Insulation industry news from Global Insulation

US: Johns Manville (JM), a Berkshire Hathaway company and global building products manufacturer, has announced that Todd Raba, its president and CEO, will relinquish his position with the company. Effective 13 November 2012, Mary Rhinehart will be the new president and chief executive officer of JM.

"I thank Todd for his leadership. He has worked diligently during a tough economic environment to effectively position the company for future success. Todd spent the last five years focusing on positioning JM for the future and I thank him for the work he did in moving the business forward," commented Warren Buffett, chairman and CEO of Berkshire Hathaway.

Rhinehart is currently the senior vice president and chief financial officer of JM. She has been with the company since 1979. Her background includes management and bottom-line responsibility for a business unit, global treasury and strategic business development, including directing a variety of acquisition activities. She has held finance leadership roles in most of JM's businesses. Additionally, during her career at JM, Rhinehart has had responsibility for compensation, benefits management, community relations, global supply chain and organisational planning.

Rhinehart has spent her long and successful career focusing on the interests of JM employees and customers. "I am proud to have worked for this great company for over 30 years," she said. "Throughout it all we have succeeded as a company due to our people and the powerful relationships we have with our customers. I am excited about this new opportunity and am committed to continuing to move us forward. JM is a great company. We could not have a better owner than Berkshire Hathaway and I could not have a better role model than Warren Buffett."

Buffett added, "Mary is exactly the CEO we like to hire. She is passionate, smart and she truly cares about JM customers and employees. She'll add tremendous value to JM going forward, and I couldn't be more enthused to have her taking on this role after all that she's already accomplished at JM."

Germany: BASF, the multinational chemical company, has announced plans to divest its subsidiary BASF Wall Systems GmbH & Co. KG, together with its factory in Marktredwitz. Currently, BASF Wall Systems employees 190 workers.

BASF Wall Systems is a supplier of insulation and finishing systems in the German market. The company's main field of business is systems for the exterior and interior thermal insulation of buildings. In addition, the company offers renovation and restoration systems for historical buildings.

"Our Wall Systems business in Germany posted significant growth over the last few years. Nevertheless, there are only limited synergies with other BASF fields of activity that we can make use of. A new owner will be better able to drive the business," said Dr Tilman Krauch, president of BASF's Construction Chemicals division.

Tartarstan: TechnoNICOL has announced that it is going to invest Euro4.24m towards upgrading mineral wool production at a plant in Tatarstan.

TechnoNICOL's plant in Zainsk will increase its capacity by 20%. Currently the plant has two production lines with a total capacity of 140,000t/yr. The plant started operation in 2007.

TechnoNICOL was founded in 1993 as a producer and supplier of insulating materials. It has representations in 33 countries and maintains 35 production sites in Russia, Ukraine, Belarus, the Czech Republic and Lithuania.

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.