Holcim adding capacity, looks for growth in roofing sector

Holcim Group jumped into the roofing market with both feet in April 2021, purchasing the former Firestone Building Products for $3.4 billion and instantly transforming the Swiss multinational into a major player in the construction industry in North America.

One might say that Holcim Building Envelope — a flagship unit of the $3.52 billion Holcim Solutions and Products — has elevated the division, much of it through acquisitions and capital investments.

"By 2026, our ambition is for the Holcim Building Envelope roofing and insulation segments (including the Elevate and Malarkey brands) to see net sales of $6 billion," the company said in an email interview with Rubber News. "Holcim's ambition to become the global leader in advanced roofing systems means growing through organic and inorganic channels.

"We will continue to look for growth opportunities within the building envelope space with an eye toward innovation, sustainability and expansion into global markets."

Since the chunky Firestone acquisition in 2021, Elevate — now No. 2 in flat commercial roofing and No. 5 in residential roofing — has invested millions in operational improvements, increased manufacturing capacity and added new locations in North America and Europe.

Most recently, the company infused $25 million into an EPDM plant in Prescott, Ark., and $12 million into a thermoplastic olefin facility in Muscle Shoals, Ala.

By employment, Prescott is the largest of the Holcim Building Envelope facilities.

"In our Prescott EPDM plant, we invested in automation and technology to significantly improve the efficiency, quality and safety of EPDM production ... while increasing the capacity for more advanced EPDM membranes," Holcim said. "In our TPO plant in Muscle Shoals, we converted a TPO SA (self-adhered) production line to a single-step process improving both the quality and increasing production capacity."

Add to those capital infusions the August 2023 acquisition of Mannheim, Germany-based FDT Flachdach Technologie GmbH (the former Cooper Standard Technical Rubber GmbH), a leading manufacturer of thermoplastic roofs, and Holcim Building Envelope gains a greater foothold in the fast-growing European markets.

"In 2023, we also acquired a state-of-the-art fiberglass mat facility from an affiliate company of Maryland Paper," Holcim said. "This expands Holcim's technology platform for high-performing and durable roofing systems."

Holcim also bought SES Foam in 2022, now the largest independent spray foam insulation company in the U.S.

Other businesses under Holcim include Polymer Sealants N.A., Malarkey Roofing and Duro-Last.

Holcim Building Envelope has nearly 4,000 employees and more than 40 operating facilities around the world.

In 2022, Holcim Solutions and Products comprised 19 percent of net sales for the Holcim Group, and Holcim said it hopes to increase that to 30 percent of net sales by 2025.

"Holcim Building Envelope is a driving force in the growth of Holcim's Solutions and Products business segment," the company said.

Holcim Building Envelope remains bullish on construction markets and green infrastructure, especially as these upgrades relate to green cities.

"As part of our ambition to be the global leader in innovative and sustainable building solutions, we are continually investing in our plants and facilities to ensure teammate safety, expanded manufacturing capacity and energy-efficient operations," Holcim said. "We look forward to continued investments to ensure that we're meeting customer demand for our products and exceeding their expectations."

As such, the company has invested in recycled roofing, using construction and demolition waste as feedstock for new roofing. It hopes to get this program off the ground some time in 2024, according to Holcim.

"We're working with suppliers to increase the recycled content of raw materials in TPO and EPDM," Holcim said. "In addition, we're partnering with key suppliers to incorporate old roofs back into Elevate or the supplier's manufacturing processes.

"This will close the recycling loop by reusing construction waste materials. The goal is to reduce product carbon footprint and help Elevate meet our 2050 net zero goals."

All of this has not been easy with a still-sluggish global supply chain.

"The last few years have been a challenging supply chain environment for almost every industry," Holcim said. "Diversifying our supply chain is critical to serving our customers and addressing the high demand for our products.

"A diverse supplier base means we can be nimble and respond to potential supply chain challenges quickly in the future."

Holcim has relaunched two products—EPDM SA (RubberGard, from the Firestone line) and EcoWhite EPDM—in response to customer demand, with some of that demand coming from the sustainability space.

"We are customer-focused and are constantly listening to our customers to understand what's working and where we can elevate the customer experience," Holcim said. "We reintroduced Elevate EcoWhite EPDM to the lineup as a direct result of customer feedback and demand for exceptionally performing, highly reflective roofs.

"We're excited to have relaunched EcoWhite earlier this year with increased reflectivity and a remarkably enhanced, brighter and whiter appearance."

Also in the green space, Holcim has expanded production of metal roofing products in Corsicana, Texas, and in Jacksonville, Fla.

The company said it will look to expand its asphalt production to the West Coast in the coming years, and a new facility in Salt Lake City, Utah, will open its doors later this year with an Isogard-brand (metal production) capacity expansion.

At some point, the company is planning a West Coast distribution center as well, according to Holcim.

Within Holcim Building Envelope, Elevate is making "substantial capital investments" and prioritizing vertical integration, as well.

"Today in the United States, we are a leader in the industry, offering a full range of roofing and insulation systems across North America from cool, green and solar-enabling flat roofs to sustainable shingles," Holcim told Rubber News.

And as a major player in the industry, Holcim, by default, has become an agent of change.

"As a global manufacturer, Holcim leverages its scale, supply chain and technology to continually scour for new or alternative materials which address our world's finite resources as well as validate newer higher-performing sustainable materials," the company said.

"We are making buildings more sustainable in use, which drives decarbonization in our cities. And we are driving energy efficiency and green retrofitting with our broad range of solutions from roofing to insulation.

"Our vision is to make a difference in the world, with sustainability at the core of everything we do. Our work here is never done as we continue to look for ways to improve our products for our customers and the planet."