Insulation industry news from Global Insulation
Indonesia: The Indonesian Safeguards Committee started an investigation into slag wool, rock wool and similar mineral wools (including intermixtures) in bulk, sheets or rolls from late July 2023. It scheduled a hearing in mid-August 2023 for interested parties - such as importers and exporters - to present their views and evidence on the matter.
A safeguard investigation seeks to determine whether increased imports of a product are causing, or threatening to cause, serious injury to a domestic industry. A World Trade Organisation member may take a safeguard action, including the temporary restriction of imports, only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.
Kazakh government claims that Knauf Group will relocate Russian business to Kazakhstan
03 April 2023Kazakhstan/Russia: The government of Kazakhstan says that it now expects Germany-based Knauf Group to relocate its Russian business to Kazakhstan. It says that this is due to the on-going Russian invasion of Ukraine, which initially led Knauf to freeze investments in the sanctioned state and suspend its trade between it and the EU from March 2022.
Deutsche Welle News has reported that Knauf Group ‘did not confirm’ the Kazakh government’s contention. In defending its decision to so far remain in Russia, Knauf Group’s chair Alexander Knauf said “It’s not about money for us, it’s about 4000 employees. Loyalty to these people means to me that I won’t send them off into an uncertain future.” Russia reportedly contributed 10% of the group's turnover in 2022.
Belgian government lowers VAT on insulation
07 June 2022Belgium: The government has reduced value-added tax (VAT) on insulation to 6% from 21%. The measure aims to reduce national natural gas consumption in order to be prepared for any future shortage. Belgium is 6% reliant on Russia for its gas supply. Utilities companies supplying the Benelux region have declined to settle their bills with Russia-based producer Gazprom in Russian Rubles, so face a shut-off. Energy Minister Tinne Van der Straeten said that the Port of Zeebrugge was ready to begin imports of liquefied natural gas (LNG) from the US and elsewhere.
Van der Straete called on Belgians to ‘Insulate your homes, isolate Putin.’
Belarus: Gomelstroymaterialy has entered talks with the administration of St Petersburg’s Krasnogvardeyski District over the possible start of exports of insulation and wall panels to the Russian population centre. Business World Magazine has reported that construction, especially of social facilities, is also an area in which the local government officials say they would like to advance cross-border cooperation.
Ukraine: The Interagency Commission on Foreign Trade will introduce tariffs to all imports of flexible porous polyurethane foam. The duty on these goods will be 11.22% when the decision takes force, 10.66% after 12 months, and 10.13% after 24 months, according to Interfax. The latest tariffs follow imports on other building materials that are mainly targeted at Russia.
US commences tariffs on Chinese mineral wool products
19 September 2018US/China: The Office of the US Trade Representative has started implementing a 10% tariff on mineral and other products from China, including mineral wool products, following a consultation period. Mineral products affected by the proposed tariffs of interest to the insulation industry include: slag wool, rock wool and similar mineral wools, in bulk, sheets or rolls; and nonwoven glass wool insulation products. The latest tariff list follows an earlier decision by the US government to tax imports from China worth US$34bn that came into force in early July 2018.
Import blocks hit Paroc’s stone exports to Russia
11 November 2016Russia: Restrictions on imports have stopped Paroc from transporting stone from its Lapinlahti in Finland to its insulation plant in Russia. Joakim Westerlund, Paroc's chief operating officer, said that the import restrictions on crushed rock material were imposed with relatively short notice in summer 2016 according to the Savon Sanomat newspaper. Subsequently the insulation producer has had to source stone locally in Russia. Quarrying at Lapinlahti for Paroc by Fjäder Group has previously totalled 20,000t/yr.
Ukraine: The interdepartmental commission on international trade has temporarily introduced special import duties on flexible porous slabs, blocks and sheets made of polyurethane foam classified for three years. The tariff follows an investigation started in July 2015, according to Interfax. The investigation concluded that an increase of polyurethane foam goods imported to the country at below local market prices took place in 2013 and 2014.