Insulation industry news from Global Insulation

Spain: Saint-Gobain Isover has launched the Geowall range of stone wool insulation. The range consists of Geowall 34, Geowall 35 and Geowall 37. The company says that the range replaces its Acustilaine products. It is non-hydrophilic and uncoated for excellent thermal and acoustic performance. It called Geowall the ‘optimal choice’ for the design and execution of laminated gypsum board systems.

Ireland: Kingspan recorded full-year consolidated sales of Euro4.58bn in 2020, down by 2% year-on-year from Euro4.66bn in 2019. Profit for the year from continuing operations was Euro385m, up by 2% from Euro378bn. Earnings before finance costs, income taxes, depreciation, amortisation (EBITDA) increased by 3% to Euro597m from Euro580m. Insulation boards sales fell by 10% to Euro787m from Euro877m. Kingspan’s trading profit from insulation boards fell by 6% to Euro117m from Euro110m.

The group said, “2020 was a tumultuous year for Kingspan, as it was for many. After a relatively strong start, April and May saw a deep reduction in activity in many markets, followed by a rebound towards mid-year and ultimately a strong finish in the fourth quarter.” It added, “Globally, governments reacted in varying ways to the crisis which resulted in an economic experience which was equally variable. All markets suffered interruption to some degree, although in our case it was particularly acute in the UK, Spain, Canada and Ireland. Most other markets recovered to, and in some cases exceeded, the performance of 2019.”

In late 2020, the company made changes following the Grenfell Tower fire inquiry’s ‘highlighting’ of ‘historical behaviours’ affecting the company’s role as indirect supplier of some of the building’s insulation. Chief Executive Officer Gene Murtagh said, “The unacceptable conduct and historical process shortcomings, involving a small number of employees in our UK insulation boards business, do not reflect the high standards of integrity and safety that are core Kingspan values, deeply held by our people. We have already implemented several important changes that demonstrate our commitment to product compliance and good governance. Our aims are clear: to reassure that safety takes precedence over all other considerations and to ensure this can never happen again.” The changes include the launch of a new code of conduct, new testing protocols and the publication of all test reports.

Russia: Saint-Gobain has announced plans to build a 50,000t/yr-capacity stone wool plant in Siberia. The company says that the decision aims to help it better meet the growing needs of consumers in Siberia, Kazakhstan and the Far East. It will produce the insulation material using basalt. The total estimated cost of the project is around US$35m, with commissioning scheduled for 2023.

Russia, Ukraine and Commonwealth of Independent States regional chief executive officer Antoine Peyrude said, “The new production complex will allow us to better respond to the demands of the local market, whose demand for innovative energy-efficient solutions is constantly growing.”

US: Owens Corning’s full-year consolidated net sales were US$7.06bn, down by 1% year-on-year from US$7.16bn in 2019. Its loss before interest and taxes was US$124m, compared to earnings before interest and taxes (EBIT) of US$753m in 2019. Earnings were negatively affected by a non-cash pre-tax impairment charges of US$987m related to its insulation division, recorded in the first quarter of 2020 and driven by the economic uncertainties associated with the Covid-19 pandemic. Insulation sales fell by 2% to US$2.61bn from US$2.67bn, while insulation EBIT rose by 10% to US$250m from US$230m. Sales from its composites division also fell but rose for roofing.

Chair and chief executive officer Brian Chambers said, “Our global team demonstrated great flexibility and resolve to deliver strong financial results in an unprecedented year. These results showed the strength of our businesses and the earnings power of our company. In 2021, we will continue to focus on the health and safety of our teams, serving the needs of our customers, and positioning the company for long-term success.”

Denmark: Rockwool recorded net sales of Euro2.60bn, down by 4% year-on-year in local currency terms. Profit for the year fell by 12% to Euro251m. Sales were supported in regions where construction was able to remain active throughout the coronavirus lockdowns. The company noted a strong recovery in the fourth quarter of 2020.

Chief executive officer Jens Birgersson said, “Looking back on a turbulent year, we are proud of how well our colleagues handled the many challenges. Our teams ensured employees were safe while quickly adjusting operations, sales and service to match the changing needs of our customers.”

The company plans to make Euro370m of investments, excluding acquisitions in 2021. Planned investments include a new plant in the US and a plant relocation in China, in addition to capacity expansions for its Rockfon and Grodan stone wool businesses.

The group said, “The underlying medium to long-term structural growth drivers for stone wool products are even stronger today than at the start of 2020. On top of fundamental trends like urbanisation and increasingly tighter building regulations, we expect that several other trends will continue driving growth in our business. For example, the growing focus on energy efficiency, fire safety and circularity continues to influence the decisions of consumers, the building industry and policymakers, with the pandemic accelerating these trends in multiple ways.”