Insulation industry news from Global Insulation

Sweden: Owens Corning subsidiary Paroc has applied to expand its Hällekis insulation plant to 115,000t/yr of stone wool production capacity as part of an on-going upgrade. Nordic Daily News has reported that the company is also electrifying the plant and implementing recycled raw materials use. When commissioned, the upgraded plant will process 100,000t/yr of recycled minerals.

North America: The Center for the Polyurethanes Industry (CPI) recorded total polyurethane (PU) production of 4.1Mt in North America in 2023. US Political and Economic Organizations News has reported that applications contributing towards the growth included continuous insulation and spray foam for air barriers.

Director Jason Sloan noted market challenges due to ‘shifts in demand and availability for raw materials,’ but said that producers were adapting to the market dynamics.

Belarus: A delegation from the Belarusian Universal Commodity Exchange (BUCE) has entered into negotiations with Chinese synthetic fibres producers for the import of their materials. UZDA News has reported that the products will serve as raw materials for the Belarusian light building materials industry.

BUCE said "Chinese companies have become increasingly active, making regular transactions. This year, China supplied Belarus with spare parts, industrial tools, and technological equipment – mainly import-substituting products.”

Chinese imports were valued at US$84m in the opening seven months of 2024, more than double the figure for the corresponding period in 2023.

Sweden: Svenska Aerogel says that it has received an order for 360kg of its Quartzene silica aerogel from a Europe-based insulation producer. Quartzene is the brand name for various synthetic silica powder materials produced by Svenska Aerogel.

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.

Austria: 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.

Belgium: 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.

UK: 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.