Insulation industry news from Global Insulation

Brazil: According to See News, co-founder and commercial director Rafael Safra said that Brazilian sound insulation and rubber flooring manufacturer Aubicon Industria e Comercio Ltda is exploring options to sell a stake of its company to an external investor.

Safra said that the sale would enable the company to boost research and development spending and grow its customer base in South America. He added that Aubicon had commenced exports to other countries in the region in 2015.

Aubicon would prefer a foreign strategic investor, but would also consider a deal for a minority stake with a private equity group or a green investment fund, according to Safra. Teaming up with a green fund is a logical step for the company because most of its products are made with recycled tyre rubber as the raw material. In the case of financial investors, Aubicon would not be interested unless the potential buyer agreed to participate actively in the company's growth strategy development.

Thailand: According to Reuters, Siam Cement Group (SCG) expects its paper and packaging business to rise by 5 – 10% in 2015 as higher demand from southeast Asia helps offset slow growth at home.

SCG expects domestic demand to rise by 1 – 2% in 2015 due to weak consumption and poor exports, said Roongrote Rangsiyopash, president of its packaging unit. "Domestic demand is not good. Growth in Vietnam should be around 5% and in the Philippines it will be around 6 – 7%," said Rangsiyopash. He said that he expects domestic demand to improve in the second half of 2015 on hopes of better economic conditions, while southeast Asian markets are expected to grow by 5% or more.

SCG had US$2bn of sales from paper and packaging business in 2014, accounting for 15% of its total sales. However, profit from the paper business fell by 30% year-on-year in January – March 2015 due to a weak margin and rising expenses.

According to The Nation, Rangsiyopash said that SCG Paper has been rebranded as SCG Packaging to reflect a shift of its business model to focus on offering a "total packaging solution." Rangsiyopash added that SCG Packaging would offer an integrated range of services for the evolving needs of consumers, primarily in southeast Asia. SCG Packaging is expected to contribute 80 – 90% of the combined paper and packaging sales in the next five years, up from 70 – 75% currently.

SCG, which has packaging production bases in Vietnam, Indonesia, the Philippines and Singapore, has invested to expand its packaging capacity in southeast Asia. In 2014 it acquired a 90% stake in PT Indoris Printingdo, which produces high-quality packaging in Indonesia. SCG is also investing US$122m to add 243,000t/yr of additional packaging paper production capacity in Vietnam. The expansion is expected to be complete in 2017 and will increase its capacity to 2.6Mt/yr in southeast Asia. SCG has also set aside a research and development budget of more than US$11.9m in 2015 to focus on high value-added packaging products that offer high margins.

According to The Nation, Siam Cement is also expanding in the non-paper packaging segment, such as flexible and rigid packaging made from plastics, among others. In 2015 it acquired a 22% stake in Prepack, a 14,000t/yr capacity flexible-packaging producer. Rangsiyopash said that the flexible and rigid packaging sectors were growing faster than the paper packaging market, by 6 – 7% year-on-year.

Denmark: Theo Kooij, division managing director of the east division, will leave Rockwool Group to pursue other career opportunities. Theo has been a member of group management since 2001.

"During his years in the Rockwool Group, Kooij has contributed to our development and growth in many areas. I would like to thank Theo for his contribution to the group and wish him all the best in his future endeavours," said Jens Birgersson, Rockwool CEO.

In the ineterim the east division will be managed by CFO Gilles Maria.

UK: According to Builders Merchant Journal, an open letter to prime minister David Cameron published in the Financial Times on 10 June 2015 warned that a failure to tackle climate change could put the economy at risk, while decisive action could create jobs and boost competitiveness. The letter was sent by 80 UK businesses, including Knauf Insulation, Rockwool, Baxi, Akzonobel and Worcester and Bosch.

The businesses have called on the new administration to:

• Seek a strong global climate deal in Paris in December 2015 that limits temperature rises to below 2°C;

• Set an ambitious 5th carbon budget covering 2028 – 2032 to drive forward UK emissions reductions;

• Establish a long-term framework for investment in the low-carbon economy, giving industry much-needed clarity over what is expected in terms of low-carbon development and boost the confidence of green investors.

"British business is ready to step up. From construction and energy to retail, the best British enterprises know that green growth is the future," said Worldwide Fund for Nature (WWF) UK chief executive David Nussbaum. "They take on board that it's no longer credible to base a sustainable economy on fossil fuels, so the government should put us on track for a low-carbon world. As we approach international climate talks, Britain should be a global champion for change, but a lack of consistent long-term policies sends a confusing message to business and undermines our attractiveness to investors. The prime minister should send a clear message that the only way forward is a green economy and support forward-looking firms that want to build a clean economy."

Finland: Walki is answering increasing market demand for multilayer laminates by investing in a new production line at its Valkeakoski plant in Finland. According to Walki, there is an extensive growth potential, particularly in the construction business.

The new line, which, according to Walki executive vice president of construction Kari Salminen, will be 'unique on the market,' will start operations in the first quarter of 2016. It will be highly flexible and will cater to several different product segments in addition to the construction industry, such as consumer packaging and the pharmaceutical industry.
 
This flexibility will significantly shorten lead times.

The European Union's 202020 target, which, among other things, aims at a 20% improvement in energy-efficiency, is putting pressure on energy-efficient housing. Efficient insulation is key in keeping heating and cooling costs down.
 
Along with a recovery in the European economy, the construction business is expected to pick up, which will have a significant positive effect on the demand for insulation solutions, particular in those products requiring multilayer facings.

"With this investment, Walki strengthens its position as the premium supplier of multi-layer laminates globally. Further, the investment supports our strategy to focus on the growing segments of energy-saving laminates for building purposes and on value adding consumer packaging solutions," said Leif Frilund, president and CEO.