Insulation industry news from Global Insulation

US: Three types of commercial and residential insulation produced by Owens Corning have been certified as made with renewable energy. These products represent the first ever to have met the requirements of SCS Global Services’ certification protocol to validate electricity used to make them is generated entirely from wind.

This certification follows a power purchase agreements Owens Corning signed in 2015 that enabled new wind capacity in Texas and Oklahoma. Both wind farms came online in late 2016 and can generate 1.1MWh/yr of electricity. For every MWh of renewable electricity generated, the company receives one Renewable Energy Credit (REC). It then applies the RECs toward the manufacture of more sustainable products.

“Reducing the embodied carbon in building products has long been a discussion across the building industry,” said Frank O’Brien-Bernini, Owens Corning vice president and chief sustainability officer. “We’re excited to see it come to life through certified products made with renewable energy and reduced embodied carbon.

The three types of insulation available with the wind power certification are EcoTouch Insulation, Thermafiber RainBarrier Continuous Insulation and Unbonded Loosefill Insulation.

Germany: Xella International has announced changes to the management of its subsidiary Ursa. Jochen Friedrichs has been appointed as the chief executive officer (CEO) of its subsidiary Ursa. He will also join the Xella Group Executive Committee. Xella said Friedrichs was responsible for the acquisition of Ursa on the Xella side of and therefore holds ‘detailed’ knowledge of both Ursa and Xella.

Other appointments include the assignment of Björn Baum as the Chief Technology Officer (CTO) of Ursa. He will also remain as the Head of Xella Group’s Energy Management. Joaquín Lozano Agramunt will retain his position of Chief Financial Officer (CFO) at Ursa. In addition, Ana Lluch Martinez, Chief Legal and HR, and Gonzalo de las Alas-Pumariño, Head of Technology and Projects, will become members of the Ursa Executive Committee.

Xella International announced that it was buying Spain’s Ursa in August 2017. The European Commission approved the acquisition of the insulation producer by Xella in October 2017. The acquisition is expected to compete by the end of 2017.

UK: The British Rigid Urethane Foam Manufacturers’ Association has changed its name to the Insulation Manufacturers Association (IMA). The association said that the new name reflects the position that polyisocyanurate (PIR) and polyurethane (PUR) insulation manufacturers hold in providing the largest share of insulation products used in the UK market. It added that given expected growing market share of organic-based insulation products that, “…the trade association has a responsibility to ensure it is the principal point of contact for all audiences relevant to this sector with a name that reflects this responsibility.”

Simon Storer, Chief Executive of IMA said that the association need to move towards a wider audience that wasn’t necessarily used to technical or industry language. “Events of this year certainly brought this need into sharp focus, as many commentators and other interested parties were unable to immediately identify which trade association spoke for which part of the industry. We also wanted to be sure that as an association we are solely responsible for and have ownership of the messages coming from this sector.”

US/Finland: Owens Corning has signed an agreement with CVC Capital Partners to acquire Paroc Group for Euro900m. The sale, which is subject to regulatory approvals and other customary conditions, is anticipated to close in early 2018. The company plans to finance the acquisition through a combination of long-term debt and pre-payable bank financings.

“The acquisition of Paroc delivers on Owens Corning’s strategy to provide our customers with a portfolio of insulation products that cover the full temperature spectrum in the three largest insulation markets – Europe, North America and China. Over its 80-year history, Paroc has earned a reputation for high-quality products and technical expertise,” said Owens Corning chairman and chief executive officer Mike Thaman.

The acquisition of Paroc is expected to expand Owens Corning’s mineral wool technology, grow its presence in the European insulation market, provide access to a variety of new end-use markets and will increase the company’s sales mix of the insulation business outside the US and Canada to 35%.

Paroc is a European manufacturer of mineral wool insulation solutions for a variety of end markets. Paroc manufactures building insulation for thermal, fire and acoustic applications in residential and commercial construction. The company also manufactures technical insulation for HVAC (heating, ventilation, and air conditioning) systems, industrial processes and the marine, offshore and original equipment manufacturer industries. It employs over 1800 people in 13 countries and operates facilities in Finland, Lithuania, Poland, Russia and Sweden.

France: Saint-Gobain has continued growing its sales across all businesses in the third quarter of 2017. Its overall sales grew by 4.1% year-on-year to Euro10.2bn in the quarter from Euro9.76bn in the same period in 2016. This trend extends to the year so far, with a rise of 4.3% to Euro30.6bn in the first nine months of 2017, from Euro29.3bn in the same period in 2016.

“The third quarter confirmed the upbeat trends seen in the first half, excluding the impact of the cyber-attack. All business sectors and regions advanced, including France. We continued to see a good price effect against a tougher basis for comparison, but not yet sufficient in all of the group’s businesses given the more inflationary raw material and energy cost environment,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain. He added that the group had signed 23 acquisitions since the beginning of the year, including the recently finalised Glava deal.

Sales from the group’s Interior Solutions division, which includes gypsum wallboard and insulation products, saw its saw increase by 3.6% to Euro5.11bn from Euro4.94bn. The group attributed the sales growth in this business to ‘healthy’ volume trends in Western Europe and in Asia and emerging countries. Trading in North America was reported as ‘stable’ but with a smaller pricing contribution in a more competitive environment. It added that pricing for the division lags behind rises in input costs such as a raw materials and energy.