Insulation industry news from Global Insulation

Kyrgyzstan: The Russian-Kyrgyz Development Fund plans to expand a thermal foam insulation plant at Besh-Kungei in the Chui region in 2017. The project will cost US$1.67m, with 66% of the funding provided by the Russian-Kyrgyz Development Fund and the remainder by local businesses. The upgrade is part of a umbrella of investments being made by the fund in 2017.

UK: MDF Recycling has completed proof of concept trials to develop a process to recover wood fibre from waste medium-density fibreboard (MDF). The solution generates a new raw material source for the wood and natural fibre industries. The company says that the recovered fibre is of the same quality as standard wood fibre and that it can provides feedstock to the manufacturers of MDF board, insulation products and horticultural growing products.

“We have already begun discussions with a number of leading companies and organisations operating in the MDF production and waste industries and look forward to progressing these during the early part of 2017,” said co-founder and Managing Director Craig Bartlett. He added that the recycling process was a ‘genuine world first.’

MDF Recovery has set up an advisory panel to help it commercialise the company’s technology.

UK: SIG’s sales rose by 0.3% on a like-for-like basis, the building materials distributor has said in a trading statement. Sales rose by 11% year-on-year to Euro3.4bn in 2016 but they were mainly driven by foreign exchange rates and acquisitions. In the UK & Ireland like-for-like sales increased by 1.1%, with SIG Distribution up by 1.2% and SIG Exteriors down by 1.5%. In mainland Europe life-for-like sales declined by 0.5%, with France and Germany down by 2.0% and 1.3% respectively.

"2016 was a disappointing year for SIG. While the competitive environment, particularly in the UK, was challenging, our transformational change programme, although taking the group in the right strategic direction, distracted us somewhat from our customers,” said chief executive Mel Ewell. He added that the company is planning to focus on customers, place added emphasis on sales growth and reduce its leverage in 2017.

SIG will announce its full year results for 2016 on 14 March 2017.

Saudi Arabia: SABIC plans to launch a low-density polyethylene (LDPE) dedicated grade of foam HP0824NDF in 2017. The chemical manufacturer says that the new product’s advantages include high viscosity, giving good head pressure for uniform and thicker foam thickness, relatively higher resin density for better mechanical strength, and good compression stress as well as resilience. Production benefits include using various foam production processes such as physical foam extrusion, the chemical cross-linking process, as well as the bun process, resulting in lightweight foams. SABIC add that the new grade also offers benefits for thermal insulation.

SABIC launched LDPE HP2024JDF and HP2024NDF dedicated foam grades for Middle East, African, and Asian markets in 2016 for physical extrusion foam. All three grades were developed at the company’s Foam Innovation Centre.

Finland: Paroc Group is planning to shut down the operations of its stone wool plant in Oulu. The decision has been blamed on overcapacity of Finnish production without a similar increase in consumer demand. The plan also includes transferring and centralising support functions to other Paroc factories at other locations. Approximately 70 workers at the site will be affected by the decision and negotiations are on going.

“Starting the cooperation negotiations is very unfortunate. However, the utilisation rate of Finnish stone wool factories’ current capacity is too low to ensure competitive operations in Finland. The factory located in Oulu is an old one, and, in addition to the already high cost structure, continuing its operations would require significant investments in the near future,” said Kari Lehtinen, chief executive officer of Paroc Group.