Insulation industry news from Global Insulation

US: The US National Labor Relations Board (NLRB) has begun investigating Kingspan Insulated Panels following allegations of anti-trade union behaviour. The Irish Times newspaper has reported that the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART) lodged complaints citing unfair labour practices at a plant in California.

Kingspan rebutted the claims, which it says are designed to damage its reputation after it refused to sign a neutrality agreement with unions. The producer says that the agreement in question would infringe upon its employees' privacy and voting rights.

Hungary: 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.

UK: Belgium-based Etex has concluded a deal to acquire glass wool insulation producer Superglass. Superglass operates the Stirling glass wool insulation plant in Stirling, Scotland, and employs 200 people. Etex says that the acquisition will increase its number of employees in its insulation division, which operates 11 plants across Europe, to 1500, and its total UK-based employees to 1300. Etex already produces gypsum wallboard, fibre cement sidings and slates and fibre cement corrugated sheets in the UK.

CEO Bernard Delvaux said “Etex has a clear focus to be the most innovative and sustainable global lightweight building material manufacturer. Joining forces with Superglass today is a great step forward on our growth path in insulation, just one year after we acquired URSA. The need for energy efficient and sustainable buildings is crucial, and Superglass and URSA are a perfect answer for it.”

Kazakhstan/Russia: The government of Kazakhstan says that it now expects Germany-based Knauf Group to relocate its Russian business to Kazakhstan. It says that this is due to the on-going Russian invasion of Ukraine, which initially led Knauf to freeze investments in the sanctioned state and suspend its trade between it and the EU from March 2022.

Deutsche Welle News has reported that Knauf Group ‘did not confirm’ the Kazakh government’s contention. In defending its decision to so far remain in Russia, Knauf Group’s chair Alexander Knauf said “It’s not about money for us, it’s about 4000 employees. Loyalty to these people means to me that I won’t send them off into an uncertain future.” Russia reportedly contributed 10% of the group's turnover in 2022.

US: Owens Corning has achieved inclusion on the Dow Jones Sustainability World Index 2022, topping the Building Materials category. The producer scored 88 out of 100 for sustainable performance across multiple indices. It recorded full marks for environmental reporting, materiality, recycling strategy, risk and crisis management and social reporting.

Owens Corning's senior vice president and chief sustainability officer David Rabuano said, "Earning placement on this index for the 13th consecutive year is a validation of the daily efforts of our colleagues across our operations globally. I am proud that their hard work and diligence in our sustainability efforts continues to be the driver of our leadership on the Dow Jones Sustainability Index - and an ongoing contributor to achieving our goals for 2030 and beyond."

US: Owens Corning has agreed to sell the site of its Santa Clara, California, insulation plant to property company Panattoni Development. Local Press has reported that the plant’s closure ‘on or around’ 31 October 2022 will result in the loss of 225 jobs.

Russia: Denmark-based Rockwool has cancelled plans for a Euro200m expansion to its Vyborg stone wool insulation plant in Russia. In a statement, the company said that it would continue its operations in the country, while also respecting international sanctions. Rockwool employs 1200 people in Russia, 10% of its total employees.

In defending its decision to maintain ordinary operations, the producer said “For Rockwool, there is no contradiction in standing side by side with the Ukrainian people and at the same time standing side by side with our Russian colleagues.” It added that it has donated to the Danish Red Cross to support Ukrainian victims of the Russian invasion of Ukraine.

Romania: France-based Saint-Gobain has completed its acquisition of adhesives and construction chemicals producer Duraviz for an undisclosed sum.

The group said that the acquisition will enable it to expand its interior and exterior finishing product range. Saint-Gobain employs 1800 people at 12 sites in Romania.

UK/Ireland: Kingspan UK head of insulation boards Peter Wilson will retire from the company at the end of 2020. Wilson will also step down from his position on the producer’s board of directors.

Chief executive officer (CEO) Gene Murtagh has also apologised for ‘process shortcomings’ that have been highlighted by the ongoing Grenfell Tower Inquiry. The Irish Times newspaper reports that the company used flawed safety tests to market its Kooltherm K15 insulation product, some of which was used on the building. Murtagh used his Christmas 2020 address to staff to pledge trust-rebuilding action. He said that the company will treat the issues raised in the inquiry with the ‘utmost seriousness.’

In other personnel changes, Alan Lawlor has been appointed Divisional Managing Director of Kingspan's Insulation Boards Division with responsibility for its global activities. He is currently chief financial officer of Kingspan's Insulation Boards Division and managing director of Kingspan Insulation, Southern Europe.

Jim Carolan has been appointed as Group Head of Compliance & Certification with immediate effect, reporting to the Group chief executive officer (CEO). The group said that in this newly created role he will be responsible for ensuring a rigorous approach to certification, testing and product compliance across all Group divisions. Carolan's prior role was as Operations Director in Kingspan's Insulated Panel's Division.

US: Germany-based Knauf Insulation has launched an appeal against the decision of a Californian court in a civil dispute over staff pay. The claimants allege that Knauf Insulation has failed to pay overtime wages, meal and rest period premiums and minimum wages. Knauf was also accused of failing to maintain records to provide accurate wage statements. Class Action reporter has reported that case will pass to the US Court of Appeals.