Insulation industry news from Global Insulation
Bayer MaterialScience increases MDI production in China
26 September 2013China: Bayer MaterialScience intends to increase MDI production from 0.35Mt/yr to 0.50Mt/yr by the middle of 2014, according to polymer news website Gupta Verlag. De-bottlenecking will take place at the polymer manufacturer's MDI production facility at the Bayer Integrated Site Shanghai in Caojing, Shanghai.
"MDI is an important raw material for the production of polyurethane rigid foam, which is an effective insulation material for buildings and refrigerators. The de-bottlenecking will allow the company to further expand its business in China, which is one of the largest markets in the world for Bayer MaterialScience," said Wolfgang Miebach, President of Bayer MaterialScience China.
Arkema announces new blowing agent for polyurethane foams
20 September 2013France: 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.
Huntsman acquires Oxid for up to US$75m
15 September 2013US: Huntsman Corporation has announced that it has completed the acquisition of Oxid, a manufacturer and marketer of specialty urethane polyols in Houston, Texas, for an amount of up to US$75m. According to a press release, Oxid generated revenues of US$86m in 2012.
Oxid's polyols are a key component in the production of polyurethane-based insulation products. The polyols are combined with methylene diphenyl diisocyanate (MDI) in which Huntsman's Polyurethanes division is a producer to create polyurethane foam insulation. Oxid markets its product line of specialty polyols under the trademark Terol and distributes products worldwide from its manufacturing facility in Houston.
Commenting on the sale, Anthony P Hankins, President of Huntsman's Polyurethanes division, said, "We are very pleased with the acquisition of Oxid. In the past 18 months we have strengthened our downstream capabilities with the acquisition and establishment of new systems houses in Turkey, Russia and Indonesia; acquired a 20% stake in Nippon Aqua, a Japanese spray polyurethane foam insulation company; we've commissioned a new, state-of-the-art MDI splitter and downstream manufacturing unit in Rotterdam, the Netherlands; and we've invested in the expansion of our world-scale MDI manufacturing facility in Geismar, Louisiana, USA." He added that the acquisition would strengthen Huntsman's presence in insulation markets in North America and globally.
US/Japan: Huntsman Corporation has announced that it has acquired a 20% stake in Nippon Aqua, a spray polyurethane foam (SPF) insulation company based in Yokohama, Japan. The chemical manufacturer has entered into a ten-year supply agreement with the company. The financial terms of the deal were not disclosed.
Nippon Aqua is the SPF market leader in Japan, with business operations in over 30 locations across the country, and is a subsidiary of leading residential home builder Hinokiya Holdings. Huntsman supplies various advanced MDI-based polyurethanes systems to Nippon Aqua.
"Following the regrettable accident at the Fukushima Daiichi nuclear plant in 2011, there's a great focus on how the country will source its energy needs and a growing demand amongst consumers for more effective insulation. Nippon Aqua is well-positioned to satisfy this demand," said Huntsman's president of its polyurethanes division, Anthony P Hankins.
Huntsman grows polyurethane revenue by 10% in 2012
13 February 2013US: Chemical maker Huntsman Corp has seen revenue from its polyurethane division rise by 10% to US$4.89bn in 2012 from US$4.43bn in 2011. The company attributed this to higher sales of the foam insulation constituent. The polyurethane division also benefitted from increased prices, although this was partly offset by the strength of the US Dollar against the Euro.
Overall revenue stayed stable at US$11.2bn in 2012 compared to US$11.2bn in 2011. Gross profit rose by 11% to US$2.03bn from US$1.84bn. Adjusted earnings before non-recurring items, depreciation and amortisation (EBITDA) rose by 15% to US$1.40bn from US$1.21bn.
"Our 2012 adjusted EBITDA of US$1.40bn represents record earnings for our current configuration of businesses. I am very enthusiastic about the direction in which the company is headed. Within our largest division, Polyurethanes, our MDI business is growing at attractive rates and future prospects are pointing towards tighter market conditions," commented president and CEO Peter R Huntsman.
China relaxes restrictions on use of building insulation materials
17 December 2012China: China's Ministry of Public Security has announced that it will cease restrictions on certain insulation materials that were previously recognised as flammable materials, according to the website of the ministry's Fire Department. Polyurethane will become the biggest beneficiary of the relaxation to the existing rules. According to analysts, China's annual building insulation materials market capacity may reach US$16bn by the end of 2015.
Insulation to boost flame-retardant sales
04 October 2012US: With the housing market bottoming out and showing signs of recovery, demand for flame retardants will also begin to improve, according to a report from Global Information Inc.
It says that demand for flame retardants in the US is expected to grow by 4.6%/yr year to reach around US$1.5bn in 2016, a significant rebound as the industry benefits from an improving economy and a turnaround in key markets.
Global Information says that construction-related applications of flame-retardants will provide the biggest impetus to growth and continue to account for the greatest share of sales in the market for flame retardants. Boron and phosphorus-based flame retardants will expand at the fastest rates. Brominated compounds will benefit from use in polystyrene and polyurethane insulation.