Insulation industry news from Global Insulation

Russia: TechnoNICOL has installed a new glass furnace and polymerisation chamber at its Serpukhov glass wool plant in Moscow Oblast. AK&M News has reported that that the upgrade will expand the plant’s glass wool capacity to just under 2Mm³/yr and enable it to produce a total of 300 different types of insulation. TechnoNICOL is investing US$18m in the project, which uses equipment from Russian suppliers and is intended to reduce the sanctioned nation’s reliance on imports.

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.

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.

Russia: The Ministry of Industry and Trade of the Russian government says that building materials are in high supply, but projected possible future shortages, beginning in 2024. Russian construction remains dependent on imports, and the government says that it will look to further develop the domestic production capacity of insulation and other materials from 2024.

Belgium: The government has reduced value-added tax (VAT) on insulation to 6% from 21%. The measure aims to reduce national natural gas consumption in order to be prepared for any future shortage. Belgium is 6% reliant on Russia for its gas supply. Utilities companies supplying the Benelux region have declined to settle their bills with Russia-based producer Gazprom in Russian Rubles, so face a shut-off. Energy Minister Tinne Van der Straeten said that the Port of Zeebrugge was ready to begin imports of liquefied natural gas (LNG) from the US and elsewhere.

Van der Straete called on Belgians to ‘Insulate your homes, isolate Putin.’