Insulation industry news from Global Insulation
US: Revenue from Huntsman’s Polyurethane division rose by 35% year-on-year to US$1.39bn in 2021 from US$1.03bn in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 8% to US$218m from US$201m. The group said that price increases offset higher raw material and logistic costs. Overall group revenue and adjusted EBITDA increased by 40% to US$8.45bn and 107% to US$1.34bn respectively.
"We concluded 2021 with the best year in our history with our current portfolio of businesses. The transformation of our portfolio has enabled our company to generate not only our highest ever adjusted EBITDA margins but consistent profit margins quarter on quarter throughout 2021, a hallmark of a more differentiated chemical business,” said chairman, president and chief executive officer Peter R Huntsman.
Huntsman produces a range of chemicals including polyisocyanurate (PIR) and polyurethane (PUR) building insulation products.
Residential markets drive Rockwool’s insulation sales in 2021
09 February 2022Denmark: Rockwool says that high construction and renovation activity in the residential sector mainly drove its insulation sales in 2021. Insulation business sales grew by 20% year-on-year to Euro2.29bn in 2021 from Euro1.91bn. Its earnings before interest and taxation (EBIT) rose by 17% to Euro275m from Euro236m. Strong growth was reported in Europe, solid sales in North America but some parts of China and elsewhere in Asia were negatively affected by coronavirus-related closures of some markets. The producer commented that its insulation sales increased ‘significantly’ in 2021 even compared to 2019 before the coronavirus pandemic started. However, it warned that “sales prices and productivity gains did not fully offset the accelerating inflation on production materials, energy and logistic costs.”
“The surprising speed of the 2021 economic rebound also brought challenges, including inventory and material shortages in some markets as well as logistics challenges that required creative solutions. Special thanks go to our customers for their patience and especially our people working in the factories and across the commercial, technical, procurement, and support teams, who worked together to reduce customer delays,” said chair Thomas Kähler and chief executive officer Jens Birgersson in a statement. Overall, group net sales grew by 19% to Euro3.09bn from Euro2.60bn. EBITDA increased by 15% to Euro602m from Euro522m.
Saint-Gobain plans US$400m investment in US expansions
11 November 2021US: Saint-Gobain plans to invest a total of US$400m in expansions to its operations including insulation operations at four US sites. The group says that the sites are located in California and the Southeastern US. It said that the new capacities will apply the most advanced available technologies for industrial performance, safety and sustainability. This will reduce waste by 50% and CO2 emissions by 20% from current levels, according to the company.
Saint-Gobain said it hopes that the investments will strengthen its leadership in North America and accelerate its growth in the region by enriching its comprehensive range of solutions for light and sustainable construction.
Kingspan acquires Minnesota Diversified Products
08 October 2021US: Ireland-based Kingspan has acquired Minnesota Diversified Products, the producer of the DiversiFoam range of expanded polystyrene (EPS) and extruded polystyrene (XPS) foam and polyisocyanurate (PIR) foam billets. The group says that DiversiFoam will join Kingspan Insulation’s North American division and become a key proponent of its 10-year sustainability programme, Planet Passionate. It plans to expand the company’s Rockford EPS foam plastic recycling plant. Minnesota Diversified Products is committed to recycling 99% of production waste.
Managing Director Doug Crawford said "DiversiFoam and Kingspan are a natural fit from a geographic, technical and cultural perspective. The combination of these two outstanding businesses, coupled with Kingspan’s commitment to further investment will provide our collective customer base, our employees and our business partners with significant value. I am thrilled to welcome the DiversiFoam team into the Kingspan family.”
Huntsman implements natural gas surcharge on MDI sales in Europe, India, the Middle East and Africa
01 October 2021World: US-based Huntsman has announced a natural gas surcharge of Euro125/t on its sales of methylene diphenyl diisocyanate (MDI) in Europe, India and the Middle East and Africa (MEAF), in response to an ‘unprecedented’ rise in natural gas prices in the region. The measure entered effect on 1 October 2021. The company says that this has adversely affected the energy inputs, intermediates and multiple feedstock costs incurred in its MDI production.
The new surcharge will operate in conjunction with any previously announced MDI price increases.
Huntsman's Polyurethanes president Tony Hankins said "Huntsman is already working with its customers to manage the impact of the surcharge, which was necessary to respond to the unexpected and unprecedented increase in our production costs."
US: Knauf Insulation has announced plans for a new 183,000m2 glass wool insulation plant in McGregor, Texas. The producer says that it is in the process of finalising permits with the Texas government and will begin work on the McGregor insulation plant in late 2021.
Senior Vice President strategic projects Kevin McHugh said “Watching this incredible facility rise from the Texas soil and become one of our industry’s leading production facilities worldwide will be an incomparable experience. Hiring, training, and empowering people from Central Texas to carry out Knauf’s vision and the mission of this facility will positively impact Central Texas for decades to come."
US: Installed Building Products’ net revenue grew by 17% year-on-year to US$925m in the first half of 2021 from US$791m in the same period in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 18% to US$124m from US$105m.
Jeff Edwards, chairman and chief executive officer commented, “As expected, the building products supply chain remained constrained during the second quarter, which we believe will continue for the foreseeable future. These trends continue to impact our ability to purchase certain materials and, in some cases, affected our ability to complete work on behalf of certain customers primarily within our multi-family end market.”
US: Denmark-based Rockwool has commissioned its new Ranson stone wool insulation plant in Jefferson County, West Virginia and started commercial production. The company has hired 110 people to work at the 43,000m3 facility. It says that the plant will employ a total of 150 once production has ramped up in mid/late 2021. It is equipped with fuel-flexible melting technology, enabling operations to switch to natural gas from coal. This can reduce the plant’s CO2 emissions by 30%, according to the company.
Chief executive officer Jens Birgersson said “In the US, as in Europe and Asia, there is a growing demand for Rockwool’s non-combustible, recyclable stone wool insulation. The West Virginia facility will help meet that demand in North America. We are proud that our products play such an important role in reducing the energy consumption and carbon emissions associated with buildings, and do so in a safe, sustainable manner.”
US: France-based Saint-Gobain has awarded a contract to MTI Instruments to supply its Digital Accumeasure non-contact measuring technology. The group will use the product to measure closed-cell foam density in its production process. It said that the partnership aims to increase the number of process improvement products which reach plant implementation.
Saint-Gobain Competency Research Laboratories smart manufacturing team leader Mickael Boinet said "We chose MTI Instruments' Digital Accumeasure product for many reasons. The non-contact technology was just one of the pluses.” He added "We investigated various impedance measurement companies in Europe, but ultimately determined that the amplifier made by MTI Instruments was superior."
US: The National Insulation Association (NIA) has named three insulation producers as winners of its 2021 Premier Industry Manufacturer award. Armacell, Johns Manville and Owens Corning won the nationwide award. The association’s Platinum Safety Excellence awards were presented to six insulation producers: Armacell, CertainTeed Corporation, Dyplast Products, Johns Manville, Owens Corning and Canada-based Rockwool Technical Insulation. The award is the highest category of safety excellence award at the association’s National Insulation Association Awards 2021. It awarded Proto Corporation a gold Safety Excellence award.
Executive vice president and chief executive officer Michele Jones said, “Each year, we honour our member companies that prioritise safety and make continuous improvements to their programmes, and this year we do so knowing that a strong and well communicated safety programme is more important than ever.”
The association handed over the awards virtually at its Spring Summit in mid-March 2021.