Insulation industry news from Global Insulation

Belgium: Recticel has rejected an offer from Kingspan to buy its insulation division and flexible foams division for Euro700m. The board said that it did not believe that the offer was not in the interest of its stakeholders. It added that the sale of these divisions was not in line with its strategy and that the offer ‘significantly’ underestimated the value of the divisions.

US: Lower sales and production volumes reduced Owens Corning’s earnings in the first quarter of 2019 although it said higher prices partially compensated for this. The net sales for its insulation business fell by 1% year-on-year to US$591m in the first quarter of 2019 from US$596m in the same period in 2018. Its earnings before interest and taxation dropped by 53% to US$15m from US$32m. The company’s overall sales grew slightly but earnings fell.

Belgium: Recticel says that Kingspan Group has made a non-binding offer to buy its insulation division and flexible foams division for Euro700m. Kingspan says it has entered into a back-to-back agreement with an unnamed third party for the disposal of all of the flexible foams business. Recticel’s board of directors will analyse the proposal in line with its fiduciary duty and update the market. Any purchase would be subject to regulatory approval.

US: Germany’s BASF plans to launch the second phase of its methylene diphenyl diisocyanate (MDI) unit at its Verbund plant in Geismar, Louisiana. The first phase of the upgrade was set to double the company’s MDI production capacity to nearly 0.6Mt/yr from 0.3Mt/yr. The new US$87m investment will continue this process. Construction is expected to start in late 2019 with completion scheduled for 2021.

“With the development of the American market, BASF needs this investment to support the growth of our existing customers,” said BASF Senior Vice President Stefan Doerr. “The Geismar site is ideally suited for this investment thanks to the existing infrastructure, competitive raw materials and favourable business support from state and local governments. This investment also demonstrates our strong commitment to our employees, our community and our presence in Louisiana.”

US: Rockwool has started legal action against the Jefferson County Board of Education (BOE) describing its attempts to stop construction of new mineral wool insulation plant as ‘unlawful.’ Court documents filed by the Danish insulation company allege that the BOE is trying to buy land from Rockwool for a low rate to build a student support centre otherwise it has threatened to appropriate it under US condemnation rules. Rockwool contends that the BOE originally supported the new plant with tax breaks but has since change its mind as local activists have opposed the project.

Rockwool started construction work on its US$150m mineral wool plant at Ranson, West Virginia in mid-2018. Production at the site is scheduled to start in early 2020.