The divestment of Engineered Foams is expected to close at the latest by the first quarter of 2023, following the decision on 2 September 2022 by the Competition and Markets Authority in the UK to fast track the approval process.
I’ll at least share with you what we’re doing in epoxy if you were to think about the equivalent operating rates, all of our resin production facilities, we’re running below 50% there in order to preserve value. And remember, our recession case said that we could move the whole company down to that level.
However, demand for new home construction and our wood building products may decline in the near-term should interest rates continue to rise and consumer sentiment and housing affordability continue to be impacted.
When times are good, monster bureaucratic companies go on hiring sprees. They fill a few much-needed positions, double up key roles, triple their salesforce and quadruple their dinner outings with the expectation of quintupling MoM sales. Bull markets, baby. When things naturally take a turn downward, implementation of the infamous cost-cutting begins.
So TDI in Europe is down. In that sense, 2 major production sites are down with 600,000 tons. And those 600,000 tons is just represented by 2 major world-scale plants, one in Ludwigshafen, 1, let’s say, in Dormagen, that is our plant. And this is 600,000 tons out of 700,000 that means, like-for-like, you have taken out more than 80% of European production capacity.