Insulation industry news from Global Insulation

UK: Around 900 people have reached a settlement at the High Court related to civil claims following the fire at Grenfell Tower in 2017. A total settlement figure of Euro170m has been set by the court, according to ITV News. However, the civil claim will have no determination on the ongoing public inquiry into the fire and any potential future criminal charges.

Both cladding company Arconic and insulation producer Celotex have been part of the various civil legal cases. Celotex, a subsidiary of Saint-Gobain, said that “without admission of liability” it had agreed to make a financial contribution towards the settlement. It added that, “Celotex and the Saint-Gobain Group reaffirm their deepest sympathies to everyone affected by the fire.” Kingspan has also confirmed its involvement in civil cases relating to the fire at Grenfell Tower in a statement reported upon by Building magazine.

Malaysia: Knauf Insulation APAC’s Johor Bahru mineral wool plant has made its first export of unfaced glass wool to Japan. The company said that it has obtained Certification for Japanese Industrial Standards and is now able to begin supplying customers in that market. The 75,000t/yr Johor Bahru plant officially opened in mid-2022. However, the unit reportedly started export glass wool products to Australia in 2021.

UK/Ireland: The UK Housing Secretary Michael Gove has invited Ireland-based Kingspan to enter into discussions over a possible contribution by the company towards fire safety renovations on unsafe buildings across the UK. Following the deadly Grenfell Tower fire of June 2017, extensive UK housing stock was found to be unsafe due to the presence of flammable materials in exterior insulation systems. In an open letter, Gove said “Those companies who do not share our commitment to righting the wrongs of the past must expect to face commercial consequences.”

The Irish Times newspaper has reported that Kingspan previously said that it would contribute to 'an appropriate joint government and industry-wide funding mechanism' for the policy. Kingspan's Kooltherm K15 phenolic insulation accounted for 5% of Grenfell Tower's insulation. Kingspan clarified that it was not responsible for the supply of the insulation used in construction of the tower.

Russia: Denmark-based Rockwool addressed the reasoning behind its decision to keep its Russian business operating, in light of the on-going Russian invasion of Ukraine since February 2022. Rockwool's Russian subsidiary continues to operate four stone wool insulation plants, without receiving any investments or supplies from the parent company. Esmerk M-Brain News has reported that Rockwool described itself as a 'passive shareholder' in the business.

Speaking at Rockwool's annual general meeting, chair Thomas Kähler said that the group's continuing ownership of its activities in Russia is the group’s 'least bad option.' Addressing the purported possibility of nationalisation of any assets abandoned by Rockwool, Kähler reportedly added "It will not benefit Ukraine to send value in the amount of between US$722m and US$877m into the hands of Russia."

In February 2023, The Danish Business Authority announced an investigation into Rockwool's alleged supply of its products to the Russian military, in breach of existing sanctions, between 2015 and 2020. The agency confirmed its launch of its investigation in a statement to Reuters. In a statement of its own, Rockwool said "We fully respect all sanctions applicable at any given time," adding that it is 'impossible for us to know or have any control over' the final destinations of its products.

Kazakhstan/Russia: The government of Kazakhstan says that it now expects Germany-based Knauf Group to relocate its Russian business to Kazakhstan. It says that this is due to the on-going Russian invasion of Ukraine, which initially led Knauf to freeze investments in the sanctioned state and suspend its trade between it and the EU from March 2022.

Deutsche Welle News has reported that Knauf Group ‘did not confirm’ the Kazakh government’s contention. In defending its decision to so far remain in Russia, Knauf Group’s chair Alexander Knauf said “It’s not about money for us, it’s about 4000 employees. Loyalty to these people means to me that I won’t send them off into an uncertain future.” Russia reportedly contributed 10% of the group's turnover in 2022.