Insulation industry news from Global Insulation

UK: YBS Insulation has received a loan worth Euro290,000. The producer plans to use the funds to realise planned growth. It plans to upgrade and increase capacity at its reflective insulation plant in Derbyshire. The Midland Investment Fund and East & South East Midlands Debt Finance Fund provided the loan.

Poland: Austria-based Austrotherm has launched production at its Grodków expanded polystyrene (EPS) insulation plant following a capacity expansion. The total cost of the work was Euro5.5m.

Managing director Klaus Haberfellner said “We are particularly proud that, despite the adversities of the coronavirus epidemic, we have now been able to start full operation in Grodków. The demand for our high-quality EPS insulation panels has been growing steadily in Poland for years. This is due on the one hand to rising energy prices and on the other hand to the government smog control renovation subsidies programme launched in 2019.” He added "Thanks to the new plant, we are optimally positioned in terms of capacity to be able to supply our customers promptly."

Ireland: Kingspan’s consolidated net sales increased by 24% year-on-year in the first quarter of 2021 to Euro1.28bn. Insulated panels sales grew by 25% having started the year with a strong order backlog and insulation boards grew 12%. Communications company Edison Group said that growth was most pronounced in Germany, France and Benelux and Latin America, with a strong order intake in North America and the UK. Net debt at 31 March 2021 was Euro352m.

The company noted increasing inflationary pressure and challenges regarding availability despite strong demand and a strong backlog. As such, it has given no guidance for the year.

Kingspan highlighted its inaugural Planet Passionate sustainability report. The report details the company’s achievements in the first year of its 2019 10-year sustainability strategy. In 2020, the producer achieved net-zero energy and cut CO2 emissions by 5% year-on-year. It issued a Euro750m green private placement in September 2020. The company called the major achievements the ‘first leg’ of its decarbonisation journey. In its latest report, it set the target of net-zero CO2 emissions by 2030. Additionally, it is aiming to halve CO2 intensity over the same period. Altogether, Planet Passionate covers 12 sustainability targets across the key areas of energy, circularity, CO2 and water.

Chief executive officer Gene Murtagh said “Our Planet Passionate targets demand radical thinking and action. Our aim is to get as close to zero emissions in our manufacturing as technically possible by transforming our processes. Industry has a vital role to play in addressing the threat of climate change.” He added that the group target of 50% primary raw materials CO2 intensity reduction “will also lower the embodied carbon in our products, and consequently the whole life carbon of buildings.”

UK: AMA Research has recorded a 16% year-on-year decline in UK insulation demand to Euro1.62bn in 2020 from Euro1.93bn in 2019. The researcher forecast a 3% year-on-year decline in 2021 to Euro1.57m. It said the demand would not recover 2019 levels before 2025. In the three years after 2021, the predicted annual growth rate is 4 - 6%.

Luxembourg: Armacell recorded consolidated net sales of Euro591m in 2020, down by 8% year-on-year from Euro644m in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 10% to Euro120m from Euro134m. During the year, the company completed a polyethylene terephthalate (PET) foaming line expansion in Suzhou, China, built an elastometric foams plant in Cheonan, South Korea and consolidated its Italian insulation activities at a new facility in Turin. It also made strategic investments in diversified areas.

President and chief executive officer Patrick Mathieu said, “In a complex and challenging environment our business model again proved resilient. With our global reach and multi-segment activity, we ended the year in relatively good shape. We took the appropriate measures to navigate changing circumstances and ensure we come out of the pandemic stronger than before. Our utmost priority was always to safeguard the health of our employees, maintain operations and continuously support our customers.” He added, “After the successful closure of our capital market refinancing in February 2020, our shareholders PAI Partners and KIRKBI expressed their commitment to our on-going growth strategy. In 2021, we look forward to partnering with our customers in adding value to their businesses.”