Insulation industry news from Global Insulation

UK: The six-year public inquiry into the Grenfell Tower fire, which claimed 72 lives in 2017, has issued its final report, finding fault with ‘dishonest’ companies, as well as former governments and a disorganised response from the fire service. The inquiry criticised the role of cladding manufacturers, notably US-based Arconic, for its ‘systematic dishonesty’ in concealing the true fire hazards of its products. Arconic, which produced the Reynobond 55 polyethylene cladding used on Grenfell Tower, was accused of having hidden ‘very poor’ fire safety test results from the public and certification bodies. In the report, the cladding is described as ‘extremely dangerous’ when used in folded cassette form, and was ‘by far the largest contributor’ to the Grenfell fire.

The inquiry also named both Celotex and Kingspan as contributors to the incident. Celotex was accused of making ‘false and misleading claims’ by presenting its product to cladding contractor Harley Facades as being safe and suitable for Grenfell, even though ‘it knew that was not the case.’ Insulation producer Kingspan reportedly ‘misled the market’ by not revealing the limitations of its product, which was used on a small section of the building. In response to these findings, the inquiry has called for a revision in testing materials and designs for fire safety, advocating for transparency by making these test results publicly accessible. The findings of this inquiry lay the groundwork for potential criminal charges, with police and prosecutors indicating that investigations will continue until the end of 2025, and decisions on criminal charges expected by the end of 2026, according to a report by the BBC.

Kingspan said in a statement “We welcome the publication of today’s report which is crucial to a public understanding of what went wrong and why. It explains clearly and unambiguously that the type of insulation (whether combustible or non-combustible) was immaterial, and that the principal reason for the fire spread was the PE ACM cladding, which was not made by Kingspan. Kingspan has long acknowledged the wholly unacceptable historical failings that occurred in part of our UK insulation business. These were in no way reflective of how we conduct ourselves as a Group, then or now. While deeply regrettable, they were not found to be causative of the tragedy and Kingspan has already emphatically addressed these issues.”

A spokesperson for Celotex said “The publication of the Grenfell Tower Inquiry report marks the conclusion of the inquiry’s work and we are considering its contents with care. This review was a significant and thorough undertaking, and the results of that work were disclosed promptly and proactively to relevant stakeholders, including the Grenfell Tower Inquiry. Independent testing commissioned following the review demonstrated that the cladding system described in the Celotex RS5000 marketing literature met the relevant safety criteria. That system was substantially different to that used at Grenfell Tower. Decisions about design, construction and the selection of materials for the Tower were made by construction industry professionals.”

A spokesperson for Arconic subsidiary Arconic Architectural Products (AAP), which Building News reports supplied aluminium composite material used for the rainscreen at Grenfell Tower, said “The company respects the Inquiry process. AAP cooperated fully with the work of the Inquiry and will continue to engage with further legal processes. Together with other parties, AAP has made financial contributions to settlements for those affected, as well as to the restorative justice fund. Throughout the Inquiry, AAP has maintained a number of points: AAP sold sheets of aluminium composite material as specified in the design process. This product was safe to use as a building material, and legal to sell in the UK as well as the more than 30 other countries in which AAP customers purchased the product. We reject any claim that AAP sold an unsafe product. AAP regularly conducted tests of its materials using third-party testing bodies. Reports on these results were all publicly available, and AAP made these reports available to its customers. AAP did not conceal information from or mislead any certification body, customer, or the public.”

World: Market research firm Future Market Insights (FMI) has forecast a composite annual growth rate of 6% in the global polyisocyanurate (PIR) insulation market up to 2033. This will result in 81% decade-on-decade growth to US$25.6bn in 2033. FMI noted technical developments affecting the use of customised PIR boards in the prefabricated construction as a main driver of the growth. Nationally, the market will have a CAGR of 8% in China, 7% in India, 6% in the UK, 5% in Canada and 4% in Germany.

FMI said “In the rapidly changing world of PIR insulation, innovation and sustainability have emerged as dynamic forces reshaping the industry’s trajectory. The market is going through a fundamental shift, moving beyond its traditional role of providing insulation and into uncharted territory where cutting-edge technologies are poised to redefine its boundaries.”

UK: Saint-Gobain subsidiary Isover has installed water meters and monitoring technologies at its Runcorn insulation plant in Cheshire. The initiative aims to reduce the plant’s consumption of water by 30ML/yr, 30% of its use in 2030.

Plant sustainability champion Matt Hill said “Reducing water consumption in our production processes is central to our sustainability journey at Isover. Through investments such as these, we’re not only reducing our environmental impact but also demonstrating our unwavering commitment to building a more sustainable future." He added "By 2023, we had reduced our total water withdrawal by 22% compared to 2017, and thanks to these continuing improvements, we have already further reduced this by more than 20% in 2024 compared to 2023."

UK: Zotefoams has raised its sales by 14% year-on-year in the first four months of 2023. The company increased its insulation sales by 57% and its high-performance products sales by 46%.

CEO David Stirling will step down from his position in Zotefoams on 22 May 2024, when Ronan Cox will replace him.

UK: Knauf Insulation UK & Ireland is preparing to build a €200m rock mineral wool plant to supply the UK market. The company is currently discussing with the authorities where the plant will be situated. The unit will have a production capacity of over 100,000t/yr and will use low-carbon electric melting technology. It is anticipated the additional capacity will become available in 2026.

Neil Hargreaves, Knauf Insulation’s Managing Director for Northern Europe, said "Following the €50m investment across our two UK glass mineral wool plants in 2023 - 2024, this represents another exciting development for the business and our valued customers, as well as a further sign of confidence from Knauf Group in the future growth of the UK and Northern European mineral wool markets. The investment represents a step change in the capacity, capability, and sustainability of our UK rock mineral wool solutions, whilst significantly contributing towards Knauf Group’s ambitious sustainability goals."

UK: Only 18% of UK housing stock conforms with standards set in 2002, according to a study by utilities provider EDF and property data company Sprift. This represents a rise from 7.5% in the previous study conducted in May 2022. 41% of homes fail to meet standards set later than 1976, down from 60% in May 2022. The average ‘insulation age’ of UK housing is 41 years old, 11% younger than the age of 46 years old recorded in the previous study.

UK: SIG says that its full-year sales dropped by 2% year-on-year in 2023. Reuters has reported that the company nonetheless expects to record an underlying operating profit in the upper half of its forecast for the year. It said that restructuring and productivity initiatives carried out in the second half of 2023 saved an anticipated Euro11.6m. SIG expects ‘soft’ market conditions to continue in 2024.

UK: Recticel says that new requirements following the UK’s exit from the EU have created estimated extra one-time costs of Euro464,000. Local press has reported that UK-based laboratory testing is estimated to cost Euro325,000 across eight products, while new fire tests for the same products will add a further Euro130,000.

Senior technical manager Simon Blackham said “It’s the same standards, to the same test method, the same everything - and it would have to be paid for, ultimately, by the customer.”

UK: France-based waterproofing and insulation group Soprema has agreed to acquire a 75% stake in Celotex. Dow Jones Institutional News has reported that Celotex is presently a subsidiary of Soprema’s fellow France-based conglomerate Saint-Gobain. After completion of the deal in early 2024, Saint-Gobain says that it will retain a 25% stake in Celotex.

Celotex controls the Ipswich polyisocyanurate (PIR) insulation plant in Suffolk.

UK: SIG recorded US$1.81bn in sales in the first half of 2023, up by 5% year-on-year from US$1.73bn in the first half of 2022. The group noted a decline in its sales volumes, partly offset by positive tailwinds from cost inflation in the comparison period. Its profit after tax declined by 70% to US$5.98m from US$20.2m.

CEO Gavin Slark said “Our performance in the first half of 2023 reflects the challenging market conditions we are currently facing, with the group’s like-for-like revenue growth flat year-on-year. Despite these conditions, I’m very pleased with the progress we are making on many fronts to improve the business notably with the initiatives across our operating companies to improve our ability to drive higher levels of profitable growth when market conditions recover." Slark continued “Looking ahead, while we expect market conditions in the second half of 2023 to remain difficult, we remain confident the business will grasp the opportunities it has to continue to improve its underlying operational performance. This will, in turn, deliver higher levels of profitability as we drive towards our medium-term margin target of 5%. The group is financially and commercially well placed to drive meaningful shareholder value in the medium and long term.”