Insulation industry news from Global Insulation
Kingspan reports 2023 results
19 February 2024Ireland: Kingspan’s sales declined by 3% to Euro8.09bn in 2023 from Euro8.34bn in 2022. Its insulation sales fell by 8% and its insulated panels sales by 9%. Meanwhile, roofing and waterproofing sales grew to reach Euro500m. The group’s profit after tax rose by 6% to Euro654m from Euro616m. It invested Euro248m in new acquisitions throughout the year. Kingspan plans to invest Euro750m up to 2028 in order to capture 15% of the flat roofing market in North America.
CEO Gene Murtagh "Beyond insulation, each of our climate-focussed business units across roofing and waterproofing, light, air and water and data and flooring are scaling at pace with every potential for each to exceed Euro1bn divisional revenue over the coming years.” Murtagh added “Given our robust balance sheet, strong development pipeline, strong structural demand for energy efficiency and the ever increasing and obvious impacts of climate change, we expect 2024 to be a year of continuing strategic and operational progress for Kingspan.”
Knauf Insulation celebrates 45 years of business in the US
21 November 2023US: Germany-based Knauf Insulation celebrated the 45th anniversary of its US operations earlier in November 2023. The producer first entered the market following its acquisition of the Shelbyville glass wool insulation plant in Indiana in 1978. It has since grown its business from 450 employees at the Shelbyville plant to 1600 employees across six different sites.
Knauf North America CEO Matt Parrish said “Our commitment to innovation and sustainability has been a driving force behind our continued success and we are excited for what the future holds. As we look ahead, we will continue to prioritise our employees, customers, and the communities we serve, with a focus on creating innovative solutions that shape the way we live and build."
Kingspan’s nine-month sales drop in 2023
06 November 2023Ireland: Kingspan reported sales of Euro6.14bn during the first nine months of 2023, down by 1.8% year-on-year. During the period, its insulation sales fell by 7%, while its insulated panels sales rose by 10%. Insulated panels recorded single-digit volumes growth across all regions during the third quarter of the year. Kingspan expects to deliver a full-year trading profit greater than in 2022.
Germany: Masterplast has inaugurated the new Euro3m storehouse at its Achersleben non-woven fleece products plant in Saxony-Anhalt. The plant produces non-woven fleece products for various applications from polyethylene (PE) and polypropylene (PP). Masterplast has announced a budget for Euro50m of upcoming investments across Central and Eastern Europe.
Chair Tibor David said “The new hall allows for flexible, smaller-scale servicing and is a crucial step in strengthening our market positions in the EU's largest market.”
Serbia: Masterplast has concluded a deal to acquire the outstanding 49% stake in mineral wool insulation producer Masterwool MW-1. Masterwool MW-1 is currently building a new Euro20m mineral wool insulation plant in Vojvodina. The project is supported by a grant from Hungarian state-owned Hungarian Export Promotion Agency (HEPA).
Masterplast plans to commence a Euro50m growth phase in the near-term future. It expects its sales to drop in the first half of 2023 due to negative trends in new home construction. However, it expects recent new expanded polystyrene (EPS) and extruded polystyrene (XPS) insulation capacity to partly offset this.
Kingspan increases full-year sales in 2022
21 February 2023Ireland: Kingspan's consolidated sales rose by 28% year-on-year to Euro8.3bn in 2022 from Euro6.5bn in 2021. The group's profit after tax also rose, by 8% to Euro616m from Euro571m. Its turnover from insulation sales rose by 40% to Euro1.66bn, while its turnover from insulated panels sales rose by 23% to Euro5.18bn. Panel volumes were reportedly 'more challenged' during the second half of the year.
CEO Gene Murtagh said “The 2022 outturn was very satisfactory in the context of accumulating uncertainty over the course of a bumpy year, which saw a strong first half performance giving way to a more subdued environment in the second half." He added "Given the powerful combination of our global scale, the diversity of our end markets, our ability to grow organically and through acquisition, alongside our strong innovation pipeline and an ongoing societal drive for energy efficiency, we believe Kingspan is very well placed for continuing progress for the benefit of all stakeholders."
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.”
Holcim completes SES Foam acquisition
01 August 2022US: Global cement producer Holcim has successfully acquired leading US independent spray foam producer SES Foam. SES Foam has a track record of double-digit growth and expects to record sales revenues of US$200m in 2022, according to Holcim. The group says that the producer stands out for its value-added services to contractors, including onsite technical instruction, business consulting, branding and lead generation support.
Global head of solutions and products Jamie Gentoso said “I warmly welcome all SES employees into the Holcim family. With SES’ leadership in thermal insulation, we are expanding our range of innovative systems for sustainable buildings, from roofing to insulation, to enhance buildings’ energy-efficiency. We look forward to entering our next era of growth together.”
Switzerland: Holcim increased its consolidated sales by 17% year-on-year to US$15.3bn in the first half of 2022 from US$13.1bn in the first half of 2021. Its recurring earnings before interest and taxation (EBIT) were US$2.26bn, up by 9.6% from US$2.06bn. Solutions and products sales grew by 84% to US$2.72bn from US$1.48bn and accounted for 18% of group sales, compared to 8% of its full-year 2020 sales. The group’s operating profit rose by 15% to US$2.15bn from US$1.86bn, while its net debt rose by 7.5% to US$13.9bn from US$12.9bn.
Holcim called market conditions “volatile,” but forecast net sales growth of 10% year-on-year on in 2022, upgraded from 8%. The group forecast double-digit net sales growth in its Solutions and Products division to US$5.2bn for the year. It also expects to end the year with accelerated progress towards its 2025 sustainability targets, positive growth in its recurring EBIT and a free cash flow above US$3.12bn.
Chief executive officer Jan Jenisch said “Our record results, from net sales to recurring EBIT and earnings per share, are setting solid foundations to deliver our Strategy 2025 - Accelerating Green Growth. Our roofing and insulation businesses stood out as growth engines, on track to reach pro-forma net sales of US$3.64bn in 2022.”
Ireland: Kingspan says that it expects to record a profit of Euro415m in the first half of 2022, up by 26% year-on-year from Euro329m in the first half of 2021. The company noted that its global backlog of insulated panels orders fell by 2% year-on-year in volume on 31 May 2022, having previously been up by 19% year-on-year on 31 March 2022. It said that order volumes nonetheless remained above 2019 levels.