Insulation industry news from Global Insulation

Denmark: Rockwool has reported that during the first quarter of 2014, which ended on 31 March 2014, it generated sales of Euro485m, up by 15% year-on-year.

Earnings before interest and taxes (EBIT) were Euro28.4m, up by 39% year-on-year, including Euro7.40m from the insulation sector, which was a Euro4.9m increase on the same period of 2013. EBIT for holding companies was Euro11.8m, up by Euro1.7m. Net profit during the quarter was Euro19.1m, a Euro5.8m improvement on 2013. Costs were Euro1.6m, down by Euro0.5m in 2013.

External sales of insulation products were Euro374m, up by 9% compared to the same period of 2013. In Eastern Europe, sales increased by 20%, primarily due to continued positive growth in Russia and a good market recovery in Poland. Insulation sales were positive in all world regions except for China.

Rockwool expects to achieve Euro127m in net profit for the whole of 2014 off the back of continued market recovery in many regions, particularly Russia.

Benelux Region: Building insulation and packaging group Synbra is consolidating its position in the Benelux Region, which encompasses Belgium, Holland and Luxembourg, with the acquisition of the local expanded polystyrene (EPS) activities of Knauf Insulation.

Synbra's subsidiary, IsoBouw Systems, is set to take over the region's Knauf manufacturing and sales operations, including an EPS plant in Oosterhout Municipality, Holland, by 1 August 2014. The Oosterhout plant produces EPS and wood wool products, although IsoBouw Systems said that it plans to close the EPS unit.

Synbra's Etten-Leur said that the acquisition is a strategic move for IsoBouw, which will continue to supply EPS insulation products from its own plants in the Wijchen, Someren and Oldenzaal Municipalities in the Netherlands.

"IsoBouw is the EPS specialist in the Benelux Region," said IsoBouw's general manager, Will Kemperman. "The acquired business unit fits perfectly with our current activities. This gives us even more space to focus on innovative product developments." The move will also strengthen the position of its existing customers in the market.

Knauf Insulation retains a glass wool production facility at Visé, Belgium as well as EPS plants in Germany at Wadersloh, Bad Waldsee and Hermeskeil. The firm also operates extruded polystyrene (XPS) plants in France, Italy and the UK.

US: Owens Corning has reported second quarter 2014 profits of US$21m, down from US$49m in 2013. Its net sales were US$1.36bn, up slightly from US$1.35bn in 2013. Chairman and CEO Mike Thaman said that the insulation and composites business units met expectations for the first half of 2014, offsetting weaker financial performance in its roofing division.

Vietnam: The Vietnamese Ministry of Health has proposed that the government should add asbestos, which is widely used to produce roofing sheets in Vietnam, to the list of toxic chemicals subject to a full ban. There are 36 producers of asbestos cement (AC) roofing sheets in Vietnam, with an annual production capacity of 100Mm² of roofing sheets.

Vietnam has used asbestos since the 1960s and the country is among the world's 10 largest users of asbestos, consuming and importing some 60,000t/yr. More than 90% is used to manufacture AC roofing sheets, while the rest is for the production of car brakes and thermal insulation.

Deputy health minister Nguyen Thanh Long has said that the World Health Organisation (WHO) and international cancer research agencies have warned that all types of asbestos can cause lung, larynx and ovarian cancer, as well as mesothelioma and asbestosis. Asbestosis, a disease of the lungs caused by inhaling asbestos fibres, has been recognised in Vietnam as an occupational disease eligible for compensation since 1976. Ministry research has shown that people living near an area where asbestos is used, or those living under a roof made from asbestos, can also be affected.

The Research Institute of Technology for Machinery under the Ministry of Industry and Trade have developed a non-asbestos roofing sheet production line. Polyvinyl alcohol synthetic fibre (PVA) is used to replace the asbestos, while pulp additives increase stickiness. Prices of non-asbestos roofing sheets are 10 - 15% higher than those made from asbestos.

France: Saint-Gobain has named Dirk de Meulder as director of Isover in France and CEO of Eurocoustic France. Dirk de Meulder, aged 54, started his career at the glass materials business of Saint-Gobain in Belgium. In 2009, he joined Isover as director general in Sweden and Denmark.