Company News
October 23, 2020
Dow Comments on Durables
US shift to suburbs boosts chems used in durables – Dow CFO
Author: Al Greenwood
2020/10/22
HOUSTON (ICIS)–More US consumers are moving out of the city and into the suburbs, which is creating profound changes in buying habits that are increasing demand for appliances, automobiles and other durable goods, the chief financial officer of Dow said on Thursday.
These are important end markets for Dow’s polyurethanes business, which is part of the company’s Industrial Intermediates and Infrastructure segment. Third-quarter volumes in the segment were down by just 3% year on year. Quarter on quarter, they rose by 23%.
Dow noted strength across furniture, bedding, appliances, construction and automobiles.
Some of the increase is due to companies restocking, said Howard Ungerleider, chief financial officer. He made his comments in an interview with ICIS.
Several manufacturers that make appliances and other durable goods suspended production during the height of the pandemic in the second quarter. Automobile production in Europe and North America fell close to zero.
In particularly, there is a significant backlog in appliances, Dow said during an earnings conference call.
But Ungerleider expects that another reason behind the rise in durable volumes is higher demand from end-consumers.
“We’re nesting a lot more,” he said. People are spending more time at home, washing more clothes and cleaning more dishes.
Appliances can run for only so many cycles before they give out and need replacing, he said.
But increasingly, consumers are not just buying replacement appliances. They are buying new ones as they move out of the cities and into larger homes in the suburbs, Ungerleider said.
This shift from the cities to the suburbs could become a long-term trend, Ungerleider said. If so, it would mark a break from the pre-pandemic trend of people favouring city life and abandoning the suburbs.
“They were talking about the death of the suburbs,” Ungerleider said. “It seems that pandemic has temporarily shifted that. We’ll see how sticky that is post-pandemic.”
If the trend holds, it could cause a rise in sales of durable goods such as appliances, bedding and furniture, he said.
Appliances use polyurethanes for insulation. Bedding and couches uses flexible polyurethane foam for mattresses and cushions.
In addition, city-dwelling consumers who once relied on taxis and ride-sharing to get around will need to buy automobiles once they move to the suburbs, Ungerleider said.
The automobile market is still some ways off to returning to levels before the pandemic.
However, any recovery will have a significant effect on polyurethanes and other chemicals. The automobile sector is also an important end market for styrene butadiene rubber (SBR) as well as coatings and several polymers, such as nylon, polypropylene (PP), polycarbonate (PC) and acrylonitrile butadiene styrene (ABS).
If people continue to move to the suburbs, it could cause a rise in house construction. Residential construction is an important end market for polyvinyl chloride (PVC) and titanium dioxide (TiO2), a white pigment used in paints.
Houses also use rigid polyurethane foam for insulation.
For the recovery as a whole, Dow cautioned that it would be uneven.
Polyurethanes are made with polyols and isocyanates such as methylene diphenyl diisocycanate (MDI) and toluene diisocyanate (TDI).
Interview article by Al Greenwood
October 23, 2020
Dow Comments on Durables
US shift to suburbs boosts chems used in durables – Dow CFO
Author: Al Greenwood
2020/10/22
HOUSTON (ICIS)–More US consumers are moving out of the city and into the suburbs, which is creating profound changes in buying habits that are increasing demand for appliances, automobiles and other durable goods, the chief financial officer of Dow said on Thursday.
These are important end markets for Dow’s polyurethanes business, which is part of the company’s Industrial Intermediates and Infrastructure segment. Third-quarter volumes in the segment were down by just 3% year on year. Quarter on quarter, they rose by 23%.
Dow noted strength across furniture, bedding, appliances, construction and automobiles.
Some of the increase is due to companies restocking, said Howard Ungerleider, chief financial officer. He made his comments in an interview with ICIS.
Several manufacturers that make appliances and other durable goods suspended production during the height of the pandemic in the second quarter. Automobile production in Europe and North America fell close to zero.
In particularly, there is a significant backlog in appliances, Dow said during an earnings conference call.
But Ungerleider expects that another reason behind the rise in durable volumes is higher demand from end-consumers.
“We’re nesting a lot more,” he said. People are spending more time at home, washing more clothes and cleaning more dishes.
Appliances can run for only so many cycles before they give out and need replacing, he said.
But increasingly, consumers are not just buying replacement appliances. They are buying new ones as they move out of the cities and into larger homes in the suburbs, Ungerleider said.
This shift from the cities to the suburbs could become a long-term trend, Ungerleider said. If so, it would mark a break from the pre-pandemic trend of people favouring city life and abandoning the suburbs.
“They were talking about the death of the suburbs,” Ungerleider said. “It seems that pandemic has temporarily shifted that. We’ll see how sticky that is post-pandemic.”
If the trend holds, it could cause a rise in sales of durable goods such as appliances, bedding and furniture, he said.
Appliances use polyurethanes for insulation. Bedding and couches uses flexible polyurethane foam for mattresses and cushions.
In addition, city-dwelling consumers who once relied on taxis and ride-sharing to get around will need to buy automobiles once they move to the suburbs, Ungerleider said.
The automobile market is still some ways off to returning to levels before the pandemic.
However, any recovery will have a significant effect on polyurethanes and other chemicals. The automobile sector is also an important end market for styrene butadiene rubber (SBR) as well as coatings and several polymers, such as nylon, polypropylene (PP), polycarbonate (PC) and acrylonitrile butadiene styrene (ABS).
If people continue to move to the suburbs, it could cause a rise in house construction. Residential construction is an important end market for polyvinyl chloride (PVC) and titanium dioxide (TiO2), a white pigment used in paints.
Houses also use rigid polyurethane foam for insulation.
For the recovery as a whole, Dow cautioned that it would be uneven.
Polyurethanes are made with polyols and isocyanates such as methylene diphenyl diisocycanate (MDI) and toluene diisocyanate (TDI).
Interview article by Al Greenwood
October 21, 2020
Another Polytek Acquisition
Arsenal’s Polytek Acquires Incredible Solutions Easton, PA & Crystal River, FL – October 20, 2020 – Polytek® Development Corp. (“Polytek”), a manufacturer of specialty polymers for mold making, casting, and coating applications, announced today the acquisition of Incredible Solutions. Polytek is a portfolio company of Arsenal Capital Partners.
Founded in 2017 and located in Crystal River, Florida, Incredible Solutions supplies epoxy coating and casting systems that are used to coat wood bars and table tops, create decorative surfaces and mixed-media furniture such as river tables, and complete a variety of other works of art and craft.
Incredible Solutions will join Polytek’s consumer brand portfolio and further expand the company’s offering of coating and casting solutions that are formulated specifically for do-it-yourself and artistic communities. These brands offer user-friendly products and accessories that are available direct-to-consumer via a variety of convenient channels, including company-operated e-commerce sites, mass retail, and online marketplaces.
Doug Lorenz, CEO of Polytek, commented “Incredible Solutions has had tremendous success in their first three years of business and we’re very excited to bring them onto the Polytek team and continue to grow with them in the coming years.”
Charlie Ives, owner of Incredible Solutions added, “We are really looking forward to teaming up and collaborating with Polytek. Ultimately, our goal is to continue to serve our customers to the best of our ability while introducing new product options and creative ways to use them.”
Charlie Ives will remain in an active role within the Incredible Solutions brand, and the two companies will continue to do business under their existing names. Genesis Capital, LLC acted as the financial advisor to Polytek.
About Polytek® Development Corp. Founded in 1984, Polytek® Development Corp. is headquartered in Easton, PA with operations in Pomona, CA, Galesburg, MI, Franklin, IN, and Grants Pass, OR. Polytek is a leading manufacturer of specialty polymers including polyurethane elastomers and casting resins, silicone, epoxies, latex, thermoplastic elastomers, and board materials. These systems are used primarily in mold making, casting, and coating applications in industrial and consumer sectors, including construction and restoration, arts and crafts, DIY, product design and manufacturing, entertainment, and education. Polytek® brands include Raw Material Suppliers, Alumilite, BCC Products, ETI Technology, Inc., Pro Marine Supplies, and Stone Coat Countertops. corporation.polytek.com
About Incredible Solutions Located in Crystal River, FL, and founded by a husband and wife duo in 2017, Incredible Solutions was established to service a rapidly growing do-it-yourself epoxy market. The company quickly grew into a top seller on e-commerce platforms while maintaining the customer service hallmarks of a small, family-run business. Today, Incredible Solutions continues to provide user-friendly epoxy coating and casting solutions to do-it-yourselfers, artists, and craftsmen. www.incrediblesolutionsonline.com
October 21, 2020
Another Polytek Acquisition
Arsenal’s Polytek Acquires Incredible Solutions Easton, PA & Crystal River, FL – October 20, 2020 – Polytek® Development Corp. (“Polytek”), a manufacturer of specialty polymers for mold making, casting, and coating applications, announced today the acquisition of Incredible Solutions. Polytek is a portfolio company of Arsenal Capital Partners.
Founded in 2017 and located in Crystal River, Florida, Incredible Solutions supplies epoxy coating and casting systems that are used to coat wood bars and table tops, create decorative surfaces and mixed-media furniture such as river tables, and complete a variety of other works of art and craft.
Incredible Solutions will join Polytek’s consumer brand portfolio and further expand the company’s offering of coating and casting solutions that are formulated specifically for do-it-yourself and artistic communities. These brands offer user-friendly products and accessories that are available direct-to-consumer via a variety of convenient channels, including company-operated e-commerce sites, mass retail, and online marketplaces.
Doug Lorenz, CEO of Polytek, commented “Incredible Solutions has had tremendous success in their first three years of business and we’re very excited to bring them onto the Polytek team and continue to grow with them in the coming years.”
Charlie Ives, owner of Incredible Solutions added, “We are really looking forward to teaming up and collaborating with Polytek. Ultimately, our goal is to continue to serve our customers to the best of our ability while introducing new product options and creative ways to use them.”
Charlie Ives will remain in an active role within the Incredible Solutions brand, and the two companies will continue to do business under their existing names. Genesis Capital, LLC acted as the financial advisor to Polytek.
About Polytek® Development Corp. Founded in 1984, Polytek® Development Corp. is headquartered in Easton, PA with operations in Pomona, CA, Galesburg, MI, Franklin, IN, and Grants Pass, OR. Polytek is a leading manufacturer of specialty polymers including polyurethane elastomers and casting resins, silicone, epoxies, latex, thermoplastic elastomers, and board materials. These systems are used primarily in mold making, casting, and coating applications in industrial and consumer sectors, including construction and restoration, arts and crafts, DIY, product design and manufacturing, entertainment, and education. Polytek® brands include Raw Material Suppliers, Alumilite, BCC Products, ETI Technology, Inc., Pro Marine Supplies, and Stone Coat Countertops. corporation.polytek.com
About Incredible Solutions Located in Crystal River, FL, and founded by a husband and wife duo in 2017, Incredible Solutions was established to service a rapidly growing do-it-yourself epoxy market. The company quickly grew into a top seller on e-commerce platforms while maintaining the customer service hallmarks of a small, family-run business. Today, Incredible Solutions continues to provide user-friendly epoxy coating and casting solutions to do-it-yourselfers, artists, and craftsmen. www.incrediblesolutionsonline.com
October 21, 2020
Huntsman Opens Polyester Polyol Plant in Taiwan
Huntsman Opens New TEROL® Polyols Plant in Taiwan
Download as PDF October 21, 2020 1:01am EDT
KUAN YIN, Taiwan – Huntsman Corporation (NYSE: HUN) today commemorated the official start-up of a new 22,000-ton TEROL® aromatic polyester polyols plant at its systems house in Kuan Yin, Taiwan, with an opening ceremony at the site that was attended by key customers and employees.
The 3,600-square meter polyols plant, completed in May, expands Huntsman’s downstream polyurethanes capabilities in the Asia-Pacific region and marks the first time Huntsman has manufactured its TEROL® polyols outside the United States.
TEROL® polyester polyols are critical components in the production of MDI-based polyurethane insulation systems – the most effective insulants available in the market, as measured by R-value. Insulation products based on TEROL® polyols, include polyisocyanurate (PIR) boardstock systems, spray polyurethane foam (SPF) and pour-in-place applications, including entry doors, garage doors, coolers, refrigerators and commercial freezers.
To produce its TEROL® polyols, Huntsman utilizes a proprietary process that upcycles scrap polyethylene terephthalate (PET) bottles, some of which otherwise would have ended up in landfills, rivers and oceans.
In remarks at the opening ceremony, Peter Huntsman, Chairman, President and Chief Executive Officer of Huntsman Corporation, said: “The work we are doing in Taiwan and throughout the Asia Pacific region will truly transform our industry. By recycling the equivalent of nearly half a billion PET bottles from the oceans, landfills and refuse facilities, we are creating the building blocks that transform plastic waste into something of real value – highly efficient insulants that help conserve energy and reduce emissions.
“When considered with its sister plant in Houston, Texas, this new TEROL® polyols plant enables Huntsman to participate on a global scale in the shared responsibility to clean up our environment and do more with less.”
Huntsman manufactures TEROL® polyols for the Americas and European regions from its plant in Houston, Texas, where it upcycles the equivalent of one billion 500ml PET bottles per year. Additionally, Huntsman manufactures polyols from scrap PET bottles at its Huntsman Building Solutions site in Boisbriand, Canada.
Commenting on the new facility, Tony Hankins, President of Huntsman’s Polyurethanes business and CEO of Asia Pacific said: “Taiwan is a critically important base for the achievement of our strategic objectives in the region, which are focused on moving downstream and creating more differentiated solutions for our customers. The TEROL® polyols from this plant are already being used in PIR boardstock systems, cold chain applications and spray polyurethane foam, or SPF. Earlier this year, we established Huntsman Building Solutions, the leading SPF company in the world, through the integration of two major SPF businesses that we recently acquired. As a result, Huntsman is now able to effectively supply energy-efficient SPF systems to customers throughout Asia-Pacific, leveraging the TEROL® polyols from the Taiwan plant. We see significant growth opportunities for SPF in the cold chain, modern agriculture, and the insulation of buildings.”
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