Global Gypsum Newsletter

Issue: GGM38 / 11 December 2017

Headlines


UK: Russia’s TechnoNicol is to spend Euro42m towards upgrading its mineral wool plant in Stirling operated by Superglass. The investment will double the plant’s production capacity to 60,000t/yr. The upgrade work will include installing a new 187t furnace and curing ovens. Cooling, cutting and milling equipment will be replaced and an automatic packing system will be installed. Construction will start early in 2018.

“TechnoNicol’s backing is a real vote of confidence in Scottish manufacturing, both in terms of the quality of the work we do here and the expertise of the workforce. It is a validation of our strategy within Superglass over recent years and very personally satisfying for me to see further consolidation of the initial investment at our regional headquarters,” said Ken Munro, chief executive officer (CEO) of TechnoNicol UK, Ireland and USA which incorporates the Superglass business.

TechnoNicol operates 52 manufacturing facilities across Russia and Europe.


Romania: Saint-Gobain Isover plans to reopen its glass wool production line at its Ploiesti plant in July 2018. The line is expected to restart following a complete furnace rebuild and other upgrades. 50 new jobs will be created in production, logistics and administrative departments.

“The production line allows Isover to adapt its glass wool production capacity to the market demand in the region, given that Romanian market is the largest of the South-East European region. Our decision was generated by the positive trend registered by the construction market in the past year, a trend that is expected to continue over the next years as well,” said Ovidiu Pascutiu, General Manager for Saint-Gobain Rigips and Isover Romania.

Isover has also announced plans to upgrade its stone wool production line at the Ploiesti plant in 2018. The production capacity of the line will be increased by 30,000t/yr in 2019 following the Euro50m upgrade.


Switzerland: Denmark’s Rockwool has purchased all the shares of Flumroc. Previously Rockwool owned a 43.5% share in the Swiss mineral wool producer. Flumroc operates two plants in the country and it sells its products mainly in Switzerland with limited exports to France and Italy. The company will continue to operate under the Flumroc brand.


UK: Knauf Insulation has appointed Vanessa Rae as Marketing Director to lead all Northern European marketing activities. She brings over 20 years experience in business-to-business marketing roles in Belgium, Germany and the UK. Previously she worked as the head of marketing and communications for the digital organisation at Rolls-Royce. Prior to this, Rae managed international marketing teams at Kingspan Insulated Panels and NSG Group (Pilkington Glass).


Romania: Rockwool Group has announced plans to build a basalt mineral wool production plant in Romania, a project worth an estimated Euro50m. The basalt mineral wool plant, Rockwool Group's first in Romania, will create around 150 jobs, while an additional 300 will be created indirectly in services and logistics, Rockwool said in a press release. The process of issuing permits and authorisations was already initiated, so that production of basalt mineral wool is expected to start in 2019.

The new production unit will spread over approximately 30 hectares in Ariceştii Rahtivani commune near the southern city of Ploiesti. The project will strengthen the group's strong presence in Romania, a market that has been active for almost 20 years through its local sales branch.

The plant will contribute to the growth of the local economy, given that most of the raw materials and logistics services will come from Romania, and most of the workforce directly employed by Rockwool or the subcontractors will be local, the company said.

"This investment will allow us to better support Romania's efforts to increase fire safety and energy efficiency in its buildings,” said Rockwool Group’s Senior Vice President Gilles Maria. “We encourage the government to continue to work with the EU Member States within the Firefighting Information Exchange Platform (FIEP) as well as other initiatives that will improve the fire safety regulations.”


Denmark: Rockwool’s sales revenue for its insulation business has been driven by sales in Western and Eastern Europe. Its sales rose by 7.6% year-on-year to Euro1.31bn in the first nine months of 2017 from Euro1.22bn in the same period in 2016. Its earnings before interest and taxation (EBIT) rose by 18% to Euro129m from Euro109m. Earnings growth was driven by sales growth, improved pricing quality and a better utilisation of its US plant. Overall group sales and earnings also rose.


Netherlands: The PolyStyreneLoop (PSL) Cooperative has inaugurated the European expanded polystyrene (EPS) / extruded polystyrene insulation (XPS) industry’s closed-loop project for the recycling of polystyrene (PS) insulation foam waste in Amsterdam. The research is testing a concept to dissolve the recently restricted chemical, Hexabromocyclododecane (HBCD), from PS foam waste while also allowing for the recovery of bromine, which can then be used again for the production of new flame retardants. The PSL project is intended to help the European Union (EU) deal with an expected 20Mt of insulation material containing HBCD that will need to be disposed of in the next 50 years.

The PolyStyreneLoop demonstration plant aims to begin operations in 2018 and will have the capacity to treat up to 3300t/yr of PS waste. Once up and running, the PolyStyreneLoop project will be able to cope with incoming PS foam waste streams and produce recyclate that could be used in new PS foam insulation installations. The new initiative has been financed and built by the 56 members and supporters of the PolyStyreneLoop Cooperative. The EU has also supported it financially.

The association for European Manufacturers of Expanded Polystyrene (EUMEPS) said that recycling PS foam typically saves as much as 50% CO2 emissions compared to using it for energy recovery. It added that it believes that the technology it is testing offers an additional contribution to resource efficiency at the end-of-life phase for PS foam insulation, on top of the CO2 emissions already saved by reducing energy consumption during the long-use phase of a building.


Ireland: Kingspan Group’s sales of insulation board and panels have grown strongly so far in 2017. Its board sales grew by 16% year-on-year in the first nine months of 2017 and its panel sales grew by 10%. Overall, the group’s sales revenue rose by 19% to Euro2.69bn. It attributed the growth in revenue for its insulation products to passing on costs from rising input costs. Its French market was reported as notably positive, although the UK market was described as ‘indecisive’ around order placement for board sales. It added that its Kooltherm product continues to outgrow its other insulation materials.


Czech Republic: Rockwool is planning to use its Bohumin plant’s full production capacity to make mineral wool in 2017. In 2016 the unit produced a record 4Mm3 of the product and so far it has produced 80% of this in the first nine months of 2017, according to the CIA news agency. The increased production levels follow an upgrade at the site in 2015. Insulation products from Bohumin are sold locally, in Slovakia and elsewhere in Europe.


Romania: Austrotherm has opened an insulation plant at Arad. The Austrian company opened its third expanded polystyrene (EPS) plant in the country in early November 2017. The unit is intended to serve Transylvania and other western regions.

The company originally entered the Romanian market in 1999 with an EPS plant in Bucharest. A second plant at Horia was opened in 2006. Production of extruded polystyrene (XPS) insulation followed at this site in 2008.


Germany: Xella International has announced changes to the management of its subsidiary Ursa. Jochen Friedrichs has been appointed as the chief executive officer (CEO) of its subsidiary Ursa. He will also join the Xella Group Executive Committee. Xella said Friedrichs was responsible for the acquisition of Ursa on the Xella side of and therefore holds ‘detailed’ knowledge of both Ursa and Xella.

Other appointments include the assignment of Björn Baum as the Chief Technology Officer (CTO) of Ursa. He will also remain as the Head of Xella Group’s Energy Management. Joaquín Lozano Agramunt will retain his position of Chief Financial Officer (CFO) at Ursa. In addition, Ana Lluch Martinez, Chief Legal and HR, and Gonzalo de las Alas-Pumariño, Head of Technology and Projects, will become members of the Ursa Executive Committee.

Xella International announced that it was buying Spain’s Ursa in August 2017. The European Commission approved the acquisition of the insulation producer by Xella in October 2017. The acquisition is expected to compete by the end of 2017.


UK: The British Rigid Urethane Foam Manufacturers’ Association has changed its name to the Insulation Manufacturers Association (IMA). The association said that the new name reflects the position that polyisocyanurate (PIR) and polyurethane (PUR) insulation manufacturers hold in providing the largest share of insulation products used in the UK market. It added that given expected growing market share of organic-based insulation products that, “…the trade association has a responsibility to ensure it is the principal point of contact for all audiences relevant to this sector with a name that reflects this responsibility.”

Simon Storer, Chief Executive of IMA said that the association need to move towards a wider audience that wasn’t necessarily used to technical or industry language. “Events of this year certainly brought this need into sharp focus, as many commentators and other interested parties were unable to immediately identify which trade association spoke for which part of the industry. We also wanted to be sure that as an association we are solely responsible for and have ownership of the messages coming from this sector.”


US/Finland: Owens Corning has signed an agreement with CVC Capital Partners to acquire Paroc Group for Euro900m. The sale, which is subject to regulatory approvals and other customary conditions, is anticipated to close in early 2018. The company plans to finance the acquisition through a combination of long-term debt and pre-payable bank financings.

“The acquisition of Paroc delivers on Owens Corning’s strategy to provide our customers with a portfolio of insulation products that cover the full temperature spectrum in the three largest insulation markets – Europe, North America and China. Over its 80-year history, Paroc has earned a reputation for high-quality products and technical expertise,” said Owens Corning chairman and chief executive officer Mike Thaman.

The acquisition of Paroc is expected to expand Owens Corning’s mineral wool technology, grow its presence in the European insulation market, provide access to a variety of new end-use markets and will increase the company’s sales mix of the insulation business outside the US and Canada to 35%.

Paroc is a European manufacturer of mineral wool insulation solutions for a variety of end markets. Paroc manufactures building insulation for thermal, fire and acoustic applications in residential and commercial construction. The company also manufactures technical insulation for HVAC (heating, ventilation, and air conditioning) systems, industrial processes and the marine, offshore and original equipment manufacturer industries. It employs over 1800 people in 13 countries and operates facilities in Finland, Lithuania, Poland, Russia and Sweden.


US: Growth in insulation sales revenue and earnings have contributed to Owens Corning’s overall growth so far in 2017. Net sales from its insulation business grew by 10% year-on-year to US$1.41bn in the first nine months of 2017 from US$1.28bn in the same period in 2016. Its earnings before interest and taxation (EBIT) grew by 7% to US$98m. The group’s overall net sales rose by 11% to US$4.78bn.

“Owens Corning delivered another strong quarter, despite some isolated market challenges. We remain confident in our ability to finish the year with strong financial performance,” said chairman and chief executive officer (CEO) Mike Thaman. He added that the company was ‘particularly’ pleased with the contribution of the newly acquired Foamglas business within its insulation business.

In its insulation business, EBIT grew due to higher prices and sales volumes. US volume growth slowed in September 2017 but the company said the segment was experiencing a recovery so far in the fourth quarter of 2017.

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