Global Gypsum Newsletter

Issue: GGM37 / 13 October 2017

Headlines


Norway: Saint-Gobain has completed its acquisition of insulation producer Glava following the approval of the local competition authority. The deal was first announced in June 2017. The two companies have a long history together through a licence agreement for Isover. Prior to the acquisition, Saint-Gobain owned 17% of Glava’s shares and it was represented on the board of directors.

In conjunction with the purchase Jon Karlsen, the managing director of Glava, has also been appointed as the managing director of Saint-Gobain Byggevarer, a company consisting of the brands Weber and Gyproc.


UK: SIG has appointed Andrew Allner as its chairman with effect from 1 November 2017. He will also take the role as a non-executive director. He succeeds Leslie Van De Walle who first announced his intention to retire in March 2017. Van De Walle will now step down as chairman and retire as a director on 31 October 2017.

Allner is currently the chairman of Marshalls, the Go-Ahead Group and Fox Marble Holdings, and a non-executive director at Northgate. Marshalls has announced that it will now start the process to recruit a successor to Allner and
that he will resign from the Marshall's board, once the new chairman is established in position. He was previously Non-Executive Director of AZ Electronic Materials, until 2014, and CSR, until 2013. Previous executive roles include Group Finance Director of RHM and chief executive officer (CEO) of Enodis. He also held senior executive positions with Dalgety, Amersham International and Guinness. Allner is a chartered accountant, former partner of Price Waterhouse and graduate of the University of Oxford.


Poland: Finland’s Paroc is spending around Euro60m on an expansion project at its Trzemeszno mineral wool plant. A new 70,000t/yr stone wool production line will be built at the site. The upgrade is expected to be completed in 2019.

"This is an important step for Paroc to continue the profitable growth. Demand for insulation has been increasing, especially in the Central and Eastern Europe. With increased production capacity we are able to grow together with our customers and improve our competitiveness and efficiency," said Kari Lehtinen, chief executive officer (CEO) of Paroc.


Europe/Spain: The European Commission has approved, under the European Union (EU) merger regulation, the acquisition of Spanish insulation producer URSA by Germany’s Xella. The commission concluded that the acquisition would raise no competition concerns because of the limited overlaps between the activities of the companies. The deal was first announced in August 2017 and it is expected to be completed by the end of 2017.


US: Canada’s Icynene has offered to buy Houston-based Lapolla Industries for US$160m. Under the terms of the merger agreement Icynene will acquire all the outstanding shares of Lapolla. The acquisition is subject to customary closing conditions, including receipt of regulatory approvals. Both companies produce polyurethane spray foam (SPF) insulation products.

"Icynene is thrilled to partner with Doug Kramer, the President and chief executive officer (CEO) of Lapolla, and his team as Icynene and Lapolla combine businesses to create an innovative leader in high yield SPF manufacturing and distribution," said Mark Sarvary, CEO of Icynene.


US: Israel Chemicals Limited (ICL) is preparing a new flame retardant for use in rigid polyurethane foams. Executives at ICL made the announcement at the Polyurethanes Technical Conference in New Orleans, according to ICIS. VeriQuel R100 is a non-halogenated reactive flame retardant intended to replace tris (chloroisopropyl) phosphate (TCPP) in case of any changes to existing government regulations. The new product will be targeted at building and construction applications.


US: Aspen Aerogels has won an initial determination US International Trade Commission (ITC) against Alison Hi-Tech and Nano Tech with regard to patents related to aerogel insulation. Administrative Law Judge McNamara found that Alison Hi-Tech and Nano Tech had infringed against three patents. McNamara also recommended a limited exclusion order as a remedy to prevent the importation of infringing aerogel products into the US. A final determination on the violation and remedy is expected from the full ITC commission by 29 January 2018.


Singapore: Kingspan has officially opened an office in Singapore. Irish Deputy Prime Minster and Minister for Business, Enterprise and Innovation, Frances Fitzgerald, opened the site while leading a five-day trade and investment mission to Southeast Asia.

“Future growth will come from markets such as Asia, Latin America and maybe Africa at a later stage,” said Manuel Furer, Kingspan’s Regional Managing Director for Australasia and South East Asia.

Kingspan has listed its QuadCore insulation panels with the Singaporean authorities. The company also hopes to open an innovation centre in the region at some point.


UK: Knauf Insulation has appointed Lisa Richardson as a new product manager to lead the development of its glass mineral wool range. She will be responsible for working with customers to grow Knauf Insulation’s glass product range, which includes Supafil, its blowing glass mineral wool, OmniFit, its multi-application product, and its DriTherm cavity slabs.

Richardson joins the insulation producer from ladder manufacturer Werner. Prior to that, she worked with a number of product categories, including hand tools, personal protective equipment, security and plumbing fittings.


Brazil: Kingspan has acquired a 51% stake of Isoeste Construtivos Isotérmicos (Isoeste). Isoeste, an insulated panel manufacturer, operates from four production sites with approximately 630 employees. No amount for the transaction has been disclosed.

"We are delighted to create this partnership with the founders of Isoeste, the number one player in Brazil's insulated panels market. Together with our recent investments in Colombia and Mexico, this acquisition firmly places Kingspan in a market leading position across Latin America, with a strong platform for further expansion in the region," said Gene Murtagh, Kingspan’s chief executive officer (CEO).


US: Kingspan Insulation has inaugurated the expansion of its Winchester plant in Virginia. An investment of US$25m was used to build an extruded polystyrene (XPS) insulation panel production line. The new line will double the plant’s production capacity by manufacturing GreenGuard XPS panels. The company has also announced spending US$1.1m on buying an additional 7.3 acres of land adjacent to the plant’s location.


Canada: The governments of Quebec and Canada have awarded France’s Soprema US$6.9m towards building an insulation plant at Sherbrooke in the Estrie region of Quebec. The project has a total budget of US$34.6m and it will produce extruded polystyrene insulation panels.

The Quebec government funding, allocated under the ESSOR program, includes a US$4m loan and a non-repayable financial contribution of US$1.2m. As for the federal government, Canada Economic Development for Quebec Regions (CED) has granted US$1.6m to Soprema, in the form of a repayable contribution.

Headquartered in Strasbourg, France Soprema produces insulation, waterproofing, soundproofing and roofing products for the construction and civil engineering sectors. Its North American head office and research centre are located in Drummondville, in the Centre–du–Québec region. The company runs three plants in Canada at Drummondville, Quebec City and Richmond.


France: Icynene Europe, the European division of spray foam insulation manufacturer Icynene, has purchased Isolat France, a polyurethane insulation distributor. The acquisition will allow Icynene to sell light density spray foam insulation, obtain a Conformité Européene (CE) marking for spray foam insulation and to establish a presence in France.

“The acquisition reinforces Icynene’s commitment to growth within the European market with direct sales to contractors. Operating across two dozen European countries, Icynene Europe will now have a comprehensive product mix of open- and closed-cell spray foam insulation products that we will manufacture in Europe,” said Bertrand Lauret, Managing Director of Icynene Europe, Africa and the Middle East.

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