Insulation industry news from Global Insulation

Croatia: Italy-based public-private investment company Simest has acquired a 44% stake in Ediltec Croatia for US$2.1m. SeeNews has reported that the new funds will go towards Ediltec Croatia’s construction of its planned 250,000m²/yr Lepoglava insulating panel plant.

Europe: Knauf Insulation has joined Daikin, Danfoss, Rockwool, Saint-Gobain, Signify and Velux to promote building energy efficiency in Central and Eastern Europe (CEE). The six companies have signed a memorandum that commits them to work together to encourage cooperation and allocation of ‘personal and financial resources’ on a country level to establish and maintain national associations equipped with the expertise to engage in public debates effectively and the skills to inspire better policies.

Radek Bedrna, Knauf Insulation’s managing director for Eastern Europe and Middle East, said “This memorandum is a powerful commitment to tackle the building and energy challenges facing CEE. It will provide the campaigning initiatives with the needed support to drive the policy changes that will be transformational for building renovation in the region.” He added that the region has five out of seven European Union (EU) countries with the highest gas saving potential arising from insulating residential buildings. Two thirds of the 43.6m homes in single- and multi-family house in the CEE region were reportedly built before 1989 and are energy inefficient.

The companies signed the document at the Central and Eastern European Energy Efficiency Forum (C4E) in late May 2023. The forum, which brought together more than 240 public authority representatives with advocacy groups, non-government organisations (NGO) and private companies, called on policy makers to roll out well-designed subsidy schemes with a long-term outlook.

South Korea: KCC has signed a memorandum of understanding with the local government in Gimcheon concerning an upgrade to its glass wool plant. The company plans to invest around US$75m on building a second production line at the unit by the end of 2023. The project follows a similar upgrade at the Munmak glass wool plant in 2022.

Serbia: Hungary-based Masterplast has inaugurated the 150,000m³/yr Subotica insulation plant in Vojovodina. GradSubotica News has reported that the plant will be the first in Serbia to produce extruded polystyrene (XPS) insulation. The Hungarian Export Promotion Agency (HEPA) provided 50% of investment in the plant. Masterplast's on-going strategic expansion in Southeast Europe is aimed at making it insulation market leader amid growing demand in the region.

Ireland: Kingspan recorded sales of US$2.21bn during the first quarter of 2023, up by 4% year-on-year from first-quarter 2022 levels, Reuters has reported. The producer said that group insulation sales remained in line year-on-year. Insulated panel sales remained ‘sluggish,’ but constituted 25% of all orders. By region, sales were ‘strong’ in the Americas and ‘solid for the most part’ in Western Europe, while conditions ‘remained tough’ in Central and Eastern Europe. Kingspan forecast first-half earnings of US$441m in 2023.

The company proposed its future delisting from the UK-based London Stock Exchange, where it says current share trading is ‘negligible as percentage of total trading.’

Kazakhstan/Russia: The government of Kazakhstan says that it now expects Germany-based Knauf Group to relocate its Russian business to Kazakhstan. It says that this is due to the on-going Russian invasion of Ukraine, which initially led Knauf to freeze investments in the sanctioned state and suspend its trade between it and the EU from March 2022.

Deutsche Welle News has reported that Knauf Group ‘did not confirm’ the Kazakh government’s contention. In defending its decision to so far remain in Russia, Knauf Group’s chair Alexander Knauf said “It’s not about money for us, it’s about 4000 employees. Loyalty to these people means to me that I won’t send them off into an uncertain future.” Russia reportedly contributed 10% of the group's turnover in 2022.

Serbia: Masterplast has concluded a deal to acquire the outstanding 49% stake in mineral wool insulation producer Masterwool MW-1. Masterwool MW-1 is currently building a new Euro20m mineral wool insulation plant in Vojvodina. The project is supported by a grant from Hungarian state-owned Hungarian Export Promotion Agency (HEPA).

Masterplast plans to commence a Euro50m growth phase in the near-term future. It expects its sales to drop in the first half of 2023 due to negative trends in new home construction. However, it expects recent new expanded polystyrene (EPS) and extruded polystyrene (XPS) insulation capacity to partly offset this.

Croatia: Knauf Insulation plans to invest Euro120m to build a second production line at its Novi Marof stone wool insulation plant. HINA News has reported that Knauf Insulation managing partner Alexander Knauf met government officials to discuss the company's plan. The producer says that the new line will create 70 direct jobs.

US: Hempitecture has inaugurated a hemp-based insulation plant in Jerome County, Idaho. The plant employs five people and produces insulation using hemp grown in Montana. The producer hopes to supply its flagship HempWool thermal insulation and other acoustic and continuous insulation products to major green building materials markets, including Denver, Los Angeles and San Francisco. It began developing hemp-based insulation in partnership with the University of Idaho with a US$207,000 grant from the Idaho state government in 2021.

Hempitecture CEO Mattie Mead said "We are ushering in the future of truly sustainable building materials."

Türkiye: The Turkish government has introduced new rules on the minimum thickness of insulation used in urban construction. Buildings in Ankara must be fitted with 9cm-thick insulation, compared to 6cm previously, while those in Istanbul must be fitted with 8cm-thick insulation, compared to 5cm previously. Suar Energy News has reported that this accompanies new government regulations that require all new builds to source at least 5% of their electricity renewably, as part of a drive for Nearly Zero-Energy Buildings (NZEB).