Insulation industry news from Global Insulation

US: Unifrax Corp, a producer of ceramic fibre insulation materials, is getting 3.3MW of low-cost hydropower from the New York Power Authority for a pair of expansion projects in the Town of Tonawanda, New York. The work is expected to create 75 new jobs.

The low-cost electricity, about 40% below wholesale power prices, is in addition to US$1.4m in tax credits that the company could receive through the State’s Excelsior Jobs Programme and US$2.5m in tax breaks approved earlier in 2014 by the Erie County Industrial Development Agency.

In one project, Unifrax plans to spend US$18m to build and equip a new 76,000ft² manufacturing plant in the North Youngmann Commerce Centre, a business park next to its current operations. The IDA in August 2014 approved US$1.2m in tax breaks for the expansion project, which Unifrax will use to expand production of polycrystalline fibre that it currently produces in Japan. The company, which needs more capacity for that product, had considered options such as expanding the Japanese plant or building a new plant at one of its other sites before settling on the Tonawanda site. 

In July 2014 the IDA approved US$1.27m in tax breaks for a separate US$33m project in Tonawanda that involved acquiring facilities on Fire Tower Drive that the company already leased, as well as building a new facility there and installing machinery and equipment.

New Zealand: Fletcher Building has forecast an upturn in earnings as it moves to triple the pace of home building in New Zealand and is involved in a pilot social housing project with the government in Christchurch. The company told shareholders at its annual general meeting that full-year operating earnings in the 2015 financial year could rise by as much as 11% to US$650-690m, compared to US$624m in the 2014 financial year.

US: Owens Corning, a producer of fibreglass reinforcements for composite systems, is building a new advanced technology facility in Gastonia, North Carolina, that will help meet demand for bio-based products. The new, state-of-the-art equipment will add manufacturing flexibility to produce different widths of the company's new Sustaina® non-woven fibreglass fabric. This will enable more customers to use the product in their applications.

Sustaina surfacing and reinforcing glass non-wovens were introduced to the European market in June 2013. The Sustaina solution uses a bio-based binder system with high tensile strength performance and does not contain any formaldehyde. The new plant will be able to produce 4m widths of Sustaina fabric, rather than the narrower width currently produced on existing assets.

"Building a new site is a great opportunity for us to install the newest, most advanced manufacturing technology," said Steven Vermeulen, vice president and managing director, Engineered Solutions. "The line is designed to facilitate the highest level of quality and efficiency and the flexibility to produce the wider veil will help us to get better yields and reduce waste." Sustaina fabric is designed for use in residential and commercial building applications, like cushion vinyl flooring, ceiling backings and insulation facers. 

US: Less than a year after reopening a shuttered plant, Knauf Insulation has announced plans to double production at its Chambers County plant in Alabama, adding up to 100 new workers. The expansion, which should be complete by the middle of 2015, will make the 800,000ft² plant one of the largest insulation plants in the USA.

The US$30m expansion includes a significant upgrade in equipment, according to Joey Viselli, Knauf's vice president for corporate and public affairs. "When this expansion is through, the plant will produce more insulation than it has ever produced before," said Viselli.

Knauf shuttered the plant in 2010 in response to the collapse of the housing market. Company officials credited Alabama State with recruiting them to return when the market began to improve. Viselli said that the decision to expand was based on continued positive growth in the national economy, the growth of Knauf’s business and an inviting business culture in Alabama.

New Zealand: Fletcher Building will close its Christchurch insulation plant, as it consolidates its Tasman Insulations operations in a ‘highly competitive market.’ The proposal would see 29 Christchurch factory workers lose their jobs manufacturing Pink Batts insulation, while its Auckland factory will become a round-the-clock operation. Current Christchurch-based customer service, sales and warehousing roles will be unaffected, with two new jobs created, while nine further positions at the Auckland plant will be offered.

"Consolidation is in the best interest of our people and our customers," said Tim Richards, chief executive of building products. "We are operating in a highly competitive market, impacted by an increase in volume of imported product and a general reduction in demand for insulation following changes to EECA's home insulation programme in 2013."