Insulation industry news from Global Insulation

Ireland: Kingspan's consolidated sales rose by 28% year-on-year to Euro8.3bn in 2022 from Euro6.5bn in 2021. The group's profit after tax also rose, by 8% to Euro616m from Euro571m. Its turnover from insulation sales rose by 40% to Euro1.66bn, while its turnover from insulated panels sales rose by 23% to Euro5.18bn. Panel volumes were reportedly 'more challenged' during the second half of the year.

CEO Gene Murtagh said “The 2022 outturn was very satisfactory in the context of accumulating uncertainty over the course of a bumpy year, which saw a strong first half performance giving way to a more subdued environment in the second half." He added "Given the powerful combination of our global scale, the diversity of our end markets, our ability to grow organically and through acquisition, alongside our strong innovation pipeline and an ongoing societal drive for energy efficiency, we believe Kingspan is very well placed for continuing progress for the benefit of all stakeholders."

Belgium: Germany-based Covestro has broken ground on the construction of a new Euro300m aniline plant in Antwerp. The plant will supply aniline for methyl diphenyl diisocyanate (MDI) production in the region. Forecasts cited by the chemicals producer posit global annual MDI demand growth of 6% into the medium-term future.

Covestro's chief technology officer Klaus Schafer said “Even in challenging times, we must not lose sight of our goals. With the expansion of our aniline production, we are addressing the further increase in demand from our customers for energy-efficient insulation." He added “By using state-of-the-art technology, we are increasing the energy efficiency of production, and thereby the competitiveness, of the Antwerp site.”

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.”

Switzerland: Holcim increased its consolidated sales by 17% year-on-year to US$15.3bn in the first half of 2022 from US$13.1bn in the first half of 2021. Its recurring earnings before interest and taxation (EBIT) were US$2.26bn, up by 9.6% from US$2.06bn. Solutions and products sales grew by 84% to US$2.72bn from US$1.48bn and accounted for 18% of group sales, compared to 8% of its full-year 2020 sales. The group’s operating profit rose by 15% to US$2.15bn from US$1.86bn, while its net debt rose by 7.5% to US$13.9bn from US$12.9bn.

Holcim called market conditions “volatile,” but forecast net sales growth of 10% year-on-year on in 2022, upgraded from 8%. The group forecast double-digit net sales growth in its Solutions and Products division to US$5.2bn for the year. It also expects to end the year with accelerated progress towards its 2025 sustainability targets, positive growth in its recurring EBIT and a free cash flow above US$3.12bn.

Chief executive officer Jan Jenisch said “Our record results, from net sales to recurring EBIT and earnings per share, are setting solid foundations to deliver our Strategy 2025 - Accelerating Green Growth. Our roofing and insulation businesses stood out as growth engines, on track to reach pro-forma net sales of US$3.64bn in 2022.”

Ireland: Kingspan says that it expects to record a profit of Euro415m in the first half of 2022, up by 26% year-on-year from Euro329m in the first half of 2021. The company noted that its global backlog of insulated panels orders fell by 2% year-on-year in volume on 31 May 2022, having previously been up by 19% year-on-year on 31 March 2022. It said that order volumes nonetheless remained above 2019 levels.

Denmark: Rockwool recorded consolidated sales of Euro924m in the first quarter of 2022, up by 38% year-on-year from first-quarter 2021 levels. The group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 12% year-on-year to Euro155m.

CEO Jens Birgersson “High demand and sales price increases drove double-digit revenue growth across almost all business units. While not materially affecting sales performance at this point, the terrible war in Ukraine and the challenging geopolitical situation are contributing to an already stressed global economy. Even with the price increases, the soaring energy, material, and logistics costs diluted margins in the first quarter. This will necessitate further price increases across the businesses.” Birgersson added “We expect to restore margins in the coming quarters.”

In its Outlook 2022, Rockwool predicted full-year net sales growth of 20 – 25% in local currencies and Euro425m-worth of group investments during the year, excluding acquisitions. It says that its business in Russia continues operating on a stand-alone basis, in order to avoid nationalisation and loss of its intellectual property.

Poland: Major cement producer Holcim has entered into an agreement to acquire waterproofing, adhesives, polystyrene products and plaster producer Izolbet. Izolbet employs 170 people and operates four production plants in Budzyń, Gostynin, Kleszczów and Chmielów, with most of its business in the high-growth repair and refurbishment market. Holcim says that the new acquisition will help to strengthen its footprint in the renovation, thermal insulation and finishing segment.

Europe, Middle East and Africa region head Miljan Gutovic said “Speciality building solutions have been a key focus for expanding Solutions & Products in Europe, notably with the recent acquisitions of PRB Group in France and PTB-Compaktuna in Belgium. I’m excited to be welcoming all of Izolbet’s employees into the Holcim family, to unleash our next chapter of growth together.

Belgium: Recticel recorded consolidated sales of Euro295m in the first quarter of 2022, up by 43% year-on-year from Euro206m in the first quarter of 2021. The group attributed the growth partly to a 28% year-on-year increase in its insulation sales in the quarter. It ended the quarter with net financial debt of Euro130m, down by 12% year-on-year from Euro148m. Recticel said that the quarter brought progress towards closing its divestment of its engineered foams business line to US-based Carpenter in mid-2022.

The group said that, despite geopolitical instability and inflationary pressure, its business continues to develop well in 2022. It continues to work on accelerated growth plans in order to double its insulation sales over a period ending in 2025.

UK: Knauf Insulation plans to upgrade two of its glass wool insulation plants in the UK at a cost of Euro53.7m. The upgrades consist of a packaging equipment upgrade at the Cwmbran, Torfaen, insulation plant and the replacement of the furnace and connected equipment at its St Helens, Merseyside, insulation plant, as well the acquisition of land adjacent to the latter from NSG Group. As a result of its upgrade, the Cwmbran plant will begin producing insulation slabs as well as rolls and blowing wool. The company said that the investments are a response to anticipated glass wool insulation demand growth on the back of the government’s Future Homes Standard energy efficiency policy.

Managing director Neil Hargreaves said “This series of investments will boost capacity as well as improve the range, availability and sustainability of our products.”

Ireland: Kingspan’s consolidated net sales increased by 24% year-on-year in the first quarter of 2021 to Euro1.28bn. Insulated panels sales grew by 25% having started the year with a strong order backlog and insulation boards grew 12%. Communications company Edison Group said that growth was most pronounced in Germany, France and Benelux and Latin America, with a strong order intake in North America and the UK. Net debt at 31 March 2021 was Euro352m.

The company noted increasing inflationary pressure and challenges regarding availability despite strong demand and a strong backlog. As such, it has given no guidance for the year.

Kingspan highlighted its inaugural Planet Passionate sustainability report. The report details the company’s achievements in the first year of its 2019 10-year sustainability strategy. In 2020, the producer achieved net-zero energy and cut CO2 emissions by 5% year-on-year. It issued a Euro750m green private placement in September 2020. The company called the major achievements the ‘first leg’ of its decarbonisation journey. In its latest report, it set the target of net-zero CO2 emissions by 2030. Additionally, it is aiming to halve CO2 intensity over the same period. Altogether, Planet Passionate covers 12 sustainability targets across the key areas of energy, circularity, CO2 and water.

Chief executive officer Gene Murtagh said “Our Planet Passionate targets demand radical thinking and action. Our aim is to get as close to zero emissions in our manufacturing as technically possible by transforming our processes. Industry has a vital role to play in addressing the threat of climate change.” He added that the group target of 50% primary raw materials CO2 intensity reduction “will also lower the embodied carbon in our products, and consequently the whole life carbon of buildings.”