Insulation industry news from Global Insulation

Germany: BASF’s Performance Products division’s sales fell by 5% year-on-year to Euro7.94bn in the first half of 2018 from Euro8.4bn in the same period in 2017. Its earnings before interest and taxation (EBIT) fell by 41% to Euro879m from Euro920m. The company blamed the falling sales and earnings on negative currency effects as well as reduced sales volumes from its Nutrition & Health division. The chemical producer manufactures polyurethane-based insulation foams as part of its Performance Products division. Overall, BASF’s sales and its EBIT grew in the reporting period.

Malaysia: Knauf Insulation plans to build a Euro120m glass mineral wool plant at Johor Bahru. The new unit will have a production capacity of 75,000t/yr. It is scheduled to be completed in early 2020 and will create 180 jobs in Malaysia as well as a further 60 new positions across the region.

“We have seen record sales due to increasing energy costs across Asia and more stringent energy-saving building regulations in countries such as Australia, Japan and Korea,” said Stuart Dunbar, Regional General Manager for the Asia Pacific Region at Knauf Insulation.

The new plant will use up to 80% post-consumer recycled glass in the manufacturing process and feature Knauf patented high compression packaging. All products will be made using Knauf Insulation’s Ecose binder.

The company also intends to use Malaysia’s shipping links to develop new distribution partnerships in South-East Asian countries and strengthen its presence in the markets of Japan, Australia, Korea, New Zealand and Singapore.

US: Owens Corning’s insulation business sales rose by 53% year-on-year to US$1.28bn in the first half of 2018 from US$838m in the same period in 2017. Overall, the company’s net sales rose by 14% to US$3.52bn from US$3.08bn. However, its earnings before interest and taxation (EBIT) fell by 6.4% to US$360m from US$337m.

“Owens Corning grew revenue by 14% on the contribution of Insulation acquisitions and successful pricing actions in both Roofing and Insulation. The company made significant commercial progress in the first-half of the year, partially offset by operational headwinds,” said chairman and chief executive officer (CEO) Mike Thaman. He added that the company expects continued commercial execution and improved operational performance with ‘strong’ financial results in 2018 and into 2019.

New Zealand: Energy and Resources Minister Megan Woods has officially launched the Warmer Kiwi Homes insulation programme in Christchurch. The US$96m programme is intended to give low income homeowners grants covering two thirds of the cost of ceiling and underfloor insulation. The first year of the programme will focus on insulation grants, with grants for heating available from July 2019.

Egypt: Amir Naguib, the head of GlassRock Insulation, said that the company's total investments reached US$63m by the end of 2017. The company supports the government’s plans to install thermal insulation in commercial, industrial, and residential facilities, according to Daily News Egypt. The mineral wool insulation producer has a production capacity of 50,000t/yr.