Global Gypsum Newsletter

Issue: GGM45 / 17 December 2019

Headlines


US: The board of directors of Owens Corning has elected Brian Chambers as its new chairman. He succeeds Mike Thaman, who has decided to retire in April 2020. Chambers became chief executive officer (CEO) and was elected to the board in April 2019. He has been with the company for over 15 years, and throughout his career, has held a number of senior operating roles across a range of businesses and locations.


Sweden: BEWiSynbra Group has appointed Jonas Siljeskär as its new chief executive officer (CEO) with effect from the start of 2020. He succeeds Rik Dobbelaere, who has been the CEO of BEWiSynbra since mid-2018, following BEWi’s acquisition of Synbra in May 2018. Dobbelaere will remain as an advisor to the company and the intention is to propose to the general meeting to elect him as a new member of the board in BEWiSynbra.

Siljeskär has been deputy CEO of BEWiSynbra since mid-2019, with full responsibility of all operational aspects of the company, and prior to this he was the chief operating officer (COO) and managing director of BEWiSynbra RAW.

Sweden’s BEWiSynbra Group is a vertically-integrated producer of expandable polystyrene (EPS) products, including packaging, components and insulation.


Uzbekistan: AFKA Group has ordered a basalt wool production line from Italy’s STM Technologies. The 6Mm3/yr unit will be based at the former Tashkent Mechanical Plant site. More than 150 jobs will be created when the new plant opens. No value for the order has been disclosed.


Azerbaijan: Russia’s Penoplex has held a ground-breaking ceremony for a new insulation board plant it is building in Hajigabul district. The project is part of an interstate partnership between Azerbaijan and Russia, according to the Trend News Agency. Penoplex operates eight plants in Russia, one plant in Kazakhstan and one plant in Uzbekistan.


US: Huntsman has announced an agreement to acquire Icynene-Lapolla, a North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, for US$350m from an affiliate of FFL Partners. Icynene-Lapolla operates two manufacturing facilities located in Houston, Texas and Mississauga, Ontario. The transaction is expected to close in the first half of 2020.

“I am delighted that Icynene-Lapolla is joining our downstream, high-growth MDI urethanes insulation business. Icynene-Lapolla is well recognised by architects, builders and contractors as a market leader in the manufacture and supply of high-performance, energy-efficient building envelope solutions,” said Tony Hankins, the president of Huntsman's Polyurethanes division. He added that the combination of Icynene-Lapolla, with its SPF product range and reflective roof coatings, with Demilec, the SPF business that Huntsman acquired in 2018, would ‘significantly’ strengthen its energy-saving insulation business.


Romania: Switzerland’s Sika has announced its purchase of Adeplast, a mortars and thermal insulation producer, subject to clearance from Romanian anti-trust authorities. Adeplast generates Euro109m/yr across its four plants. Sika’s Europe, Middle East and Africa regional manager Ivo Schädler spoke positively of ‘exciting crossselling opportunities’ and the possibility of increased market penetration.


US: The building products manufacturer Johns Manville has announced its acquisition of ITW Insulation Systems, which specialises in low-temperature polyisocyanurate foam insulation and metal jacketing solutions, for an undisclosed price. Business Wire has reported that the deal is scheduled for closure in December 2019. Johns Manville CEO and president Mary Rhinehart said that the acquisition ‘will give greater versatility to Johns Mansville’s robust and well-rounded portfolio of insulation solutions.’


Denmark: Rockwool’s sales for the nine months to 30 September 2019 were Euro2.0bn, up by 3.2% from Euro1.9bn in the corresponding period of 2018. Its earnings before interest and taxes over the period were up by 7.8% year-on-year at Euro278m in the first nine months of 2019 from Euro258m. The company forecast annual sales growth of 2% - 5% and no change in EBIT margin from 12.8% in 2018. Rockwool vice president Michael Zarin noted positively Rockwool’s stonewool insulation’s versality in tackling many of today’s biggest sustainability and development challenges.


Spain: Isover has launched APTA Arena, a new product in its APTA sand mineral wool line. It says it is intended for interior divisions offering high thermal and acoustic performance. The product is also made from over 50% of recycled materials and can be fully recycled after use.


Ireland: Kingspan’s sales for the first nine months of 2019 rose by 8% year-on-year to Euro3.43bn. However, its sales in the third quarter fell by 2% year-on-year due to slowing sales in the UK. Sales of insulated panels saw a ‘substantial’ reduction in order intake in the UK in the third quarter reducing by more than 15% in volume versus the same period in 2018. European and American markets were stable with the exception of Germany. Insulation board sales were affected by slowing sales in the UK, Ireland and Germany. The group expects these market trends to continue into the first quarter of 2020 at least.


UK: Superglass has completed a Euro43m upgrade to its glass wool plant in Stirling, Scotland. Production capacity at the unit has been doubled to 60,000t/yr, according to the Scotsman newspaper. A new furnace, curing oven and an automatic packing system were installed as part of the upgrade. The project was first announced in 2017 following the acquisition of the company by Russia’s TechnoNicol in 2016.


Netherlands: Nine-month restated sales for Recitel fell by 7.3% year-on-year to Euro924m in September 2019 compared to Euro997m in the corresponding period of 2018. Despite ‘double-digit’ volume growth, insulation sales over the period fell by 4.5% to Euro193m from Euro202m due to pricing issues stemming from the loss of market share to fibre insulation as a lingering after-effect of the isocyanate shortage of 2017. The company noted the ‘ramping-up’ of production at its new plant in Finland, with all products now certified for sale in the Nordic countries. Recticel CEO Olivier Chapelle noted the continued substantial decrease in debt as a positive in the period.


France: Knauf Insulation entered production at its new 0.1Mt/yr mineral wool plant in Illange on 22 October 2019. Knauf Western Europe managing director Mark Leverton called the plant, which cost Euro110m and will employ 123 people, a ‘reference plant’ for the group ‘in terms of its approach to the environment and the wellbeing of employees.’ The group reported that 7.5ha has been set aside for a wildflower meadow, with Urbanscape Green Roof installed across plant buildings.


US: Huntsman has published its third quarter results showing a 30% fall in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$215m from US$308m. Sales volumes and prices fell in the polyurethanes and advanced materials sections, with a strong US Dollar pushing down the latter’s profit margin in the European region, where customer destocking also occurred.


US: In the third quarter of 2019, Dow experienced a price decline of 12% on its volumes which fell 2%, yielding net sales of US$9.4bn, down by 15% compared to US$10.8bn in the three months to 30 September 2018. Its operating earnings before interest and taxes declined by 18% year-on-year to US$1.1bn from US$1.3bn.


US: Owens Corning’s net earnings in the third quarter of 2019 took a dive to US$333m from US$376m, down by 11% year-on-year. Its insulation section reported earnings before interest and taxes of US$84m, down year-on-year by 11%. The section’s sales in the quarter amounted to US$693m, down by 2% year-on-year from US$710.

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