Johns Manville – Page 3

(BRK.A), (BRK.B)

Insulation manufacturer Johns Manville will benefit from a growing market for acoustic insulation according to a new report by analysts at Research and Markets.

In their report “Global Acoustic Insulation Market – Segmented by Type, Application and Geography – Trends and Forecasts (2016 – 2021),” they forecast a robust market that will grow at a compound annual growth rate (CAGR) of 5.32%, during the forecast period 2016-2021.

The global acoustic insulation market was valued at USD 12.48 billion in 2015 and is expected to reach USD 17.03 billion by 2021.

The acoustic insulation market is mainly driven by factors such as government regulations for controlling noise pollution and the growing interest of consumers towards acoustic insulation for commercial and residential purposes. Rise in construction activities in North America is another factor that is currently driving the market. However, the slow paced construction market in Europe, owing to a feeble economic condition in the region, may act as a roadblock to the growth of the market.

Demand for aesthetic and fire resistant insulation products would serve as an opportunity for the future growth of the acoustic insulation market. Apart from this, increasing usage of stainless steel wool and aerogel for soundproofing applications is expected to boost the growth in future.

About Johns Manville

Acquired by Berkshire Hathaway in 2001, Johns Manville has annual sales of approximately $2.6 billion, and employs approximately 7,000 people. The company has 44 manufacturing facilities in North America, Europe and China.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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With new construction starts continuing to slowly grow, Berkshire Hathaway’s Johns Manville, a manufacturer and marketer of building and specialty products, is adding a second production line at the company’s Scottsboro, Alabama, manufacturing facility.

The new line will increase production capacity for the company’s TPO (thermoplastic polyolefin), a roofing membrane that is used by commercial roofing contractors, consultants and building owners.

The new TPO production line will bring Johns Manville’s total investment in commercial roofing over the past eight years to approximately $200 million.

In October 2008, Johns Manville opened the state-of-the-art TPO facility in Scottsboro. The company furthered its investment in single ply in 2012 with the opening of an EPDM (ethylene propylene diene monomer) manufacturing plant in Milan, Ohio.

To meet recent demand for Johns Manville TPO, the company began a capacity expansion project in March 2015 at the Scottsboro plant. Construction was completed in May, and now work will begin to construct the second production line.

“The plant expansion was a huge success and made our Scottsboro facility what is, in our view, the most productive and efficient TPO facility in the United States, enabling us to meet our customers’ needs for the foreseeable future,” said Jennifer Ford-Smith, Johns Manville’s Director of Marketing and Single Ply. “This new line will give Johns Manville the ability to supply our customers with even more TPO than was previously available.”

About Johns Manville