Insulation industry news from Global Insulation

Australia/New Zealand/US: Ireland-based James Hardie has announced the planned closure of three of its fibre cement board plants. The Cooroy, Queensland plant in Australia, Summerville, South Carolina plant in the US and Penrose, Auckland plant in New Zealand will close permanently in mid-2020, resulting in a total of 375 job cuts. The NZ Herald newspaper has reported that the decision to shut the plants came about due to the impacts of the coronavirus outbreak on the global economic situation. James Hardie will now supply the New Zealand market from its Carole Park, Queensland and Rosehill, New South Wales plants. James Hardie also closed its Siglingen, Baden-Württemberg plant in Germany on a temporary basis, ‘in order to better match supply and demand in the European market.’

James Hardie revised its 2020 profit forecast to US$355m, down by 4.1% from US$370m.

US: Huntsman’s first quarter net income was US$708m in 2020, up by 440% year-on-year from US$131m in 2019. It made sales worth US$1.59bn over the period, down by 4.6% year-on-year from US$1.67bn in the corresponding period of 2019. Polyurethane (PU) insulation sales decreased slightly due to ‘decreased demand across most major markets, partially offset by modest growth in polyisocyanurate (PIR) insulation sales volumes.

Huntsman chair, president and CEO Peter Huntsman said, “We have been well-prepared for this global economic crisis. Our balance sheet is stronger than ever before, with significant cash and robust liquidity. Having learned from prior crises, we pre-emptively reduced unnecessary inventories and are reducing capital spending this year by 30%, or approximately $90m, by delaying discretionary spending.”

US: Owens Corning has recorded a first quarter loss of US$916m in 2020, compared to a US$44.0m profit in the corresponding period of 2019. Net sales were US$1.60bn, down by 4.0% from US$1.67bn. Insulation sales grew by 2.0% to US$603m (38% of net sales) from US$591m. The insulation section’s negative balance of earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 71% to US$10.0m US$34.0m.

Owens Corning chairman and CEO Brian Chambers said, “I’m very proud of our team’s strong execution and ability to deliver our first-quarter results in the face of the Covid-19 pandemic. Our long-standing commitment to safety remains at the forefront of everything we do while serving the needs of our customers, our communities, and other key stakeholders.”

Belgium: Recticel has recorded sales of Euro298m in the first quarter of 2020, down by 6.2% year-on-year from Euro318m in the corresponding period of 2019. Recticel said that sales in the first two months of 2020, “remained in line with the previous year despite the impact of the coronavirus crisis on sales and operations in China.” Sales in March 2020 fell by 17% month-on-month, “due to the outbreak and the resulting governmental lockdown measures in most countries.” Insulation sales fell by 2.9% to Euro60.7m Euro62.5m. Recticel said, “Lockdown measures led to a reduction of construction activities as of mid-March 2020. Our insulation plants continued (reduced) operations in all countries except in France where construction activity was halted since mid-March 2020.”

US: In 2019 Owens Corning sourced 1.58GWh of energy renewably (49% of total consumption), down by 14% year-on-year from 1.84GWh (52% of consumption) in 2018. Direct CO₂ emissions were 2.78Mt, down by 2.0% from 2.83Mt in 2018 due a reduction in carbon intensity of insulation production, such as the use of electric rather than coke-fired furnaces.