Insulation industry news from Global Insulation

UK: Two management buyouts (MBOs) at Synbra Group have resulted in the establishment of the UK's largest expanded polystyrene (EPS) producer.

With the financial backing of Mobeus Equity Partners, the management of Styropack and Jablite have successfully completed MBOs. The new company is owned by Richard Lee, the former CEO of Styropack, as well as Ken Hutchins, who now acts as finance director. The two other owners are Wayne Brown, who will oversee operations and Mobeus' John Colley, who has been named chairman.

The new owners have assured customers that business will proceed as usual, adding that they plan to further strengthen the two companies' market share in the future. "We are absolutely determined to grow our new company into a larger, thriving business whose products are always the first choice for insulation and packaging in the UK," said Lee. Styropack produces packaging solutions for the shipping, automotive, pharmaceutical, fishery and gardening segments, while Jablite specialises in the manufacture of EPS insulation.

US/UK/Germany: US-based RPM International Inc has announced that its German tremco illbruck Group has acquired Firetherm Intumescent & Insulation Supplies Ltd, the UK market leader in fire-stopping solutions for the construction industry. Based in Kent, England, Firetherm has annual net sales of approximately Euro6.61m. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.

Firetherm manufactures and supplies a broad range of fire-stopping products, intumescent coatings and fire-rated sealants and fibreboards. They are primarily sold to specialist fire-stopping contractors, general contractors and home-builders.

"Firetherm, with its high degree of fire-stopping technical expertise, is a good strategic fit with our tremco illbruck Group and its existing Nullifire intumescent coatings business. The acquisition expands tremco illbruck's product range and capabilities for fire-stopping products and propels it to the leading position for passive fire protection in the UK," said Frank C Sullivan, RPM chairman and CEO. "We expect to grow Firetherm in the UK and internationally by leveraging its products across the tremco illbruck distribution network."

Ireland: Kingspan has reported a rise in its full year pre-tax profit as strength in the UK and North America lifted its revenue. The pre-tax profit in 2014 rose to Euro128m from Euro102m in 2013. Its 2014 revenue rose to Euro1.9bn, up from Euro1.8bn in 2013.

UK: Kingspan Group has agreed with Ergon Capital Partners II NV and Bremhove NV to acquire Steel Partners NV, a holding company of the Joris Ide Group. Joris Ide is a pan-European manufacturer and supplier of insulated panels, profiles and related accessories, with leading market positions in France, Belgium, the Netherlands and Luxembourg.

The acquisition will cost Euro315m, inclusive of debt. It will be satisfied on completion partly in cash and by the assumption of debt, with the balance of the consideration satisfied by the issue of three million shares in Kingspan Group to Bremhove NV, which is the holding company of the founder and major shareholder Joris Ide.

UK: Following a successful pilot launch during 2014, Dow Building Solutions has announced the commercial roll-out of XENERGY^TM, a brand new, flame-retarded, XPS roof insulation product. In a departure from the blue STYROFOAM^TM boards that the company is widely known for, the XENERGY^TM boards manufactured by Dow Building Solutions' King's Lynn production site in Norfolk County, will be steel grey in colour.

Dow, the inventor of STYROFOAM, has developed XENERGY to achieve a significantly improved λ insulation performance and to deliver a global warming potential (GWP) of less than five. Through combining a manufacturing process which uses CO₂ as the blowing agent and adding infra-red blocking particles to scatter and reflect heat radiation within the foam board, λ values have been increased by 11%.

XENERGY SL, the first XENERGY product available in the UK, is designed to offer highly moisture-resistant flat roof insulation at thinner thicknesses than conventional XPS alternatives. XENERGY SL offers 4mW thermal conductivity gains in various thicknesses.

"The UK is leading the way with the commercial roll-out of XENERGY, a product that has numerous benefits, including significantly improved thermal performance," said Chris Gimson, head of commercial at Dow Building Solutions. "It signifies a new era for the business and demonstrates our commitment to formulating and manufacturing the highest standard insulation materials."

UK: Veolia UK has introduced a new technology that it claims will transform non-recyclable paper and cardboard from household waste into a pulp called Pro-Fibre. The material can then be used in a range of products such as insulation and construction materials.

According to Veolia, the UK recycles about 815Mt/yr of recovered fibre, about 70% of the paper generated in the country. However, many different types of paper are rejected from recycling facilities because they have been contaminated with glass, sand, plastic, metal, food or grease. The contaminated paper has traditionally been sent to landfill or energy recovery facilities.

With its new system, Veolia will be able to convert the material into a recyclable material. It is investing Euro1.27m into the new technology at its facility in Sheffield, England, which will be able to treat up to 20,000Mt/yr and produce up to 14,000Mt/yr of Pro-Fibre. The process includes identifying and capturing the non-recyclable fibre fragments, pulping, cleaning, screening and a mechanical pressing stage.

The Pro-Fibre process includes five steps that will enable the removal contaminants to create a pulp that can replace virgin materials currently used in the construction and packaging industry, including insulation materials and biodegradable pots. Veolia is working with a specialist partner from the paper industry, which will analyse the properties of the Pro-Fibre so the companies can determine the product's commercial potential. The first batch of pulp is expected to be produced in early 2015. According to Veolia, Pro-Fibre can be manufactured either wet or dry and is suitable for businesses looking for a cost-effective and sustainable feedstock.

UK/Canada: Kingspan Group has announced that it will buy the building products division of Vicwest Inc for US$136m in cash, inclusive of debt and reorganisation costs.

Kingspan said that the acquisition will be structured as the purchase by Kingspan of Vicwest and the simultaneous transfer of the Westeel business and assets to Ag Growth International. The total estimated consideration payable is US$333m, of which Kingspan will fund US$137m and AGI will fund US$196m. The acquisition of the building products business will be funded from Kingspan's existing credit facilities.

The division being bought comprises three insulation panel production plants and a number of profiling facilities across Canada and the US. Revenues for the year that ended 31 December 2013 were US$224m and pro forma earnings before interest, taxes, depreciation and amortisation (EBITDA) was US$11.7m. The unit had gross assets of US$111m at 30 June 2014.

UK: Kingspan has reported 7% year-on-year growth in its third-quarter 2014 revenue, partly due to an upturn in the UK property market. It now expects to deliver a full-year trading profit in the region of Euro144m, up by 17% from the year ago period. Net debt at the end of September 2014 was Euro39.1m lower than at the same point in 2013, at Euro108m.

UK: Matilda's Planet, a company that develops and manufactures domestic energy-saving products, is hoping to create 55 new jobs after launching its latest insulation system for solid-walled homes. Matilda's Planet said that it will be able to increase manufacturing capacity at its Kenfig Hill plant, near Port Talbot, following a multi-million euro investment backed by Euro565,472 business finance from the Welsh Government.

The extra capacity will be used to produce its Matilda's Blanket product, which was developed in-house using patented technology and is designed to insulate older stone or brick houses that have no cavity walls. It is estimated there are around eight million solid wall homes in the UK that have no insulation, while 34% of homes in Wales were built prior to 1919, before cavity walls became the norm.

Matilda's Blanket uses a slim-line modular panel system which differs from most existing products on the market. The material is stronger than traditional wallboard while each system is made-to-measure using computer-aided design, pre-fabricated and delivered in kit form, so a room can be fully fitted and decorated in a day. Matilda's Blanket has been tested and measured by organisations such as the National Physical Laboratory and the Energy Saving Trust and has been credited with cutting fuel bills typically by around 40%.

"We wanted to keep it in Wales and Welsh Government support ensured it was viable to do so," said David Evans, founder of Matilda's Planet. "We look forward to ramping up production, launching Matilda's Blanket and creating local jobs."

UK: Owens Corning, which operates an insulation plant in Selkirk, Scotland, plans to begin using a nearby warehouse within the next three months. The company is consolidating three smaller warehouses within 30km radius of the Selkirk insulation plant into the new West Yard Road warehouse, which will be operated by a third-party logistics company. The warehouse will employ about 20 people.

"It will simplify logistics and result in stronger service for our customers," said Chuck Hartlage, Owens Corning's spokesperson. "We will do this with an improved cost structure."