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Combustible insulation manufacturer says UK is ‘politically hamstrung’
A combustible insulation manufacturer whose product was found on Grenfell Tower has blamed a “politically hamstrung UK” for a reduction in its activity in the country.
Kingspan, some of whose insulation was found on the tower after a fire there killed 72 people, said activity had slowed in the UK in its results for the calendar year 2018.
The company operates across Europe and the Americas, meaning that a reduction in its UK market was a relatively minor issue in the results.
It said in the results that activity in the UK “eased back considerably towards year end although it is relatively stable for Kingspan despite the backdrop”.
These comments are understood to refer to Brexit, although the firm has also had to respond to the Grenfell Tower fire amid a changing attitude towards combustible insulation.
This ban covers Kingspan’s K15 Kooltherm product, which is made from phenolic foam and its polyisocyanurate plastic insulation. Both products were used on Grenfell Tower.
In September last year, Kingspan launched a non-combustible insulation product made from mineral fibre, despite having previously criticised the efficiency of this kind of insulation.
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According to the results, the group increased its profits globally by 17% in 2018, rising from £285.9m to £335.8m.
Gene Murtagh, chief executive of Kingspan, said: “With the order book going into the new financial year ahead of the prior year period, we are confident in our near-term outlook. Notwithstanding this, we remain mindful of challenges to growth, particularly the continuing uncertainty in the UK.
“However, the geographical diversification of the business – helped by our acquisitions last year to expand our footprint in Latin America, Southern Europe and India – means we are well placed to continue to deliver long-term returns to shareholders.”
Last year, Inside Housing revealed that leaked notes from an internal meeting of Kingspan staff warned of “doctored” fire safety tests on cladding.
Arconic, which made the cladding for Grenfell Tower, has been experiencing financial difficulties recently, with a proposed buyout from US private equity firms falling through last month.
