Brussels, 12 May 2017

MARKET SHORTAGE OF MDI RAW MATERIALS AFFECTS OPERATIONS AT RECTICEL INSULATION

In its trading update of 26 April 2017, Recticel highlighted the challenging and unprecedented raw  material  price  increases prevailing  in  the  polyurethane  industrydue  to  a  tightening supply of isocyanates(TDI and MDI).

Recticel announces today that the  situation has further deteriorated due  to  a  new force majeure at  Covestro  and  start-up  issues  at  Huntsman,  both  pertaining  to  the  production  of MDI (methylene  diphenyl  diisocyanate).

As  a  consequence, MDI  is  no  longer  available  in sufficient quantities.  This shortage is affecting the Insulation business of Recticel,  leading to a curtailment  of its production outputby  about  15%,  and is  not  expected  to  improve  before July 2017.
In 2016, the Insulation division represented 16.4% of the Group’s combined sales.

While the overall raw material situation will lead the Group’s 1H2017 combined REBITDA to remain  below  the 1H2016  combined  REBITDA, Recticel  re-iterates the full  year guidance provided  at  the  occasion  of  its  1Q2017  trading  update to  grow  its full  year  2017  ombined REBITDA.