Company News
March 29, 2021
Sadara Marketing Changes
Sadara agrees with lenders to reprofile its debt
Ajel News 3 hrs ago 
Sadara Chemical Company (Sadara) has signed an agreement with agency creditors and commercial lenders to restructure Sadara’s debt. The restructured debt repayment has been better aligned to match Sadara’s expected future cash flow generation. This agreement became effective March 25, 2021.
Key provisions of the agreement include a debt maturity extension from 2029 to 2038; a principal grace period through 2026, and new guarantees issued by the Sadara’s sponsors; Saudi Arabian Oil Company’s (Saudi Aramco); and The Dow Chemical Company’s (Dow).
Global manufacturing cost curve
Following the successful reprofiling, Sadara will also benefit from longer-term structural operating and feedstock improvements; further enhancing its cracker’s flexibility and improving Sadara’s position on the global manufacturing cost curve.
Sadara has also received the agreement of its shareholders — Saudi Aramco and Dow — to start the transition of the marketing rights of Sadara’s finished products to levels more consistent with each partner’s equity ownership.
This transition is part of the partnership’s original plan and will gradually increase over the next five years.
The acceleration of the marketing rights of Saudi Aramco will be taken over by the Saudi Basic Industries Corporation (SABIC). All parties agreed on this and these rights will relate to several specific products; which include a range of polyethylene, chemicals and polyurethane.
“Sadara’s debt reprofiling is an essential move that positions us well for the long term in both local and global markets.
“The company marked many milestones and achievements in various areas as a world-class organization since it reached full operations, reflecting our continuous commitment to our shareholders and stakeholders,” said Dr. Faisal Al-Faqeer, Sadara’s chief executive officer.
He added: “The transition of our marketing rights to these global industry leaders is part of the shareholders’ actions to improve Sadara’s operating results, as the marketers will leverage their marketing and sales expertise to ensure that Sadara’s world-class assets, technologies and products reach their full potential.
“This will further benefit our shareholders and lenders as well as current customers.”
Sadara’s Chief Financial Officer Alejandro Farre noted, “This transaction is yet another critical milestone for Sadara and a demonstration of the strong support from shareholders and lenders to provide the company with the long-term sustainable capital structure to enable its continued success.”
https://www.msn.com/en-ae/money/news/sadara-agrees-with-lenders-to-reprofile-its-debt/ar-BB1f56Ee
Sadara markets in the Middle East today, and Dow in the rest of the world. Sadara will no longer market products, but they will be sold by Sabic. Aramco (Sabic parent) owns 65% of the JV and Dow owns 35% of the JV. This is the amount of volume that will be marketed by each of the two companies in the future, starting this summer.
March 29, 2021
Sadara Marketing Changes
Sadara agrees with lenders to reprofile its debt
Ajel News 3 hrs ago
Sadara Chemical Company (Sadara) has signed an agreement with agency creditors and commercial lenders to restructure Sadara’s debt. The restructured debt repayment has been better aligned to match Sadara’s expected future cash flow generation. This agreement became effective March 25, 2021.
Key provisions of the agreement include a debt maturity extension from 2029 to 2038; a principal grace period through 2026, and new guarantees issued by the Sadara’s sponsors; Saudi Arabian Oil Company’s (Saudi Aramco); and The Dow Chemical Company’s (Dow).
Global manufacturing cost curve
Following the successful reprofiling, Sadara will also benefit from longer-term structural operating and feedstock improvements; further enhancing its cracker’s flexibility and improving Sadara’s position on the global manufacturing cost curve.
Sadara has also received the agreement of its shareholders — Saudi Aramco and Dow — to start the transition of the marketing rights of Sadara’s finished products to levels more consistent with each partner’s equity ownership.
This transition is part of the partnership’s original plan and will gradually increase over the next five years.
The acceleration of the marketing rights of Saudi Aramco will be taken over by the Saudi Basic Industries Corporation (SABIC). All parties agreed on this and these rights will relate to several specific products; which include a range of polyethylene, chemicals and polyurethane.
“Sadara’s debt reprofiling is an essential move that positions us well for the long term in both local and global markets.
“The company marked many milestones and achievements in various areas as a world-class organization since it reached full operations, reflecting our continuous commitment to our shareholders and stakeholders,” said Dr. Faisal Al-Faqeer, Sadara’s chief executive officer.
He added: “The transition of our marketing rights to these global industry leaders is part of the shareholders’ actions to improve Sadara’s operating results, as the marketers will leverage their marketing and sales expertise to ensure that Sadara’s world-class assets, technologies and products reach their full potential.
“This will further benefit our shareholders and lenders as well as current customers.”
Sadara’s Chief Financial Officer Alejandro Farre noted, “This transaction is yet another critical milestone for Sadara and a demonstration of the strong support from shareholders and lenders to provide the company with the long-term sustainable capital structure to enable its continued success.”
https://www.msn.com/en-ae/money/news/sadara-agrees-with-lenders-to-reprofile-its-debt/ar-BB1f56Ee
Sadara markets in the Middle East today, and Dow in the rest of the world. Sadara will no longer market products, but they will be sold by Sabic. Aramco (Sabic parent) owns 65% of the JV and Dow owns 35% of the JV. This is the amount of volume that will be marketed by each of the two companies in the future, starting this summer.
March 29, 2021
BASF Increasing TPU Prices
Trade News | March 18, 2021
BASF to increase prices for thermoplastic polyurethane systems in North America
WYANDOTTE, MI, March 18, 2021 – BASF will increase prices for all thermoplastic
polyurethane (TPU) products in North America by $0.22/lb for orders shipping on or after April 1, 2021, or as contracts allow.
March 29, 2021
BASF Increasing TPU Prices
Trade News | March 18, 2021
BASF to increase prices for thermoplastic polyurethane systems in North America
WYANDOTTE, MI, March 18, 2021 – BASF will increase prices for all thermoplastic
polyurethane (TPU) products in North America by $0.22/lb for orders shipping on or after April 1, 2021, or as contracts allow.
March 27, 2021
Former Foamex Eddystone, PA Site
For you nostalgia fans . . .
From what we found out, a company purchased the site for $15 MM USD last year (Foamex/FXI initially sold it to a metal recycling company for $13 MM in 2010). This new entity has plans to build on the site. The demolishment is ongoing. Reinhart did a little more research. The enclosed pdf file is what, at this point in time, appears to be the proposed future plans regarding this former foam plant. The big question about this “Eddystone” development is, we do not believe there is another road in/out of that place other than the front gate. This goes right by Penn Terminals then up to Rte 291. The Railroad tracks run parallel with Rte 291 all the way up past the airport and there is no other way under the tracks to the best of our knowledge. With all the potential new truck traffic, that one way out/in could become a bottleneck.
This is what the sight looks like as of last Friday:
Plant 1 Picture: Back and to the left is where the guard house/front gate used to be. The front, left corner of the plant building was directly in front of me. The silos in the far distance are at the end of the building.
Plant 2 Picture: I am in a similar position as above but looking towards the right. The far outside rear edge of the plant building is in the distance with the river and New Jersey past that.
R&D Bldg 2: Basically I am a similar position as above but looking to the left. The R&D building, which was across the street, is completely gone.
There is nothing left I could recognize except for the remains of the rail siding tracks. Difficult to believe that at one time this sight had: 3 foam pouring machines, multiple foam felting operations, Baumer loops, multiple foam reticulation operations, foam peeling operations, flame lamination operations, multiple pilot scale foam machines, full QC lab & operations, engineering, 27 person R&D group, etc.
Courtesy of Glenn DePhillipo RS & M Technologies
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