Insulation industry news from Global Insulation

Ireland: Kingspan has reported that its group sales rose by 25% year-on-year to Euro903m for the first four months of 2016. It also noted in an interim management statement that order placement in the non-residential segments in the UK had eased ahead of the referendum on European Union (EU) membership scheduled for late June 2016. Insulated panel sales rose by 37% in the period. Insulated board sales rose by 11% driven by strong UK sales and supported by Europe and the US.

Chief executive Gene Murtagh also said at the company’s annual general meeting on 5 May 2016 that the insulation producer had made an investment in a facility selling duct insulation in Iran. The unit is expected to be in production later in 2016 supported by the company‘s UAE business, according to the Irish Independent.

Ireland: Belgian laminate floors producer Unilin has announced the acquisition of Irish insulation boards manufacturer Xtratherm. The acquisition will make Unilin an important player in the growing market of insulation materials. Xtratherm is also active in Belgium. The company inaugurated a new plant in the summer of 2015 for insulation boards in Feluy, specifically for the European continent.

Ireland: Kingspan has delivered a significantly better-than-expected full-year forecast, suggesting that its 2015 profits could increase by 68% to Euro250m, despite global economic confidence wavering. Insulated panels should show 53% revenue growth to Euro1.7bn in 2015.

Kingspan has reported a 44% year-on-year rise to Euro2bn in sales for the first nine months of 2015. The third quarter was particularly strong, with a 54% sales rise noted, which was boosted by the contribution of recent acquisitions. Sales in the UK, mainland Europe and the Americas, Kingspan's three main regional markets, soared by 54% in the first nine months of 2015. This performance was boosted by a 'solid' showing in the UK, 'steady' sales in Europe and strong growth in North America, particularly in the US.

Ireland: Kingspan has earmarked Euro20m for its initial expansion into Mexico, which it expects to enter in 2016 or 2017, according to chief executive Gene Murtagh. The greenfield expansion was confirmed by the group as it posted record first-half results, boosted by acquisitions and favourable foreign exchange movements.

Revenue rose by 39% to Euro1.24bn, while its trading profits jumped by 61% to Euro112m. Excluding currency benefits, revenue was 29% higher, while trading profits were up by 44% on the same basis. Kingspan reported that its overall performance was underpinned by strengthening UK and US markets, while there has also been recovery in other important markets for the group, such as the Netherlands.

Kingspan completed two significant acquisitions so far in 2015: the Euro320m purchase of Belgian group Joris Ide and the Euro139m purchase of Canada's Vicwest. The company also plans to install new insulated panel manufacturing capacity at plants in Belgium, France and Russia over the next two years.

Murtagh said that Kingspan has allocated Euro75 - 80m/yr for capital spending over the next four to five years, which includes the start-up costs for its entry to Mexico. "There were some bolt-on opportunities in Mexico but we haven't managed to unlock any of those, said Murtagh. "The investment at the start will be in the order of Euro20m. Naturally, over time that becomes larger as we expand the business."

Kingspan has also continued to eye opportunities in Brazil. "We haven't made any significant headway, but it's still very much in our thinking," added Murtagh. "Our ambition in Brazil would be to do it through an existing player and that just takes a bit of patience."

Ireland: Kingspan Insulated Panels has launched IPN-QuadCore, a new insulated panel core offering strong thermal, fire and environmental performance for a closed-cell material, according to its press release. IPN-QuadCore improves building performance by lowering lifetime costs and enhancing environmental credentials by using a unique microcell structure.

"This is our most significant insulated panel technology breakthrough in a decade," said Gilbert McCarthy, managing director of Kingspan Insulated Panels. "The property market demands high performance, energy-efficient buildings that deliver low risk, high net yield and reduced environmental impact. The unprecedented performance of IPN-QuadCore helps to deliver these superior buildings, making the strongest business case yet for sustainability."

IPN-QuadCore delivers a 20% thermal improvement over standard polyurethane insulated panel core insulation. It has a lambda value of 0.018w/mK and achieves U-values as low as 0.08w/m2K. A study by energy consultants AECOM found that, when used in a standard 5000m2 distribution warehouse in the UK, a Kingspan IPN-QuadCore building envelope reduced energy demand by almost 14%/yr compared with the notional Part L2A 2013 specification. The same study found that a Kingspan IPN-QuadCore building envelope solution could even reduce the initial capital cost of constructing the warehouse because it reduced the required heating, ventilation and air conditioning (HVAC) system size.

IPN-QuadCore is the first closed cell insulated panel core to be certified to FM 4882 for use in smoke sensitive occupancies. It achieves a reaction to fire of B-s1,d0 to EN 13501-1 and offers fire resistance of up to one hour insulation and three hours integrity to EN 13501-2. The insulation core is also currently undergoing testing to be certified to LPS 1181 Part 2 for internal applications. This improved performance means that IPN-QuadCore products can be offered in a wider range of panel widths, up to 7m in some LPS 1208 specifications and up to 12m in certain specifications according to EN 13501-2. In the AECOM study, an IPN-QuadCore building achieved six more BREEAM Ene01 credits than a typical retail or distribution warehouse. Furthermore, the new technology behind the microcell structure creates a more resource-efficient material, improving the environmental impact of its production. King span said that it will provide each IPN-QuadCore panel a 40-year guarantee, which covers both structural and thermal performance. This promises that a building will perform 'as-built' over the life of the property, reducing envelope maintenance and subsequent repair costs. The guarantee is being offered because IPN-QuadCore's closed-cell structure resists moisture ingress, which maintains the structural integrity of the core and cuts the risk of additional moisture weight, a leading cause of structural failure in similarproducts.

IPN-QuadCore is currently being introduced to cold-store insulated panels, with a wider rollout commencing later in 2015.

Ireland/Canada: Kingspan has obtained approval for the acquisition of Vicwest Building Products. The Irish insulation, building fabric and solar-integrated building envelopes company said that it has reached a consent agreement with the Canadian Competition Bureau, which requires the disposal of Kingspan's insulated metal panel facility at Hamilton, Ontario following the completion of the transaction.

In November 2014 Kingspan announced that it was buying the building products division of Vicwest Inc for US$136m in cash, inclusive of debt and reorganisation costs. The total estimated consideration payable is US$307m, of which Kingspan will fund US$126m and AGI will fund US$181m. The transaction is expected to complete imminently.

Ireland: Kingspan has reported a near 30% increase in group sales for the first four months of 2015, driven by favourable currency movements and strong performances in its core markets of the UK and North America. The building materials and insulation products provider said that sales in the first four months reached Euro719m, 28% ahead of the same period of 2014.

Kingspan said that underlying profitability has been strong, "Complemented further by favourable translation, reflecting Euro/Sterling and Euro/Dollar exchange rates, which are significantly better than the average rates of the last 10 years." Management said that current trading patterns coupled with a strong order backlog point to a strong first half for the group, despite flat conditions in mainland Europe and 'impending weakness' in both Canada and Australia.

"The combination of recent development activity, growing conversion, a strong innovation pipeline and the increasing emphasis worldwide on energy-efficiency leave us confident about Kingspan's longer term future," said management.

Earlier in 2015, Kingspan closed its Euro315m takeover of Belgian Joris Ide. While the deal helped push the group's net debt levels up by Euro273m to almost Euro400m, Kingspan still has a 'robust' funding position, with Euro425m of lending facilities still undrawn.

Sales in Kingspan's core insulated panels division increased by 28% year-on-year in the first four months of 2015, aided by a 3% boost from acquisitions. Insulation board sales revenues were up by 40% and access floors saw a 19% revenue rise. The environmental division saw a 9% sales rise.

The group said recently that it was eyeing up Latin America as a likely next step in its ongoing geographical expansion, with some kind of presence likely to be taken in Brazil and Mexico in the next few years.

Ireland: Kingspan has reported a rise in its full year pre-tax profit as strength in the UK and North America lifted its revenue. The pre-tax profit in 2014 rose to Euro128m from Euro102m in 2013. Its 2014 revenue rose to Euro1.9bn, up from Euro1.8bn in 2013.

Ireland/US: Irish insulation and building materials manufacturer Kingspan has completed the acquisition of US firm Pactiv. The US$82m deal has been funded from Kingspan's existing cash resources.

Pactiv produces a range of extruded polystyrene (XPS) insulation products under the GreenGuard brand, which it supplies throughout the US from its manufacturing base in Virginia. Pactiv had sales of US$84m in the year to June 2014 and recorded an operating profit of US$10m in the period. The enterprise value is US$82m, of which US$72m is payable in cash on completion plus US$10m of working capital. Gross assets being acquired are US$30m.

Ireland: Kingspan has announced that its profit rose by 24% year-on-year to Euro69m in the first half of 2014 as revenues rose by 4% to Euro890m. The company said that the improvement came due to rising sales of its key products, despite conditions remaining tough in the European construction sector.

"Kingspan has delivered strong growth in profitability, notwithstanding a tougher EU construction sector in the second quarter and a global economic recovery that remains weak. Our order book carried good momentum into the second half of the year, driven by continued growth in the demand for low energy buildings," said Gene Murtagh, Chief Executive of Kingspan.

Insulated panel sales were up by 9% and trading profit was up by 30%, reflecting what the company called 'continuing penetration gains, a positive business mix and some improvement in end markets in certain regions". Insulation board sales were up 1% and trading profit was up by 32%, with a good performance in the UK in particular.