Global Gypsum Newsletter

Issue: GGM48 / 13 June 2022

Headlines


Germany: Saint-Gobain has appointed Danijel Lučić as the head of sales for its Germany-based subsidiaries Saint-Gobain Isover G+H and Rigips. He succeeds Dirk Borgmann, who has decided to leave the company. Lučić will take up his new positions from July 2022.

Lučić has worked for nearly 30 years with Saint-Gobain Group with much of it in the insulation sector. This has included roles with Saint-Gobain HES and Superglass Dämmstoffe.


Russia: URSA Eurasia has appointed Alexander Trubitsyn as its general director for the production of thermal insulation materials. Previously he held the position of the Director of Production and Logistics at the company. Trubitsyn succeeds Denis Shvydkoi in the post. Shvydkoi will manage international projects for URSA Group, based at the company's head office.


Ukraine: Ireland-based Kingspan plans to spend Euro200m towards building a ‘Building Technology Campus’ in Ukraine. The site will be used to manufacture insulation and district heating products. Development of the project is due to start immediately with eventually commissioning forecast for 2027. The insulation company has appointed a project team to identify a suitable site, likely to be in the west of the country, and is liaising with the Ukrainian Government. Over 600 jobs are expected to be created when the site opens.

Gene Murtagh, the chief executive officer of Kingspan Group, said “This investment sits at the crossroads of three crises: the climate crisis, the energy security crisis, and the crisis caused by the Russian war against Ukraine. The new Building Technology Campus we are planning will make positive contributions on all three fronts, supporting Ukraine as it rebuilds its economy, meeting demand across central and Eastern Europe for energy efficient buildings, and helping Europe to reduce reliance on oil and gas imports.”

Kingspan previously said it had exited the Russian market and divested its operations to local management in April 2022 following a decision made in March 2022.


Russia: Denmark-based Rockwool says that it is running its four plants in Russia as a standalone operation. However, it is continuing conducting business to avoid the nationalisation of its assets and the loss of its intellectual property. The insulation producer previously said that it had cancelled all investments in the country since the start of the war in Ukraine.


UK: Norway-based BEWI has acquired an additional 51% stake in Jablite Group for around Euro12m making it the sole owner. It previously purchased a 49% stake in the expanded polystyrene (EPS) insulation products producer and civil engineering provider in June 2020. At the time Jablite initiated a restructuring programme due the negative effects of the coronavirus pandemic and resulting lockdowns. As part of the programme it also closed two of its facilities.

The current management of Jablite, including managing director Richard Lee and finance director John Cooper, will continue in their roles going forward. Rik Dobbelaere, a previous chief executive officer (CEO) of Synbra Holding and BEWi Synbra Group, and director of the board of BEWI ASA, has been director of the board of Jablite since BEWI’s acquisition of the 49% stake in 2020.

“We are very pleased to now be able to include Jablite fully to our team. The company has shown an impressive development the last two years, and we look forward to further strengthen our market position in the UK together going forward,” said Christian Bekken, CEO of BEWI. He added that Jablite’s operations would complement the UK-based operations of Jackon well and that synergies were expected by combining the two companies once the acquisition Jackon transaction is completed. BEWI started to buy the Norway-based supplier of insulation and construction systems in late 2021.

BEWI is an international provider of packaging, components and insulation products.


Spain: Etex has completed its acquisition of extruded polystyrene (XPS) and glass wool insulation producer URSA from Xella Group. URSA operates 13 plants and employs 1700 people.

Xella CEO Christophe Clemente said “With this portfolio simplification, Xella takes an important step, to focus its resources on the development of building materials solutions. With our complementary product types, autoclaved aerated concrete and calcium silicate products, we aim to strengthen our position as a leading European supplier of masonry solutions. I warmly thank the URSA teams for their achievements during the successful past years within Xella Group and wish them a bright future with Etex.”


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.’


US: Knauf Insulation has won a contract to recycle waste glass bottles from the NTT IndyCar Series Big Machine Music City Grand Prix in Nashville, Tennessee, on 5 – 7 August 2022.

Knauf Insulation’s vice president of sustainability and health, safety and environment Chris Mahin said "These types of unique recycling opportunities are valuable for Knauf as we continue to seek alternative sources for glass – the main ingredient in our high quality glass wool insulation.”


US: The Asthma and Allergy Foundation of America (AAFA) and Allergy Standards Limited (ASL) have certified Knauf Insulation’s Fiberglass Acoustic Panel glass wool insulation panel as Asthma and Allergy Friendly. The certification attests the product’s ability to limit pollutant and allergen exposure in the indoor environment.

Knauf Insulation’s senior vice president of customer experience, innovation, and sales Nathan Walker said “This Asthma and Allergy Friendly certification is evidence of Knauf’s commitment to providing high quality products that can improve indoor air quality and help create healthier home environments.”


US: Knauf Insulation is celebrating the 20th anniversary of the beginning of operations at its Shasta Lake glass wool insulation plant in California. Local press has reported that the company increased its capacity by 70% over the past two decades. Today, the Shasta Lake plant employs 156 people. It has implemented sustainable practices in its production, including the use of ECOSE Technology plant-based binders in the place of petrochemical alternatives. It also recycles 600,000 glass bottles daily, constituting 50% of its glass consumption. This presented the plant with difficulties when Covid-19 lockdowns reduced local waste glass generation.


Belarus: Gomelstroymaterialy has entered talks with the administration of St Petersburg’s Krasnogvardeyski District over the possible start of exports of insulation and wall panels to the Russian population centre. Business World Magazine has reported that construction, especially of social facilities, is also an area in which the local government officials say they would like to advance cross-border cooperation.


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.


UK: 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.


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.


Poland: 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.


France: The Swiss multinational cement manufacturer Holcim has completed its acquisition of the French speciality building solutions producer PRB Group. The leading cement producer outside of China said that the acquisition will accelerate its transformation into a 30% solutions and products company in sales terms by 2025.

Europe, Middle East and Africa regional head Miljan Gutovic said “I warmly welcome all members of the PRB Group into the Holcim family. I’m excited about the outstanding expertise and passion they bring to our team in France. This is another exciting step in the expansion of solutions and products in the highly attractive repair and refurbishment market. We look forward to unleashing our next era of growth together to make cities greener with more energy-efficient and long-lasting buildings.”


Romania: Knauf Insulation has completed its acquisition of Gecsat. Business World Magazine News has reported that Gecsat operates a glass wool insulation plant in Tarnaveni, Mures County. In 2020, it recorded revenues of Euro6.6m. Knauf Insulation’s Romanian portfolio includes glass wool, basalt mineral wool and wood fibreboard operations.

Knauf Group management committee member and Insulation Europe, Middle East and Asia chief executive officer Dominique Bossan said "The acquisition of the Romanian plant will support Knauf Insulation's growth goals and provide additional capacity to meet the growing demand for our insulation solutions in the region.”


Belgium: The Programme for the Endorsement of Forest Certification (PEFC) has certified Recticel Insulation’s Recticel Eurothane GP, Eurothane Eurodeck and Eurowall Cavity polyisocyanurate (PIR) and polyurethane (PUR) as meeting good forest management standards. This ensures customers that the products’ multilayer paper facings are sustainably sourced.

Head of technical management Dirk Vermeulen said “With the PEFC label on our insulation products, we provide proof of our commitment to sustainability to architects, turnkey companies, project developers and contractors, as well as end-users.”

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