![](/templates/proglobalmedia-main/images/globe-blue-whitebg.gif)
Insulation industry news from Global Insulation
Saint-Gobain completes acquisition of Glava
13 October 2017Norway: Saint-Gobain has completed its acquisition of insulation producer Glava following the approval of the local competition authority. The deal was first announced in June 2017. The two companies have a long history together through a licence agreement for Isover. Prior to the acquisition, Saint-Gobain owned 17% of Glava’s shares and it was represented on the board of directors.
In conjunction with the purchase Jon Karlsen, the managing director of Glava, has also been appointed as the managing director of Saint-Gobain Byggevarer, a company consisting of the brands Weber and Gyproc.
China: Javier Gimeno, head of Saint-Gobain’s business in Asia-Pacific, has blamed production overcapacity for the company’s decision to stop manufacturing glass wool. He said that overcapacity had forced prices down and lowered margins, according to the Wall Street Journal. He added that the company is targeting profits over 10% and that it wants its business in China to grow faster than the national economy. Subsequently, the group has focused on products such as mortars, plastics and car windows. Gimeno also raised the issue of environmental regulations being stricter for foreign firms in China, although this is changing.
Celotex stops supply of polyisocyanurate foam product for high-rise buildings following London tower fire
26 June 2017UK: Celotex has stopped supplying its RS5000 polyisocyanurate foam (PIR) insulation board product in rainscreen cladding systems for buildings over 18m tall. The decision is a temporary one whilst an investigation into the Grenfell Tower fire continues. The subsidiary of Saint-Gobain previously confirmed that its product was purchased for use in a refurbishment project at the building. The fire is believed to have killed 79 people.
The insulation producer said that safety testing had been undertaken on its RS5000 product as part of a ‘particular’ rainscreen cladding system. It added that, “…any changes to components of the cladding system or construction methods used need to be considered by the relevant building designer.”
The decision by Celotex follows an announcement by the Metropolitan Police that insulation samples collected from Grenfell Tower combusted quickly in tests. The authorities are examining aluminium composite tiles, the insulation behind it and how these tiles were fixed to the building as well as how they were installed. The aluminium composite tiles have also failed initial safety tests.
Saint-Gobain in talks to buy Glava
15 June 2017Norway: Saint-Gobain has entered into talks with the owners and shareholders of Glava to buy their shares, with the support of the company’s management. Prior to this negotiation, Saint-Gobain already owned 17% of the capital of Glava, which has manufactured products under an Isover license since 1960. The acquisition will be subject to the scrutiny of the relevant competition bodies.
Insulation producer Glava operates two mineral wool plants at Askim near Oslo, and at Stjørdal near Trondheim. It also has workshops producing expanded polystyrene and ceilings. Glava supplies a comprehensive range of insulating products and accessories to its customers. The company reported sales of over Euro140m in 2016.
France: Saint-Gobain has reported sales growth in all main territories in the first quarter of 2017, led by Asia and its emerging markets. Net sales for its Interior Solutions division rose by 6.2% year-on-year to Euro1.71bn in the first quarter of 2017 from Euro1.61bn in the same period of 2016. This was supported by rising prices in a ‘strong cost inflation environment.’ Overall the group’s net sales rose by 7.6% to Euro9.14bn. Notable geographical trends included a recovery in France and a continued poor market in Brazil.
“The first quarter saw robust trading. The good momentum in sales volumes observed in 2016 continued at the start of the year in all business sectors and regions. France benefited from the recovery in new-build activity, while other Western European countries delivered further growth. North America and emerging markets had a good start to the year. The group continued to pursue its priorities, focusing particularly on sales prices amid a more inflationary backdrop,” said Pierre-André de Chalendar, chairman and chief executive officer of Saint-Gobain.
Germany: Saint-Gobain has purchased the Augustdorf glass plant in North Rhine-Westphalian from Teuto-Glasveredelung. The unit produces thermal insulating glass products as well as sound-insulating glass and other glass products. The purchase is planned to be completed in March 2017, subject to approval by the government.
Brazil/Finland: Saint-Gobain Isover has obtained Environmental Product Declarations (EPD) for its products in Brazil and Finland. It has obtained five EPDs in Brazil where it has become the first insulation company in the country to obtain EPDs registered with Environdec. In Finland it has published three new verified EPDs through the Norwegian EPD platform EPD Norge.
France: Saint-Gobain’s sales revenue has fallen by 1.6% year-on-year to Euro19.6bn in the first half of 2016 from Euro19.9bn in the same period of 2015. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 3.8% to Euro1.89bn from Euro1.96bn. The group blamed the loss in sales revenue on negative currency changes, especially in Latin American, and to a lesser extent, in the UK following its decision to leave the European Union. Saint-Gobain’s Interior Solutions division, which includes gypsum wallboard and insulation production, reported a 3.1% rise in sales revenue to Euro3.3bn from Euro3.2bn.
“Saint-Gobain’s sales for first-half 2016 confirm our February forecasts, with France stabilising and all regions making strong contribution to growth. Our strategy of investing in emerging markets provides us with a diversified platform for profitable growth. Our first-half results also benefited from efforts to optimise our operations, particularly in Western Europe, and from upbeat trading in the US. The results are in line with our objectives and we expect alike-for-like improvement in operating income for second-half 2016 versus second-half 2015. While the 23 June 2016 Brexit vote in the UK has created a climate of uncertainty, it does not affect our objectives,” said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.
Saint-Gobain increases stake in Isoroc to 100%
02 June 2016Russia: Saint-Gobain has increased its share in the Tambov-based heat insulation producer Isoroc from 74.9% to 100%. The plant's capacity exceeds 100,000t/yr. The French company obtained permission from the Federal Antimonopoly Service to increase its share of Isoroc in late 2015.
Saint-Gobain’s profit surges despite static sales volumes
26 February 2016France: Saint-Gobain’s net income has risen by 36% year-on-year to Euro1.3bn in 2015 from Euro953m in 2014. Its sales revenue rose by 3.3% to 39.6bn from 3.4bn. However, its overall sales volumes remained static with only 0.1% growth. Growth in the company’s Flat Glass and Interior Solutions divisions, including wallboard and insulation, held up sales despite sharp declines in sales in France.
“Saint-Gobain delivered improved earnings in 2015 in a sharply contrasted economic climate. The improvement was dampened by continued weak trading in France, hurt in particular by the sharp contraction in our Pipe division in the second half of the year, despite the first signs of an upturn in construction indicators. The group completed a key stage in the reorganisation of its business portfolio, with the sale of Verallia on very favourable terms, and continues to pursue its plan to acquire a controlling interest in Sika after obtaining all antitrust approvals prior to closing the deal,” said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.
The group’s Interior Solutions division reported a 7.1% rise in sales revenue to Euro6.49bn from Euro6.06bn. Reduced volumes and prices in the French market slowed growth in Western Europe, although this impact eased in the fourth quarter of 2015. Trading in North America was dented by a slight dip in prices in the second half and by the decline in the Canadian market. Asia and emerging countries continued to deliver growth.