Insulation industry news from Global Insulation

South Korea: KCC has signed a memorandum of understanding with the local government in Gimcheon concerning an upgrade to its glass wool plant. The company plans to invest around US$75m on building a second production line at the unit by the end of 2023. The project follows a similar upgrade at the Munmak glass wool plant in 2022.

Serbia: Knauf Insulation Serbia has completed a Euro20m upgrade to its Surdulica stone wool plant. Production has restarted at the unit, according to SeeNews. The company has replaced equipment on the production line and chimney, and installed a new palletisation machine and a desulfurisation system, thereby increasing the recycling capacity of the factory. The investment also includes a new logistics building and a truck parking area. The company plans to hire 15 new employees from May 2023 to support the changes.

Malaysia: Knauf Insulation APAC’s Johor Bahru mineral wool plant has made its first export of unfaced glass wool to Japan. The company said that it has obtained Certification for Japanese Industrial Standards and is now able to begin supplying customers in that market. The 75,000t/yr Johor Bahru plant officially opened in mid-2022. However, the unit reportedly started export glass wool products to Australia in 2021.

Kazakhstan/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.

Romania: Knauf Insulation has broken ground on the construction of a second insulation plant at the site of its existing Târnăveni mineral wool insulation plant. SeeNews has reported that, when commissioned in 2024, the new plant will have a production capacity of 100Mm²/yr of mineral wool insulation. It will also create 100 new jobs. Knauf Insulation said that the project will bring its total investments in the Târnăveni site to Euro135m.

Serbia: Masterplast has concluded a deal to acquire the outstanding 49% stake in mineral wool insulation producer Masterwool MW-1. Masterwool MW-1 is currently building a new Euro20m mineral wool insulation plant in Vojvodina. The project is supported by a grant from Hungarian state-owned Hungarian Export Promotion Agency (HEPA).

Masterplast plans to commence a Euro50m growth phase in the near-term future. It expects its sales to drop in the first half of 2023 due to negative trends in new home construction. However, it expects recent new expanded polystyrene (EPS) and extruded polystyrene (XPS) insulation capacity to partly offset this.

US: Owens Corning has published plans for a new extruded polystyrene (XPS) insulation plant in Russellville, Arkansas. The Courier newspaper has reported that the plant will produce the company's Foamular NGX brand insulation. It will employ an estimated 50 people.

Owens Corning previously invested US$24.5m in an expansion to its Fort Smith glass and mineral wool insulation plant in the state, also creating 50 new jobs.

Croatia: Knauf Insulation plans to invest Euro120m to build a second production line at its Novi Marof stone wool insulation plant. HINA News has reported that Knauf Insulation managing partner Alexander Knauf met government officials to discuss the company's plan. The producer says that the new line will create 70 direct jobs.

US: Hempitecture has inaugurated a hemp-based insulation plant in Jerome County, Idaho. The plant employs five people and produces insulation using hemp grown in Montana. The producer hopes to supply its flagship HempWool thermal insulation and other acoustic and continuous insulation products to major green building materials markets, including Denver, Los Angeles and San Francisco. It began developing hemp-based insulation in partnership with the University of Idaho with a US$207,000 grant from the Idaho state government in 2021.

Hempitecture CEO Mattie Mead said "We are ushering in the future of truly sustainable building materials."

Denmark: Rockwool’s net sales grew by 27% year-on-year to Euro3.91bn in 2022 from Euro3.09bn in 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 6% to Euro638m from Euro602m. The group reported a strong start to 2022 with high demand for its stone wool insulation products. In the second half of the year it noted a decline in construction activity in key markets. However, it increased its prices leading to increased sales. By region the group said that sales grew in Europe and Asian markets, were flat in the US and declined in China.

Chief executive officer Jens Birgersson said, “Looking forward, we expect construction activity to continue slowing down in the coming period. We anticipate the energy efficiency agenda in both Europe and North America will accelerate renovation rates in the mid-term and create higher demand for our circular and non-combustible stone wool. We will continue to invest in more capacity to support our long-term growth”.

Together with the group’s chair Thomas Kähler, he also defended the company’s decision to continue the ownership of a subsidiary in Russia. “If we were to depart Russia, our factories and the intellectual property rights to our unique technology would most likely be nationalised or otherwise transferred to local players. Since the factories operate independently of our head office, they would continue to operate - just under different ownership. It therefore remains our view that retaining the business in Russia is the least bad option available to us. And of course, we will continue to comply with all international sanctions.”

Rockwool said that it had added production capacity for its Grodan agricultural stone wool range at its plant in Toronto, Canada and capacity for its Rockfon stone wool ceiling panel range at its Cigacice plant in Poland. In China it had opened a new plant at Qinyuan in December 2022 to replace its mineral wool unit at Guangzhou, which closed in September 2022. It also reported that plans to build a new stone wool plant at Soissons in France had been delayed due to a local legal challenge. Notable upgrades in 2022 included the start of a conversion project to electric melting technology from fossil fuels at the Flumroc plant in Switzerland, with a commissioning date scheduled for 2024. This project follows a similar one at the Moss plant in Norway that was completed in 2020.