Insulation industry news from Global Insulation

France: Sales from Arkema’s High Performance Materials division, which includes insulation products, rose by 12.5% year-on-year to Euro1.97bn in the first half of 2017 from Euro1.75bn in the same period of 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 8.3% to Euro340m form Euro314m. The chemical producer mainly attributed the boost in sales to its acquisition of sealant producer Den Braven in late 2016. Overall the company also reported increases in sales and EBITDA.

US: Huntsman Corporation’s Polyurethane division has increased its sales revenue by 9% year-on-year to US$1.98bn in the first half of 2017 from US$1.81bn in the same period in 2016 due to raised prices. It increased its prices of methylene diphenyl diisocyanate (MDI) to counter higher raw material costs and to benefit from a ‘strong’ market. However, sales volumes of MDI decreased in the reporting period due to maintenance outages. This caused its divisional adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) to fall in the second quarter of 2017 although it rose as a whole for the half year. Amongst other products the chemical manufacturer produces polyurethane, which is used by the insulation industry.

US: Stepan’s Polymer division sales volumes fell by 7% year-on-year in the second quarter of 2017. This was due to lower phthalic anhydride (PA) and global rigid polyol volumes, although it was partially offset by higher Specialty Polyol volumes. The division’s sales revenue rose by 8% to US$268m in the first half of 2017 from US$248m in the same period in 2016. However, its operating income fell by 20% to US42.7m from US$53.1m due to rising costs and falling volumes.

"The second quarter adjusted net income exceeded prior year as the company continued to benefit from our diversification strategy, increased productivity and improved margins within our Surfactants and Specialty businesses. Rising raw material costs and increased competitive pressure contributed to a disappointing quarter for our Polymer business. The global market for rigid polyols continues to be strong," said F Quinn Stepan, Jr, chairman, president and chief executive officer (CEO).

The company produces aromatic polyester polyols for use in rigid polyisocyanurate and polyurethane foams that are used in insulation and other products.

US: Lapolla Industries’ spray foam sales revenue increased by 21% year-on-year to US$41.7m in the first half of 2017 from US$34.4m in the same period in 2016. Overall its sales including its smaller coatings business rose by a similar amount and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% to US$4.26m from US$3.98m. It attributed the result to increased uptake of spray foam insulation in the market.

UK: The British Rigid Urethane Foam Manufacturers’ Association (BRUFMA) has said that the materials tested so far by BRE Group, following the Grenfell fire in June 2017, do not meet building regulations and would never be recommended or approved for use by the members of BRUFMA in a real building.

The Department for Communities and Local Government (DCLG) has commissioned six BS 8414 tests using a combination of materials, including the make-up of the outer cladding system. The first aluminium composite material (ACM) cladding test, carried out by BRE combined an assembly of polyisocyanurate (PIR) insulation used in conjunction with an unmodified polyethylene filled ACM cladding panel. Both PIR foam and mineral wool are being tested with each cladding system.

BRUFMA described the situation as ‘worrying’ that a number of buildings have been identified with this combination, indicating a lack of compliance to existing rules and regulations. However, it has advised that all six tests should be completed satisfactorily before any analysis is drawn and remedial action is proposed by the government. It also highlighted that PIR insulation manufactured in the UK and Ireland that is recommended for use in high-rise buildings is tested with the BS 8414 fire test as part of a complete ventilated rainscreen system.