Insulation industry news from Global Insulation
US: Rockwool North America plans to build a new US$175m stone wool insulation plant at Wallula Gap, Washington. The Denmark-based producer has acquired 101 hectares of land at the Port of Walla Walla, local press has reported. The upcoming plant will produce insulation using Washington’s abundant igneous rock.
Rockwool North America already operates two other US plants, at Byhalia in Mississippi and Ranson in West Virginia, alongside a further two in Canada. It employs 1100 people, and this will rise by 11% to over 1200 people following the entry into operation of the Wallula Gap plant.
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.
Etex increases sales and earnings in 2022
17 March 2023Belgium: Etex's sales were Euro3.74bn in 2022, up by 25% year-on-year from 2021 levels. The group's insulation sales were Euro312m, 8.3% of the group total for the year. Its recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) totalled Euro645m, up by 13%. During 2022, Etex reduced its absolute CO2 emissions by 20% compared with 2018 levels.
Regarding insulation sales, the producer said "The early months of 2022 saw very strong volumes, followed by modest drops. Insulation’s results were impacted by issues surrounding inflation, gas, power and raw materials but the energy savings aspect of insulation made glass wool and extruded polystyrene (XPS) insulation even more attractive than previous years."
Etex expanded its insulation business during the year through its acquisition of Spain-based URSA.
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.
Germany: Chemicals producer BASF has partnered with RAMPF Eco Solutions, Poland-based Remondis Electrorecycling and engineering company KraussMaffei to develop depolymerisation techniques to produce polyol from waste polyurethane (PU) fridge insulation, as an alternative to natural hydrocarbons. The recovered polyol could then be used as a raw material in PU insulation production.
BASF said "This innovative process is particularly challenging because it has to be very robust in order to reliably convert post-consumer waste with high levels of foreign substances into a high-quality recycled polyol.”
Waste fridge insulation's only current use is as an alternative fuel by the energy sector.
Mannok’s sales rise in 2021
16 May 2022UK: Mannok recorded sales of Euro270m in 2021, up by 16% year-on-year from Euro233m in 2020. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 17% to Euro25.8m from Euro31.1m. The group attributed this to substantial cost absorption beginning in mid-2021. It noted particularly high raw material costs in its insulation segment due to current global shortages. Overall energy prices rose by 66% year-on-year, while the cost of carbon emissions trading scheme (ETS) credits more than doubled to Euro80/t at the end of the year.
Mannok said that demand for its products remains resilient, supported by stronger cost recovery. It added that a levelling out in energy prices has driven stronger profitability in the first quarter and April of 2022.
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.
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.