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CanadExport is the official source of news and advice on trade and investment opportunities around the world, for Canadian entrepreneurs who want to compete, partner and prosper in the global marketplace.						CanadExport Vol. 25, No. 2 (PDF)

Trade News

February 19, 2007

Foam insulation company expands on world stage

Every headline devoted to energy efficiency and indoor air quality is good news for a Canadian company that has become a world leader in foam insulation.

Icynene, a Mississauga, Ontario-based company with its own insulation system, does 85% of its business outside of Canada and has expanded to markets in Asia, the United States, Europe and Mexico.

The Canada Mortgage and Housing Corporation is helping Icynene, an Ontario-based spray foam insulation company, to find buyers around the world.

Developed by a chemist in 1986, Icynene is a spray foam that seals all crevices, making it ideal for insulating areas—such as cathedral ceilings—that would be difficult or impossible to reach with conventional insulation.

Unlike other foam insulation, however, it is water-based, reducing the number of indoor pollutants. It dries soft, limits air flow (including the spread of allergens) and expands and contracts with the structure. Even the American Lung Association uses Icynene in its demonstration home for asthma sufferers.

With the assistance of Canada Mortgage and Housing Corporation (CMHC) International—Canada's national housing agency—the company’s product become popular in the U.S. market through the American Institute of Architects, trade shows and media coverage, putting Icynene’s properties in front of architects, building inspectors, developers and other building industry professionals.

Jeff Hood, Icynene’s vice-president of business development, says once you use the product, potential buyers become converts.

“The environmental aspect of Icynene really resonates in the marketplace,” he says. “When people see and hear about our product, they want it. CMHC has done a great job of helping us; we definitely would not have grown as fast as we have without them.”

The company’s expansion has been remarkable, recording at least 35% growth in each of the past 10 years. The number of employees has increased from 22 to more than 100 since 1999.

Following Icynene’s participation in a CMHC trade mission to China last year, the company signed a host of contracts with its first major Chinese clients. In China, where potential counterfeiting of everything from motion pictures to insulation is a concern for foreign suppliers and Chinese buyers alike, CMHC has assisted Icynene by providing new distributors with an official letter confirming the distributor’s relationship with Icynene.

Elsewhere, Icynene is working through product approvals in the U.K. and France, and CMHC is assisting with marketing and finding representatives for the company in Europe and in Mexico.

If Icynene was to do anything differently, Hood says that if budget permitted, it would be nice to have additional manpower when seeking business outside the country. “This is why CMHC is such a great help in making the initial contacts with foreign buyers, which helps us to be more productive on our overseas trips.”

Icynene received a major boost in North America when the company was featured on the popular home renovation program This Old House. It has made nine appearances on the program over the years and that has helped to boost penetration in the U.S. market.

“This Old House is still working for us,” says Hood.

Still, exporters cannot always count on widespread television coverage to boost their brand. Hood says one must be patient when entering foreign markets, and be prepared for the long haul. Icynene goes into foreign venues with a five-year plan, developing rapport with local business contacts, searching out agents who know the area. He also suggests Canadian exporters look outside North America.

“A lot of Canadians think the U.S. is the only market, but there are plenty of others,” he says.

For more information, go to www.cmhc.ca or www.icynene.com. This was the third in a series of CMHC success stories.

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