Insulation industry news from Global Insulation

China/Japan: The first overseas base of Japanese fibreglass producer Asahi Fiber Glass, which was formed in Shanghai in April 2011, will enter full-scale operation at the end of June 2011, supporting the company's goal of developing its business in the high-growth Asian market as well as the domestic market.

The new base will initially focus on supplying the local operations of Japanese companies with imports from Japan and carry out trading functions, under the supervision of manager Manabu Suzuki. In the future it will explore the establishment of local processing bases for thermal-insulation building materials, vacuum insulation materials and automotive sound-absorbing materials through partnerships with Chinese companies and mergers and acquisions.

Asahi Fiber Glass regards China as an ideal foothold for entry into the southern Asian region, where demand is growing for glass wool as a vacuum insulation material and a sound-absorbing material for automobiles. The Chinese market for glass wool has already expanded to more than double the size of the Japanese market and its expansion looks set to continue.

Denmark/Poland: Rockwool International has signed an agreement to acquire FAST s.p. z o.o., a Polish system holder for external facade insulation. In 2010, FAST generated a turnover of USD 16.73m and employed 90 persons. The transaction is expected to close by the end of October 2011.

The acquisition of FAST allows Rockwool to gain access to capabilities within coating and plaster production as well as colouring techniques. In addition, the acquisition will enable Rockwool to expand the use of stone wool solutions and penetrate into the building insulation market.

Canada: Canada's opposition has blasted the national government for ignoring its own scientists' advice to stop mining and exporting the insulating material asbestos, one week before a major UN conference on dangerous products. New Democratic Party MPs also accused the Conservative government of blocking the UN listing of chrysotile asbestos as toxic so that it would be strictly regulated.

The MPs, backed by more than 200 scientists and health organisations from around the world that signed a letter urging the government to act, said that internal government emails revealed that Health Canada had pressed Ottawa to recognise the product mined in Quebec as dangerous.

New Democratic Party MP Pat Martin said, "It's appalling, it's a disgrace, it's an international shame and it gives a big black eye to Canada's boy-scout image around the world if we're dumping this carcinogen into unsuspecting developing nations." India, Indonesia and the Philippines, among others are major importers of Canadian asbestos.

Industry Minister Christian Paradis countered, saying that, "Canada has promoted the safe and secure use of chrysotile asbestos for 30 years both nationwide and internationally." He pointed to scientific reviews that found that it could be used under controlled conditions.

US: Knauf Insulation, a manufacturer of fibreglass insulation used in new homes, is halting production at its plant in nearby Lanett, Alabama a move that will see layoffs for 146 employees. Joey Viselli, Knauf's vice president of marketing, said that the 800,000ft² facility would be shuttered because of the continued and extreme downturn in demand in the home construction sector.

The workers impacted by the move will be will be paid through to 18 August 2011, according to an official notice filed with the Alabama Department of Economic and Community Affairs. Workers were informed of the closure on 14 June 2011, with most being released from their jobs immediately.

"The building economy has taken a turn for the worse in a fairly dramatic way," said Viselli. "At the peak of the market, (the industry was) starting about 1.7 million homes a year in the US. This year we'll be lucky to start 500,000 homes." A report released last month by the US Department of Housing and Urban Development and the US Census Bureau showed privately owned housing starts were at a seasonally adjusted annual rate of 523,000.

Viselli said severance deals would be offered and that some workers will be given opportunities to relocate to other Knauf facilities in Shasta, California and Shelbyville, Indiana, where Knauf Insulation North America is headquartered. He added that there were no plans to sell the Lanett plant at this time.

"It is a difficult decision to mothball a plant," said Mark Andrews, CEO of Knauf Insulation. "It is our sincere regret that we must take this action at this time. We will re-examine the status of the Lanett facility as market conditions change."

UK: Land Rover is test-driving a special type of wallboard in an attempt to improve its sustainability. "We are testing phase-change wallboard at our dealer training centre. It moves from solid to liquid and absorbs and releases heat," said Fran Leedham, head of sustainability at Jaguar Land Rover.