Company News
November 11, 2020
Kukdo Outage
Guodu Chemical Resin Plant exploded, and the resin will rise again?
Echemi 2020-11-04
Recently, an explosion accident occurred at the Guodu Chemical Resin Plant. Two people were injured in the accident. The fire caused by the explosion was brought under control within one hour. According to insiders, Guodu Resin has three sets of devices, all of which are isolated. The explosion accident this time was probably due to the dry weather and the explosion caused by dust. The specific cause is under further investigation by the relevant departments.
Public information shows that Guodu Chemical Co., Ltd. was jointly invested and established by Korea Guodu Chemical Co., Ltd. and Japan’s Solectron Chemical Co., Ltd. Korea Kukdo Chemical Co., Ltd. was established in 1972 and is one of the world’s leading manufacturers of epoxy resins and curing agents. At present, in addition to the four production bases in Korea, Guodu Chemical Co., Ltd. has also invested in the establishment of Guodu Chemical (Kunshan) Co., Ltd. in Kunshan City, Jiangsu Province, China, which mainly produces epoxy resin and polyether polyol products.
According to industry insiders, the dust explosion caused by bisphenol A is the main cause of accidents among epoxy resin manufacturers. At present, epoxy resin companies generally have two ways to avoid such accidents. One is to connect to the underground through pipelines to drain static electricity; The other is to use steam to reduce static electricity during the feeding process. In addition, the work clothes of the operating workers also have the effect of anti-static, and multiple measures can be taken to effectively prevent accidents.
A number of resin companies closed, and prices continued to rise
After the explosion, resin companies are bound to cause a battle without gunpowder and smoke. Recently, many resin companies have increased their prices.
Generally speaking, the reasons for price hikes are not only upstream price hikes and the surge in downstream demand, but also the reduction in market volume caused by the reduction in supply in the industry and corporate overhauls will also drive anxiety and increase downstream purchases.
Due to the high level of the domestic epoxy resin market, the negotiated price of solid epoxy resin is around 16,800 yuan/ton (delivered upon acceptance). In addition, more than a dozen resin companies, including Anhui Zhicheng Industrial, Shexian Hongda Chemical Industry, Qingtian Materials, New Sino-French Polymer Materials, Anhui Yongchang New Materials, Huangshan Zhengjie New Materials, and Jiangsu Ruipu Resin, have announced price increases recently. The notice kicked off the price increase in the domestic resin industry. Judging from the price increase notices issued by various companies, indoor polyester resin products rose by 300-600 yuan/ton, and outdoor polyester resin rose by 500-800 yuan/ton. Leading company Allnex Resins rose twice in a row, with a cumulative increase of 700 yuan/ton. Among them, a large factory increased the price every morning and afternoon due to too many orders, and the price was close to 23,000 yuan/ton (in barrels), putting a high price on the last working day of October.
In addition, the sudden safety accident at Guodu Resin Plant will inevitably cause tension and anxiety in local enterprises, and even more tension in the resin industry. In addition to bringing tension to the resin industry, it may also cause large-scale safety inspections in Kunshan and even the entire Jiangsu area. It will also cause certain problems to the normal production of local epoxy resin companies and other raw material and coating companies. influences.
Judging from the current market situation, since August this year, the price of chemical products has continued to increase. Even the polyester resin industry that has not seen price increases for many years has begun to be unable to restrain the increase, and even quotations have been invalidated and orders have been destroyed. This is really rare in the chemical industry. Based on this speculation, the prices of chemical products and raw materials will continue to rise in the last two months of the year, and the hot trend may continue until next year.
November 11, 2020
Kukdo Outage
Guodu Chemical Resin Plant exploded, and the resin will rise again?
Echemi 2020-11-04
Recently, an explosion accident occurred at the Guodu Chemical Resin Plant. Two people were injured in the accident. The fire caused by the explosion was brought under control within one hour. According to insiders, Guodu Resin has three sets of devices, all of which are isolated. The explosion accident this time was probably due to the dry weather and the explosion caused by dust. The specific cause is under further investigation by the relevant departments.
Public information shows that Guodu Chemical Co., Ltd. was jointly invested and established by Korea Guodu Chemical Co., Ltd. and Japan’s Solectron Chemical Co., Ltd. Korea Kukdo Chemical Co., Ltd. was established in 1972 and is one of the world’s leading manufacturers of epoxy resins and curing agents. At present, in addition to the four production bases in Korea, Guodu Chemical Co., Ltd. has also invested in the establishment of Guodu Chemical (Kunshan) Co., Ltd. in Kunshan City, Jiangsu Province, China, which mainly produces epoxy resin and polyether polyol products.
According to industry insiders, the dust explosion caused by bisphenol A is the main cause of accidents among epoxy resin manufacturers. At present, epoxy resin companies generally have two ways to avoid such accidents. One is to connect to the underground through pipelines to drain static electricity; The other is to use steam to reduce static electricity during the feeding process. In addition, the work clothes of the operating workers also have the effect of anti-static, and multiple measures can be taken to effectively prevent accidents.
A number of resin companies closed, and prices continued to rise
After the explosion, resin companies are bound to cause a battle without gunpowder and smoke. Recently, many resin companies have increased their prices.
Generally speaking, the reasons for price hikes are not only upstream price hikes and the surge in downstream demand, but also the reduction in market volume caused by the reduction in supply in the industry and corporate overhauls will also drive anxiety and increase downstream purchases.
Due to the high level of the domestic epoxy resin market, the negotiated price of solid epoxy resin is around 16,800 yuan/ton (delivered upon acceptance). In addition, more than a dozen resin companies, including Anhui Zhicheng Industrial, Shexian Hongda Chemical Industry, Qingtian Materials, New Sino-French Polymer Materials, Anhui Yongchang New Materials, Huangshan Zhengjie New Materials, and Jiangsu Ruipu Resin, have announced price increases recently. The notice kicked off the price increase in the domestic resin industry. Judging from the price increase notices issued by various companies, indoor polyester resin products rose by 300-600 yuan/ton, and outdoor polyester resin rose by 500-800 yuan/ton. Leading company Allnex Resins rose twice in a row, with a cumulative increase of 700 yuan/ton. Among them, a large factory increased the price every morning and afternoon due to too many orders, and the price was close to 23,000 yuan/ton (in barrels), putting a high price on the last working day of October.
In addition, the sudden safety accident at Guodu Resin Plant will inevitably cause tension and anxiety in local enterprises, and even more tension in the resin industry. In addition to bringing tension to the resin industry, it may also cause large-scale safety inspections in Kunshan and even the entire Jiangsu area. It will also cause certain problems to the normal production of local epoxy resin companies and other raw material and coating companies. influences.
Judging from the current market situation, since August this year, the price of chemical products has continued to increase. Even the polyester resin industry that has not seen price increases for many years has begun to be unable to restrain the increase, and even quotations have been invalidated and orders have been destroyed. This is really rare in the chemical industry. Based on this speculation, the prices of chemical products and raw materials will continue to rise in the last two months of the year, and the hot trend may continue until next year.
November 10, 2020
Recticel to Acquire FoamPartner
Recticel realises a key step in its strategic transformation with the acquisition of FoamPartner
Regulated information, Brussels, 10/11/2020 — 06:55 CET, 10.11.2020
Recticel announces that it has entered into final agreements with Swiss-listed Conzzeta AG (SIX:CON) to acquire 100% of FoamPartner in cash for an enterprise value of CHF 270 million, CHF 20 million of the price being payable in January 2022. This represents an 8.6x average 2019A-2020F normalized EBITDA multiple. The transaction is subject to customary conditions precedent including antitrust approvals.
FoamPartner is a global provider of high value-added technical foam solutions in the Mobility, Industrial Specialties and Living & Care markets. There is significant complementarity and synergy upside with Recticel.
This acquisition is expected to :
- accelerate growth in high value-added activities focused on innovation;
- enable Recticel to strengthen its European and global presence in specialty foam solutions, specifically in the faster growing APAC and North American markets;
- be accretive to group margins before synergies, as of the first full year of consolidation;
- result in EUR 14 million of synergy upside by 2023, with a run-rate of EUR 10 million achieved by end of 2021.
The FoamPartner business will be merged with the Recticel Flexible Foams division to form the new Engineered Foams business segment.
Financing is secured by a syndicated acquisition facility which has been arranged and fully underwritten by KBC Bank and to which Belfius Bank and BNP Paribas Fortis confirmed their participation. The acquisition facility has a 3-year tenor with two 1-year extension options.
Closing of the transaction is expected to be completed in the first quarter of 2021.
Olivier Chapelle (CEO) states: “The acquisition of FoamPartner marks an important step in Recticel’s strategic portfolio reorientation. Following our divestment of Eurofoam in April, today’s announcement is evidence of our strategy to reallocate capital to higher growth and more profitable business opportunities. This transaction is a unique opportunity for Recticel to expand its product offering in technical and specialty foam solutions and to further increase our global reach in Asia and North-America. We look forward to welcoming our many new and highly skilled colleagues from FoamPartner. Looking ahead, this acquisition supports our ambition to become a global provider of engineered foam solutions and will create significant value for our customers, employees and all other stakeholders. In conjunction with today’s announcement, Recticel has launched a strategic review to evaluate the future of the Bedding business segment within Recticel, which progressively becomes a Group primarily focused on Insulation and Engineered Foams.”
November 10, 2020
Recticel to Acquire FoamPartner
Recticel realises a key step in its strategic transformation with the acquisition of FoamPartner
Regulated information, Brussels, 10/11/2020 — 06:55 CET, 10.11.2020
Recticel announces that it has entered into final agreements with Swiss-listed Conzzeta AG (SIX:CON) to acquire 100% of FoamPartner in cash for an enterprise value of CHF 270 million, CHF 20 million of the price being payable in January 2022. This represents an 8.6x average 2019A-2020F normalized EBITDA multiple. The transaction is subject to customary conditions precedent including antitrust approvals.
FoamPartner is a global provider of high value-added technical foam solutions in the Mobility, Industrial Specialties and Living & Care markets. There is significant complementarity and synergy upside with Recticel.
This acquisition is expected to :
- accelerate growth in high value-added activities focused on innovation;
- enable Recticel to strengthen its European and global presence in specialty foam solutions, specifically in the faster growing APAC and North American markets;
- be accretive to group margins before synergies, as of the first full year of consolidation;
- result in EUR 14 million of synergy upside by 2023, with a run-rate of EUR 10 million achieved by end of 2021.
The FoamPartner business will be merged with the Recticel Flexible Foams division to form the new Engineered Foams business segment.
Financing is secured by a syndicated acquisition facility which has been arranged and fully underwritten by KBC Bank and to which Belfius Bank and BNP Paribas Fortis confirmed their participation. The acquisition facility has a 3-year tenor with two 1-year extension options.
Closing of the transaction is expected to be completed in the first quarter of 2021.
Olivier Chapelle (CEO) states: “The acquisition of FoamPartner marks an important step in Recticel’s strategic portfolio reorientation. Following our divestment of Eurofoam in April, today’s announcement is evidence of our strategy to reallocate capital to higher growth and more profitable business opportunities. This transaction is a unique opportunity for Recticel to expand its product offering in technical and specialty foam solutions and to further increase our global reach in Asia and North-America. We look forward to welcoming our many new and highly skilled colleagues from FoamPartner. Looking ahead, this acquisition supports our ambition to become a global provider of engineered foam solutions and will create significant value for our customers, employees and all other stakeholders. In conjunction with today’s announcement, Recticel has launched a strategic review to evaluate the future of the Bedding business segment within Recticel, which progressively becomes a Group primarily focused on Insulation and Engineered Foams.”
November 10, 2020
Wanhua Methanol Plant
China Wanhua starts up new coal-based methanol plant November 10/2020 MOSCOW (MRC) — Chinese private-sector firm Wanhua Chemical has recetnly started up a new coal-based methanol plant at Yantai in Shandong province, according to Petrotahlil.
The new plant has a nameplate capacity of 600,000 t/yr and can produce up to 670,000 t/yr of methanol.
Wanhua has mothballed its old, coal-based methanol plant with 200,000 t/yr capacity at the same site.
The new plant may not have much impact on the methanol market as Wanhua plans to maintain low operations at the plant in the initial stage, mainly for its captive consumption by its methylene diphenyl diisocyanate (MDI), methyl methacrylate and methyl tert-butyl ether units totalling 200,000 t/yr of methanol demand.
Weak margins are another concern for Wanhua to produce more methanol.
Wanhua is looking to sell vessel cargoes to east China in the longer term. The company owns China’s single-largest capacity propane dehydrogenation (PDH) plant at Yantai in Shandong province. The PDH unit has 750,000 t/yr of propylene capacity and fully integrated derivatives units. Wanhua is also the world’s largest MDI manufacturer.
The company is also set to start up its 1mn t/yr propane-feed cracker in early November.
As MRC wrote previously, China’s Wanhua Chemical posted a 49.56% decrease in net profits in the first half of the year, as sales and prices both took a hit from the coronavirus pandemic. Slump in oil prices also dampened demand and prices of its products.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).Author:Margaret Volkova
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