Insulation industry news from Global Insulation

US: PPG Industries has announced that it has reached a definitive agreement to acquire almost all of the assets of Hi-Temp Coatings Technology Co Inc, a privately-owned supplier of high-temperature-resistant and insulative coatings, based in Boxborough, Massachusetts. The transaction is expected to close in the first quarter of 2014, subject to customary closing conditions. Financial terms were not disclosed.

Hi-Temp is a global supplier of coatings that withstand extreme temperatures to protect both carbon steel and stainless steel substrates. The company's coatings are used widely in refineries, petrochemical plants, pulp and paper mills and power plants.

"PPG looks forward to integrating Hi-Temp coatings into our product offering," said Tim Knavish, PPG vice president, protective and marine coatings. "Hi-Temp's unique technologies bring multiple growth opportunities to PPG, particularly in the petrochemical segment. Combining their excellent corrosion-under-insulation coatings portfolio with PPG's legacy portfolio enables us to provide additional high-quality options to meet more of our customers' coatings needs."

Saudi Arabia: Prince Saud bin Naif bin Abdulaziz, governor of the Eastern Province, officially inaugurated the new Arabian Fibreglass Insulation Co Ltd (AFICO) factory in Dammam Second Industrial City on 15 January 2014.

The new factory has an installed capacity of 24,000Mt/yr, increasing the company's total manufacturing capacity in its combined plants to 37,000Mt/yr. The new plant will manufacture products primarily for use in the construction industry.

The additional production capacity will enable AFICO to introduce energy-efficient, environmentally-friendly fibreglass insulation products to the marketplace. The products are expected to assist local governing authorities in the GCC countries to implement more stringent building code requirements that are aimed at increasing energy-efficiency and improving fire safety standards.

The new plant has successfully completed the pilot production process and has commenced commercial production of fibreglass insulation materials. The Prince expressed his pride and admiration for this advanced industrial facility and its contribution to the support of existing industrial projects in the Kingdom.

US: The demand for plastic foams is forecast to rise by 4.1%/yr to 3.90bn kg in 2017, valued at US$24.7bn. The market will mount a healthy recovery from the declines posted during the recession-impacted 2007-2012 period, according to a report by The Freedonia Group Inc.

Packaging will remain the leading outlet for plastic foams through 2017, accounting for nearly one-third of total volume. Increased levels of housing construction combined with rising consumer spending levels bode well for foams used in household products such as bedding, furniture and appliances. In the motor vehicle market, advances will be promoted by rising vehicle output and efforts to enhance safety and comfort.

Flexible polyurethane foam, the leading resin in the plastic foams market, will remain the dominant product throughout 2017, outpacing demand for rigid polyurethane, based on especially rapid growth in the bedding and carpet underlay markets. Strong gains for rigid polyurethane foam will be propelled by a healthy rebound in construction activity and by changes in building codes and construction practices that call for structures with increasing energy efficiency. However, polyurethane foam insulation will continue to encounter competition from fibreglass and polystyrene foam.

Polystyrene accounts for almost two-fifths of demand for plastic foam and will maintain a sizable share of the market through 2017 based on its excellent protective and insulating capabilities, moisture resistance and low cost. However, advances in the large packaging sector will be restricted by ongoing solid waste disposal concerns regarding the use of disposable foam products and rising competition from paper-based materials, which are viewed as more eco-friendly. Expanded polystyrene foam is projected to see more rapid gains through 2017, stemming primarily from its use in insulation, molded foam protective packaging and insulated shipping containers. Expanded polystyrene geofoam is predicted to exhibit especially rapid growth, albeit from a relatively small base.

US: Rhino Linings Corporation has acquired the assets of Expo Industries Inc, a San Diego-based manufacturer of Expo Stucco™ interior and exterior stucco products, sealers, bonders, patch products and plaster mixes.

The acquisition expands Rhino Linings line of building products, which already include waterproofing products, spray polyurethane foam insulation, decorative concrete and epoxy flooring systems.

"Expo Stucco is a well-respected and recognised leader in the building industry," said Pierre Gagnon, president and CEO of Rhino Linings Corporation. "Since Expo Stucco blended and packaged our Concrete Solutions bag mixes, we are now able to bring product packaging in-house and expand our line of building products. We are also excited about the opportunity to expand name recognition and sales for the Expo Stucco brand."

Russia: Finish insulation producer Paroc is preparing to open an insulation plant in Tver in December 2013. The plant will primarily produce materials for the Russian market but technical insulation materials will also be exported to European Union members, according to Russian media.

"The demand for insulation is likely to increase in Russia. The growth here has been even more rapid than in Europe," said Kari Lehtinen, CEO of Paroc Group. "Our share of the Russian market is about 2%. After launching production at full capacity, we are planning to control 7 to 8% of the Russian market."

The new plant's location was chosen because of the railway links between Tver, near Moscow, and St Petersburg. Once opened, Paroc's new plant will be the third Finnish plant in the Tverskaya Oblast region of Russia. Paroc purchased the former mineral wool plant in late 2011 and has rebuilt around 90% of the production machinery. Currently 150 workers are employed by the plant and Paroc plans to increase that number to 400 by 2015 and to 600 when development of the site is complete.