m methylene diphenyl diisocyanate (MDI) splitter at its Geismar plant in Louisiana. The new splitter will allow the chemical manufacturer to produce more grades of MDI than previously. Company president and chief executive officer Peter Huntsman attended an inaugural event as well as the Jeff Landry, the Attorney General of Louisiana.

“The new splitter reinforces our strategy of delivering value over volume by creating a more differentiated product portfolio,” said Tony Hankins, president of Huntsman’s Polyurethanes division. “It enables us to provide our customers in automotive, furniture, construction, adhesives and coatings markets with more options for innovative, sustainable polyurethanes products.”

Huntsman produces a range of chemicals including polyisocyanurate (PIR) and polyurethane (PUR) building insulation products.

US: Owens Corning has announced its conclusion of a deal to buy polyurethane (PU) foam insulation producer Natural Polymers. The companies say that Natural Polymers president and CEO Benjamin Brown will take on an innovation leadership role at Owens Corning following the completion of the transaction.

US: The National Insulation Association (NIA) has joined the US Department of Energy’s Better Climate Challenge initiative as an ally. Allies play a lead role in raising awareness of the initiative, which aims to reduce CO₂ emissions across US industrial plants and buildings.

US: Switzerland-based cement manufacturer Holcim has agreed to buy SES Foam for an undisclosed sum. The company manufactures spray foam insulation and roofing products. It had forecast net sales of US$200m in 2022. The transaction follows recent acquisitions Holcim in the light building materials market such as Firestone Building Products and Malarkey.

Jamie Gentoso, Head Solutions & Products at Holcim said, “This is another exciting step in the expansion of Solutions & Products, advancing our ‘Strategy 2025 – Accelerating Green Growth’. SES has a proven track record of growth and innovation in thermal insulation with a focus on more sustainable solutions, making them highly complementary to our roofing and insulation business.”

SES Foam was founded in 2009 and is based at Spring in Texas. Its SucraSeal product was the first sucrose-based spray foam insulation to be certified by the US Department of Agriculture for its high bio-based content.

Belgium: The government has reduced value-added tax (VAT) on insulation to 6% from 21%. The measure aims to reduce national natural gas consumption in order to be prepared for any future shortage. Belgium is 6% reliant on Russia for its gas supply. Utilities companies supplying the Benelux region have declined to settle their bills with Russia-based producer Gazprom in Russian Rubles, so face a shut-off. Energy Minister Tinne Van der Straeten said that the Port of Zeebrugge was ready to begin imports of liquefied natural gas (LNG) from the US and elsewhere.

Van der Straete called on Belgians to ‘Insulate your homes, isolate Putin.’

US: Knauf Insulation has won a contract to recycle waste glass bottles from the NTT IndyCar Series Big Machine Music City Grand Prix in Nashville, Tennessee, on 5 – 7 August 2022.

Knauf Insulation’s vice president of sustainability and health, safety and environment Chris Mahin said "These types of unique recycling opportunities are valuable for Knauf as we continue to seek alternative sources for glass – the main ingredient in our high quality glass wool insulation.”