Company News
June 22, 2022
Firestone Parent Acquires SES Foam
Holcim to acquire SES roofing and insulation business
EQS Group Jun. 22, 2022, 03:04 AM
| Holcim Group Services Ltd / Key word(s): Acquisition Holcim to acquire SES roofing and insulation business 22.06.2022 / 09:04 Acquisition to expand Holcims roofing and insulation business Proven double-digit growth engine in the highly profitable US spray foam insulation market Annual sales of USD 200 million for 2022 Highly regarded brand for sustainable new builds and green retrofitting projects Accelerates Holcims growth in Solutions & Products in the US Holcim has entered into an agreement to acquire SES Foam LLC, the biggest independent spray foam insulation company in the US with 2022 (est.) Net Sales of USD 200 million. SES has a track record of double-digit growth, with advanced energy-efficiency and bio-based solutions for new and green retrofitting projects. This transaction adds to Holcims recent acquisitions, from Firestone Building Products to Malarkey, taking its Proforma 2022 Net Sales in roofing and insulation business to USD 3.5 billion. Jamie Gentoso, Head Solutions & Products: This is another exciting step in the expansion of Solutions & Products, advancing our Strategy 2025 Accelerating Green Growth. SES has a proven track record of growth and innovation in thermal insulation with a focus on more sustainable solutions, making them highly complementary to our roofing and insulation business. “We look forward to warmly welcoming all SES employees into Holcim and to invest in our next era of growth together, with a continued focus on innovation and sustainability. Holcims commitment to innovation, superior execution and global resources provide an attractive platform from which to continue to deliver profitable growth”, said Charles Valentine, Chief Executive Officer and President of SES. “We are excited about our future together.” Founded in 2009 and based in Spring, Texas, SES has a history of innovation with solutions like SucraSeal®, the first sucrose-based spray foam insulation to be certified by the US Department of Agriculture for its high bio-based content. SES offers superior products that improve buildings energy-efficiency and thermal comfort, while lowering their carbon footprint. The company stands out for its value-added services to contractors, including onsite technical instruction, business consulting, branding and lead generation support. This acquisition advances Holcims Strategy 2025 Accelerating Green Growth with the goal to expand its Solutions & Products business to 30% of Group Net Sales by 2025. It expands Holcims reach in the attractive insulation, as well as repair and refurbishment markets. About Holcim Holcim builds progress for people and the planet. As a global leader in innovative and sustainable building solutions, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy Holcim is becoming a net zero company, with its people and communities at the heart of its success. The company is driving circular construction as a world leader in recycling to build more with less. Holcim is the company behind some of the worlds most trusted brands in the building sector including ACC, Aggregate Industries, Ambuja Cement, Disensa, Geocycle, Holcim, Lafarge and Malarkey Roofing Products. Holcim is 70,000 people around the world who are passionate about building progress for people and the planet through four business segments: Cement, Ready-Mix Concrete, Aggregates and Solutions & Products. Learn more about Holcim on www.holcim.com, and by following us on LinkedIn and Twitter. |
June 22, 2022
Firestone Parent Acquires SES Foam
Holcim to acquire SES roofing and insulation business
EQS Group Jun. 22, 2022, 03:04 AM
| Holcim Group Services Ltd / Key word(s): Acquisition Holcim to acquire SES roofing and insulation business 22.06.2022 / 09:04 Acquisition to expand Holcims roofing and insulation business Proven double-digit growth engine in the highly profitable US spray foam insulation market Annual sales of USD 200 million for 2022 Highly regarded brand for sustainable new builds and green retrofitting projects Accelerates Holcims growth in Solutions & Products in the US Holcim has entered into an agreement to acquire SES Foam LLC, the biggest independent spray foam insulation company in the US with 2022 (est.) Net Sales of USD 200 million. SES has a track record of double-digit growth, with advanced energy-efficiency and bio-based solutions for new and green retrofitting projects. This transaction adds to Holcims recent acquisitions, from Firestone Building Products to Malarkey, taking its Proforma 2022 Net Sales in roofing and insulation business to USD 3.5 billion. Jamie Gentoso, Head Solutions & Products: This is another exciting step in the expansion of Solutions & Products, advancing our Strategy 2025 Accelerating Green Growth. SES has a proven track record of growth and innovation in thermal insulation with a focus on more sustainable solutions, making them highly complementary to our roofing and insulation business. “We look forward to warmly welcoming all SES employees into Holcim and to invest in our next era of growth together, with a continued focus on innovation and sustainability. Holcims commitment to innovation, superior execution and global resources provide an attractive platform from which to continue to deliver profitable growth”, said Charles Valentine, Chief Executive Officer and President of SES. “We are excited about our future together.” Founded in 2009 and based in Spring, Texas, SES has a history of innovation with solutions like SucraSeal®, the first sucrose-based spray foam insulation to be certified by the US Department of Agriculture for its high bio-based content. SES offers superior products that improve buildings energy-efficiency and thermal comfort, while lowering their carbon footprint. The company stands out for its value-added services to contractors, including onsite technical instruction, business consulting, branding and lead generation support. This acquisition advances Holcims Strategy 2025 Accelerating Green Growth with the goal to expand its Solutions & Products business to 30% of Group Net Sales by 2025. It expands Holcims reach in the attractive insulation, as well as repair and refurbishment markets. About Holcim Holcim builds progress for people and the planet. As a global leader in innovative and sustainable building solutions, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy Holcim is becoming a net zero company, with its people and communities at the heart of its success. The company is driving circular construction as a world leader in recycling to build more with less. Holcim is the company behind some of the worlds most trusted brands in the building sector including ACC, Aggregate Industries, Ambuja Cement, Disensa, Geocycle, Holcim, Lafarge and Malarkey Roofing Products. Holcim is 70,000 people around the world who are passionate about building progress for people and the planet through four business segments: Cement, Ready-Mix Concrete, Aggregates and Solutions & Products. Learn more about Holcim on www.holcim.com, and by following us on LinkedIn and Twitter. |
June 21, 2022
BASF Expects Downturn
BASF’s business to face downturn in second half – CEO says
Tue, 21 June 2022 at 12:24 pm·1-min read
FRANKFURT (Reuters) – Chemicals group BASF will be likely to face a considerable downturn early in the second half of the year because inflation will begin to weigh on consumer demand and competitors are expected to reinstate crippled supply chains, its CEO said.
“Speaking for my business, we are able pass along higher prices because there is no arbitrage trade because supply chains don’t work,” Chief Executive Martin Bruedermueller said at a German industry event.
But inflation and, in its wake, lower consumer demand was “knocking on the front door”, he said. He added that rivals would soon be able to improve their supply chains, which are battered by the coronavirus pandemic and global shortages.
“That means no more pricing power and then we will struggle to generate margins on top of the high energy prices. That’s when it gets really difficult,” he added.
(Reporting by Ludwig Burger. Editing by Jane Merriman)
https://uk.finance.yahoo.com/news/basfs-business-face-downturn-second-162417650.html
June 21, 2022
BASF Expects Downturn
BASF’s business to face downturn in second half – CEO says
Tue, 21 June 2022 at 12:24 pm·1-min read
FRANKFURT (Reuters) – Chemicals group BASF will be likely to face a considerable downturn early in the second half of the year because inflation will begin to weigh on consumer demand and competitors are expected to reinstate crippled supply chains, its CEO said.
“Speaking for my business, we are able pass along higher prices because there is no arbitrage trade because supply chains don’t work,” Chief Executive Martin Bruedermueller said at a German industry event.
But inflation and, in its wake, lower consumer demand was “knocking on the front door”, he said. He added that rivals would soon be able to improve their supply chains, which are battered by the coronavirus pandemic and global shortages.
“That means no more pricing power and then we will struggle to generate margins on top of the high energy prices. That’s when it gets really difficult,” he added.
(Reporting by Ludwig Burger. Editing by Jane Merriman)
https://uk.finance.yahoo.com/news/basfs-business-face-downturn-second-162417650.html
June 16, 2022
Covestro Interview
High energy prices to boost sustainability megatrend – Covestro CFO
Joseph Chang
24-May-2022Full storyRelated newsRelated contentContact us SHARE THIS
NEW YORK (ICIS)–Germany-based Covestro sees higher oil and gas prices driving not only the energy transition to electric vehicles (EVs) and renewable power but also greater use of insulation to enhance energy efficiency, making it well positioned to capitalise on these trends, its chief financial officer (CFO) said.
“Energy prices going up in the mid-to-long term is a positive for us as energy efficiency programmes become more important. MDI [methylene diphenyl diisocyanate] is the best insulation used in refrigerators and buildings, and EVs use 3-5 times more polycarbonate (PC) versus traditional cars,” said Covestro CFO Thomas Toepfer in an interview with ICIS in New York.
Covestro also produces polyurethane coatings and composites for wind turbine blades to make them lower cost and more durable, he noted.
“If we can increase the lifetime of an offshore wind turbine by 2-3 years, there is a huge difference in investment returns,” said Toepfer.
PC is used in EV battery packaging systems for thermal management as well as electric powertrain parts and other light-weighting applications.
“The move to renewable energy, EVs and energy efficiency is helpful because we provide the products that enable this transition. It is a growth multiplier for our business,” said Toepfer.
ENERGY IMPACT AND DEMAND
Covestro, like all chemicals producers in Europe, is experiencing higher energy and raw materials costs, especially after Russia’s invasion of Ukraine. However, in Q1 it was able to pass on over 90% of these costs to customers on strong demand, and it sees demand momentum carrying into Q2, he pointed out.
Potential EU sanctions on oil imports from Russia would have minimal impact on the company as it buys key raw materials such as toluene and benzene on world markets, he said.
“On the Russian gas question, it is much less on the agenda politically but if this is curtailed in Germany the entire industry would be affected, including Covestro. German policy does not support this because the economic impact would be very negative,” said Toepfer.
For 2022, Covestro expects energy costs to jump to €1.5bn-2bn from €1.0bn in 2021 but the CFO sees this as manageable amid solid demand growth.
“In Q1 over 90% of these costs were passed on. As long as there is demand strength, and that’s what we see, there will be a flow-through,” said Toepfer.
Aside from China, which has been hampered by COVID lockdowns, demand growth is generally strong in Europe and North America as well as the rest of Asia, he noted.
Covestro in early May took down its 2022 guidance for earnings before interest, tax, depreciation and amortisation (EBITDA) by €500m to €2.0bn-2.5bn, on the China lockdowns, higher energy and raw materials costs and lower global economic growth projections.
“About 50% of this was due to the China effect, and the other half linked to lower GDP projections. But as of the beginning of Q2, we’re not seeing margins going down so the momentum is continuing,” said Toepfer.
AUTOMOTIVE OUTLOOK
However, pockets of demand weakness include automotive, which continues to be constrained by the semiconductor shortage, as well as the furniture market in North America, which was one area cited by US big-box retailers in contributing to massive inventory build-ups in Q1.
Automotive weakness is more supply driven, and could set the stage for a stronger 2023 and 2024, he said.
“If you want to buy a new car in Germany, the waiting time can be one year. In the US it can be several months, and they are charging above list price which is pretty extraordinary. So the growth rate [this year] will be lower than initially expected but pent-up demand is building up, so 2023 and 2024 could be strong years,” said Toepfer.
Thus far, it is “difficult to tell” when auto supply-chain issues will ease, as many expected this in 2022 and it is not happening so far, he added.
On overall logistics and supply-chain constraints, Covestro is far less impacted than many other chemicals companies as it primarily produces for local markets, the executive said.
“We are producing in regions for the regions, not depending much on ocean freight, so our local-for-local strategy is potentially much more successful during these times,” said Toepfer.
Interview article by Joseph Chang
Everchem Updates Archive 
Sign Up for Email Updates