Insulation industry news from Global Insulation

Denmark: Rockwool’s stone wool ceiling and wall products subsidiary Rockfon has partnered with designer Akuart to develop acoustic products. The producer says that the partnership combines the strengths of both companies in design, innovation and manufacturing to deliver more value for the end customer. Rockwool has also acquired a minority stake in Akuart to further strengthen the relationship.

Rockfon Europe and Asia managing director Parik Chopra, “Akuart is a strong Danish brand with skilled people, high quality design and products that fit any interior space. With this partnership, Rockfon expands its footprint into designing and manufacturing functional and aesthetic acoustic solutions that can improve the wellbeing of people in offices, schools, hospitals, and leisure venues across Europe.”

UK: The Construction Products Association and the Builders Merchants Federation have raised the issue of low short-term availability of polyurethane (PUR) and polyisocyanurate (PIR) insulation. The associations attributed the shortages to the effects of ‘historically’ high raw materials costs on production. These it said resulted from high international demand for raw materials and finished products and challenges as a result of the Covid-19 pandemic.

The associations expect PUR and PIR availability to improve in the third quarter of 2021. They said that long-term demand growth was set to continue, in part due to the government’s 2050 net zero carbon target.

Belgium: Recticel’s consolidated net sales fell by 6% year-on-year in 2020 to Euro829m from Euro879m in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 15% to Euro51.6m from Euro60.7m. Sales from its insulation business rose slightly to Euro249m driven by a strong second half of 2020 and higher prices due to higher raw input costs. The group made divestments to businesses held by its flexible foams and automotive divisions on 30 June 2020 significantly improving its sales and earnings in the reporting year.

Chief executive officer Olivier Chapelle said, “After an 18% sales decline in the first half of 2020 caused by the Covid-19 lockdown, the second half of 2020 was marked by significant sales fluctuations varying from one business segment or country to another, influenced by the subsequent waves of the Covid-19 outbreaks and the related precautionary measures taken by national governments. In this difficult context, we managed to generate a robust 7% sales growth in the second half of 2020 and a 10% increase in adjusted EBITDA.”

“Numerous ‘force majeure’ events at the premises of our chemical raw material suppliers have created and continue to create supply shortages of polyols and isocyanates. Our suppliers have used this situation to implement price increases at an historically high pace, leading to new all-time highs. In response to this, we were compelled to mitigate these cost increases through corresponding sale price increases. The situation is expected to normalise as of the third quarter of 2021.”

Denmark: The Danish Society of Engineers has selected Rockwool as the European Business Award for the Environment winner in the Denmark category. The producer says that the award recognises its technology innovation and implementation of sustainable processes leading to more than 70% CO₂ emissions reduction. It said that its development of fuel-flexible melting technology has allowed a shift away from coal towards natural gas and biogas.

Group operations and technology senior vice president Bjørn Andersen said, “Winning this award testifies to the fact that sustainability is at the core of our business. The engineering and technology innovations this award recognises build on our decades-long efforts to improve the energy efficiency and reduce the environmental impact of our own operations. More than 50 engineers in Denmark have been working on the patented fuel-flexible melting technology being highlighted today. Ready-made solutions did not exist, so we invented them ourselves.”

He added, “Because we operate in many countries around the world, we also know that we cannot put all our technology eggs in one basket. That is why Rockwool has also developed a large-scale electric melting technology that is well-suited in countries where the electricity grid is already low carbon. At Rockwool’s factory in Moss, Norway, for example, we have recently inaugurated the industry’s largest electric melter, reducing emissions by approximately 80% compared to the previous technology used there.”

US: Installed Building Products’ consolidated net sales were US$1.65bn in 2020, up by 9% year-on-year from US$1.51bn in 2019. Its earnings before interest, depreciation, taxation and amortisation (EBITDA) rose by 26% to US$231m from US$184m. In the fourth quarter of 2020, the insulation supplier recorded a higher proportion of insulation sales to production builders, leading to a drop in insulation selling prices. In November 2020, the group acquired WeatherSeal Insulation and in October 2020 it acquired Insulation Contractors/Magellan Insulation.

Chair and chief executive officer Jeff Edwards said, “We believe most of our markets will remain strong in 2021 and we expect 2021 will be another good year of growth and profitability for Installed Building Products, despite the continued effects of the Covid-19 pandemic. Reflecting our confidence in executing on our acquisition strategy and our commitment to create long-term value for shareholders, I am pleased with the board’s decision to initiate a quarterly cash dividend programme, and increase and extend our share repurchase programme. The financial and operating accomplishments we achieved in 2020 is encouraging and I remain excited by the continued opportunities to grow IBP and create even greater value for our shareholders.”