Insulation industry news from Global Insulation

US: USI, a national construction services provider of installed insulation and related services to builders, contractors and homeowners, has announced the acquisition of Smith Insulation, a Louisburg, North Carolina-based full-line insulation services contractor.

Founded in 1979 by Timothy Smith, family-run Smith Insulation has shown steady growth. The company employs approximately 35 personnel and serves the Raleigh, Durham and Roanoke Rapids markets. After closing, Smith will become branch manager and Duane Smith will maintain his current role as production manager.

In addition to the North Carolina markets served by Smith Insulation, USI has an existing branch serving western North Carolina and parts of Virginia. "We are excited how this acquisition further increases our presence in North Carolina," said Bill Varner, president and CEO of USI. "Bringing Smith's expertise, valued people and assets to USI is a significant opportunity for us. We expect a smooth transition and enhanced value for both our current and future customers."

"Joining forces with USI provides us with a whole new level of resources. USI shares our values of teamwork, trust and integrity that are so crucial in a relationship-driven industry. Our combined best practices and focus on service leaves me very optimistic about the future," said Timothy Smith.

US: For the sixth year in a row, Owens Corning has earned placement in the Dow Jones Sustainability World Index (DJSI World) in recognition of its sustainability initiatives.
For the third straight year, Owens Corning was named the Industry Leader for the DJSI World Building Products group. The DJSI World is a listing of the world's largest companies based on long-term economic, environmental and social criteria.

"We are honoured to have earned placement again in 2015," said chairman and CEO Mike Thaman. "Our people and products make the world a better place. That simple and powerful purpose defines Owens Corning today, as well as the company we are building for the future."

"Continuing our steady progress toward shrinking our environmental footprint, we are even more energised as we expand our impact through our positive handprint," said chief sustainability officer Frank O'Brien-Bernini. "Collaborating up and down the value chain, we make buildings more energy-efficient, roofs more durable and resistant to extreme weather, cars more fuel-efficient, renewable energy more cost-effective and our company a better corporate citizen."

Serbia: Slovenia's chemical group Jub, which celebrates its 140th anniversary in 2015, is expanding its production abroad with the launch of a new styrofoam thermal insulation plant in Šimanovci near Belgrade on 10 September 2015.

The new plant cost Euro5.6m, while the total investments made by Jub in Serbia, where it has been present since 2004, have been estimated at Euro27m. The group includes 12 companies that operate on more than 12 markets worldwide. It expanded its product range to insulation materials in 2012.

Azerbaijan: Russia's TechnoNICOL wants to establish cooperation with Azerbaijan by 2016 to supply the country with insulation materials for industrial and civil projects.

General director of TechnoNICOL's mineral insulation department Irek Allayarov said that it plans to supply Azerbaijan from TechnoNICOL's new 1.3Mm³/yr plant in Krasny Sulin Industrial Park in Rostov, Russia. He added that close proximity to the borders with several countries of the Commonwealth of Independent States (CIS) would make exports ideal. Azerbaijan, Georgia, Turkey and Armenia have all been targeted.

"The plant's products include general construction, technical insulation and materials for fire protection systems. In the future we will consider the production of agricultural products, such as insulation used for the construction of greenhouses," said Allayarov.

Europe: The European Commission (EC) has opened an in-depth investigation to assess whether the proposed acquisition by Mondi of two industrial packaging plants currently owned by Walki is in line with the EU Merger Regulation.

Mondi is a vertically integrated packaging and paper manufacturer that operates plants across Europe that manufacture extrusion coating products, such as those used for insulation production. The plants Mondi intends to buy from Walki also manufacture extrusion coating products. The EC has concerns that the removal of a key competitor may lead to less choice and higher prices for customers. The EC now has 90 working days, until 18 January 2016, to investigate whether these initial concerns are confirmed. The opening of an in-depth investigation does not prejudge the outcome of the investigation.

"The proposed merger could remove a key competitor for several types of packaging material. These are used in everyday items such as food packaging. I am concerned that the merger would lead to higher prices and less choice for these companies' clients and that the price increases could ultimately be passed on to consumers," said commissioner Margrethe Vestager, who is in charge of competition policy.

The EC's initial investigation has shown that the proposed acquisition of Walki's plants may remove a major competitive constraint on Mondi. Remaining competitors would have considerably lower production capacity than the merged entity and may not be able to match its product offering or proximity to key customers. The EC has concerns that these competitors may be unable to exert sufficient competitive constraint on the behaviour of the merged entity. This risks leading to a reduction of choice for customers and potentially to price increases for the products concerned.