Insulation industry news from Global Insulation
South Korean EPS sandwich panel standards suspended
12 March 2024South Korea: The Ministry of Land, Infrastructure and Transport has suspended the Korea Foamed Plastic Industry Cooperative’s standard for expanded polystyrene (EPS) insulating sandwich panels. The standard had been certified by the Korea Institute of Civil Engineering and Building Technology. Maeil Business Newspaper has reported that the suspension is part of a regulatory revision in the interest of fire safety. The value of the South Korean EPS sandwich panel industry is US$1.37bn/yr.
The Korea Foamed Plastic Industry Cooperative said “With a severe shortage of certification agencies, it takes over a year to obtain certification. This is tantamount to telling small businesses to shut down.”
NIA and AMPP sign joint standards development agreement
08 March 2024US: The National Insulation Association (NIA) and the Association for Materials Protection and Performance (AMPP) have signed a Joint Standards Development Agreement. The agreement establishes a unified mechanical insulation standards programme.
NIA CEO Michele Jones said “This partnership represents a significant milestone for the NIA and the broader insulation industry. By aligning our efforts with AMPP, we’re not just setting new standards but driving standardisation and efficiency in insulation applications across various sectors. This collaboration is a step forward in our commitment to sustainability, decarbonisation, safety and enhancing the value insulation brings to the global market.”
Etex records sales and earnings growth in 2023
07 March 2024Belgium: Etex reported sales of €3.81bn in 2023, up by 2.5% from 2022 levels. The company's recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) rose by 10% to €712m. It also raised its capital expenditure for the year, to €371m. Etex used 47% recycled polystyrene in its operations throughout the year. In mid-2023, Etex exited Russia through the sale of two URSA insulation sites. The group is also ‘actively preparing’ to help rebuild Ukraine as soon as conditions permit.
CEO Bernard Delvaux said “Even more so than 2022, 2023 was a challenging year marked by volatility, uncertainty and severe drops in demand across the world, as we observed the continued impacts of increased energy prices and interest rates. Combined with tougher financing possibilities by banks, all these circumstances meant that both renovation and new construction levels dropped globally. Devaluation of some foreign currencies and hyperinflation accounting also had significant effects on our results. Despite all these challenges, I am extremely proud to share that Etex navigated these difficult waters very well and delivered yet again another record year. This includes our highest ever revenue and REBITDA, among others. This strong performance stems from our anticipation in making strategic decisions and changes at global, regional and local levels, ensuring continued proximity with our customers. This is also a result of even tighter cost monitoring in 2023, without ever losing sight of our long-term ambitions and continuing to improve our strong industrial footprint.”
Soprema announces upcoming Sausheim insulation plant
29 January 2024France: Soprema plans to begin building a new polyurethane (PU) insulation plant at Sausheim, near Mulhouse, in mid-late 2024. The producer says that it will invest Euro50m and enter production at the upcoming plant in 2026. When operational, the Sausheim insulation plant will complement Soprema’s existing Saint-Julien-du-Sault and Nîmes plants, and serve Grand Est, Austrian, Germany and Switzerland. The plant will generate 80 direct jobs and a similar number again of indirect jobs.
Isonat to expand Mably wood fibre insulation panels plant
26 January 2024France: Saint-Gobain subsidiary Isonat is investing Euro10m in a capacity expansion to its Mably insulation wood fibre insulating panels plant. French Collection News has reported that the expansion will double the plant’s capacity to 42,000t/yr. The company says that it aims to double its sales in two years. It noted growing demand for bio-sourced materials and the availability of favourable home renovations subsidies.
Kingspan cleared to acquire 51% Steico stake
20 November 2023Germany: EU competition authorities have approved Ireland-based Kingspan’s acquisition of a 51% majority stake in wood fibre insulation producer Steico. Kingspan concluded the deal with wood products company Schramek in July 2023, and expects to complete its acquisition of the stake in early January 2024.
Swisspor Group to acquire BriothermXPS
14 November 2023Romania: Switzerland-based Swisspor Group has concluded a deal to acquire extruded polystyrene (XPS) insulation producer BriothermXPS. BriothermXPS sells its insulation across Central and Southeast Europe. Swisspor Group thanked its deal coordinator Concilium Consulting for helping it to conclude the agreement ‘despite a challenging market environment and complex transaction structure.’
Kingspan forecasts profit growth in full-year 2023
14 November 2023Ireland: Kingspan expects its trading profit to amount to Euro875m throughout 2023, up by 5% year-on-year from Euro833m. The group noted a stable global backlog of orders. Nonetheless, its visibility remains low, amid challenges in ‘a number of end markets.’
Masterplast’s sales fall as earnings slip into the negative in first nine months of 2023
26 October 2023Hungary: Masterplast reported sales worth Euro114m during the first nine months of 2023. This represents a year-on-year decline of 31% from Euro164m in the corresponding period in 2022. The producer’s earnings before interest, taxation, depreciation and amortisation (EBITDA) losses were Euro2.93m, compared to a positive figure of Euro19.3m. During the third quarter of 2023, sales declined in Hungary by 45% and across its export markets by 26%. They rose by 21% in Poland, by 8% in Croatia and by 2% in Ukraine.
Masterplast attributed its sales decline to low demand due to global inflation and rising interest rates amid on-going lockdowns, energy crises and war in Ukraine, while energy-saving renovation initiatives have also been subject to delays. The company set a savings target of Euro2m/yr and laid off 250 employees, including 210 from its plants in Serbia. It completed the construction of new expanded polystyrene (EPS) and extruded polystyrene (XPS) capacity in Italy and Serbia, which it expects to bring online later in 2023.
Germany: Masterplast has inaugurated the new Euro3m storehouse at its Achersleben non-woven fleece products plant in Saxony-Anhalt. The plant produces non-woven fleece products for various applications from polyethylene (PE) and polypropylene (PP). Masterplast has announced a budget for Euro50m of upcoming investments across Central and Eastern Europe.
Chair Tibor David said “The new hall allows for flexible, smaller-scale servicing and is a crucial step in strengthening our market positions in the EU's largest market.”