Insulation industry news from Global Insulation

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.”

UK: Avonside Group has appointed Bill Rumble as the managing director of its energy division. He first became the unit’s divisional director following the group’s acquisition of BillSaveUK. The company said that he had led a restructuring and refocusing of the operation resulting in a profitable and scalable business with industry leading levels of quality and service. Avonside Energy, the energy division of Avonside Group, suppliers insulation products to housebuilders in the UK.

Rumble holds a degree in manufacturing and engineering from the University of Nottingham followed by an apprenticeship with the Ministry of Defence. He held posts at the Ford, Aston Martin and Mark Group before setting up BillSaveUK in 2016.

Spain: Saint-Gobain Isover has launched the Geowall range of stone wool insulation. The range consists of Geowall 34, Geowall 35 and Geowall 37. The company says that the range replaces its Acustilaine products. It is non-hydrophilic and uncoated for excellent thermal and acoustic performance. It called Geowall the ‘optimal choice’ for the design and execution of laminated gypsum board systems.

Ireland: Kingspan recorded full-year consolidated sales of Euro4.58bn in 2020, down by 2% year-on-year from Euro4.66bn in 2019. Profit for the year from continuing operations was Euro385m, up by 2% from Euro378bn. Earnings before finance costs, income taxes, depreciation, amortisation (EBITDA) increased by 3% to Euro597m from Euro580m. Insulation boards sales fell by 10% to Euro787m from Euro877m. Kingspan’s trading profit from insulation boards fell by 6% to Euro117m from Euro110m.

The group said, “2020 was a tumultuous year for Kingspan, as it was for many. After a relatively strong start, April and May saw a deep reduction in activity in many markets, followed by a rebound towards mid-year and ultimately a strong finish in the fourth quarter.” It added, “Globally, governments reacted in varying ways to the crisis which resulted in an economic experience which was equally variable. All markets suffered interruption to some degree, although in our case it was particularly acute in the UK, Spain, Canada and Ireland. Most other markets recovered to, and in some cases exceeded, the performance of 2019.”

In late 2020, the company made changes following the Grenfell Tower fire inquiry’s ‘highlighting’ of ‘historical behaviours’ affecting the company’s role as indirect supplier of some of the building’s insulation. Chief Executive Officer Gene Murtagh said, “The unacceptable conduct and historical process shortcomings, involving a small number of employees in our UK insulation boards business, do not reflect the high standards of integrity and safety that are core Kingspan values, deeply held by our people. We have already implemented several important changes that demonstrate our commitment to product compliance and good governance. Our aims are clear: to reassure that safety takes precedence over all other considerations and to ensure this can never happen again.” The changes include the launch of a new code of conduct, new testing protocols and the publication of all test reports.

Russia: Saint-Gobain has announced plans to build a 50,000t/yr-capacity stone wool plant in Siberia. The company says that the decision aims to help it better meet the growing needs of consumers in Siberia, Kazakhstan and the Far East. It will produce the insulation material using basalt. The total estimated cost of the project is around US$35m, with commissioning scheduled for 2023.

Russia, Ukraine and Commonwealth of Independent States regional chief executive officer Antoine Peyrude said, “The new production complex will allow us to better respond to the demands of the local market, whose demand for innovative energy-efficient solutions is constantly growing.”