Insulation industry news from Global Insulation
Ukraine: Construction firm Rauta recorded 15% year-on-year growth in the Ukrainian insulation sector’s domestic sales of insulated sandwich panels in the first half of 2024. Meanwhile, imports of the product dropped by 12% over the same comparison period. Consumption totalled 1Mm2, in line with 2023 volumes. Business World News has reported that Rauta noted a shift from other panel types towards polyisocyanurate (PIR) core panels.
Construction activity remains mostly concentrated in Western Ukraine due to the on-going Russian invasion in other areas of the country, with investors reportedly remaining cautious. Ukraine’s construction market has declined by 60 – 70% from antebellum levels in 2021.
Hungary: The government plans to avail citizens of €280m in subsidy for residential refurbishments that increase efficiency, beginning in June 2024. The initiative aims to help renovate 20,000 homes, installing new insulation, boilers, doors and window frames. Local press has reported that that homeowners who contribute €2800 may receive up to €16,800. The goal of the scheme is to reduce gas consumption in line with EU policy. It has backing from the EU's Recovery and Resilience Facility, and is expected to generate €650m in additional orders for Hungarian building materials producers.
Masterplast’s sales fall as earnings slip into the negative in first nine months of 2023
26 October 2023Hungary: Masterplast reported sales worth Euro114m during the first nine months of 2023. This represents a year-on-year decline of 31% from Euro164m in the corresponding period in 2022. The producer’s earnings before interest, taxation, depreciation and amortisation (EBITDA) losses were Euro2.93m, compared to a positive figure of Euro19.3m. During the third quarter of 2023, sales declined in Hungary by 45% and across its export markets by 26%. They rose by 21% in Poland, by 8% in Croatia and by 2% in Ukraine.
Masterplast attributed its sales decline to low demand due to global inflation and rising interest rates amid on-going lockdowns, energy crises and war in Ukraine, while energy-saving renovation initiatives have also been subject to delays. The company set a savings target of Euro2m/yr and laid off 250 employees, including 210 from its plants in Serbia. It completed the construction of new expanded polystyrene (EPS) and extruded polystyrene (XPS) capacity in Italy and Serbia, which it expects to bring online later in 2023.
Austrotherm commissions Calan EPS insulation plant
25 November 2022Romania: Austrotherm has commissioned its third Romanian insulation plant in Calan, near Deva, Hunedoara County. The new Euro6m facility will produce the company's Austrotherm EPS and Austrotherm EPS-Plus expanded polystyrene (EPS) insulation, and also houses office spaces and storehouses. Sales manager Roxana Ghioca said that the storage capacity will enable the site to supply the Transylvanian market with Austrotherm's EPS and extruded polystyrene (XPS) insulation product offering.
Austrotherm managing director Klaus Haberfellner said “Transylvania is among the Central and Northwestern Romanian regions currently with a good economic situation. One third of Austrotherm Romania's topwinds are generated in this region. The existing EPS plants - which are situated a long distance from this have already reached their capacity limit." Addressing Romania's need for insulation, Haberfellner said "If not now, when does saving energy make more sense? The dramatic increase in energy prices has long since arrived in Romania."
Belgium: Germany-based Covestro has broken ground on the construction of a new Euro300m aniline plant in Antwerp. The plant will supply aniline for methyl diphenyl diisocyanate (MDI) production in the region. Forecasts cited by the chemicals producer posit global annual MDI demand growth of 6% into the medium-term future.
Covestro's chief technology officer Klaus Schafer said “Even in challenging times, we must not lose sight of our goals. With the expansion of our aniline production, we are addressing the further increase in demand from our customers for energy-efficient insulation." He added “By using state-of-the-art technology, we are increasing the energy efficiency of production, and thereby the competitiveness, of the Antwerp site.”
New Zealand: Fletcher Building Materials recorded consolidated sales of US$5.37bn during its 2022 financial year, up by 4.7% year-on-year from US$5.13bn in the previous year. Its net earnings also rose by 42%, to US$273m from US$193m.
The group's building materials division contributed US$1.02bn-worth (17%) of group sales. The division made capital expenditure investments of US$129m. During the financial year, its insulation subsidiaries Forman Building Systems and Tasman Insulation merged under its new Comfortech business. Comfortech will commission a new glasswool plant in mid-2023. Fletcher Building Materials says that, when operational, the new unit will help to serve increased ceiling insulation demand arising from changes to the New Zealand Building Code.
Fletcher Building Materials chief executive officer Ross Taylor said "The 2022 financial year has not been without its challenges. Global and national supply chain disruptions have continued into the third year of the Covid-19 pandemic." He added "The New Zealand Commerce Commission recently published its interim market study report into residential building supplies. The final report and recommendations will be published in December 2022 and in the meantime we will continue to work collaboratively with both the commission and the government."
Mannok’s sales rise in 2021
16 May 2022UK: Mannok recorded sales of Euro270m in 2021, up by 16% year-on-year from Euro233m in 2020. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 17% to Euro25.8m from Euro31.1m. The group attributed this to substantial cost absorption beginning in mid-2021. It noted particularly high raw material costs in its insulation segment due to current global shortages. Overall energy prices rose by 66% year-on-year, while the cost of carbon emissions trading scheme (ETS) credits more than doubled to Euro80/t at the end of the year.
Mannok said that demand for its products remains resilient, supported by stronger cost recovery. It added that a levelling out in energy prices has driven stronger profitability in the first quarter and April of 2022.
Holcim to acquire Izolbet
12 May 2022Poland: Major cement producer Holcim has entered into an agreement to acquire waterproofing, adhesives, polystyrene products and plaster producer Izolbet. Izolbet employs 170 people and operates four production plants in Budzyń, Gostynin, Kleszczów and Chmielów, with most of its business in the high-growth repair and refurbishment market. Holcim says that the new acquisition will help to strengthen its footprint in the renovation, thermal insulation and finishing segment.
Europe, Middle East and Africa region head Miljan Gutovic said “Speciality building solutions have been a key focus for expanding Solutions & Products in Europe, notably with the recent acquisitions of PRB Group in France and PTB-Compaktuna in Belgium. I’m excited to be welcoming all of Izolbet’s employees into the Holcim family, to unleash our next chapter of growth together.
UK: Knauf Insulation plans to upgrade two of its glass wool insulation plants in the UK at a cost of Euro53.7m. The upgrades consist of a packaging equipment upgrade at the Cwmbran, Torfaen, insulation plant and the replacement of the furnace and connected equipment at its St Helens, Merseyside, insulation plant, as well the acquisition of land adjacent to the latter from NSG Group. As a result of its upgrade, the Cwmbran plant will begin producing insulation slabs as well as rolls and blowing wool. The company said that the investments are a response to anticipated glass wool insulation demand growth on the back of the government’s Future Homes Standard energy efficiency policy.
Managing director Neil Hargreaves said “This series of investments will boost capacity as well as improve the range, availability and sustainability of our products.”
Angren Insulation secures US$5m loan from European Bank for Reconstruction and Development for upcoming Tashkent glasswool plant
22 October 2021Uzbekistan: The European Bank for Reconstruction and Development has issued a US$5m loan to Ecoclimat Group for the launch of a new subsidiary, Angren Insulation. The company will use the loan to build a 32,000t/yr glasswool plant in Tashkent. The plant will use recycled glass as an input and reduce the group’s CO2 emissions by 85,000t/yr. The insulation producer said that it will help it to meet the growing local demand for mineral-based insulation.