Insulation industry news from Global Insulation

Romania: Knauf Insulation will invest Euro135m in expanding its Târnăveni glass wool insulation plant and building a new adjacent plant at the site. Knauf Insulation says that the major expansion will advance the Romanian government's 'energy savings offensive' by supporting a renovation drive for the country’s housing stock. The government aims to increase the national area of modern renovated properties by a factor of six, with a Euro30bn allocation from its Recovery and Resilience Fund.

Germany-based Knauf's managing partner Alexander Knauf said “The commitment demonstrates our trust and confidence in the country and our employees. We look forward to becoming part of the local community. Together, we are setting new standards for building and living in Romania.”

Operations at the original Târnăveni glass wool insulation plant recently recommenced following a Euro4m upgrade by Knauf Insulation, which completed its acquisition of the plant in May 2022. Previous owner Gecsat produced insulation at the site from 2008.

UK: The government has announced funding of up to Euro1.7bn to retrofit 130,000 social and low income homes in England with energy efficiency measures including insulation. It says that the upgrades will help households save around Euro450 - 800/yr on their energy bills at current prices and funding could support around 19,000 green energy sector jobs. The money will be made available via the Social Housing Decarbonisation Fund and Home Upgrade Grant schemes.

Local authorities and social housing providers will be able to submit bids for funding and will deliver upgrades from early 2023 until March 2025, building on the more than 30,000 homes already being upgraded under the Social Housing Decarbonisation Fund and Home Upgrade Grant schemes.

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."

Libya: Al-Hosn International Company for Building Materials Industry has partnered with China and Germany-based Zenith to establish an insulated concrete block plant. The Benghazi Chamber of Commerce has held a meeting with the companies to discuss their plans.

US: The National Insulation Association (NIA) has joined the US Department of Energy’s Better Climate Challenge initiative as an ally. Allies play a lead role in raising awareness of the initiative, which aims to reduce CO₂ emissions across US industrial plants and buildings.

Belgium: The government has reduced value-added tax (VAT) on insulation to 6% from 21%. The measure aims to reduce national natural gas consumption in order to be prepared for any future shortage. Belgium is 6% reliant on Russia for its gas supply. Utilities companies supplying the Benelux region have declined to settle their bills with Russia-based producer Gazprom in Russian Rubles, so face a shut-off. Energy Minister Tinne Van der Straeten said that the Port of Zeebrugge was ready to begin imports of liquefied natural gas (LNG) from the US and elsewhere.

Van der Straete called on Belgians to ‘Insulate your homes, isolate Putin.’

Denmark: Rockwool recorded consolidated sales of Euro924m in the first quarter of 2022, up by 38% year-on-year from first-quarter 2021 levels. The group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 12% year-on-year to Euro155m.

CEO Jens Birgersson “High demand and sales price increases drove double-digit revenue growth across almost all business units. While not materially affecting sales performance at this point, the terrible war in Ukraine and the challenging geopolitical situation are contributing to an already stressed global economy. Even with the price increases, the soaring energy, material, and logistics costs diluted margins in the first quarter. This will necessitate further price increases across the businesses.” Birgersson added “We expect to restore margins in the coming quarters.”

In its Outlook 2022, Rockwool predicted full-year net sales growth of 20 – 25% in local currencies and Euro425m-worth of group investments during the year, excluding acquisitions. It says that its business in Russia continues operating on a stand-alone basis, in order to avoid nationalisation and loss of its intellectual property.

US: ADFORS Americas, a Saint-Gobain subsidiary, plans to invest US$28m in expanding its Dublin, Georgia, glass wool products plant. Dow Jones Institutional Newswires has reported that the facility serves Saint-Gobain’s glass wool insulation production. Once completed in 2024, the expansion will create 400 new local roles in serving the plant’s operations.

The Georgia state government has contributed US$12m in tax credits towards the project’s funding.

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.”

Estonia: Insulation prices are reportedly 20% higher than prior to the Russian invasion of Ukraine due to increased production costs. Members of the Estonian Association of Construction Entrepreneurs (ACE) have threatenened to terminate all public sector construction contracts due to untenable costs. Other building materials have risen in cost to as much as double their pre-invasion price.