Insulation industry news from Global Insulation

Taiwan: Ming Dih Group is considering cutting output at its expandable polystyrene (EPS) plants in September 2016 due to low demand in the region, according to a company source quoted by ICIS. The company previously lowered output at its plants to around 70% of production capacity in July 2016 due to poor sales. It operates a 180,000t/yr plant in Taiwan and a 50,000t/yr plant in Thailand. Products from its plants are used to make insulation panels.

Russia: TechnoNicol has opened a Euro27.6m mineral wool insulation production plant in the Khabarovsk region. The plant will have a production capacity of 0.75Mm3, according to Prime News. The products will be sold locally and via export. The company plans to export 20% of its entire output to China in 2019. The insulation producer expects the payback period for the plant to take seven years.

Belarus: The Minsk Silicate Materials Plant will be merged with the Belarusian Cement Plant following agreement between the shareholders of both companies. The merger is expected to be finalised by December 2016. The Minsk Silicate Materials plant produces construction and insulation materials, including polystyrene-based insulation products. It was originally founded in 1895. The Belarusian Cement Plant has been in operation since 1996.

Denmark: Rockwool’s earnings before interest and taxation (EBIT) have risen by 78% year-on-year to Euro64m in the first half of 2016 from Euro36m in the same period of 2015. Its sales revenue fell by 2% to Euro784m from Euro799m due to currency variations. In local currencies its revenue rose by 2.1% due to the Building insulation segment, whereas the Industrial & Technical insulation area continued to be challenged by low investment levels in the oil and gas related industries.

“I am very satisfied with the continued improvement in our performance, especially within the Insulation business. This is a result of the acceleration of our Business Transformation Program, improved market conditions in Germany and the successful expansion in the US. We are confident that we will deliver a strong result for 2016,” said chief executive officer Jens Birgersson.

Regionally, markets in Asia and North America performed well. Markets in Western Europe showed continued improvement but sales in Russia continued to fall.

UK: Kingspan’s sales revenue has risen by 19% year-on-year to Euro1.47bn in the first half of 2016 from Euro1.24bn in the same period in 2015. Its net profit rose by 83% to Euro126m from Euro82.4m. The insulation and building products manufacturer attributed the result to increased market penetration and growth though new acquisitions.

“These results reflect our strongest ever six month performance, underpinned by solid organic growth and a robust contribution from the Joris Ide and Vicwest businesses acquired last year. The expansion in profit margin has helped deliver a 50% increase in trading profit and, with good order intake momentum in the second quarter continuing into the current trading period, we expect a solid performance in the second half,” said Gene Murtagh, Chief Executive of Kingspan.

The company’s sales revenue from insulated panels rose by 26% to Euro950m from Euro753m, supported by sales in mainland Europe. Sales revenue from insulated boards rose by 9% to Euro947m from Euro319m driven by the UK