Insulation industry news from Global Insulation

US: Owens Corning has reported a drop in its third quarter profit due to lower demand for roofing and composites. The insulation construction and industrial-materials company published consolidated net sales of US$1.28bn for the third quarter of 2012, compared with US$1.45bn during the same period in 2011.

Third-quarter 2012 adjusted earnings, based on the company's expected full-year effective tax rate of 25%, were US$39m compared with US$110m in the third quarter of 2011. The company reported net earnings of US$44m compared with net earnings of US$124m.

"We are disappointed in our third-quarter financial results," said chairman and chief executive officer Mike Thaman. "Despite these results, we are proud that our insulation business achieved profitability in the quarter for the first time in four years, in an improving US construction market. Roofing and Composites are experiencing challenging market conditions in the second half. We continue to focus on actions that will position these businesses for near-term improvement."

The construction and industrial-materials company warned investors earlier in October 2012 that weaker demand for roofing in the US and lower industrial production, particularly in Europe, hurt its revenue. It trimmed its full-year forecast. Owens Corning still expects adjusted earnings before interest and taxes between US$280m and US$310m for the full year of 2012.

Latvia: JSC 'Valmieras stikla šķiedra' (VSS), a glass fibre manufacturer based in Valmiera, is expected to complete a US$8.38m expansion by December 2012. The new third one-stage glass furnace at the site is intended to decrease energy usage by 40% and increase production by 50%

"This investment enables us to continue to reduce the inefficient two-stage glass fibre production process or the 'glass marble technology', leaving glass marbles in the past," said VSS chief executive officer A.O. Brutāns. The project has been co-financed by the Latvian Investment and Development Agency which provided US$1.82m.

VSS, which was founded in 1959, produces glass fibre and derived products. The company exports 96% of its production to 32 countries for use in dielectric, sound and thermal insulation. It employs 850 personnel at present.

US: With the housing market bottoming out and showing signs of recovery, demand for flame retardants will also begin to improve, according to a report from Global Information Inc.

It says that demand for flame retardants in the US is expected to grow by 4.6%/yr year to reach around US$1.5bn in 2016, a significant rebound as the industry benefits from an improving economy and a turnaround in key markets.

Global Information says that construction-related applications of flame-retardants will provide the biggest impetus to growth and continue to account for the greatest share of sales in the market for flame retardants. Boron and phosphorus-based flame retardants will expand at the fastest rates. Brominated compounds will benefit from use in polystyrene and polyurethane insulation.

Egypt: GlassRock Insulation Co. has started targeting exports of mineral wool to key markets in Europe, North Africa, the Gulf Cooperation Council countries and Turkey following the start of production at its US$70m Egyptian greenfield facility in May 2012. The company, part of a portfolio owned by Citadel Capital's regional mining platform ASCOM, will also begin production of glass wool insulation in September 2012.

"Our goal is to become a world-class provider of heat and noise insulation solutions," said GlassRock Insulation chief executive officer Bechir Dardour. "Energy-efficient building materials are the only option going forward in Egypt and around the world and we are delighted to be part of the solution to the creation of a greener, more environmentally-friendly future."

Construction of the US$70m greenfield GlassRock plant, located eqhalf-way between Cairo and Alexandria in the Sadat City Free Zone, began in 2010. The facility has created 260 direct jobs and operates with technology licensed from Italy's Tenova. When fully operational GlassRock's production capacity will be 30,000Mt/yr of mineral wool and 20,000Mt/yr of glass wool.

Russia: Saint-Gobain has bought a 25.1% share in ISOROC, a Russian building materials company based in Tambov. The cost of the acquisition has not been announced nor has Saint-Gobain revealed who sold the shares. The transaction is in line with Saint-Gobain Group's expansion strategy that enables it to continue growing its insulation activity in Russia.

ISOROC is a leader in the central region of Russia for mineral wool products, the most commonly used insulation material in the Commonwealth of Independent States (CIS). The company reported revenues of Euro46m in 2011.

According to the SPARK database, Germany's Erste AMSC Unternehmensbeteiligungs GmbH owned 37.94% of ISOROC as of 7 September 2012, the European Bank for Reconstruction and Development (EBRD) owned 35.93% and Rabo Black Earth B.V. owned 7.18%.

Saint-Gobain previously announced in June 2012 that it had acquired British insulating foam producer Celotex to strengthen its position in the UK insulation market.