Insulation industry news from Global Insulation

Germany: Armacell has recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first half of 2019 of Euro63.4m, up by 29.2% year-on-year from Euro50.6m in the six months to 30 June 2018.

Armacell recorded half-year sales of Euro322m, up by 6.3% from Euro303m. CEO Patrick Mathieu notied the strong performance of both advanced insulation and engineered foams. The first half of 2019 was notable for an increase in Armacell’s Chinese polyethylene terephthalate (PET) production capacity and a commercial cooperation agreement in April with Thermaflex in Russia.

US: Armacell has acquired the insulation business of Nomaco, a manufacturer of extruded polyethylene (PE) insulation foam products. The acquisition of the Yukon, Oklahoma-based manufacturing facility will strengthen Armacell’s domestic production capacity and regional distribution network. No purchase price has been disclosed.

“The expansion of our manufacturing footprint into Oklahoma increases our distribution power and service levels in the Midwest and the West. Our customers will benefit both from a broader product portfolio as well as from stronger technical support,” said Patrick Mathieu, president and chief executive officer of Armacell International.

South Korea: Armacell and JIOS Aerogel (JIOS) have formed a joint venture called Armacell Jios Aerogels (AJA) to develop and manufacture silica aerogel blankets. The new company will be based in Hong Kong and South Korea, operating from Armacell’s existing manufacturing facility in Cheonan, close to Seoul.

JIOS is contributing its process technology and proprietary manufacturing know-how as well as the intellectual property. Armacell will invest an undisclosed amount into aerogel blanket production equipment, accelerate the industrialisation and certification process and provide its world-wide distribution network to market the new technology. AJA will focus on delivering solutions based on aerogel blankets to the oil and gas, marine and general industrial sectors and in particular for high temperature and cryogenic applications.

“The joint venture with JIOS provides us with access to the next generation of aerogel technology and enables us to deliver a complete portfolio of thermal and acoustic insulation solutions to the oil & gas industry,” said Patrick Mathieu, chief executive officer and president of Armacell International.

Brazil: Armacell has purchased PoliPex, a Brazilian manufacturer of extruded polyethylene insulation foams, in a share deal for an undisclosed amount. The acquisition will strengthen Armacell´s product portfolio in Latin America and increases the domestic customer service levels, as well as, the support for regional original equipment manufacturers.

“PoliPex has decades of technology know-how in extruded polyurethane production as well as a strong domestic team. We are looking forward to serving our clients across Latin America with a broader product portfolio and extended customer service levels,” said Patrick Mathieu, President and CEO of Armacell International.

PoliPex produces extruded polyurethane insulation foams in Brazil and has approximately 80 employees. The company was founded by John Johannes van Mullem in 1991 and maintains its headquarters in Santa Catarina in the South of Brazil, as well as distribution centres in the South and the Northeast of the country. In the calendar year 2015 PoliPex generated revenues of approximately US$13m.

US: Having outgrown its offices in Mebane, North Carolina, insulation manufacturer Armacell is relocating its American headquarters to Chapel Hill, North Carolina.

Armacell's Americas headquarters has been located in Mebane for the past 15 years. The company produces insulation materials used in fire protection, product padding and noise control products. Its parent company, Armacell International Holding GmbH, is based in Germany.

Jodi Cheek, General Manager of Human Resources for Armacell's Americas region, said that the move would free up space in the Mebane facility for its customer service, research and development and technical support staff. Armacell's Mebane facility encompasses more than 444,000ft² of building space, including a manufacturing facility, warehouse, research and development space and offices.

Singapore: Insulation foams producer Armacell has been recognised for its pioneering initiative on environmental certification in the Asia Pacific (APAC) region. The recognition came from UL Environment, which presented Armacell with an Environmental Product Declaration (EPD) Certification during a workshop on Indoor Air Quality and Environmental Product Declarations.

Lisa Meier, UL Environment vice president and global general manager, acknowledged Armacell as the first company to receive EPDs from UL Environment in the Association of Southeast Asian Nations (ASEAN) region. Stephen Hodson, general manager of marketing APAC, said that, "The EPDs are highly important for providing product information to designers of green buildings in Asia."

Armacell's latest EPDs cover seven premium products that are sold across the Asia Pacific region. The initiative, said Armacell's technical manager for APAC Peter Cheng, makes Armacell the first insulation company to receive EPDs from UL Environment in APAC.

Demand for EPDs is growing in response to a change in green building guidelines and design practices. The US Green Building Council's LEED green building programme is now placing emphasis on life cycle assessment (LCA) based environmental reporting and transparency, rewarding points for the use of products with EPDs and LCAs as part of the Material and Resources (MR) Credits. Outside of the US, four of the top ten countries for LEED-certified buildings are in the APAC region: India, China, Korea and Taiwan.

Luxembourg: Armacell is now the first manufacturer of flexible technical insulation materials to present environmental product declarations (EPDs), which are based on an independent life cycle assessment (LCA).

EPDs are becoming more important in the construction industry as they provide a transparent, independent and reproducible analysis of the environmental impacts of construction products and give detailed information with sound data and figures. As a 'sustainability passport,' EPDs form the basis for designing green buildings in accordance with certification schemes such as LEED, BREEAM or DGNB.

Comparing the primary energy input identified in the Armacell LCA with the energy saving achieved shows that using Armaflex insulation materials saves 140 times more energy than is needed for their manufacturing, transport and disposal. The energy input needed to manufacture Armaflex is paid off after just 50 days.

"With the EPDs we create a unique degree of transparency for our Armaflex products. We provide architects, specifiers and those inviting tenders with reliable information for designing sustainable building projects. At the same time we commit ourselves to continuing to improve the environmental friendliness of our products and thus sharpening our competitive edge," said Patrick Mathieu, CEO of the Armacell Group.

Luxembourg: Armacell, which produces flexible insulation foams and engineered foams for the equipment insulation market, has successfully continued its international growth strategy in 2014.

Armacell increased its net sales by 8.8% year-on-year to Euro452m in its 2014 financial year. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 9.6% year-on-year to Euro71.2m in 2014. Adjusted earnings before interest, taxes and amortisation (EBITA) improved by 8.7% to Euro56.1m. Due to continued efforts to improve cost performance, Armacell maintained an EBITA ratio relative to net sales of 12.4%.

Important drivers of Armacell's positive development were the ongoing growth in the construction/HVAC (heating, ventilation and air conditioning) business as well as the growing demand for the substitution of existing insulation with high-performance materials. A number of other growth drivers, such as continuing urbanisation, greater energy-efficiency and a renewed focus on noise protection, are also driving demand for the company's technical solutions and products.

"2014 was a successful year for Armacell. Our profitable growth in both our business segments and across all of our regions underlines the significance of our consistent international growth strategy," said Patrick Mathieu, CEO of Armacell International SA.

In 2014, Armacell recorded net sales growth in both of its business segments and across all three regions. In the Advanced Insulation business, net sales were up by 8.9% to Euro356m. This division accounted for 79% of net sales in 2014. Advanced Insulation encompasses all company activities relating to the development of flexible insulation foam products for the insulation of equipment. These include markets in which energy distribution is required, such as in commercial and residential construction, industrial applications, or the oil and gas industry.

In the Engineered Foams business segment, net sales increased by 8.9% to Euro94.6m, accounting for 21% of net sales in 2014. In this division, Armacell develops light foams for use in a wide range of end markets in which both product weight and robustness are essential, such as the automotive and wind energy industry.

A core component of Armacell's international growth strategy is its presence in emerging markets, which Armacell was able to further reinforce in 2014. In June 2014, it purchased the remaining shares in Armacell Zamil Middle East Company (AZMEC) in Saudi Arabia, from its previous joint venture partner Zamil Industrial Investment Co. Armacell also purchased Armatech Co Ltd in Korea, a long-time distribution partner and leading provider of engineered foams for the heating, sanitation and air conditioning industry.

Armacell consistently pursued its international growth strategy in the first quarter of 2015. It acquired Turkish insulation materials manufacturer Das Yalitim Sanayi ve Ticaret Anonim Sirketi (OneFlex). Armacell also acquired Industrial Thermo Polymers Limited (ITP) in Canada.

In 2015, Armacell will continue to focus on expanding its strong market position, globally marketing its technologies and delivering on its international growth strategy.

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.