Insulation industry news from Global Insulation

US: Knauf Insulation will close a Mississippi plant it recently acquired because of the high cost to upgrade the facility. Knauf has announced that 110 employees at the plant in Mineral Wells, Mississippi, had been given notice that production would end at the site.

“In the two months since the acquisition of Guardian Insulation, we have conducted a detailed analysis of our new footprint,” Knauf Insulation North America CEO Mark Andrews said. “The analysis examined the investments required to upgrade and expand both the quality and quantity of product being manufactured in our facilities. Unfortunately, the results of this analysis have led us to make the difficult decision to close the Mineral Wells plant. This morning, we started sharing the news with Mineral Wells employees that we are ending all production at the plant today.”

According to Andrews, the main drivers were the structure and condition of the Mineral Wells facility. No reasonable amount of capital investment in the plant could bring it up to the expected standards. The closure will allow Knauf to invest in its remaining facilities. Andrews added that Knauf was committed to retaining and serving its customers out of its other plants.

Russia: The St Petersburg market for sound insulation has been estimated at Euro78.5m at the end of 2013. The largest growth in demand was recorded for mineral wool at 7-10%/yr and for polystyrene at >10%/yr. Sound insulation demand is expected to grow by 15-20% in 2014.

US: Distribution International Inc, a portfolio company of Audax Group Inc and the CapStreet Group LLC has acquired Mechanical Insulation Supply Inc, a distributor of mechanical industrial insulation and accessories, heating, ventilation and air conditioning (HVAC) products and refractory products and accessories.

US: A fire was reported at Knauf Insulation’s insulation plant, which was formerly a Guardian Industries plant, in Albion, Michigan on 8 October 2014. According to local media, the fire started in one of the ovens and spread through the ducts to the smoke stack. Damage is thought to be minimal, although the equipment remains to be fully inspected. 

World: A new report from The Freedonia Group has forecast that global demand for insulation will rise by 5%/yr to 24.9Bnm2/yr of R-1 value in the period to 2018. This represents a significant increase from the rate of the 2008 - 2013 period. The foamed plastic insulation sector will post the fastest gains and strong growth in residential building construction activity will be the primary driver of demand.

In developing countries, rising building construction and industrial activity will lead to increased demand for insulation. In many high-income countries, insulation demand will rebound from downturns during the 2008 - 2013 period that were caused, in part, by sharp declines in housing construction. Government efforts, particularly in Western Europe, to reduce energy consumption will lead to the adoption of new building codes that require increased amounts of insulation.

The Asia-Pacific region is forecast to have the fastest growth in insulation demand in the period to 2018, aided by advances in building construction activity as well as manufacturing and industrial output. Over 58% of new global insulation demand generated between 2013 and 2018 will be attributable to this region. Among the regional countries that are expected to post solid growth are China, India and Indonesia.

In North America demand for insulation in residential construction applications will grow 6.5%/yr in R-1 value through 2018, due primarily to a partial recovery in housing construction in the United States. Rural-to-urban migration in developing countries in the Asia, Africa, the Middle East and Central and Southern America will stimulate building activity in urban areas and therefore insulation demand.