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ROCKWOOL NEWSLETTER 2023Q4

ROCKWOOL

NEWSLETTER

ISSUE 4, 2023

     Departs the year of rabbit, arrives the year of Dragon!
    In 2023, despite the wave-like recovery of the world and China's economy, progressing in twists and turns, ROCKWOOL Greater China has resiliently adapted to the trend, implemented changes, and overcome challenges, making noteworthy accomplishments in various fields.  
   On the sales end, sales in mainland China increased by 8% from the previous year. the East Sales Team has achieved an impressive delivery record that sets a new high for annual delivery in history. Both Philippine Sales Team and North Sales Team has made significant recovery growth of 80% and 46% respectively. With the team efforts, this year we have added several notable projects to our portfolio, including but not limited to:
  • the Chongqing Jiangbei International Airport T3 Terminal, where we supplied approximately 3,400 tons of roof FRI products, marked as our largest public project this year;
  • the Chongqing Seres New Energy Automobile Factory (a star enterprise in China and a crucial member of Huawei's ecosystem), the largest industrial plant we have delivered in 2023, using ~ 2,200 tons of ROCKWOOL FRI and GBI products.
  • Beijing Sub-Center Administrative Office Area Phase II and Liuhe Village Staff Turnover Housing Project, our largest fire duct project secured in 2023, with 85,000 m2 of Conlit DuctRock products supplied.
  • Huawang Thermal Power External Steam Supply Pipeline Project in Shandong Dongming Petrochemical, our largest individual process industry project this year, with nearly 700 tons of wired mesh products supplied, which is the process industrial project with the largest signal delivery volume in 2023.
  • The House Insolation Technologies in Philippines has made significant progress this year, with a delivery volume of about 560 tons, making it the largest prefabricated housing customer in this year. The quality of products fully meets the requirement of Japan JIS certification, which is the highest insulation product testing and certification system in Asia.
 On the operation front, our YZH factory has hit record levels in "annual production, annual delivery volume and monthly delivery volume"; our Qingyuan new factory has successfully become the first stone wool manufacturing base in China to obtain the EUCEB certificate, which is the most authoritative certification in the global mineral fiber health field.

Opening article

    We acknowledge that profound shifts are occurring in international geopolitics and the market; it is only by staying nimble and responsive that businesses can navigate these changes, fulfill client needs, and achieve sustainable growth.
    Therefore, in 2024, we have decided to embark on a new journey with the theme of “Reformation, Growth”. We will lead with innovation, market-focus, and customer-orientation, and keep enhancing our service and product differentiation. Meanwhile, we will streamline organizational processes, build a highly motivated, cohesive, and battle-ready team, and constantly drive quality, cost-efficiency, and profitability. Together with our partners, we will adopt a collective and multi-faceted approach to market expansion, striving to continuously increase our market share and enhance mutual profitability.
    As I mentioned in the Editor's Note of the Newsletter in Q3 of 2023, the vision of ROCKWOOL Greater China is to be externally a highly competitive and talent-attracting company, and internally a vibrant, engaging, and employee-focused organization with a sense of belonging and pride. As long as we maintain our strategic determination to stay committed to our goals, demonstrate the courage to continuously innovate, and unite in moving forward in the right direction, we will definitely be able to share success and joy together in 2024.
    Finally, as the Chinese New Year is approaching, I would like to wish everyone a happy and prosperous Spring Festival! May the year of the dragon bring you good health, success in all your endeavors, and happiness for you and your family. On behalf of all ROCKWOOL Greater China employees, I wish you the best in the coming year!

Eric Feng

Commercial General Manager for ROCKWOOL Greater China

Jan, 2024

Reformation, Growth

“Although sales development varies across regions, with North America and parts of Asia performing well and most of Europe remaining sluggish, our overall financial results year-to-date are strong. Sales are down, but less than expected, while earnings recovered to more normalised levels, helped along by stable pricing and lower if still high energy prices. I am pleased with the strong cash flow, which stems primarily from operational efficiency and our ability to adapt as market conditions require. Looking ahead, European construction activity, both residential and commercial, is likely to remain low, while demand in North America and Asia looks more positive”
                                                                   - CEO Jens Birgersson

Enterprise dynamics

Q3 2023 results: Strong results 
in a challenging market

  • Sales in the first nine months of 2023 reached 2686 MEUR, a decrease of six percent in local currencies and nine percent in reported figures compared to last year, driven by lower sales in many European markets
  • Sales in Q3 2023 reached 903 MEUR, a decrease of four percent in local currencies and 11 percent in reported figures compared to last year.
  • EBITDA in the first nine months of 2023 reached 577 MEUR, up 22 percent, yielding a 21.5 percent EBITDA margin. Sales prices were maintained while energy prices eased, bringing earnings back to a normalised level.

Enterprise dynamics

Highlights

OUTLOOK

  • EBITDA in Q3 2023 reached 219 MEUR, an increase of 68 percent compared to the unsatisfactory low result last year. The EBITDA margin was 24.3 percent.
  • EBIT in the first nine months of 2023 increased 27 percent to 383 MEUR, with a 14.3 percent EBIT margin, including the 27 MEUR donation to the Foundation for Ukrainian Reconstruction.
  • EBIT in Q3 2023 increased 115 percent to 146 MEUR, with a 16.2 percent EBIT margin, up 9.4 percentage points
  • Investments reached 216 MEUR for the first nine months of 2023, mainly related to electrical melter conversion in Flumroc, Switzerland and Systems Division capacity
  • Cash flow from operations before financial items and tax amounted to 581 MEUR for the first nine months of 2023 compared to 339 MEUR in the same period last year.

  • Sales decline of 4-5 percent in local currencies, changed from previously up to eight percent.
  • EBIT margin around 14 percent, changed from previously around 13 percent.
  • Investment level around 325 MEUR excluding acquisitions.

Mr. DARRYL MATTHEWS Visited China Region

In October 2023, Mr. Darryl Matthews, the Managing Director of ROCKWOOL, and Mr. Eric Yap, the HR Director, visited the ROCKWOOL Plants in Qingyuan, Guangdong and Yangzhou, Jiangsu in China. They expressed high appreciation for the operational performance of both Plants.
During their visit to the newly established Qingyuan Plant, they commended the staff for overcoming the impact of the COVID-19 pandemic, and completing the civil construction, equipment installation and commissioning, and smooth operation within a relatively short time, which demonstrates the Plant's efficient work capacity and sound operational management. They affirmed the production and operation of Asia's first electric furnace production line in Qingyuan, looking forward to further expand the sales of the high-quality stone wool products in the Asian region.
Mr. Matthews then visited the Yangzhou Plant in Jiangsu to gain a detailed understanding of its production operations. Upon learning that the Plant's output and shipment volumes reached new highs this year, he particularly praised the Yangzhou Plant's operational team for successfully upgrading and transforming the existing production line in a short time, showing optimism about its future.
During his visits to these plants in China, Mr. Matthews went deep into the workshop production lines, had in-depth conversations with the employees, listened to their opinions and suggestions on production operations, and shared lunch with colleagues in the employee cafeteria. This direct interaction with frontline workers allowed him to gain a deeper understanding of the Plant's operations and the work environment of the employees, bridging the gap between him and the colleagues. Looking forward to ROCKWOOL's future development in China, he pointed out that since ROCKWOOL China was officially incorporated into ROCKWOOL Asia in March 2023, the operation and development of the Chinese market has been highly valued by the Asian team, and the positive performance of the business in China will have a positive impact on the whole Asian market. In the future, the company will focus on strengthening internal collaboration and communication within the Asia region, optimizing resource allocation, and sharing achievements in product application and promotion, thus laying a solid foundation for ROCKWOOL Group's future development in the Asian market.

ROCKWOOL StrucRock Support 
Wiskind Winning Industry Awards

Recently, Shandong Wiskind Architectural Steel Co., Ltd has successively won the "2023 Technology Innovation Award of China Steel Construction Society" and the "2023 Science and Technology Excellence Prize of China Construction Metal Structure Association" for its "Research on Purlin-Free Sandwich Panel Wall " project.
As a professional manufacturer of metal enclosure and steel structure products, Shandong Wiskind has always adhered to innovation-driven development. The award-winning "Research on Purlin-Free Sandwich Panel Wall Technology" project is a wall system formed only by the combination of prefabricated sandwich wall panels and structural columns, where the prefabricated sandwich wall panels are connected to the structural columns at the ends with screws. Due to the absence of purlins and lining panels, the purlin-free wall system is technically and economically superior to the purlined wall system. It has a smaller wall thickness, equivalent to half of the purlined system, higher space utilization for the same building area, and more aesthetic interiors. The prefabricated structure design of the purlin-free system greatly improves construction efficiency and shortens the construction period. Meanwhile, the Wiskind sandwich panel purlin-free system uses ROCKWOOL SR-95W, which maximally matches the production process of Wiskind's purlin-free sandwich panels, improves the mechanical properties of the sandwich panel and ensures its purlin-free application. 
ROCKWOOL values the demand for high-quality stone wool core material in the high-end sandwich panel industry under the national strategy of revitalizing "Made in China" and "Intelligent Manufacturing in China". Since establishing a strategic partnership with Wiskind, both parties have closely cooperated in the development, technical cooperation, and application promotion of StrucRock products. In response to the comprehensive needs of the Wiskind purlin-free system for core material size, firesafe and thermal insulation, and mechanical properties, ROCKWOOL and Wiskind jointly developed the SR-95W core material product. Based on the application of the purlin-free system, Wiskind successfully applied for several national patents. Differentiated and high-quality products and services lay a solid foundation for win-win cooperation between enterprises, and the research on purlin-free sandwich panel wall technology has been commended by the industry, which provides an opportunity for further cooperation between the two parties in product research and development and application promotion.

Purlin-free system

WISKIND Shandong plant

YIWEI Industry park Hubei

Enterprise dynamics

Enterprise dynamics

Applications

Health and Safety Features of 
ROCKWOOL NGF Products

ROCKWOOL has officially launched its new generation NGF series of stone wool products in Greater China market. Based on the in-depth research and long-term practice of engineering application of ROCKWOOL Group in the field of stone wool innovation, it has achieved a balanced improvement in both quality performance and health safety features, led the development trend in the stone wool industry and provided consumers a better choice in high-quality fireproof and thermal insulation stone wool materials.
The NGF products, as innovative fireproof and thermal insulation materials, possess improved attributes such as higher temperature resistance, durability, eco-friendliness, low carbon footprint, and health safety. The health and safety features are based on nearly 20 years of global research on the safety of fibrous materials and represents an inevitable trend in the development of stone wool fibrous materials.
The lungs are an exquisitely efficient organ whose surface, if fully unrolled, would be the size of a tennis court. We breathe about 17,000 times a day, processing around 10,000 to 25,000 liters of air. The alveoli in the lungs are where the actual air exchange occurs. Each breath we take introduces hundreds of thousands or millions of particles and debris, spreading them throughout the alveoli in the lungs. There are about 6 billion macrophages living in alveoli, and their job is to keep alveoli clean. Macrophages, measuring about 14 to 21 micrometers, can engulf and expel particles smaller than themselves.

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。

Applications

However, if fibers much longer than the macrophages enter the lungs, they cannot be engulfed. In this case, macrophages surround them and apply an acidic medium. If the fibers erode and break into smaller fibrous fragments in this environment, the macrophages can clear them from the lungs. Otherwise, the fibers remain for an extended period. If these long fibers dissolve quickly, they can be expelled from the body rapidly, and the lungs will soon return to normal. However, if some fibers are persistent and do not dissolve quickly, macrophages cannot remove them timely, leading to accumulation, chronic inflammation, and potentially cancer.
The speed of long fiber clearance mainly depends on the type and chemical composition of the fibrous material. Asbestos fibers are estimated to persist for about 25,000 days (around 68 years) in the human body, whereas traditional stone wool and glass wool fibers last about 70 to 100 days.
Therefore, the cutting-edge research in today's material industry is committed to ensuring that fibers decompose more quickly in human body. This can reduce or prevent pathological changes, safeguarding human health. As a global leader in stone wool materials, ROCKWOOL is committed to further optimizing the biodegradability of fibers, and introducing the innovative NGF products in the local market. While ensuring the quality and performance of products, ROCKWOOL accelerates the decomposition of fibers in the human body to the maximum extent. The half-life of fibers in the bodily fluid environment is reduced by four times, from the usual 80-100 days to less than 20 days, further enhancing the material's healthiness and safety, and achieving a balanced improvement in product quality and health safety performance. This provides consumers a better choice in fireproof and thermal insulation materials.

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。

ROCKWOOL stone wool 
in the Process Industry

The process industry refers to the manufacturing industry that transforms raw materials into finished products through certain technological processes. Products of the process industry typically include chemicals, petrochemicals, steel products, building materials, and textiles etc., The development of the process industry holds significant economic and social importance, as it drives the growth of related industries and accelerates national economic development.
Taking the chemical industry as an example, thermal insulation encompasses most of the processes and equipment. This includes the reaction vessels and boilers needed for processes, containers for storing raw materials, intermediate and end products, as well as towers and tanks, and the pipelines connecting the above equipment.
There are many types of thermal insulation products need by the industry, among which stone wool, aerogel, perlite, and calcium silicate are typical, and the service temperature ranges from 60℃ to 650℃. Common stone wool is generally used below 450°C due to the limitation of high temperature resistance. Aerogel is a new material in recent years, and its price is relatively expensive. Calcium silicate and perlite are common rigid insulation materials, and their application is limited due to their rigidity and prefabrication requirements. Glass wool is generally used below 350°C due to the limitation of temperature resistance of raw materials. Aluminum silicate is an excellent fire-resistant material, usable at temperatures over 1000°C, though its insulation performance is one of its shortcomings. Foam glass is generally used for low-temperature applications below 60°C. High-temperature stone wool has a higher usage temperature range, applicable from 350°C to 650°C, including most chemical plants and power plants. Above 650°C belongs to the ultra-high temperature section, requiring fire-resistant materials such as aluminum silicate and firebricks, which are used in the interiors of boilers, kilns, ovens, etc.

In the traditional refining and petrochemical sectors, energy efficiency is generally low. Using appropriate and efficient thermal insulation materials is a key factor in improving energy utilization. In the context of reducing energy consumption and emissions, enhancing energy efficiency is urgent. As a member of the process industry, rational use of insulation materials contributes to energy conservation and emission reduction, reflecting the social value of our work.
ROCKWOOL stone wool products have a melting point of over 1000°C and a fire endurance limit of more than 2 hours, providing strong fire safety protection. Thermal insulation is one of the main features of ROCKWOOL products. Compared with similar and common materials, the thermal conductivity of ROCKWOOL stone wool is excellent at different temperatures. This is due to ROCKWOOL's special production process, where the interweaving of stone wool fibers is more scientific, ensuring good thermal conductivity even at high temperatures.
Corrosion under insulation (CUI) poses significant risks to industrial equipment. Studies show that over 50% of industrial equipment safety incidents, such as pipeline leakage and ruptures, are caused by corrosion-related aging. CUI leads to heat losses up to eight times higher, resulting in substantial energy wastage and a 40% increase in maintenance costs of industrial equipment. Due to its covert, pervasive, and hazardous nature, ROCKWOOL stone wool products, with their unique processes and formulations, achieve a water-repellent rate of over 99%. They remain stable at high temperatures, and their chloride ion content is lower than 10 ppm, minimizing the risk of corrosion to pipelines and equipment.

Applications

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。

A high-quality roof system needs to balance architectural energy conservation and safety. In the selection of roof insulation materials, special consideration should be given to factors such as thermal insulation and energy saving, fire safety, mechanical strength and load safety, etc., and ROCKWOOL stone wool insulation materials have excellent performance in these indicators:
Insulation and energy saving: ROCKWOOL products have excellent thermal insulation properties, creating a comfortable indoor environment and reducing energy expenditure;
Fire safety: ROCKWOOL stone wool is A1 fireproof material, capable of withstanding temperatures up to 1000°C, safeguarding the safety of buildings and the property and lives of people;
Mechanical strength: ROCKWOOL products have high compressive strength and point load resistance, ensuring structural stability and facilitating regular maintenance;
Load safety: ROCKWOOL products can meet roof load requirements with a lower density. Additionally, ROCKWOOL stone wool has excellent water repellency, with long-term water absorption ≤1kg/m², preventing increased roof loads due to water absorption.
ROCKWOOL stone wool products are widely used in roof systems and are the ideal choice for commercial and industrial buildings. Furthermore, the company has also introduced innovative DD products for roof insulation (TPR-DD/DDPlus). Compared with traditional stone wool slab and fiberglass-faced stone wool boards, the company's products feature overall lower bulk density, better insulation performance, higher strength, and more convenient construction, achieving a lightweight yet strong effect. By further reducing roof loads, they ensure the heat preservation and energy saving effect and strength performance, and provide better solutions for high-quality roofs.

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。

“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

Emphasize Insulation Materials
to Enhance Roof Structural Safety

On the night of November 6, a roof collapse accident occurred at the Yuecheng Gymnasium in Huanan County, Jiamusi, Heilongjiang, resulting in 3 fatalities. The official cause of the accident has not yet been announced, but the local heavy snowfall in recent days increased the load on the roof, which was the direct cause of the collapse. This roof collapse accident, occurring just over a hundred days after the roof collapse on July 23 at the No. 34 Middle School Gymnasium in Qiqihar, Heilongjiang, which resulted in 11 deaths, has turned the safety of steel gymnasium roofs into a focus of societal concern.
In response to a series of roof collapse accidents of steel buildings, Professor Wang Fenglai from the School of Civil Engineering at Harbin Institute of Technology stressed that the design phase of steel roofs should fully consider load and bearing capacity, and called for safety evaluations of roofs in public buildings such as steel gymnasiums. These tragic accidents and severe losses once again remind us of the importance of creating high-quality roof systems for steel buildings.
Factors influencing the safety of roof systems include structural strength, material quality and performance, and load-bearing capacity. To achieve vast internal spaces, gymnasium buildings often use space truss structures for their roofs, characterized by large spans and, typically, no columns in the middle. According to national regulations, inaccessible roofs have a live load of 0.5 KN/m², meaning each square meter can bear approximately 50 kg of weight. However, the expanded perlite insulation material that was illegally stacked on the roof of the Qiqihar gymnasium reached a weight of 60-80kg per cubic meter after soaking in rainwater, directly leading to an excessive load and subsequent collapse of the roof.

Qiqihar 34 Middle School
Gymnasium roof collapse accident

Roof collapse accident of Yuecheng Sports Center in Huanan County, Jiamusi

ROCKWOOL Roofing Case: Hangzhou Olympic Tennis Center

Applications

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。

External Steam Piping Engineering for 
Huawang Thermal Power NETWORK

The external steam piping engineering for Dongming Petrochemical Huawang Thermal Power is located in Dongming County, Shandong Province. It is a key supporting project for the high-quality development functional zone in the northern part of Dongming County, Heze City. The project transports part of the high-temperature steam produced by the Huawang Thermal Power's 2X350 megawatt supercritical coal-fired heating and power generation units to the Qianhai and PetroChina factory areas through an approximately 8km-long piping network from north to south, providing thermal power for industrial production.
To minimize heat loss, the project has strict requirements for the insulation temperature of the pipeline network. After a series of comparative tests, the project utilizes ROCKWOOL RockTech wired matt of 279 mm and 290 mm thick. This ensures that the high-temperature steam, after traveling several kilometers, maintains a temperature from the outlet at 470°C to no less than 430°C at the end, thereby ensuring efficient utilization of the high-temperature steam from the power generation units and positively impacting local energy conservation and low-carbon development.
Compared to other insulation materials like aluminium silicate and aerogel, ROCKWOOL RockTech products has distinct advantages in terms of durability, weather resistance, corrosion resistance, and cost-effectiveness. This contributes significantly to the long-term, high-efficiency, and stable operation of the external steam piping project.
ROCKWOOL RockTech products feature strong heat resistance, low thermal conductivity, good water repellency, and high corrosion resistance. These features provide the highest level of protection for industrial production equipment such as boilers, furnaces, valves, and pipelines to reduce heat loss and prevent fires and noise hazards, making it an economically mature material for reducing energy consumption in industrial production and ensuring the safety and stability of industrial operations.

Project cases

RELEASE THE NATURAL POWER OF STONE
TO ENRICH MODERN LIVING

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

F :(+63) 2 7710 651

T :(+63) 2 7710 650

ROCKWOOL Service Hotline: 400 665 0505

www.rockwool.cn

ROCKWOOL WeChat

Production and sales network

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