Insulation industry news from Global Insulation
Mongol Basalt produces 2248t of stone wool insulation in 2023
26 February 2024Mongolia: Mongol Basalt produced 2248t of stone wool insulation in 2024, which it says helped Mongolians to reduce their energy consumption by 78GW. Nonetheless, the producer’s sales fell by 20%, amid a 35% drop in its prices.
During 2023, Mongol Basalt commenced construction of a new production line at its Ulaanbaatar insulation plant. The UB Post newspaper has reported that the company expects the upgrade to double its capacity to 50,000t/yr, and to introduce new energy-efficient solutions.
Austrotherm to raise prices in September 2023
30 August 2023Austria: Austrotherm plans to raise the prices of its expanded polystyrene (EPS) and extruded polystyrene (XPS) insulation products by up to 15% from 25 September 2023. The insulation producer said earlier in August 2023 that production reductions and unexpected plant shutdowns had increased the costs of its main raw materials.
US: Owens Corning recorded sales of US$7.48bn during the first nine months of 2022, up by 17% year-on-year from US$6.37bn in the first nine months of 2021. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 24% to US$1.8bn from US$1.45bn. The group's insulation sales rose by 19% to US$2.76bn from US$2.32bn. The segment's higher selling prices reportedly offset accelerating energy, material and transport inflation.
During the year, the company transferred or sold all Russian assets, which had previously contributed US$100m in sales in 2021. Elsewhere, Owens Corning launched three new products during the third quarter of 2022 alone.
Estonia: Insulation prices are reportedly 20% higher than prior to the Russian invasion of Ukraine due to increased production costs. Members of the Estonian Association of Construction Entrepreneurs (ACE) have threatenened to terminate all public sector construction contracts due to untenable costs. Other building materials have risen in cost to as much as double their pre-invasion price.
Austrotherm to raises prices
15 March 2022Austria: Austrotherm plans to raise the prices of its extruded polystyrene (EPS) insulation and expanded polystyrene (XPS) insulation products in response to “very strong” increases in raw materials, energy and transport costs. The latest round of price increase will take effect in early April 2022. The producer added that it could not rule out re-introducing monthly quantity quotas if order intake remained high.
Recticel passes on rise in price of input chemicals
04 March 2022Belgium: Recticel’s insulation business has used price rises to compensate for a steep rise in the price of raw chemical input materials. The division’s sales grew by 57% year-on-year to Euro391m in 2021 from Euro249m in 2020. Its adjusted earnings before taxation, interest, depreciation and amortisation (EBTIDA) more than doubled to Euro62.4m from Euro27.5m. It said that its Insulation and Engineered Foams businesses performed well in a volatile environment. Chemical raw materials supply reportedly remain tight and prices are showing little signs of stabilisation. Transportation and labour costs are increasing at an “unprecedented” rate. However it added that energy cost inflation has a minor impact given the “very low energy intensity of our business.” Overall the group’s sales and adjusted EBITDA rose by 67.4% to Euro1.03bn and by 134% to Euro89.7m.
“We are happy with the very positive sales and profitability development in 2021, a year marked by deep changes in our company. Changes which were planned and announced, such as the acquisition and integration of FoamPartner and the divestment of the Bedding activities. Changes which came as a consequence of the unsolicited takeover bid by Greiner, such as the divestment of our newly created Engineered Foams business segment,” said chief executive officer Olivier Chapelle.
Owens Corning grows insulation sales on higher volumes and prices
18 February 2022US: Owens Corning grew its insulation sales revenue in 2021 through increased volumes and higher prices. Its insulation business sales grew by 22% year-on-year to US$3.18bn in 2021 from US$2.61bn in 2020. Its earnings before interest and taxation (EBIT) rose by 78% to US$446m from US$250m. It added that higher selling prices more than offset inflation and increased transportation costs. The group’s overall revenue rose by 20% year-on-year to US$8.50bn and its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 41% to US$1.90bn.
“2021 was a year of tremendous accomplishment and record results for Owens Corning. Our global teams continued to elevate their performance to support our customers and generate growth in our key products and geographies, outperforming the markets we serve,” said chair and chief executive officer Brian Chambers.
Kingspan holds off raw material inflation with price rises in 2021
18 February 2022Ireland: Kingspan says that it saw ‘dramatic’ price inflation from its key raw materials in 2021. To compensate it passed on around Euro700m in cost increases to the market. The group’s revenue grew by 42% year-on-year to Euro6.50bn in 2021 from Euro4.58bn in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 42% to Euro893m from Euro630m. Turnover from the group’s insulated panels business represented 65% of total revenue at Euro4.23bn and its insulation boards business represented 18% at Euro1.18bn. The insulation producer noted particular positive markets in the Americas, France and the UK.
“The business delivered an exceptional performance last year, with our growing sales to customers in the technology, online distribution, and automotive sectors instrumental in the results. Whilst dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued margin improvement,” said Gene M Murtagh, the chief executive officer of Kingspan.
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.
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."