Insulation industry news from Global Insulation

France: Hirsch France, a partnership consisting of 66% Hirsch and 34% BewiSynbra, has purchased six Saint-Gobain expanded polystyrene (EPS) insulation plants and 49.9% of shares in Isossol from Saint-Gobain subsidiary Placoplâtre.

Saint Gobain’s nine-month sales fell by 4.1% year to Euro31.1bn to 30 September 2019 from Euro32.5bn. The group is targeting annual divestment equivalent to Euro3.0bn to cut losses.

Netherlands: Nine-month restated sales for Recitel fell by 7.3% year-on-year to Euro924m in September 2019 compared to Euro997m in the corresponding period of 2018. Despite ‘double-digit’ volume growth, insulation sales over the period fell by 4.5% to Euro193m from Euro202m due to pricing issues stemming from the loss of market share to fibre insulation as a lingering after-effect of the isocyanate shortage of 2017. The company noted the ‘ramping-up’ of production at its new plant in Finland, with all products now certified for sale in the Nordic countries. Recticel CEO Olivier Chapelle noted the continued substantial decrease in debt as a positive in the period.

UK: French-based Saint-Gobain has received vindication in its attempted deflection of liability for alleged harm done by flammable insulation products designed, manufactured and sold by its subsidiary Celotex with the revelation of systematic failures in the London Fire Brigade response to the Grenfell disaster on the night of 13 – 14 June 2017. BBC News reported that the Phase One Report, published on 29 October 2019, identified ‘serious shortcomings’ in large-scale incident management training for control room supervisors, with a ‘stay-put’ advisory strategy rescinded 60 to 80 minutes too late at 2:47AM.

France: Knauf Insulation entered production at its new 0.1Mt/yr mineral wool plant in Illange on 22 October 2019. Knauf Western Europe managing director Mark Leverton called the plant, which cost Euro110m and will employ 123 people, a ‘reference plant’ for the group ‘in terms of its approach to the environment and the wellbeing of employees.’ The group reported that 7.5ha has been set aside for a wildflower meadow, with Urbanscape Green Roof installed across plant buildings.

US: Huntsman has published its third quarter results showing a 30% fall in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$215m from US$308m. Sales volumes and prices fell in the polyurethanes and advanced materials sections, with a strong US Dollar pushing down the latter’s profit margin in the European region, where customer destocking also occurred.