Insulation industry news from Global Insulation

US: The chief executive officers (CEO) of 13 US companies, including BASF and DuPont, are lobbying the President and Congress to enact business-led climate change legislation. This initiative, known as the CEO Climate Dialogue, urges the government to put in place a long-term federal policy as soon as possible, in accordance with a set of six guiding principles. The group aims to build bipartisan support for climate policies that it says will, “… increase regulatory and business certainty, reduce climate risk, and spur investment and innovation needed to meet science-based emissions reduction targets.”

Companies involved in the CEO Dialogue include BASF, BP, Citi, Dominion Energy, Dow, DTE Energy, DuPont, Exelon, Ford Motor Company, LafargeHolcim, PG&E, Shell, and Unilever. Four environmental groups have also supplied input to the initiative. These are the Center for Climate and Energy Solutions, Environmental Defense Fund, the Nature Conservancy and World Resources Institute.

The six principles include: ‘significantly’ reducing US greenhouse gas emissions; allowing an effective timeline for reductions that will enable capital intensive industries to adjust in an ‘economically rational manner’; instituting a market-based price on carbon; making the policies durable and responsible; doing no harm to the competitiveness of the US economy with particular attention to carbon leakage; and promoting equity. Specifically the initiative says that US policy should ensure the country is on a path to achieve economy-wide emissions reductions of 80% or more by 2050 with ‘aggressive’ short and medium term emissions reductions.

“DuPont is pleased to be part of the CEO Climate Dialogue and support its guiding principles to accelerate the development of federal policy on climate change. At DuPont, our science and innovation is inextricably linked with sustainability practices that deliver specialised materials that contribute to a safer, healthier, more sustainable world. We believe strong, consistent policy measures and a cohesive regulatory environment are needed to accelerate the transition to a low-carbon economy and foster innovation, investment and economic growth,” said Marc Doyle, CEO-Elect of DuPont.

Bahrain: Turkey’s ThermoBor has met with government officials to discuss setting up a regional office. The hub will serve Bahrain and the wider Gulf market, according to the Bahrain News Agency.

UK: The UK government plans to adopt the recommendations made by Dame Judith Hackitt in her review of building regulations and fire safety published following the Grenfell Tower fire in mid-2017. Other commitments the Ministry of Housing, Communities & Local Government has made include creating a new regulatory and accountability framework to provide greater oversight of the industry and introducing clearer standards and guidance, including establishing a new Standards Committee to advise on construction product and system standards and regulations. It says it will place residents at the heart of the new system, with new routes for engagement and redress, and that it wants to help create a culture change and a more responsible building industry. In addition to setting out its plans to implement the changes called for by Hackitt, the government says that a full review of fire safety guidance within building regulations has also been launched.

UK: Plans by Knauf Insulation and Veolia to tackle complains about the ‘offensive’ odour from a glass-recycling unit at Knauf’s St Helens mineral wool plant have been approved by the local council. The proposals include introducing a wet scrubber and extending the current dryerstack to 30m from 13m, according to the St Helens Star newspaper. These measures were suggested following an assessment with Odournet. Local residents have made complaints about the Veolia-run unit since it became operation in October 2017.

US/China: The Office of the US Trade Representative has started implementing a 10% tariff on mineral and other products from China, including mineral wool products, following a consultation period. Mineral products affected by the proposed tariffs of interest to the insulation industry include: slag wool, rock wool and similar mineral wools, in bulk, sheets or rolls; and nonwoven glass wool insulation products. The latest tariff list follows an earlier decision by the US government to tax imports from China worth US$34bn that came into force in early July 2018.

New Zealand: Energy and Resources Minister Megan Woods has officially launched the Warmer Kiwi Homes insulation programme in Christchurch. The US$96m programme is intended to give low income homeowners grants covering two thirds of the cost of ceiling and underfloor insulation. The first year of the programme will focus on insulation grants, with grants for heating available from July 2019.

UK: A review by the government into building regulations and fire safety has found that the local buildings regulation system is broken, However, it has not recommended a ban on combustible cladding, according to Reuters. The independent review followed a fire at a residential tower block in June 2017 that killed 71 people. An aluminium cladding with a flammable plastic core is thought to have contributed to the rapid spread of the fire.

Judith Hackitt, the engineer and former Chair of the UK Health and Safety Executive presiding over the review, defended existing regulations and blamed poor implementation of the rules by builders and contractors. She has recommended that the building regulations system be changed to focus on high-rise residential buildings first and then to improve building safety during design, constriction and refurbishment. She also called for greater enforcement powers with ‘serious’ penalties for individuals who infringe the rules.

Organisations including Kingspan Insulation, Knauf Insulation, the Mineral Wool Insulation Manufacturers Association and the Constructions Products Association provided written evidence to the review.

A separate public inquiry is examining the causes of the Grenfell Tower fire and a police investigation is also looking at the incident.

Australia: Kingspan Australia has complained that its can’t compete against foreign competitors due to shipping charges at the Port of Melbourne. Charges at the port have led to the state government to consider taking action. Kingspan says it has conducted an international benchmarking survey across ports it uses, including those in the UK, the UAE, China and South Korea. It found that Melbourne was the most expensive and one of the most expensive ports in the world for terminal handling and port service charges.

Exports comprise a third of the output of Kingspan’s plant at Somerton. Further plans to upgrade the plan depend on its export market. The US$30m plant opened in mid-2017.

Poland: Prime Minister Mateusz Morawiecki says that his government will spend Euro7.2bn on measures to reduce air emissions including financing home insulation. Other measures in the programme include support for ‘green’ heating system, according to Radio Poland. The announcement follows the government’s support for a bill in March 2018 banning low-quality coal for domestic use.

According to a report by the World Health Organisation (WHO), 33 of Europe's 50 most polluted cities are in Poland. The WHO estimates that around 50,000 citizens die each year due to air pollution-related conditions.

US: Cal Dooley, the president and chief executive officer of the American Chemistry Council (ACC), has warned that a proposed Chinese response to US-imposed tariffs on imports of Chinese steel and aluminium could have negative implications for US exports of products including polyethylene.

“China is one of the US chemical industry’s most important trading partners, importing 11%, or US$3.2bn, of all US plastic resins in 2017. We are particularly concerned that 40% of the products to which China has assigned new tariffs are chemicals, including polyethylene, PVC, polycarbonates, acrylates, and others,” said Dooley in a statement. He added that nearly US$185bn in new chemical factories, expansions and restarts of facilities around the US are predicated on current tariff schedules, and market shifts caused by tariff increases may convince investors to do business elsewhere. He ‘strongly’ urged the US and China to reach an agreement.