Company News
January 11, 2023
BASF Breaks Ground on MDI Project in Geismar
BASF breaks ground on MDI capacity expansion project at Geismar site
January 11, 2023 11:46 ET | Source: BASF Corporation
GEISMAR, La., Jan. 11, 2023 (GLOBE NEWSWIRE) — BASF has broken ground on the third and final phase of the methylene diphenyl diisocyanate (MDI) expansion project at its Verbund site in Geismar, Louisiana, announced in July 2022. The company will increase production capacity to approximately 600,000 metric tons per year by the middle of the decade to support the ongoing growth of its North American MDI customers.
The investment for this final expansion phase, which takes place from 2022 to 2025, amounts to $780 million. Including the first and second phases, the investment volume totals around $1 billion, making the MDI expansion project BASF’s largest wholly owned investment in North America.
“BASF already ranks among the largest and most forward-looking chemical companies in the United States,” said Michael Heinz, Chairman and Chief Executive Officer, BASF Corporation. “Through this investment, we demonstrate our commitment to meeting the needs of our customers while strengthening our foundation for continued growth in the important U.S. market.”
BASF welcomed Clay Schexnayder, Speaker of the House for the Louisiana State Legislature for a ceremonial ‘tilling-of-the soil’ to officially mark the groundbreaking of the final phase of the expansion.
“We are committed to continuing the success story together with our North American MDI customers,” said Stefan Doerr, Senior Vice President, Monomers North America. “BASF is investing to support our customers in various industries with significant growth potential in MDI applications, including transportation, automotive, footwear and furniture.”
Kicked off in 2018, the expansion project follows a staggered approach. First, a new MDI synthesis unit was put in operation in October of 2020. The second phase, which started operations in 2021, expanded several existing upstream units. The third and final phase will add new upstream units and a splitter. Leveraging state-of-the-art technology, the expansion will showcase the highest safety standards combined with advanced digitalization in its operations.
January 10, 2023
Mattress Firm Pulls IPO
Mattress Firm pulls IPO plans amid recessionary fears
Jan. 10, 2023 4:20 PM ETSteinhoff International Holdings N.V. (STHHF)WMT, AMZN, TPX, SNBR, SSB, W, PRPL, MFRMBy: Val Kennedy, SA News Editor
Mattress Firm (MFRM) has pulled plans for an initial public offering as retailers brace for a possible recession later this year.
The mattress retailer first filed for the IPO in January 2022, indicating it was looking to raise $100M, a number that was likely a placeholder and subject to change. Shares were expected to trade on NYSE under the symbol MFRM.
The IPO would have marked a return to the public markets for Mattress Firm, which was taken private by Steinhoff International (OTC:STHHF) in 2016 for $3.8B. The retailer ended up filing for bankruptcy in 2018, but emerged a month later. It shuttered around 700 stores as part of its reorganization.
As of the end of September 2021, Mattress Firm still had 2,353 retail stores, according to its IPO filing. The company also sells mattresses and bedding through its e-commerce sites mattressfirm.com and sleep.com. In addition to reselling brands made by mattress makers such as Tempur Sealy (TPX) and Serta Simmons (SSB), Mattress Firm also sells products under its private labels, Tulo and Sleepy’s.
Mattress Firm has been facing increased competition from mattress sellers Casper, Purple (PRPL) and Sleep Number (SNBR), along with online furniture retailers such as Wayfair (W), Amazon (AMZN) and Walmart (WMT). Mattress maker and retailer Casper was taken private by Durational Capital in January of last year.
On Tuesday, Wedbush said that it sees Mattress Firm as an acquisition candidate in the wake of the IPO withdrawal, with Tempur Sealy as a possible bidder.
January 10, 2023
Sheela Foam Acquisition
India’s Sheela Foam to buy rival mattress maker Kurlon for $241 mln- ET Now
BENGALURU, Dec 28 (Reuters) – Indian mattress maker Sheela Foam Ltd (SHEF.NS) will soon acquire competitor Kurlon for 20 billion rupees ($241.29 million), ET Now reported on Wednesday, citing sources.
Should the deal go through, Sheela Foam could command a market share of 35-40%, Moneycontrol had reported last month, quoting a person familiar with the planned deal.
Sheela Foam and Kurlon did not immediately respond to Reuters’ requests for comment.
Sheela Foam, which sells the “Sleepwell” brand of mattresses, is the only listed mattress maker in the country.
The Ghaziabad-based company has a 25% market share in the sector, according to a note by ICICI Securities. The brokerage pegs India’s modern mattresses sector at 175 billion rupees.
Sheela Foam shares rose as much as 5% to 1,338 rupees following the report.
News of the potential acquisition comes as Kurlon Chairman and Managing Director Sudhakar Pai is looking to hand over the reins, the Moneycontrol report added.
It also comes at a time when other industry players like Duroflex, Springwell and The Sleeping Co have raised money from private equity firms over the past few years, according to multiple media reports.
Kurlon’s annual consolidated net profit has declined from 760.9 million rupees in fiscal year 2020 to 179.7 million rupees in fiscal year 2022.
Started in 1962 as Karnataka Coir Products Ltd, Kurlon currently has nine plants and 72 branch and stock points across India.
($1 = 82.8880 Indian rupees)
January 10, 2023
Sheela Foam Acquisition
India’s Sheela Foam to buy rival mattress maker Kurlon for $241 mln- ET Now
BENGALURU, Dec 28 (Reuters) – Indian mattress maker Sheela Foam Ltd (SHEF.NS) will soon acquire competitor Kurlon for 20 billion rupees ($241.29 million), ET Now reported on Wednesday, citing sources.
Should the deal go through, Sheela Foam could command a market share of 35-40%, Moneycontrol had reported last month, quoting a person familiar with the planned deal.
Sheela Foam and Kurlon did not immediately respond to Reuters’ requests for comment.
Sheela Foam, which sells the “Sleepwell” brand of mattresses, is the only listed mattress maker in the country.
The Ghaziabad-based company has a 25% market share in the sector, according to a note by ICICI Securities. The brokerage pegs India’s modern mattresses sector at 175 billion rupees.
Sheela Foam shares rose as much as 5% to 1,338 rupees following the report.
News of the potential acquisition comes as Kurlon Chairman and Managing Director Sudhakar Pai is looking to hand over the reins, the Moneycontrol report added.
It also comes at a time when other industry players like Duroflex, Springwell and The Sleeping Co have raised money from private equity firms over the past few years, according to multiple media reports.
Kurlon’s annual consolidated net profit has declined from 760.9 million rupees in fiscal year 2020 to 179.7 million rupees in fiscal year 2022.
Started in 1962 as Karnataka Coir Products Ltd, Kurlon currently has nine plants and 72 branch and stock points across India.
($1 = 82.8880 Indian rupees)
January 6, 2023
Wanhua Chemical’s Chairman’s New Year Address
2023 New Year Address from Wanhua Chemical’s Chairman
TIME ：2022-12-31
Dear all:
As we bid farewell to the old year and welcome the new, I would like to extend my heartfelt thanks and sincere wishes to all employees, their families, partners, and friends from all walks of life who have supported the development of the company. I also want to express my gratitude to all the Wanhua people who are working hard in various locations, both domestically and abroad, on all fronts. Thank you for your hard work!
Looking back on the past year, we have seen the severe impact of the pandemic and the downward period of global chemical industry. With the combined efforts of all staff, we have overcome challenges, allowing Wanhua to take another solid step forward on our great journey.
In 2022, all Wanhua employees lived up to the core value of “customer orientation” and earned the trust of our customers. Despite repeated shocks from the pandemic, the staff of all production bases stood firm and supported each other to ensure the plants’ stable operation, met the customers’ needs, and fought for high-quality delivery.
In 2022, we pioneered innovation and win-win cooperation. Key breakthroughs have been made in the innovation of high-performance engineering plastics products. The successful production of silicon copolymerized PC and nylon 12 has produced one highlight after another. The joint work between the universities and Wanhua is proving fruitful. We are cooperating with Peking University, East China University of Science and Technology, Beijing University of Chemical Technology, and other universities to carry out research projects and explore the technology frontier in the field of new chemical materials, which will provide unlimited possibilities for the sustainable development.
In 2022, the construction of new projects has been continuing rapidly. The ethylene project (phase II), the fine chemicals integration, and Penglai Industrial Park (Phase I) project were successfully kicked off, adding new momentum to the construction of our world-leading chemical company. The bisphenol A plant, Fujian MDI integration project and Sichuan acetylene industry chain project were put into operation. Behind each achievement is the courage and sweat of thousands of staff in Wanhua and the shoulders of involved partners.
In 2022, the excellent operation started a new chapter. On one hand, the company’s “dual-carbon” strategy is steadily advancing, with remarkable economic, social, and environmental benefits, empowering “Green Wanhua”. On the other hand, “Smart Wanhua” has reached a new level to provide digital support for excellent operations. S4/HANA has been fully launched and adopted by our global business. Also, we have never stopped exploring the boundary of Wanhua Chemical and have established battery materials and technology company, integrating internal and external resources to accelerate the further development of our new energy business and create a second growth curve. Furthermore, we continued to enhance the long-term motivation of the staff by implementing a stock ownership incentive.
In 2022, talent building has accelerated. More than 5,000 new employees have joined our family, bringing new vitality to the development of the company. With the mission of cultivating “talents with six dimensions”, we fully integrated internal and external resources to accelerate the enhancement of leadership, professional and vocational abilities. A special training session has been conducted for production teams, which enhanced the operation stability. With the full cooperation, it strengthens the ability and level of production talents and forges a high-level production backbone group.
In 2022, you stood firm in the front, you were fearless to push forward, you were busy in advancing, you persevered… Thousands of efforts shined and the love rooted in the heart of every person in Wanhua became the source of strength for us to overcome difficulties and challenges.
The new year is the start of the company’s five-year general policy of “implementing high-quality investment strategy and consolidating the foundation of sustainable development”. We should grasp the “Year of Projects”, plan projects more scientifically and sustainably, realize more efficient and high-quality investments, and help Wanhua achieve great development. We should insist on building Wanhua’s excellent culture progressively, continuously stimulate the sense of mission and creativity of talents, cultivate more “talents with six dimensions”, and to shape first-class innovation ability with first-class talent. At the same time, we will strengthen the organizational efficiency, optimize the systems and procedures, consolidate the safety management capability, and enhance the level of excellent operation.
“Rome was not build in a day”. Going forward we will continue to bravely fight against difficulties and challenges, strive to build a world-class chemical new materials company and create a more fruitful era.
Finally, I wish you all good health, happiness, and good luck in the new year!
Chairman: Liao Zengtai
December 31, 2022
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