Insulation industry news from Global Insulation

Ireland: Kingspan says that it saw ‘dramatic’ price inflation from its key raw materials in 2021. To compensate it passed on around Euro700m in cost increases to the market. The group’s revenue grew by 42% year-on-year to Euro6.50bn in 2021 from Euro4.58bn in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 42% to Euro893m from Euro630m. Turnover from the group’s insulated panels business represented 65% of total revenue at Euro4.23bn and its insulation boards business represented 18% at Euro1.18bn. The insulation producer noted particular positive markets in the Americas, France and the UK.

“The business delivered an exceptional performance last year, with our growing sales to customers in the technology, online distribution, and automotive sectors instrumental in the results. Whilst dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued margin improvement,” said Gene M Murtagh, the chief executive officer of Kingspan.

US: Revenue from Huntsman’s Polyurethane division rose by 35% year-on-year to US$1.39bn in 2021 from US$1.03bn in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 8% to US$218m from US$201m. The group said that price increases offset higher raw material and logistic costs. Overall group revenue and adjusted EBITDA increased by 40% to US$8.45bn and 107% to US$1.34bn respectively.

"We concluded 2021 with the best year in our history with our current portfolio of businesses. The transformation of our portfolio has enabled our company to generate not only our highest ever adjusted EBITDA margins but consistent profit margins quarter on quarter throughout 2021, a hallmark of a more differentiated chemical business,” said chairman, president and chief executive officer Peter R Huntsman.

Huntsman produces a range of chemicals including polyisocyanurate (PIR) and polyurethane (PUR) building insulation products.

Germany: Knauf Insulation plans to increase the production capacity of its Bernburg, Saxony-Anhalt, glasswool insulation plant. The project will also modernise all of the plant’s equipment. The upgraded plant is scheduled for commissioning in 2023.

Central Europe regional managing director Michael Huesmann said "The market hunger for insulating materials necessitates the use all production resources as efficiently as possible. Operational safety has gained additional importance as we maximise capacity utilisation – a process which will likely continue in the future."

Denmark: Rockwool says that high construction and renovation activity in the residential sector mainly drove its insulation sales in 2021. Insulation business sales grew by 20% year-on-year to Euro2.29bn in 2021 from Euro1.91bn. Its earnings before interest and taxation (EBIT) rose by 17% to Euro275m from Euro236m. Strong growth was reported in Europe, solid sales in North America but some parts of China and elsewhere in Asia were negatively affected by coronavirus-related closures of some markets. The producer commented that its insulation sales increased ‘significantly’ in 2021 even compared to 2019 before the coronavirus pandemic started. However, it warned that “sales prices and productivity gains did not fully offset the accelerating inflation on production materials, energy and logistic costs.”

“The surprising speed of the 2021 economic rebound also brought challenges, including inventory and material shortages in some markets as well as logistics challenges that required creative solutions. Special thanks go to our customers for their patience and especially our people working in the factories and across the commercial, technical, procurement, and support teams, who worked together to reduce customer delays,” said chair Thomas Kähler and chief executive officer Jens Birgersson in a statement. Overall, group net sales grew by 19% to Euro3.09bn from Euro2.60bn. EBITDA increased by 15% to Euro602m from Euro522m.

Germany: Knauf Insulation has compiled its sustainability targets, progress and related information on its products online. The so-called ‘sustainability chapter’ is intended to highlight how Knauf Insulation products can make buildings more sustainable and also charts the company’s progress to reduce its own environmental impact as part of its ‘For A Better World’ initiative.

Jure Šumi, Knauf Insulation’s Group Digital and Brand Manager, said “The new chapter on sustainability is a showcase of valuable information for anyone who wants to create better buildings while taking care of the environment and society.” He added, “It offers valuable insight into how our solutions can lower the environmental impact of buildings with news and case histories in every section highlighting what Knauf Insulation is doing For A Better World.”

The newly organised section on Knauf Insulation’s website lets interested parties download Environmental Product Declarations (EPD) for its products. In addition, the site offers downloadable documents showing how Knauf Insulation products can contribute points to the world’s green building rating systems such as BREEAM, LEED, DGNB and WELL.

The company’s also explains online how it is reducing the environmental impact of its operations in line with its ‘For A Better World’ sustainability strategy. It has set targets for 2025 including sending zero waste to landfill, cutting its accident rate by 55% and reducing the embodied carbon of products by 15%. Knauf Insulation promises regular updates on its progress and initiatives to achieve these targets.