Insulation industry news from Global Insulation

UAE: Knauf Insulation Holding has announced the signing of an agreement with Exeed Industries to acquire a holding in their subsidiary, Exeed Insulation which will operate as a joint venture between Exeed and Knauf, under Knauf Insualtion management.

Exeed Insulation currently operates a newly built glass wool insulation plant in the ICAD 1 Musaffah in Abu Dhabi. In addition to assuming management control of the business, Knauf Insulation will bring its production experience and technology, including ECOSE Technology, to ensure that the plant produces the highest quality mineral wool and becomes the lowest cost mineral wool plant in the region. Knauf Insualtion will also provide product development and marketing expertise to ensure that the business can meet all the current and future needs of specifiers, distributors and contractors throughout the Gulf Cooperation Council states.

Following completion of the transaction the business will be renamed Knauf Exeed Insulation and will be managed by Thorsten Dambly, formerly General Manager, for Knauf Insulation in Austria and Switzerland.

Germany: Suitors of the German insulation materials maker Armacell GmbH are poised to make second-round offers below the Euro500m price tag sought by its owner, Bahrain's Investcorp, according to Reuters.

The second round deadline was pushed back from 11 March 2013 as private equity firms Charterhouse, Pamplona Capital Management LLP and HgCapital were set to bid closer to Euro500m, according to bankers that spoke to the agency. The lower bids would reflect growth concerns regarding the target, whose sales amounted to Euro448m in 2011. There are even concerns that the deal, which is being handled by Barclays plc, could be cancelled completely if a reasonable valuation cannot be reached.

Russia: Saint-Gobain has bought a 25.1% share in ISOROC, a Russian building materials company based in Tambov. The cost of the acquisition has not been announced nor has Saint-Gobain revealed who sold the shares. The transaction is in line with Saint-Gobain Group's expansion strategy that enables it to continue growing its insulation activity in Russia.

ISOROC is a leader in the central region of Russia for mineral wool products, the most commonly used insulation material in the Commonwealth of Independent States (CIS). The company reported revenues of Euro46m in 2011.

According to the SPARK database, Germany's Erste AMSC Unternehmensbeteiligungs GmbH owned 37.94% of ISOROC as of 7 September 2012, the European Bank for Reconstruction and Development (EBRD) owned 35.93% and Rabo Black Earth B.V. owned 7.18%.

Saint-Gobain previously announced in June 2012 that it had acquired British insulating foam producer Celotex to strengthen its position in the UK insulation market.

Ireland: Insulation materials group, Kingspan has bought ThyssenKrupp Construction from its parent group for Euro65m and the Middle East firm Rigidal Industries LLC for Euro31.4m. Both acquisitions are subject to local approval.

Kingspan said that it has entered into an agreement with ThyssenKrupp Steel Europe AG to acquire 100% of the share capital of the various companies which comprise ThyssenKrupp Construction Group, the leading European insulated panels business.

ThyssenKrupp Construction Group, which includes market-leading brands such as Hoesch, Isocab and EMS, has seven well-invested manufacturing plants in Germany, France, Belgium, Austria and Hungary. The business had sales in the year to 31 March 2012 of Euro315m and recorded an operating loss of Euro5.7m in the period. It has gross assets of around Euro101m.

Separately, Kingspan also announced that it has agreed to acquire 100% of the share capital of Rigidal Industries LLC, a leading Middle Eastern manufacturer of composite panels and roofing systems based in Dubai with an extensive route to market in the Gulf region. It had sales of Euro31.8m in the year to 30 June 2012.

"The ThyssenKrupp business will transform our mainland Europe insulated panels market presence in a region where market penetration is growing, rooted in the need for more energy efficient buildings. The Rigidal Industries LLC business is an excellent platform to develop our existing business and market presence in the Gulf region where demand is growing," said Gene Murtagh, Kingspan CEO.

US: Johns Manville (JM) has announced that it has purchased Industrial Insulation Group, LLC (IIG), a manufacturer of insulation for industrial, commercial and fireproofing applications.

IIG was formed in 2002 as a joint venture between JM and The Calsilite Group. JM previously owned a minority interest in IIG, but will now be wholly-owned by JM. IIG's product line complements JM's portfolio of insulation products, allowing JM to offer an even broader range.

"Expanding JM's interest in IIG is another way we are addressing customers' needs by offering the industry's most complete line of insulation products," said Todd Raba, JM's chairman, president and CEO. "IIG has a consistent track record of product performance, in keeping with the quality our customers expect from JM. We look forward to exploring opportunities to build on IIG's strong market position and expand its product portfolio."

IIG manufactures a wide range of insulation products for use in industrial, commercial and fireproofing applications and offers a portfolio of high-temperature insulation, ranging from mineral wool to perlite to calcium silicate.

"With our increased investment in IIG, JM will be able to offer the most complete line of mechanical insulation solutions to a broader commercial and industrial customer base," said Dave Skelly, director of sales for JM's Performance Materials business. "We look forward to continuing IIG's tradition of superior product performance and customer service."

JM does not plan to significantly change the operations at IIG. JM says that the existing IIG plants located in Brunswick (Georgia), Grambling (Louisiana), Fruita (Colorado), Phenix City (Alabama) and Houston (Texas) are a key part of its future commercial and industrial strategy. IIG chairman and chief executive Philippe Delouvrier will remain involved with the company in an advisory role.

"IIG is pleased to join the Johns Manville and Berkshire Hathaway families," said Delouvrier. "This next chapter in IIG history sets us up for continued success with greater opportunity for growth in existing and new markets."

"Philippe Delouvrier and his team have made IIG a recognised leader in industrial insulation," said Fred Stephan, vice president and general manager of JM's Insulation Systems business. "We're delighted that Philippe will remain involved with the business as we work to build on the success his team has established."

UK: Saint-Gobain has signed an agreement to acquire Celotex Group Limited, one of the leading British producers of high performance insulating foam.

Celotex had a turnover of Euro86.7m during its last fiscal year to August 2011. The company currently has 170 employees and two production lines based in Hadleigh near Ipswich, UK. It recently extended its capacity with a new Euro3.7m distribution and innovation centre in order to support its growth in the construction market. Celotex will continue to operate under its brand name and with its existing management team.

Already present in the UK and Ireland on the insulation market with its Isover brand, Saint-Gobain will enhance its insulation offer for new market segments such as flat roofs and floors. It also strengthens its positions in the insulation for the new construction and renovation markets.

Completion of the acquisition is subject to approval of the UK Office of Fair Trading.

Turkey: The US-based chemical company Huntsman has acquired Turkey's EMA Kimya Sistemleri Sanayi ve Ticaret for an undisclosed sum. The Istanbul-based company has the capacity to manufacture polyester polyols and blend methyl di-p-phenylene isocyanate (MDI) PU systems used in the insulation, automotive, adhesives, coatings, elastomers and furniture industries. EMI's 2010 revenues were about Euro13m.

Denmark/Poland: Rockwool International announced on 28 November 2011 that it had received the necessary approvals to acquire Polish insulation systems manufacturer Fast s.p. zoo and had closed the transaction.

The agreement was first announced in June 2011. Closing was originally expected to take place by the end of October 2011. The value of the deal was not disclosed.

Fast, also known as Etics, is one of the leading players in the Polish market for external facade insulation systems. Through this acquisition the Danish company will gain expertise in coating and plaster production, as well as colouring techniques.

Finland: The Finnish expanded polystyrene (XPS) producer, ThermiSol, has acquired Finland's Suomen XPS in a deal funded by the state-owned company Finnish Industry Investment Ltd and the mutual insurance associations Fennia and its unit Fennia Retirement. Suomen XPS produces Novafoam XPS insulation materials and the acquisition is consistent with ThermiSol's strategy of expanding its product range.

The deal was agreed by the two companies on 1 August 2011 and ThermiSol will transfer machinery and production equipment from its factory in Pietarsaari to the Suomen XPS factory in Vimpeli between the autumn of 2011 and early 2012. According to the company this move will take advantage of the Vimpeli site's geographic location.

ThermiSol's Executive Director Urpo J Salimen said that the two companies had 'obvious synergies' and had come to a deal 'as quickly as possible.' ThermiSol, also an established producer of extruded polystyrene (EPS), had a turnover of Euro60m in 2010 and has interests in Norway, Sweden, Finland and Denmark. Turnover is expected to increase by nearly 17% in 2011 to Euro70m.

Japan: To more effectively serve customers in western Japan, Saint-Gobain plans to build a new glass wool production facility near Osaka in the Kansai region through its local subsidiary Mag-Isover, Japan's leading insulation manufacturer. With a planned capacity of 60,000t/yr, the plant is scheduled to be commissioned before the end of 2013.

Representing a total investment of around Euro140 million, the plant will directly employ more than 100 people. Its output will add to the 90,000t/yr of glass wool currently being produced by the Mag-Isover facilities located near Tokyo in the Kanto region. This will bring the company's total production capacity across its four plants to 150,000t/yr.

This investment comes at a time when Japan is aiming to reduce its energy consumption. Buildings account for 30-40% of the energy consumed in the country and therefore offer an enormous combined energy saving potential, particularly in the areas of heating and air conditioning.

Russia: Saint-Gobain is also pursuing its expansion in Russia, where it has acquired Linerock, a company based in Tcheliabinsk, Ural region. Linerock is the Ural region's leading manufacturer of rockwool products, the most widely used insulation materials in the Commonwealth of Independent States (CIS). The company employs over 500 people and reported consolidated revenues of around Euro25 million in 2010.