Insulation industry news from Global Insulation

China: China is to allot USD265m to eliminate the use of hydrochlorofluorocarbons (HCFCs) according to a Ministry of Environmental Protection announcement. The country is the world's largest producer and consumer of the ozone-layer destroying chemicals, which are still routinely used in the developing world for a variety of uses, including thermal insulation materials.

As a developing country, by 1 January 2013 China is required to keep the production and use of HCFCs at a level equal to the average amount seen in 2009 and 2010. By 2015, the amount should be reduced to 90% of that seen in 2013. By 2030 their routine use should be given-up entirely, save for specific limited purposes such as maintenance.

US: For the second year in a row, Owens Corning has earned placement on the Dow Jones Sustainability World Index (DJSI World) in recognition of its sustainability initiatives. Composed of global sustainability leaders, the DJSI World Index is an elite listing of the top 10% of the world's 2500 largest companies based on long-term economic, environmental and social criteria.

"We are extremely proud to have again earned placement in the DJSI World Index," said Owens Corning Chief Sustainability Officer Frank O'Brien-Bernini. "Owens Corning is committed to balancing economic growth with social progress and environmental stewardship as we deliver sustainable solutions to our building materials and composites customers around the world. To this end, we have adopted an increasingly holistic approach that impacts our operations, our products and how we work with our customers and suppliers to deliver sustainable solutions."

The DJSI follows a best-in-class approach and includes sustainability leaders from industries worldwide, serving as an important guide for investors to assess a company's sustainability portfolio. Selection to the DJSI is based on an in-depth analysis of a company's economic, environmental and social aspects with a focus on long-term development of corporate value.

Australia: A company that was engaged under the federal government's former home insulation programme will be prosecuted for allegedly underpaying five Somali teenagers an estimated USD25,700, following a national audit of the scheme. It is understood that the teenagers told federal workplace inspectors they were asked only for their names and mobile phone numbers when employed in 2010 by Louay Soliman and his company, K & L Insulation Pty Ltd. The workers, all Somali immigrants aged 18 and 19 at the time, alleged they were not given training or any protective equipment, apart from masks.

The Fair Work Ombudsman alleges that Mr Soliman and his company, based in the north Melbourne suburb of Campbellfield, underpaid the five employees a total of USD25,700 over several weeks in March and April 2010. Court documents filed by the Fair Work Ombudsman allege the employees worked up to 10 hours a day, six days a week and in some cases were paid flat rates equating to as little as USD10.10/hr.

Under the modern award that applied to their positions, the workers were entitled to hourly rates of USD16.30 for normal hours worked, up to USD31.8/hr for overtime and weekend work and up to USD40.1/hr on public holidays. It is alleged that the employees were underpaid with respect to other entitlements, including accrued annual leave and wages in lieu of notice after their employment was terminated without notice.

The government's insulation scheme came in for heavy criticism in 2009-2010 following a number of worker deaths attributed to electrified foil insulation inside roof cavities and heat-exhaustion. Many were critical of the speed with which the government attempted to implement the plans in order to create jobs at a time of recession, claiming that there were insufficient checks to stop malpractice, unfair treatment of workers and violations of health and safety. The company cited in this case was established in December 2009.

US: The Environmental Claims Service of UL Environment (ULE) has certified that Knauf Insulation's products contain 55.7% of post-consumer waste.

"As one of the first manufacturers in our industry to work with ULE on this type of initiative, we are proud to announce the validation of environmental and sustainability claims for our glass wool products," said Scott Miller, director of sustainability at Knauf Insulation. "Independent, third-party validation provides our customers with confidence in the sustainable attributes of our insulation products. Knauf Insulation, as a company, will continually adapt to the constantly changing atmosphere of environmental sustainability and stay in the forefront with our sustainability platform."

Steven Wenc, president of ULE, said, "We applaud Knauf Insulation for their commitment to diverting waste to make insulation. Knauf Insulation is also committed to building confidence and trust in the marketplace by validating their claims with an independent, third party."

Russia: Denmark's Rockwool, the world leader in manufacturing environmental thermal insulation materials, will spend USD150m on the first rockwool production line in Tatarstan's Alabuga special economic zone. The new Alabuga plant, which will have a capacity of about 110,000t/yr of products, represents the largest investment in Rockwool's history. When built, the plant will be the largest of its kind in the world. The plant is even designed for the installation of a second production line, which would increase the capacity to 250,000t/yr. It will be the fourth Rockwool production line in Russia.

The new plant is scheduled for opening in the first quarter 2012, creating at least 200 jobs. It will supply its products to the Volga region, Urals region and Siberia. It will additionally export to Kazakhstan. The roll-out of the new plant will allow Russia to substantially reduce its dependence on thermal insulation imports.

Commenting on the choice of venue for the project, Rockwool's Director General Nick Vince said, "We considered a total of 22 factors. At the top of the list is the full support of the authorities that we found here. The other pluses are tax benefits, a large space (48 hectares), convenient transport system, availability of a hydroelectric station 15km away and that of natural gas. A solid workforce is important. All these factors taken together make Alabuga an ideal venue for our project."

Continuing, Vince said, "We favourably assess the Russian economy's long-term potential. Buildings account for about 40% of the thermal energy produced in the country. There is a vast potential for increasing energy-efficiency and demand for thermal insulation materials."