Insulation industry news from Global Insulation

Ukraine: The Interagency Commission on Foreign Trade will introduce tariffs to all imports of flexible porous polyurethane foam. The duty on these goods will be 11.22% when the decision takes force, 10.66% after 12 months, and 10.13% after 24 months, according to Interfax. The latest tariffs follow imports on other building materials that are mainly targeted at Russia.

Germany: Covestro has signed an agreement with HIG Capital, a private equity company, for the sale of its European Systems Houses business. HIG Capital aims to position the business towards mid-sized customers. Covestro will retain its polyurethane markets in Asia where it will continue to serve its customers. The sale is part of Covestro’s ongoing portfolio optimization process that includes the sale of Covestro’s North American spray polyurethane foam systems home business in 2017.

The systems houses businesses are part of the Covestro’s Polyurethanes segment and sell tailor-made polyurethanes systems. The European Systems Houses business comprises facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy. Operations will continue at the current facilities while Covestro will continue to have strong ties with the systems houses business as a key polyurethanes supplier.

The closing of the transaction is expected for the second half of 2019 after the required antitrust clearance. No value for the sale has been disclosed.

China: A study by researchers from Australia's Commonwealth Scientific and Industrial Research Organisation and Britain's University of Bristol says that the provinces of Shandong and Hebei are the source of a rise in trichlorofluoromethane (CFC-11) emissions. It attributed about 40% to 60%of in the rise in CFC-11 since 2013 to this region, according to Reuters. After studying atmospheric data from South Korea and Japan they estimated that CFC-11 emissions from eastern China during the 2014 - 2017 period were around 7000t/hr higher than 2008 - 2012.

Previously in mid-2018 an investigation by the Environmental Investigation Agency (EIA) speculated that the widespread use of CFC-11 by Chinese rigid polyurethane (PU) foam producers might be the source of the reported rise of emissions.

China launched an inspection campaign into 3000 foam manufacturers in 2018 and promised to punish any violations of the Montreal Protocol treaty. The Ministry of Ecology and Environment said in March 2019 that it had shut down two manufacturing areas that produced CFC-11. It added that its investigation into PU foam makers had not found any large-scale usage so far but that producers may be getting better at hiding their operations. It also noted that there was ‘uncertainty’ in published research and called for better detection mechanisms.

Belgium: Recticel’s insulation division’s sales rose by 4% year-on-year to Euro62.5m in the first quarter of 2019 from Euro60.1m in the same period in 2018. It said that volume growth had overcome falling sales prices due to falling methylene diphenyl diisocyanate (MDI) costs. Polyurethane (PUR) and polyisocyanurate (PIR) have continued to gain market share following MDI shortages in mid-2017.

US: Huntsman’s polyurethane revenue rose by 16% year-on-year to US$5.09bn in 2018 from US$4.40bn in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 11% to US$946m from US$850m. Overall, across all business segments, the company’s sales and earnings rose.

The chemicals producer said that its polyurethane segment had lost revenue in the last quarter of 2018 due to lower methylene diphenyl diisocyanate (MDI) prices. MDI sales volumes increased due to the start-up of a new Chinese MDI unit in 2018 and the acquisition of Demilec, a North American polyurethane spray foam company, in April 2018.

“2018 was another successful year for Huntsman as we reported record earnings and consistent robust free cash flow. We continued to expand in our downstream and differentiated businesses both through internal investments and bolt-on acquisitions,” said Peter R Huntsman, chairman, present and chief executive officer (CEO).

Belgium: Recticel is coordinating the four-year PUReSmart project that was launched on 1 January 2019. The project will look at ways of recycling polyurethane (PU) and turning it into a circular material. It is supported by Euro6m in funding from the European Union Horizon 2020 Research and Innovation Programme.

PUReSmart plans to recover over 90% of end-of-life PU with the goal of converting it into inputs for new and known products. The project consortium will develop sorting technologies to separate a diverse range of PU materials into dedicated feedstocks. These feedstocks will be broken down into their basic components as inputs for existing PU products, and as raw materials for a newly designed polymer that merges the durability of thermosets with the circularity of thermoplastics.

The PUReSmart consortium is an end-to-end collaboration spanning the entire polyurethane reprocessing value chain, and comprises both industrial players and dedicated research partners. As well as Recticel the other partners on the project include Covestro Deutschland, BT-Wolfgang Binder, WeylChem InnoTec, Ecoinnovazione, Ghent University, KU Leuven, Universidad De Castilla – La Mancha and Ayming.

Belgium: Recticel is promoting its Du.Panel X polyurethane panel product for the agricultural sector. It offers a lambda value of 0.020W/mK for panel thicknesses of 40 – 120mm and fire resistance with Euroclass B-s2,d0. The product is intended for using in livestock buildings and stables. It joins other agricultural products including Powerline, Cronus and Eurothane.

US: Demilec has been awarded the 2018 Polyurethane Innovation Award at Polyurethanes Technical Conference in Atlanta by the Center for the Polyurethanes Industry (CPI) of the American Chemistry Council (ACC). It won for its Heatlok HFO product, a two component, closed cell, spray applied, rigid polyurethane foam system. Other finalists included ICL-IP America, for its VeriQuelR100 phosphorus-based, reactive flame retardant product, and SWD Urethane, for its Quik-Shield 108YM open-cell spray polyurethane foam (SPF) insulation product.

US: Huntsman’s polyurethane business has contributed to its growing revenue and earnings so far in 2018. Its revenue grew by 18% year-on-year to US$4.7bn in the first half of 2018 from US$3.99bn in the same period in 2017. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 47% to US$820m from US$559m.

“Our polyurethanes business continues its growth in variants and systems and enjoys the back drop of good supply and demand fundamentals, foreseeable for the long term,” said Peter R Huntsman, chairman, president and chief executive officer (CEO). Prices and sales volumes rose year-on-year in the second quarter of 2018.

In late July 2018 the chemicals producer announced that its Polyurethane division was setting up a new subsidiary in Chile based in Santiago. The new company, Huntsman (Chile), will operate from a local warehouse and a customer service centre. It joins existing operations in Cartagena and Bogotá in Colombia, São Paulo and Taboão da Serra in Brazil and Buenos Aires in Argentina.

China: An investigation by non-government agency the Environmental Investigation Agency (EIA) has found that trichlorofluoromethane (CFC-11) is being widely used as a blowing agent in the rigid polyurethane (PU) foam insulation sector. The EIA contacted 25 precursor or foam producers and found that 18 of these plants were using CFC-11 in 10 different provinces.

In May 2018 the journal Nature revealed that CFC-11 emissions had increased by around 25% since 2012 despite reported production being close to zero in 2006. CFC-11, other chlorofluorocarbons (CFCs) and substances that damage the Ozone Layer were banned under the Montreal Protocol from 2010.

The EIA speculates that widespread use of CFC-11 by Chinese PU foam producers may be the source of the reported rise of emissions. It estimates that up to 3500 small and medium sized companies could have switched to using CFC-11 following a reduction in the supply of HCFC-141b, an alternative blowing agent, and lax enforcement of the ban on CFC-11. One company representative the EIA spoke to said that HCFC-141b was US$150/t more expensive than CFC-11.

“This is an environmental crime on a massive scale. How the Montreal Protocol addresses this issue will determine whether it continues to merit its reputation as the world’s most effective environmental treaty,” said Climate Campaign Leader Clare Perry.

The EIA has released its report ahead of the Open-Ended Working Group of the Montreal Protocol meeting in Vienna in mid July 2018.