Insulation industry news from Global Insulation

Russia: Finish insulation producer Paroc is preparing to open an insulation plant in Tver in December 2013. The plant will primarily produce materials for the Russian market but technical insulation materials will also be exported to European Union members, according to Russian media.

"The demand for insulation is likely to increase in Russia. The growth here has been even more rapid than in Europe," said Kari Lehtinen, CEO of Paroc Group. "Our share of the Russian market is about 2%. After launching production at full capacity, we are planning to control 7 to 8% of the Russian market."

The new plant's location was chosen because of the railway links between Tver, near Moscow, and St Petersburg. Once opened, Paroc's new plant will be the third Finnish plant in the Tverskaya Oblast region of Russia. Paroc purchased the former mineral wool plant in late 2011 and has rebuilt around 90% of the production machinery. Currently 150 workers are employed by the plant and Paroc plans to increase that number to 400 by 2015 and to 600 when development of the site is complete.

Russia: Penoplex has started its eighth insulation materials plant at Novomoskovsk, Russia, at a cost of over Euro11.4m. The plant has a production capacity of up to 0.3Mm² expanded polystyrene (EPS) insulating foam. The company produces about 2.5Mm²/yr of thermal insulation material. It manufactures extruded materials, such as products for heat insulation and water-proofing, The Russian-based insulation producer has a total of 50 distributors across Russia.

Russia: Danish insulation materials producer Rockwool is planning to invest around Euro121m in a new plant near Moscow in Russia. Nick Vince, Rockwool's top executive for Russia, says that the company has reached a limit for what it is worthwhile to invest in the existing factory in Moscow, according to Esmerk Danish News.

The need to invest in a new facility is attributed to the growing number of orders received by Rockwool in Russia amid a building boom and a political pressure to make Russia more energy-efficient.

Russia: Saint-Gobain has bought a 25.1% share in ISOROC, a Russian building materials company based in Tambov. The cost of the acquisition has not been announced nor has Saint-Gobain revealed who sold the shares. The transaction is in line with Saint-Gobain Group's expansion strategy that enables it to continue growing its insulation activity in Russia.

ISOROC is a leader in the central region of Russia for mineral wool products, the most commonly used insulation material in the Commonwealth of Independent States (CIS). The company reported revenues of Euro46m in 2011.

According to the SPARK database, Germany's Erste AMSC Unternehmensbeteiligungs GmbH owned 37.94% of ISOROC as of 7 September 2012, the European Bank for Reconstruction and Development (EBRD) owned 35.93% and Rabo Black Earth B.V. owned 7.18%.

Saint-Gobain previously announced in June 2012 that it had acquired British insulating foam producer Celotex to strengthen its position in the UK insulation market.

Russia: Teplex, a Russian producer of insulation materials, has ordered new equipment to increase its output of extruded polystyrene (XPS) to 500,000m³/yr. The increase in production will give the company a 15% share of the Russian market and meet the demand in the Central, North-Western and Volga Federal Districts of the country. The new equipment will begin production by early 2013.

The company is also in talks to move part of its operations to Novosibirsk in Siberia to meet the needs of the local regional market. The new plant is expected to produce 200,000m³/yr of XPS and will begin operation by early 2014.

Russia: 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.

Russia: The net 2011 first-half profit of OJSC Balakovorezinotekhnika, which makes a number of plastic-derived technical goods including vibration-dampening insulation and pipe-lagging was USD2.3m against a loss of USD3.52m for the same period of 2010. Its revenue increased by 43% to USD98.4m from USD68.8m and its profit due to sales was USD1.77m against a sales loss of USD1.96m in the first half of 2010.

Russia: 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."

Japan: To more effectively serve customers in western Japan, Saint-Gobain plans to build a new glass wool production facility near Osaka in the Kansai region through its local subsidiary Mag-Isover, Japan's leading insulation manufacturer. With a planned capacity of 60,000t/yr, the plant is scheduled to be commissioned before the end of 2013.

Representing a total investment of around Euro140 million, the plant will directly employ more than 100 people. Its output will add to the 90,000t/yr of glass wool currently being produced by the Mag-Isover facilities located near Tokyo in the Kanto region. This will bring the company's total production capacity across its four plants to 150,000t/yr.

This investment comes at a time when Japan is aiming to reduce its energy consumption. Buildings account for 30-40% of the energy consumed in the country and therefore offer an enormous combined energy saving potential, particularly in the areas of heating and air conditioning.

Russia: Saint-Gobain is also pursuing its expansion in Russia, where it has acquired Linerock, a company based in Tcheliabinsk, Ural region. Linerock is the Ural region's leading manufacturer of rockwool products, the most widely used insulation materials in the Commonwealth of Independent States (CIS). The company employs over 500 people and reported consolidated revenues of around Euro25 million in 2010.