Insulation industry news from Global Insulation
Rockwool rolls out a new strategy
06 November 2014Denmark: Rockwool is rolling out a new strategy under the management of the company's chairman of the board, Bjørn Høi Jensen, whose first decision was to replace CEO Eelco van Heel with Jens Birgersson.
Birgersson was chosen for the task due to his significant global experience. Rockwool wants to replace its present strategy, which involves aggressive investments in building plants, with a smarter global organisation and new ways of entering markets. According to Jensen, the previous strategy had not proved successful and the return on investment capital had not been impressive. The new strategy is expected to generate bigger earnings for Rockwool.
UAE: Rockwool International has won a new order to supply insulation to Abu Dhabi's Takreer refinery project. The refinery will have a 30,000 barrels/day capacity for crude oil and will produce 40,000t/yr of carbon black. The refinery is due for completion in December 2015.
Roxul officially open for business in Mississippi
25 September 2014US: Roxul Inc, part of Rockwool International, has opened its first US manufacturing facility near Byhalia, Mississippi. The 600,000ft2, US$160m plant was first announced in 2012 and broke ground in May 2013. Production began on Roxul's stone wool insulation products in June 2014. The company will employ 150 people when it reaches full capacity.
"When conducting our site selection due diligence, it was clear the state of Mississippi and Marshall County provided us the optimal location from both a manufacturing and distribution standpoint," said Trent Ogilvie, Roxul's chairman and managing director. "The support that Roxul has received from the community and the state has been terrific. We couldn't have found a better place to call home."
Denmark: Rockwool has reported that during the first quarter of 2014, which ended on 31 March 2014, it generated sales of Euro485m, up by 15% year-on-year.
Earnings before interest and taxes (EBIT) were Euro28.4m, up by 39% year-on-year, including Euro7.40m from the insulation sector, which was a Euro4.9m increase on the same period of 2013. EBIT for holding companies was Euro11.8m, up by Euro1.7m. Net profit during the quarter was Euro19.1m, a Euro5.8m improvement on 2013. Costs were Euro1.6m, down by Euro0.5m in 2013.
External sales of insulation products were Euro374m, up by 9% compared to the same period of 2013. In Eastern Europe, sales increased by 20%, primarily due to continued positive growth in Russia and a good market recovery in Poland. Insulation sales were positive in all world regions except for China.
Rockwool expects to achieve Euro127m in net profit for the whole of 2014 off the back of continued market recovery in many regions, particularly Russia.
US: Rockwool has started production at its Marshall County, Mississippi mineral wool plant. The US$164m plant, the Danish insulation producer's first in the US, is expected to be fully operational by mid-2015. The plant will employ 150 people and produce more than 100,000t/yr for the North American market.
"The new plant will enable us to increase our sales for insulation products in the USA. We have been experiencing double-figure growth rates in the North American market over recent years and there is still considerable potential for growth in the market, which is mainly dominated by glass fibre and plastic foam products," said Trent Ogilvie, President of Roxul, Rockwool's subsidiary in North America. Over the last year the company has experienced such an increase in demand that the it has been forced to import from Europe.
Rockwool invests Euro67m in plant modernisation
09 May 2014Denmark: Danish insulation materials producer Rockwool plans to invest Euro67m to modernise its plant in Øster Doense in Jutland. No further details have been released.
Positive signs for Rockwool in second quarter of 2013
05 September 2013Denmark: Rockwool International has reported that its net sales rose by 2% year-on-year to Euro494m for the second quarter of 2013 that ended on 30 June 2013. It attributed the rebound to a recovery in the western European insulation market, especially in Spain, Italy and the UK.
The Danish insulation producer saw its earnings before interest, taxes, depreciation and amortisation (EBITDA) rise by 4% to Euro75.6m from Euro7.24m. Profit for the period rose by 8% to Euro26m from Euro24.1m.
In its income statement Rockwool explained that as well as improvements in western European markets it had also seen development in Poland and continued good sales in Russia. Sales in North American remained strong but sales in China disappointed the insulation producer, due to uncertain legislation on the mandatory use of non-mineral wool insulation.
As Reuters reported, from an interview with Rockwool CEO Eelco van Heel, China's changing legislation on non-mineral wool insulation lost the company an order for 25,000t of stone wool placed in late 2012. As a consequence, Rockwool is postponing the construction of a planned factory in China, where it acquired its first and so far only factory in 2010.
For its outlook for the remainder of 2013, Rockwool expects that its net sales will slightly surpass those of 2012.
Positive signs for Rockwool in second quarter of 2013
05 September 2013Denmark: Rockwool International has reported that its net sales rose by 2% year-on-year to Euro494m for the second quarter of 2013 that ended on 30 June 2013. It attributed the rebound to a recovery in the western European insulation market, especially in Spain, Italy and the UK.
The Danish insulation producer saw its earnings before interest, taxes, depreciation and amortisation (EBITDA) rise by 4% to Euro75.6m from Euro7.24m. Profit for the period rose by 8% to Euro26m from Euro24.1m.
In its income statement Rockwool explained that as well as improvements in western European markets it had also seen development in Poland and continued good sales in Russia. Sales in North American remained strong but sales in China disappointed the insulation producer, due to uncertain legislation on the mandatory use of non-mineral wool insulation.
As Reuters reported, from an interview with Rockwool CEO Eelco van Heel, China's changing legislation on non-mineral wool insulation lost the company an order for 25,000t of stone wool placed in late 2012. As a consequence, Rockwool is postponing the construction of a planned factory in China, where it acquired its first and so far only factory in 2010.
For its outlook for the remainder of 2013, Rockwool expects that its net sales will slightly surpass those of 2012.
Rockwool acquires Chicago Metallics
05 September 2013Denmark/US: The Danish insulation group Rockwool Group has announced that it has entered into an agreement, on behalf of its RockfonGroup affiliate, to acquire the American ceiling company Chicago Metallic Corporation (CMC). CMC, headquartered in Chicago, is a global provider of architectural building products and services, including metal panels and ceiling systems, suspended grid systems and acoustical and sustainable ceiling panels. It has a network of sales and distribution channels throughout North America, Europe and Asia supported by production facilities in China, Malaysia, Belgium and the US.
Founded in 1893, CMC has been owned by the Jahn family since 1937. Current Chairman and CEO, Charles Jahn commented, "The complementary product and service offerings of Rockfon and CMC will provide our mutual customers with a wider choice throughout the world. The values of the Jahn and Kähler founding families are strongly aligned and will provide an excellent platform to continue to serve our customers well into the future. We look forward to the exciting growth opportunities to come from this transaction."
Commenting on the acquisition, Division Managing Director of the Rockwool Group's Systems Division, Herman Voortman, said, "This acquisition complements well the existing Rockfon business concept. It will allow us to offer and develop more complete solutions to our customers by offering not only ceiling panels but also the metallic grid which is a key element in the suspended ceiling system."
Rockwool buys BASF Wall Systems
19 July 2013Denmark: Danish insulations materials producer Rockwool International has agreed to acquire BASF Wall Systems, which is owned by the BASF Group. The group's German subsidiary Deutsche Rockwool will acquire all of the German external façade insulation producer including a factory in Marktredwitz and the HECK MultiTherm and Rajasil brands.
"This is a major leap forward for the Rockwool Group's strategy of offering customers more complete solutions consisting not only of insulation but also all the other necessary elements of a total facade system such as paint, render, etc. The BASF Wall Systems business is in this respect a great asset," said division managing director of the Rockwool Group's Europe division, Henrik Frank Nielsen. He added that purchase enhances the group's façade strategy and gives it a 'significant' foothold in the German External Thermal Insulation Composite Systems (ETICS) market.
Rockwool declined to comment on the value of the deal, saying that the deal was too small to have any impact on the buyer's valuation. The transaction is expected to be completed by the end of 2013. BASF Wall Systems had a turnover of Euro68m in 2012 and it had 190 employees.