Insulation industry news from Global Insulation

Iran: China National Building Material Company (CNBM) and the Industrial Development and Renovation Organisation of Iran, affiliated with the Industries Ministry, have signed a US$74m contract to build a 30,000t/yr fibreglass and composite manufacturing plant in Marand, East Azarbaijan Province. The capacity could be tripled if Tehran is satisfied with the performance of the Chinese company. As much as US$50m of the capital needed for equipment imports will be financed by Chinese banks while Tehran will provide the rest of the capital covering procurement of domestically-made equipment and construction costs. The project is scheduled to complete in 24 months.

Bulgaria: Bulgarian insulation materials producer Hydroizomat said that its net loss rose to Euro613,600 in the first nine months of 2015 from Euro92,201 in the same period of 2014. Its operating loss jumped to Euro511,219 from Euro29,708 in the year-ago period. The company's total revenue plunged to Euro226,908 in the first nine months of 2015 from Euro482,499 in the same period of 2014.

Poland: Faist ChemTec has launched a second production line at its plant in Zlotoryja, which produces acoustic insulation materials for the automotive industry and for the producers of electrical household appliances. Thanks to the investment, some 25 new jobs will be created. Financial details of the project have not been disclosed.

US: Owens Corning's net sales increased by almost 6% year-on-year in the third quarter of 2015, led by an 11% increase in insulation sales.

Owens Corning reported US$1.46bn in net sales during the third quarter of 2015, up from US$1.38bn in the same period in 2014. This boosted its sales by 1.7% year-on-year in the first nine months of 2015. Sales of insulation composites and roofing all increased in the third quarter. Ownes Corning's net earnings in the third quarter of 2015 were US$112m, up from US$52m in 2014. Insulation earnings before income tax grew for a 17th consecutive quarter. Insulation sales jumped from US$454m in the third quarter of 2014 to US$502m in the third quarter of 2015, an 11% improvement. For the year, insulation sales have increased by 6%.

"Owens Corning had a very strong quarter, as all three businesses made substantial contributions to earnings," said Mike Thaman, Chairman and CEO. "Our businesses performed at double-digit margin levels as a result of positive macro trends and strong commercial and operational execution."

Owens Corning expects to benefit from continued improvement in the US housing market and global growth. Growth in new US residential construction should continue to help the insulation business, with revenue growth of about 10% in the second half of 2015.

US: Distribution International Inc (DI), a leading distributor and fabricator in the mechanical insulation market, has acquired Selle Supply Company and sister company PBI Supply Inc, full-line distributors of insulation products and related construction materials, that specialises in the lamination of fiberglass insulation for metal buildings. Founded in El Paso, Texas, Selle and PBI Supply comprise the largest regional metal building insulation fabricator / distributor in the US.

"We at DI are eager to enter the metal building insulation market. During our strategic assessment of the metal building lamination space, our market research indicated that Selle and PBI are ranked highly for customer service and delivery performance, making the company an ideal platform from which to grow our national footprint. This acquisition is a significant milestone in the growth of our company and we look forward to being part of the metal building insulation industry and bringing the successful team from Selle / PBI into DI," said Celeste Mastin, CEO of Distribution International.

"DI's resources will enable us to expand our position in the industry, both improving our reach to new regional customers while better serving larger customers that have called upon us to supply them outside of our traditional footprint. Our philosophical alignment with DI makes us confident that we can do that while continuing our commitment to deliver the high quality products and services our customers have come to expect from us. We are excited for this partnership and we are proud to be part of DI's expansion into the metal building insulation market," said David Dzina, President and Co-Owner of Selle and PBI and former President of the National Insulation Association.