Insulation industry news from Global Insulation

UK: SIG’s revenue grew by 8.1% to Euro1.6bn in the first half of 2017 due to favourable currency exchange rates and sales in Mainland Europe. Sales in Mainland Europe rose by 42% in the period boosted by recovery in the construction markets particularly in France.

France: Saint-Gobain has reported sales growth in all main territories in the first quarter of 2017, led by Asia and its emerging markets. Net sales for its Interior Solutions division rose by 6.2% year-on-year to Euro1.71bn in the first quarter of 2017 from Euro1.61bn in the same period of 2016. This was supported by rising prices in a ‘strong cost inflation environment.’ Overall the group’s net sales rose by 7.6% to Euro9.14bn. Notable geographical trends included a recovery in France and a continued poor market in Brazil.

“The first quarter saw robust trading. The good momentum in sales volumes observed in 2016 continued at the start of the year in all business sectors and regions. France benefited from the recovery in new-build activity, while other Western European countries delivered further growth. North America and emerging markets had a good start to the year. The group continued to pursue its priorities, focusing particularly on sales prices amid a more inflationary backdrop,” said Pierre-André de Chalendar, chairman and chief executive officer of Saint-Gobain.

France: Actis plans to invest Euro3m towards building a second production line of ‘alveolar’ insulation products at its plant in Limoux. The second line is scheduled to start production in 2018, according to La Tribune newspaper. The new production capacity is planned to allow expansion in Europe. The producer is also considering building an insulation plant in the UK. Actis’ alveolar products include Hybris, a hybrid product that uses a honeycomb structure polyethylene foams plies on metallised films.

France: Cement sector multinational LafargeHolcim has launched Airium, a mineral insulation foam. The product was developed at the group’s research and development centre near Lyon. Airium will target thermal insulation markets in Austria, France and Morocco. Later it will focus on North America and other European and North African countries.

Airium is being launched for the filling of concrete blocks in France and Austria and for roof terraces in Morocco. LafargeHolcim say that the insulation of concrete blocks with Airium makes it possible to build and insulate at the same time, saving construction time and space.

“With the launch of Airium, LafargeHolcim demonstrates once again its ability to rethink construction practices in order to continue delivering innovation,” said Gérard Kuperfarb, Group Head of Growth & Innovation at LafargeHolcim. The development of Airium is in line with the commitments of LafargeHolcim’s 2030 Plan to generate one third of its revenue from a portfolio of products and services with enhanced sustainability performance.

France: Sales from Arkema’s high performance materials division, which includes insulation products, have risen by 2.8% year-on-year to Euro2.6bn in the first nine months of 2016 from Euro2.53bn. Overall, the company’s sales fell by 4% to Euro5.68bn from Euro5.92bn, although its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 12% to Euro946m from Euro843m. It blamed the drop in sales on the impact on sales prices of raw material variations.

France: Saint-Gobain’s sales revenue has fallen by 1.6% year-on-year to Euro19.6bn in the first half of 2016 from Euro19.9bn in the same period of 2015. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 3.8% to Euro1.89bn from Euro1.96bn. The group blamed the loss in sales revenue on negative currency changes, especially in Latin American, and to a lesser extent, in the UK following its decision to leave the European Union. Saint-Gobain’s Interior Solutions division, which includes gypsum wallboard and insulation production, reported a 3.1% rise in sales revenue to Euro3.3bn from Euro3.2bn.

“Saint-Gobain’s sales for first-half 2016 confirm our February forecasts, with France stabilising and all regions making strong contribution to growth. Our strategy of investing in emerging markets provides us with a diversified platform for profitable growth. Our first-half results also benefited from efforts to optimise our operations, particularly in Western Europe, and from upbeat trading in the US. The results are in line with our objectives and we expect alike-for-like improvement in operating income for second-half 2016 versus second-half 2015. While the 23 June 2016 Brexit vote in the UK has created a climate of uncertainty, it does not affect our objectives,” said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.

France: Saint-Gobain’s net income has risen by 36% year-on-year to Euro1.3bn in 2015 from Euro953m in 2014. Its sales revenue rose by 3.3% to 39.6bn from 3.4bn. However, its overall sales volumes remained static with only 0.1% growth. Growth in the company’s Flat Glass and Interior Solutions divisions, including wallboard and insulation, held up sales despite sharp declines in sales in France.

“Saint-Gobain delivered improved earnings in 2015 in a sharply contrasted economic climate. The improvement was dampened by continued weak trading in France, hurt in particular by the sharp contraction in our Pipe division in the second half of the year, despite the first signs of an upturn in construction indicators. The group completed a key stage in the reorganisation of its business portfolio, with the sale of Verallia on very favourable terms, and continues to pursue its plan to acquire a controlling interest in Sika after obtaining all antitrust approvals prior to closing the deal,” said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.

The group’s Interior Solutions division reported a 7.1% rise in sales revenue to Euro6.49bn from Euro6.06bn. Reduced volumes and prices in the French market slowed growth in Western Europe, although this impact eased in the fourth quarter of 2015. Trading in North America was dented by a slight dip in prices in the second half and by the decline in the Canadian market. Asia and emerging countries continued to deliver growth.

France: Saint-Gobain has named Dirk de Meulder as director of Isover in France and CEO of Eurocoustic France. Dirk de Meulder, aged 54, started his career at the glass materials business of Saint-Gobain in Belgium. In 2009, he joined Isover as director general in Sweden and Denmark.

France: Saint-Gobain and EBRD (European Bank for Reconstruction and Development) have signed an agreement whereby EBRD will increase its participation in Saint-Gobain Construction Products Rus LLC from its current stake of 11% to 33%.

The EBRD equity injection will contribute to financing Saint-Gobain Construction Products' planned investments in Russia for the next three years, including projects in the gypsum, industrial mortars and insulation activities in several regions.

The investments will reflect the Environmental and Social Action Plan that was agreed with EBRD, thereby reaffirming the commitment of Saint-Gobain Group to the highest standards in environmental performance, corporate governance and business conduct.

This operation will contribute to the acceleration of Saint-Gobain's development in Russia, in alignment with the Group's strategy of strengthening its position in fast growing markets.

France: Multinational chemical producer Arkema has patented the use of Forane(R) 1233zd as a blowing agent in the manufacture of polyurethane foams. The new molecule, known in its development phase as AFA-L1, is high purity trans-1-chloro-3,3,3-trifluoropropene, a liquid halogenated olefin. It offers improvements in energy performance and environmental benefits over existing blowing agents.

"In all of these evaluations, in several different polyurethane foam applications, Forane(R) 1233zd blowing agent has consistently demonstrated outstanding ease of use," noted Nancy Storoz, Global Business Manager for Arkema fluorochemicals foams and 134a refrigerants, "It requires minimal equipment modifications and formulation changes, while outperforming HCFCs, HFCs and hydrocarbons in terms of energy efficiency, R value, and vapor pressure."

In trials at a manufacturer of household refrigerators and freezers, an unoptimised system based on Forane(R) 1233zd blowing agent delivered a 3% improvement in energy efficiency versus HFC 245fa and surpassed 2014 DOE energy standards. In other evaluations conducted by Arkema, Forane(R) 1233zd blowing agent provided a 6% improvement in insulation value versus HFC 245fa, a 7% improvement versus HCFC 141b, and a 16% improvement versus hydrocarbons.

Target markets for Forane(R) 1233zd blowing agent include polyurethane foams used in the manufacture of household refrigerators and freezers, commercial refrigeration, spray foam, and polyurethane panels for commercial and residential building and construction applications.