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
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
March 25, 2021
Covestro Recycling Project
Closing the loop for polyurethane mattresses
Covestro: a pioneer in foam recycling and cycle design
- Innovative process for recovering both core raw materials
- New pilot plant for chemical recycling put into operation
- Trailblazer for industrial recycling
- Co-shaping the circular economy in cooperation with value chain
Covestro has developed an innovative process for the chemical recycling of polyurethane (PU) flexible foam from used mattresses. It builds on its participation in the PUReSmart project, which is coordinated by Recticel company.
On average, mattresses contain 15 to 20 kilograms of foam, which results in a large amount of waste at the end of their useful life. The foam is primarily made of two important raw materials. While other chemical recycling approaches mainly focus on processing one of them, the Covestro process now enables the recovery of both raw materials.
Covestro has also recently started operating a pilot plant for flexible foam recycling at its Leverkusen site to confirm the positive laboratory results achieved to date. The first phase is to focus on recycling one of the raw materials, before the recovery of the second component is also to be piloted from summer this year. Covestro´s goal here is to industrialize chemical recycling processes for used flexible foams and ultimately to remarket both recovered raw materials.
Closing material loops
“The development of this innovative recycling technology and the investment in the pilot plant are further milestones in realizing our vision of fully aligning Covestro to the circular economy,” says CEO Dr. Markus Steilemann. “In doing so, we want to replace fossil resources in production, steadily further reduce the carbon footprint of our materials and create new solutions for dealing with plastic waste. Chemical recycling is particularly promising for this, and must be developed further and used more intensively overall. Above all, it should finally be put on an equal legal basis with other recycling methods.”
In cooperation with the companies Recticel and Redwave – a division of Wolfgang Binder GmbH – and as part of the PUReSmart research project, Covestro has also developed an intelligent sorting solution for separating the different PU foams from post-consumer mattresses. The software uses algorithms to correctly identify the different foam types, which facilitates an effective recycling process. This development is another element of Covestro’s digitalization strategy, combined with the new opportunities it entails for the chemicals and plastics industry.
Co-creation of a circular ecosystem
“Based on our competencies and experiences, we also want to take part in shaping the emerging value creation cycle,” says Daniel Meyer, Global Head of the Polyurethanes segment at Covestro. “To accomplish this, we rely on international cooperation with partners and also develop innovative business models. The aim is to generate new sustainable business opportunities with our customers, other partners and for ourselves.”
The project is an important step forward in taking the development of the circular economy at Covestro to entirely new heights. The increased use of used materials further contributes to solving the societal challenge of sustainable disposal of such waste and to achieving the European Union´s goals for the circular economy and for climate and environmental protection.
https://www.covestro.com/press/closing-the-loop-for-polyurethane-mattresses-public/
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