Insulation industry news from Global Insulation
The Rockwool Group expands in the US
13 June 2012US/Denmark: The board of directors at Denmark's Rockwool have approved a plan to establish the group's first production facility in the United States. The new plant will be constructed in Marshall County, Mississippi, approximately 50km from Memphis, Tennessee. Subject to the successful completion of due diligence in the coming months, the plant is expected to be ready in 2014 and will, when reaching full capacity, be able to deliver more than 100,000t/yr of stone wool insulation. The investment is expected to total around Euro125m.
Commenting on the expansion, Rockwool CEO Eelco van Heel said, "We have seen strong interest from big DIY chains to offer our products to their customers. The unique thermal, acoustic and fire safe qualities of our stone wool insulation are appreciated by their customers. With this new plant in the southern part of the US, we are happy to expand our geographical coverage to new regions of the continent where we are currently not present. The additional capacity will also support our strong growth in other key insulation markets such as commercial buildings, flat roofs and industrial applications".
Rockwool has seen good sales growth in North America in recent years despite the otherwise troubled US construction sector. To date the US market has been serviced from the group's two factories in Canada. In 2011 sales in North America accounted for 8% of total group sales. This share is expected to grow in the coming years.
Rockwool increases full-year profit forecast
29 May 2012Denmark: Rockwool has increased its 2012 net profit forecast to US$109-118m compared with its previous guidance of 'above US$100m.' The company reiterated its forecast of full-year sales growth of 5% in 2012 but warned that it expects continued tough conditions in the Eurozone.
The insulation giant said that it expects some recovery in its profit margins, helped by price increases and an anticipated easing in inflationary pressures.
In the first quarter of 2012, the company's net profit rose to US$17.4m from US$11.5m in the first quarter of 2011, while earnings before interest and taxes (EBIT) rose by 48% to US$26m. Rockwool's sales rose by 11% in the quarter to US$4.1bn, driven by increased demand in some of its key European markets.
Rockwool opens US$150m insulation plant in Tatarstan
05 April 2012Russia: Denmark's Rockwool has opened a US$150m plant producing insulating materials in the Alabuga Special Economic Zone in Tatarstan. A second production line may be added to double capacity. The economic zone now has six plants from a variety of companies.
Eelco van Heel, Rockwool president and CEO, said at the opening ceremony that this was the group's biggest plant in the world with a capacity of 110,000t/yr, and its biggest investment in a new plant. Its products will supply the Volga region, Urals, Siberia and Kazakhstan. Russian Economic Development Minister Elvira Nabiullina said at the ceremony, "We aim to reduce the energy-output ratio of GDP to 40% by 2020 and that means using energy-saving technologies." Heat consumption is currently high in Russia - it takes roughly three times more energy per cubic meter to heat buildings in Russia than in Scandinavia, which has a comparable climate.
Rockwool expands its Rockpanel cladding board business
09 March 2012Demnark/The Netherlands: Rockwool's board of directors has approved a plan to invest Euro23m in a major expansion of its Rockpanel cladding board business. The investment will be allocated to establishing a new state-of-the-art press line at the group's plant in Roermond in the Netherlands.
Rockpanel cladding boards are used as decorative and weather-protecting building elements on facades, dormers and rooflines. The main sales are in north-western Europe with Benelux, Germany, Denmark and UK accounting for the majority of the business. Sales of Rockpanel boards have seen strong double-digit growth in recent years and this is expected to continue both in the existing geographies as well as in new European markets.
Commenting on the expansion plan, CEO Eelco van Heel said, "The aesthetic and technical benefits as well as the strong sustainability profile have made the Rockpanel boards increasingly popular amongst architects and installers. We are confident that we can turn this business into a strong European player which can contribute significantly to the future of the Rockwool Group."
Rockwool releases full 2011 report
02 March 2012Denmark: The Board of Rockwool International A/S has approved the company's annual report for 2011. The report shows that the group's sales increased by 17.2% to Euro1.85bn. Rockwool's profit after minority interests increased by 25% and came to Euro86m, with investments at Euro161m. In 2012 sales are expected to increase by 5% with profit after minority interests of more than Euro80m. Investments excluding acquisitions is expected to be around Euro188m.
"Despite the turbulent state of the world economy in 2011, the year produced many positive developments in the Rockwool Group," wrote Rockwool's CEO Eelco van Heel in the report. "We managed to grow sales by 17% and, even though there was strong pressure on raw material prices, we also maintained our profitability at more or less the same level as the previous year."
Van Heel added that Rockwool had been less adversely affected than other areas of the construction industry because European countries such as France and Germany are looking to increase efficiency during times of economic hardship. He also noted that Rockwool had been expanding its activities outside of Europe and had grown its 'Systems' business.
Rockwool's insulation business, representing 82% of its net sales showed a solid growth trend throughout 2011. Sales grew by 20% although customers resisted price increases at the start of the year. The increase was predominantly driven by the renovation market, especially in Europe and North America. Sales in Russia were up by 45% year-on-year. Rockwool met this demand with imports from its Polish facilities.
In the US, Rockwool completed an important agreement with the home-improvement chain Lowe's. This has given access to more than 200 stores in north-eastern US, helping Rockwool make the most of this challenging market.
Rockwool revises expectations for 2011 and 2012 outlook
13 January 2012Denmark: The major Danish insulation producer Rockwool has announced better-than-expected results for the fourth quarter of 2011. Based on the registered level of sales in 2011, Rockwool expects its sales to have increased by 17% over those of 2010. It expects that its profit after tax and minority interests will come in above Euro80m. In its third quarter report, the Rockwool Group had expected a sales increase of 15% for the full year 2011 compared to 2010 and a profit after tax and minority interests of approximately Euro74m.
The healthy sales trend in Rockwool products continued in the final quarter of 2011, which it says was due to the mild winter weather in Europe combined with strong underlying demand in core markets. Despite the challenging macro-economic environment (especially in Europe) and the rather low visibility, the Rockwool Group expects continued growth in 2012. The Group expects sales to increase by approximately 5% in 2012. It expects its profit after tax and minority interests to be kept at the 2011 level, above Euro80m.
Rockwool completes acquisition of Fast
30 November 2011Denmark/Poland: Rockwool International announced on 28 November 2011 that it had received the necessary approvals to acquire Polish insulation systems manufacturer Fast s.p. zoo and had closed the transaction.
The agreement was first announced in June 2011. Closing was originally expected to take place by the end of October 2011. The value of the deal was not disclosed.
Fast, also known as Etics, is one of the leading players in the Polish market for external facade insulation systems. Through this acquisition the Danish company will gain expertise in coating and plaster production, as well as colouring techniques.
Rockwool reports 40% rise in Q3 profit
24 November 2011Denmark: Rockwool has reported a 40% increase in third-quarter net profit, helped by a recovery in demand in key European markets, higher sales prices and lower input prices. The group confirmed its nine-month report for 2011 that it still expects sales to increase by 15% for the full year with a net profit of around Euro74m.
For the third quarter of 2011 net sales rose year-on-year by 20% to Euro488m from Euro406m in 2010. This was helped by the inclusion of a recent acquisition and recovery of demand in some of its European key insulation materials markets. Profit rose by 40% year-on-year to Euro26m in 2011 from Euro18m in 2010. For the year to date there was a similar rise in sales of 17% compared to 2010 but a smaller increase in profit at only 10%.
The company said it expects the positive sales development observed during the first nine months of 2011 to continue in the coming quarters and that a downwards curve in raw material prices will continue and start to positively impact margins in the fourth quarter.
Tatarstan to host largest ever Rockwool project
02 September 2011Russia: Denmark's Rockwool, the world leader in manufacturing environmental thermal insulation materials, will spend USD150m on the first rockwool production line in Tatarstan's Alabuga special economic zone. The new Alabuga plant, which will have a capacity of about 110,000t/yr of products, represents the largest investment in Rockwool's history. When built, the plant will be the largest of its kind in the world. The plant is even designed for the installation of a second production line, which would increase the capacity to 250,000t/yr. It will be the fourth Rockwool production line in Russia.
The new plant is scheduled for opening in the first quarter 2012, creating at least 200 jobs. It will supply its products to the Volga region, Urals region and Siberia. It will additionally export to Kazakhstan. The roll-out of the new plant will allow Russia to substantially reduce its dependence on thermal insulation imports.
Commenting on the choice of venue for the project, Rockwool's Director General Nick Vince said, "We considered a total of 22 factors. At the top of the list is the full support of the authorities that we found here. The other pluses are tax benefits, a large space (48 hectares), convenient transport system, availability of a hydroelectric station 15km away and that of natural gas. A solid workforce is important. All these factors taken together make Alabuga an ideal venue for our project."
Continuing, Vince said, "We favourably assess the Russian economy's long-term potential. Buildings account for about 40% of the thermal energy produced in the country. There is a vast potential for increasing energy-efficiency and demand for thermal insulation materials."
Rockwool announces second quarter results
24 August 2011Denmark: Rockwool International A/S saw its net profit decline slightly to Euro16.5m in the three months to 30 June 2011 from Euro17.2m in the corresponding period of 2010.
Recovery in the company's main European insulation markets, driven by Germany and France, continued and considerable growth was marked in Poland and Russia as well.
Net sales went up to Euro845m from Euro452m. Operating costs expanded by 18% to Euro434m, which led to a reduction in earnings before interest, tax, depreciation and amortisation (EBITDA) to Euro57.9m from Euro64.8m in the quarter.
Rockwool foresees that further sales growth will come in the coming quarters. Rockwool anticipates that its net profit after minority interests will be Euro73.8m for 2011.