Insulation industry news from Global Insulation

US/Japan: Huntsman Corporation has announced that it has acquired a 20% stake in Nippon Aqua, a spray polyurethane foam (SPF) insulation company based in Yokohama, Japan. The chemical manufacturer has entered into a ten-year supply agreement with the company. The financial terms of the deal were not disclosed.

Nippon Aqua is the SPF market leader in Japan, with business operations in over 30 locations across the country, and is a subsidiary of leading residential home builder Hinokiya Holdings. Huntsman supplies various advanced MDI-based polyurethanes systems to Nippon Aqua.

"Following the regrettable accident at the Fukushima Daiichi nuclear plant in 2011, there's a great focus on how the country will source its energy needs and a growing demand amongst consumers for more effective insulation. Nippon Aqua is well-positioned to satisfy this demand," said Huntsman's president of its polyurethanes division, Anthony P Hankins.

UK: Superglass Holdings PLC (SPGH.LN), an independent UK manufacturer of glass wool and mineral fibre insulation solutions, has said that current trading conditions continue to be extremely challenging and it plans to explore options to strengthen the company's balance sheet, including a further equity issue.

Superglass said that the company continues to operate within the terms of its bank facilities and its bankers continue to be supportive. However, debt amortisation payments are due to resume in November 2013 and Superglass is scheduled to repay Euro9.5m of debt over the three years to November 2016. It warned that, as long as market conditions remain as they are now, these debt service obligations will become unsustainable.

Superglass said that the delays in the recent transition from CERT standards to the new Green Deal framework had caused a major gap in activity within the retrofit market for both loft and cavity insulation. This, combined with abnormally low levels of housebuilding activity in the UK by historical standards, has caused a surplus of UK insulation capacity and highly competitive market conditions. This, Superglass said that this was detrimentally impacting the company's operating profit and cashflow.

Ireland: Insulation and building supplies manufacturer Kingspan has reported that its operating profit grew by 15% in 2012 to Euro105m from Euro90.9m in 2011. Revenue for the year rose by 55% to Euro1.63bn.

Kingspan reported strong overall performance in insulated panels with sales revenues up by 11%, particularly strong in Germany, Canada and Australia. The company reported 'robust' performance in insulation boards where revenues were up 2%, stable in the UK and slightly up in Continental Europe.

"We are pleased to report another positive year of progress for Kingspan, one in which we continued to increase our profitability, generate strong cash flows and widen our global footprint," said Kingspan's chief executive Gene Murtagh.

US: Owens Corning has lost US$56m in the fourth quarter of 2012, pulled down by hefty debt-related and restructuring charges. In the same period of 2011 it reported earnings of US$50m. The construction and industrial-materials company said it expects to get a boost in 2013 from an improving US housing market and moderate global growth.

Net sales for the fourth quarter of 2012 fell year-on-year by 3% to US$1.16bn from US$1.20bn. For 2012 as a whole Owens Corning posted a slight decline in net sales to US$5.17bn from US$5.34bn.

Net sales for the company's insulation business rose by 7% to US$413m in the fourth quarter of 2012 from US$US$387m. For 2012 as a whole net sales in insulation rose by 7% to US$1.47bn from US$1.37bn. The company said that its insulation business should benefit from the growth in residential construction, along with higher utilisation rates and better pricing. Yet Owens Corning noted that prices remain significantly below historical levels.

US: Chemical maker Huntsman Corp has seen revenue from its polyurethane division rise by 10% to US$4.89bn in 2012 from US$4.43bn in 2011. The company attributed this to higher sales of the foam insulation constituent. The polyurethane division also benefitted from increased prices, although this was partly offset by the strength of the US Dollar against the Euro.

Overall revenue stayed stable at US$11.2bn in 2012 compared to US$11.2bn in 2011. Gross profit rose by 11% to US$2.03bn from US$1.84bn. Adjusted earnings before non-recurring items, depreciation and amortisation (EBITDA) rose by 15% to US$1.40bn from US$1.21bn.

"Our 2012 adjusted EBITDA of US$1.40bn represents record earnings for our current configuration of businesses. I am very enthusiastic about the direction in which the company is headed. Within our largest division, Polyurethanes, our MDI business is growing at attractive rates and future prospects are pointing towards tighter market conditions," commented president and CEO Peter R Huntsman.