ROCKWOOL NEWSLETTER 2023Q3

rockwool

ISSUE 3, 2023

NEWSLETTER

Twenty years ago, we just entered the market of the Philippines. At that time, the locals were not conscious of applying non-combustible insulation materials. And they knew nothing about stone wool. We have spent a long time in visiting designing institutes, communicating with home owners, advertising on the media, promoting at the exhibitions and so on, in order to disseminate knowledge about insulation and fire-proof safety. Therefore, ROCKWOOL stone wool was gradually accepted by the local market, which has become one of our key sales areas for many years. The current economic is posing a big challenge. I am in charge of the market of Hong Kong, Taiwan, Macao and the Philippines, all of which are under different levels of pressure. However, it is during the period when the slumping economy bottoms out that we shall improve the quality of products and service, increase market publicity and enhance brand influence. On one hand, people always demand for safe, environmentally friendly, and comfortable living conditions. Stone wool materials can meet their needs. On the other hand, it is necessary for us to tell the users that the application of ROCKWOOL stone wool can reduce the frequency of air conditioning and heating, which effectively lowers the energy costs. In the UK, I can see some recently-built houses with ROCKWOOL stone wool, when heating system is off, can maintain a comfortable temperature of over 20 degrees Celsius indoors during the autumn and winter seasons. That makes me feel confident in the insulation and energy-saving performance of ROCKWOOL stone wool.

We are currently facing downward pressure on economic development, but our strategy for sustainable development will not change and people’s demand for safe and comfortable living conditions will not change, which decide that ROCKWOOL stone wool still has considerably large market space. On this basis, our NGF products have used a new formula. The healthy property of the products is incomparable. This is an innovation actively implemented by ROCKWOOL in line with industry development trends. The health property of the products shows our close attention to user’s safety and the great emphasis on green development.

The export business I am responsible for has been greatly affected by COVID-19 in the past three years. At present, the economies of Hong Kong and Taiwan are under recovery slowly, Macao's tourism industry is also picking up after experiencing a downturn, and the government is increasing the investments in infrastructure. The market in the Philippines is currently witnessing substantial growth, fuelled by the initiation of numerous construction and infrastructure projects. While we have observed the use of lower-end insulation materials in certain local projects, those that prioritize material quality still prefer our products. ROCKWOOL has successfully cultivated a robust brand image and an extensive distribution network within the local market. Throughout the years, our unwavering dedication to ensuring the quality of our products and services has been pivotal in gaining the trust of our customers. By taking the unique 

Opening article

demand  for top-notch sandwich panel stone wool core materials. We have high expectations that the products from our Qingyuan factory will garner an increased market share in Taiwan shortly afterwards.

ROCKWOOL has embraced the philosophy of 'One Team, One Goal' for numerous years, fostering a culture of active communication within the team and collaborative problem-solving to achieve shared objectives. During the transitional phase of closing our former factory in Guangzhou and launching the new facility in Qingyuan last year, we encountered certain challenges pertaining to product delivery and stability. However, we proactively enhanced communication among our production, technical, and quality departments, actively seeking solutions to address these issues. Through our concerted efforts, we successfully garnered the understanding and trust of our valued customers. Embracing difficulties and challenges is crucial in our pursuit of continuous improvement. We remain open to external opinions and suggestions, fostering effective cross-departmental communication and seeking optimal strategies to resolve problems. This process not only provides us with valuable opportunities for learning and growth but also enables us to deliver ultimate solutions that meet and exceed our customers' expectations.

Currently, the management team of ROCKWOOL Greater China has established clear development goals for the company. I anticipate active communication, mutual trust, enhanced collaboration, and unwavering confidence among all colleagues, including our valued business partners. Together, we shall work diligently to realize the company's development objectives and infuse fresh vitality into our business.

Eunice Leung

General Manager of ROCKWOOL Hong Kong and Export

Sep,2023

one team, one goal

“In line with the sluggish market, sales declined overall in the second quarter, though unevenly across our main geographies. The slowdown in construction activity hit sales hardest in Eastern Europe, less so in Western Europe, while sales in North America and parts of Asia regained momentum and growth. Importantly, profitability returned to more satisfactory levels, largely owing to prices holding steady in an inflationary environment, energy costs declining, and operational efficiency remaining solid. Operational cash flow improved, primarily the result of our teams’ agility in adapting to changing market conditions”

                                                                    - CEO Jens Birgersson

Enterprise dynamics

H1/Q2 2023 results ：

Strong results in a depressed 

construction market

Sales in H1 2023 reached 1783 MEUR, a decrease of seven percent in local currencies and eight percent in reported figures compared to last year, driven by lower sales in many European markets.

• Sales in Q2 2023 reached 917 MEUR, a decrease of seven percent in local currencies and 10 percent in reported figures compared to last year.

• EBITDA in H1 2023 reached 358 MEUR, up four percent, yielding a 20.1 percent EBITDA margin. Sales prices were maintained while energy costs decreased bringing earnings back to a normalised and satisfactory level.

• EBITDA in Q2 2023 reached 194 MEUR, an increase of three percent. The EBITDA margin was 21.2 percent.

Enterprise dynamics

Highlights

Outlook

Applications

ROCKWOOL launched 

NGF stone wool FIBRE

As a global leading stone wool product manufacturer, ROCKWOOL officially launched the NGF stone wool product in China market based on over 80 years of in-depth research in the field of stone wool performance renovation together with the continuous optimization of production process, and announced the official launch on International Architecture and Construction Materials (Shanghai) Expo and International (Huzhou) Green Low-Carbon Technology Exhibition 2023.

ROCKWOOL NGF product is the revolutionary fireproof and thermal insulation stone wool product which has adopted the brand-new formula and industry-leading production process to realize the balanced improvement of quality properties and health & safety characteristics. As the new generation stone wool product, NGF product is revolutionary in the following aspects:

开拓创新·共创未来 

人有梦想才有动力，国家有梦想才有未来。有梦想，有奋斗，一切美好的东西都能够创造出来。中国特色社会主义已进入新时代，生活在这个时代的中国人民，都有一个共同的梦－实现中华民族伟大复兴。

The formula and process upgrade has brought better thermal stability and high-temperature shrinkage resistance to NGF product. According to experiment data, the high-temperature resistance of NGF has improved by over 15%, without any obvious change to the technical parameters under high temperature; the material will not bear thermal crack or loose while the due mechanical property and solidity will remain, with fireproof safety improved prominently.

Applications

2.ROCKWOOL stone wool possesses stable performance after 65 years of use in buildings in normal conditions. The aging resistance of NGF kept rising by 10%！

Acidity coefficient is a significant index to measure the stability of fiber composition and character. Compared to the acidity coefficient of ordinary domestic stone wool product, that is generally 1.6-1.8, the acidity coefficient of NGF product has been optimized to over 2.0, bringing outstanding performance in endurance and weatherproofness, resulting in longer useful life to guarantee stable performance within the life cycle. It can play a long-term and reliable role in fire safety, thermal insulation, energy conservation, acoustic property, etc. in projects to create more value for customers.

Regarding the highlighted aspects of material health and safety, NGF stone wool fiber has realized its breakthrough. The fiber content of NGF stone wool fiber is characterized by biological solubility, reducing the duration in human body by 4 times from the conventional 80-100 days to less than 20 days. It can accelerate the decomposition of fiber in human body to the maximum in order to guarantee personal health.

ROCKWOOL NGF products are currently manufactured by electric furnace of low carbon emission. The carbon emission arising from the production process is 60% lower than that by conventional cupola furnace. The fine performance on all aspects has resulted in better energy efficiency, with further enhanced carbon reduction effect within a longer service life.

NGF stone wool product is the result of ROCKWOOL’s persistent efforts on product innovation. It shows the commitment of ROCKWOOL to provide local users with top-quality fireproof and thermal insulation products. The application of ROCKWOOL NGF stone wool to the building and industrial fields can bring more stable, reliable and endurable effect of fireproof, thermal insulation, energy conservation and carbon reduction and help improve energy efficiency in order to boost the sustainable development of the society.

ROCKWOOL joined the  LOW CARBON 

INNOVATIONroundtable Dialogue  

On August 16, 2023, the “Innovation & Entrepreneurship Conference—Symposium to Promote Green and Low Carbon Transformation of Society” which aimed to boost the green and low carbon transformation and to promote sustainable development was held successfully in Huzhou, Zhejiang. The activity was sponsored by the CAST Scientific and Technological Innovation Department and Zhejiang Association for Science and Technology. ROCKWOOL China was invited to the round table dialog of “Low Carbon Innovation Strategy and Practice of European Enterprises in China".

In the round table dialog, Lewis Lv—technical and standard expert of ROCKWOOL China, Emily Luo—expert of HRA Carbon Neutralization and Sustainable Development Branch, Liu Lijia—principal of global partners of Lafarge Holcim, etc., shared the low-carbon innovation strategy from standard benchmark enterprises in Europe as well as the practical experience in China to jointly discuss the opportunities and challenges for the realization of the carbon peaking and carbon neutralization goals.

As Lewis pointed out in the dialog, the current social criteria for building performance are multi-dimensional, with higher bars set for the comprehensive performance of buildings in aspects including energy and environment, safety and comfort, science and technology, etc., which gives rise to the “green and sustainable” buildings. As a global leading fireproof and thermal insulation stone wool product manufacturer, ROCKWOOL produces stone wool products which are extensively applied to the fireproof, thermal insulation and energy conservation of buildings and industrial facilities, imposing positive and in-depth impact on the energy conservation and emission reduction throughout the society. Every year, the stone wool products manufactured by ROCKWOOL can save energy equivalent to carbon dioxide emission of 1.1 billion tons in life cycle. The social benefit is self-evident.

The remarkable thermal insulation, acoustic performance of ROCKWOOLstone wool, while conserving energy and reducing emission, can improve the temperature and acoustic comfort of buildings, which is good for the health of users. As A1 non-combustible insulation materials, ROCKWOOL stone wool bears the fire and high-temperature resistance which other thermal insulation materials cannot compare. It effectively guarantees the life and property safety of residents. Lewis also introduced the efforts of ROCKWOOL in promoting green production in the dialog. ROCKWOOL Qingyuan Factory, as an industry leading green factory, has realized the upgrading of traditional manufacturing industry. It uses electric power to realize low carbon emission during production. In the manufacturing technique and flow, zero wastewater emission and zero solid waste filling have been realized to reduce the impact of production process on the environment to the minimum. ROCKWOOL boosts the low carbon and green development of the society with its quality fireproof and thermal insulation stone wool products.

WHY ROCKWOOL NGF HAS 

HEALTH AND SAFETY ADVANTAGE?

ROCKWOOL NGF is a revolutionary fireproof and thermal insulation stone product with better fire safety, durability, low carbon, health and safety characteristics. Its health and safety characteristic are based on nearly 20 years of global research on the safety of fibre materials and ROCKWOOL Group's long-term product innovation and project practice, which is the trend of the development of stone wool fibre materials.

One of the most advanced research in the fibre materials industry today is to ensure that fibres soluble more quickly in the human body to reduce or avoid lesions and safeguard human health, and ROCKWOOL, as a global leader in stone wool materials, is committed to further optimising the bio-soluble characteristics of fibres. We have launched the innovative NGF fibre in the market, which can guarantee the quality and performance of the products while accelerating the decomposition process of the fibres in the human body to the maximum extent. The Semi vanishing period of NGF in human lung fluid environment is shortened by 4 times, reduced from the conventional 80-100 days to less than 20 days, which further improves the health and safety of the material, realises the balanced improvement of product quality performance and safety and health performance, and provides consumers with an even better solution in the selection of fireproof and thermal insulation materials.

You can better understand the importance of the bio-soluble characteristics of fibre materials to human health and how the health and safety advantages of ROCKWOOL NGF are demonstrated through the video below.

Enterprise dynamics

Applications

人有梦想才有动力，国家有梦想才有未来。有梦想，有奋斗，一切美好的东西都能够创造出来。中国特色社会主义已进入新时代，生活在这个时代的中国人民，都有一个共同的梦－实现中华民族伟大复兴。

The 19th Asian Games was held in Hangzhou on 23rd September. The tennis Center, Squash courts and other venues used ROCKWOOL stone wool products to provide a guarantee of achieving green energy efficiency and fire safety in buildings.

Located on the banks of the Qiantang River, the Tennis Center covers a building area of 52,300 square metres, with a height of about 38 metres and a total of 10,499 seats. Its main body consists of 24 pieces of "petals", which is a space tube truss steel structure, with the first "opening and closing rotating principle" for the roof, which opens and closes synchronously with the computer, highlighting the intelligent concept of the Asian Games. Meanwhile, as a public building with large coverage and high flow of people, the Tennis Centre has to consider the basic performance of fire safety, thermal insulation in terms of building materials to achieve the concept of safety and green energy saving. With excellent fire safety, thermal characteristic and durability, the project adopted ROCKWOOL HardRock for its flat roofing system.

ROCKWOOL HardRock is specially developed and produced for flat roofing system, it is class A1 fireproof stone wool material, with high fireproof characteristic, which can maintain the safety of people's lives and properties. ROCKWOOL HardRock have excellent thermal insulation performance, which can save the energy consumption, and match with the project's green eco-planning layout. At the same time, the high compressive strength and point load characteristics of HardRock can effectively avoid the damage caused by people stepping during installation and later maintenance, thus saving the maintenance cost of the building. In addition, the pore structure of the fibres of stone wool products brings good acoustic effects, creating a comfortable acoustic environment for the audience.

ROCKWOOL stone wool products has comprehensive advantages of fireproof and thermal insulation, noise reduction, durability and stability, which makes them widely used in stadium construction projects, such as Shenzhen Universiade Stadium, Hong Kong Cycling Stadium, Zhangzhou Gymnasium, Chengdu Dong'an Lake Sports Centre and so on. We will endeavor to promote the use of stone wool products in gymnasiums and other public buildings, contributing to the creation of fire-safe, comfortable and healthy, energy-saving and environmentally friendly contemporary buildings, so that more people can enjoy the wonderful modern life.

ROCKWOOL STONE WOOL USED IN 

TENNIS CENTER OF HANGZHOU ASIAN GAME

Case study

“洛科威作为岩棉行业标杆企业，一直引领岩棉产品的质量提升和创新。清远工厂的新一代绿色低碳生产工艺和完善的产品质量管理体系给我留下深刻的印象，国检集团将加强与洛科威在产品检测、认证与标准方面的合作。” 

国检集团南京国材总经理师卓

ROCKWOOL China enhances promotion

Faced with the pressure of downturn in the building industry and the intensifying market competition, ROCKWOOL China has improved the overall solution to the fireproof, thermal insulation and sound insulation requirements of project based on the subdivision of key industries. Moreover, it has reinforced industrial publicity and promotion through industrial exhibition, design institute promotion, engineering information tender platform cooperation to expand brand publicity and explore project information.

On August 10, ROCKWOOL appeared on International Architecture and Construction Materials (Shanghai) Expo 2023 where it presented the mature application of stone wool to external wall insulation, internal parting wall, fire duct, floating floor, roofing system, and industrial thermal insulation. The NGF stone wool fibre has drawn close attention on the exhibition.

In the subsequent 2023 International (Huzhou) Low-Carbon Technology Exhibition, the NFG fibre received focus and praise from participants again. Relevant leaders and industrial personnel visited the ROCKWOOL booth to learn the mature application and outstanding performance of stone wool, and looked forward to the further popularization of ROCKWOOL stone wool products in the future green architecture.

On August 23, ROCKWOOL was invited to the Standards and Policies Meeting for Architectural Energy Conservation and Ultra-low Carbon Emission in Anhui. ROCKWOOL presented to the participants the technical scheme and project information of its stone wool in ultra-low energy consumption and nearly zero energy consumption buildings and received positive feedback from the local regulator and design institutes. Meanwhile, the application of its stone wool in floating floors and fire duct, etc. received extensive attention.

At the China International New Materials Industry Expo held in Harbin at the end of August, ROCKWOOL showcased the mature use of Facaderock DD in ultra-low energy buildings; At the end of September, we were invited to participate in the 2023 Eurasian Economic and Trade Cooperation Expo held in Xi'an to showcase the performance and application of stone wool to local users.

The above marketing activities have come to an end, and we have received positive market feedback. In the future, we will continue to invest resources in market publicity, promoting a wider range of users to understand and trust the ROCKWOOL brand and products. Thank you to relevant colleagues and business partners for their support and attention to the promotion activities. We look forward to meeting you at the event site in the future.

Enterprise dynamics

Enterprise dynamics

人有梦想才有动力，国家有梦想才有未来。有梦想，有奋斗，一切美好的东西都能够创造出来。中国特色社会主义已进入新时代，生活在这个时代的中国人民，都有一个共同的梦－实现中华民族伟大复兴。

Enterprise dynamics

企业动态

01

RELEASE THE NATURAL POWER OF STONE

TO ENRICH MODERN LIVING

DIGITAL TOOLS BOOST BUSINESS DEVELOPMENT

Digitization as an important strategy and plays an important role in promoting enterprise management and marketing promotion. In response to the problem of slow loading and poor access to the company's website due to the server not being located in China, We has recently completed the localised website project: www.rockwool.cn, server moved to China, domestic network filing, etc. The new website will have a significantly improved loading speed and access experience compared to the previous days. We understand the importance of a website in attracting potential customers, increasing sales leads, etc. Therefore, we will continue to do more in-depth content and optimisation work on the new website to enhance SEO search engine optimisation and improve the website's search engine ranking, so as to attract more visits and retain more sales leads. We believe that through these continuous optimisation measures, the new website will become an important promotional tool, bringing more sales leads and business opportunities to the company.

In line with the trend of informatisation in the architectural design industry, we have incorporated various our products information and solutions into the current industry-leading PKPM architectural engineering software system, which is developed and implemented by the China Academy of Building Research, and is used by many famous design institutes and construction enterprises in China. The inclusion of stone wool in the PKMP information system can visually display the excellent performance of ROCKWOOL stone wool products in key energy-saving indicators, help architects to select better fireproof thermal insulation solutions, and improve the energy-saving performance of the building.

In addition to external promotion, we have also accelerated the process of informatisation in our internal management, enhancing the ability to process various data in the production and sales process. We have improved the learning effect by applying information technology tools in employee learning and training. The company has recently completed the creation of a product knowledge base, which incorporates the product and application knowledge required for business mastery into the digital learning platform, and various information is systematically presented according to the business section, so that users can easily obtain the required knowledge on the platform.

As digitization will become an important part of an enterprise's core competitiveness, the exploration in digitization is the embodiment of our innovative ideas. We expect our information technology and digital tools will optimise internal management, enhance communication and improve customer experience, and drive the long-term development of the company.

ROCKWOOL Greater China

Manufacturer

Qingyuan

No.9 Chuangxin Road, Guangfo Industrial Park, Tangtang Town, Fogang County, Qingyuan City, Guangdong Province,P.R.C

T： 0763-4628899

Yangzhou

T： 0514-89189988

No.5 4th Keyan Road, Economic and Technological Development Zone, Yizheng City, Jiangsu Province, P.R.C

Beijing

Branches and Offices:

T：（+86）10 6590 6077

T：（+86）21 6211 6725

Shanghai

F：（+86）21 6211 3479

Guangzhou

F：（+86）20 8210 8603

T：（+86）20 8203 8829

Hong Kong

F：（+852）2758 2005

T：（+852）2754 0877

Taiwan

F：（+886）4 2253 6866

T：（+886）4 2253 6866

Philippines

T ：(+63) 2 7710 650

T ：(+63) 2 7710 650

ROCKWOOL Service Hotline: 400 665 0505

www.rockwool.cn

ROCKWOOL WeChat

Production and sales network