Company News
October 15, 2020
IMCD US Opens New Headquarters
IMCD US Opens New Headquarters in Greater Cleveland Area
WESTLAKE, OHIO (14 October 2020) – IMCD N.V. (“IMCD”), a leading distributor of speciality chemicals and ingredients, is pleased to announce the opening of its new U.S. headquarters in Westlake, Ohio, a suburb of Cleveland. The company debuts its new location to accommodate its expanding business, invest in its people and future growth, plus complement the company’s global digitalisation initiatives to better serve its markets across the U.S.
“I am proud to announce the opening of the new IMCD US headquarters,” said Thomas Van Valkenburgh, President, IMCD US. “It was created to enable employees in their quest to drive excellence as we serve both our principals and customer partners. This is not just a new office space, but a modern work environment carefully designed to inspire collaboration, galvanize partnerships and encourage entrepreneurship.”
The new IMCD US headquarters was selected for its location convenience, onsite and nearby amenities and ease of access for employees. The building features an open floor plan, state-of-the-art training and conference rooms, and integrated technology throughout the space. The company is committed to continue to attract and develop top talent with its new headquarters, while contributing to the local economy through job creation.
Operating coast-to-coast, IMCD US is comprised of 370 employees with offices in Ohio, California, New Jersey, Texas and Puerto Rico, five market-focused laboratories and more than 20 strategically located warehouses to serve customers across the U.S. Key market-focused segments in the U.S. include coatings and construction, advanced materials, pharmaceuticals, nutraceuticals, food and nutrition, personal care, oil and gas and animal nutrition.
October 15, 2020
BASF to Restart Ludwigshafen TDI Unit
BASF eyes restart of TDI plant at Ludwigshafen, Germany October 15/2020 
MOSCOW (MRC) — BASF is planning to restart its 300,000-metric ton/year toluene diisocyanate (TDI) plant in Ludwigshafen, Germany, by the end of October, according to sources. The company declared force majeure on 31 August after experiencing technical problems, it stated at the time, said Chemweek. BASF has tried to restart the plant since then, but its efforts were unsuccessful. “They will make another restart attempt in two to three days,” says a market source. The company had planned three months of maintenance at the TDI plant this year, but postponed it to March 2021, citing the impact of COVID-19 as the main reason, the sources say. “The force majeure at our TDI plant in Ludwigshafen is still in place,” a BASF spokeswoman tells OPIS. The force majeure at Ludwigshafen has exacerbated tightness in the global TDI market, according to James Elliott, principal analyst/polyurethane feedstocks at IHS Markit. This has not only been driven by supply-side issues but also demand has been particularly strong during the third quarter. Early indications for the fourth quarter are that offtake continues to strengthen, says Elliott. BASF started operations at the Ludwigshafen TDI plant in November 2015 after investing more than €1 billion ($1.17 billion) to build it. Since then, it has not consistently operated at optimal rates at the site, encountering different production and technical issues which have caused delays and shutdowns, according to Elliott. The company stopped producing TDI at its 80,000-metric tons/year Schwarzheide facility, based in southern Germany, in April this year. The COVID-19 pandemic and associated lockdowns led to a collapse in TDI demand during the second quarter as consumer spending on flexible polyurethane foam goods dropped, with total European demand plunging as much as 80% in April. Flexible polyurethane foam is mainly used in mattresses and furniture in western Europe.
BASF is due to release third-quarter results on 28 October 2020 and full-year results on 26 February 2021. As MRC reported earlier, COVID-19 occurred at an already challenging time for the petrochemical industry and has required it to take some drastic actions, said the leaders of the worldпїЅs two biggest chemical companies, BASF and Dow, on Monday at the 54th European Petrochemical Association (EPCA) annual meeting, which is taking place in a virtual format. The pandemic has also accelerated key industry trends, particularly those around sustainability and the environment, they said. Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP). According to MRC’s ScanPlast report, Russia’s overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
mrcplast.comAuthor:Anna Larionova
October 15, 2020
BASF to Restart Ludwigshafen TDI Unit
BASF eyes restart of TDI plant at Ludwigshafen, Germany October 15/2020 MOSCOW (MRC) — BASF is planning to restart its 300,000-metric ton/year toluene diisocyanate (TDI) plant in Ludwigshafen, Germany, by the end of October, according to sources. The company declared force majeure on 31 August after experiencing technical problems, it stated at the time, said Chemweek. BASF has tried to restart the plant since then, but its efforts were unsuccessful. “They will make another restart attempt in two to three days,” says a market source. The company had planned three months of maintenance at the TDI plant this year, but postponed it to March 2021, citing the impact of COVID-19 as the main reason, the sources say. “The force majeure at our TDI plant in Ludwigshafen is still in place,” a BASF spokeswoman tells OPIS. The force majeure at Ludwigshafen has exacerbated tightness in the global TDI market, according to James Elliott, principal analyst/polyurethane feedstocks at IHS Markit. This has not only been driven by supply-side issues but also demand has been particularly strong during the third quarter. Early indications for the fourth quarter are that offtake continues to strengthen, says Elliott. BASF started operations at the Ludwigshafen TDI plant in November 2015 after investing more than €1 billion ($1.17 billion) to build it. Since then, it has not consistently operated at optimal rates at the site, encountering different production and technical issues which have caused delays and shutdowns, according to Elliott. The company stopped producing TDI at its 80,000-metric tons/year Schwarzheide facility, based in southern Germany, in April this year. The COVID-19 pandemic and associated lockdowns led to a collapse in TDI demand during the second quarter as consumer spending on flexible polyurethane foam goods dropped, with total European demand plunging as much as 80% in April. Flexible polyurethane foam is mainly used in mattresses and furniture in western Europe.
BASF is due to release third-quarter results on 28 October 2020 and full-year results on 26 February 2021. As MRC reported earlier, COVID-19 occurred at an already challenging time for the petrochemical industry and has required it to take some drastic actions, said the leaders of the worldпїЅs two biggest chemical companies, BASF and Dow, on Monday at the 54th European Petrochemical Association (EPCA) annual meeting, which is taking place in a virtual format. The pandemic has also accelerated key industry trends, particularly those around sustainability and the environment, they said. Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP). According to MRC’s ScanPlast report, Russia’s overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
mrcplast.comAuthor:Anna Larionova
October 13, 2020
UBS Now Covering the Mattress Sector
Purple Innovation the top pick at UBS in sweeping coverage of mattress sector
Oct. 13, 2020 7:46 AM ET|About: Purple Innovation, Inc. (PRPL)|By: Clark Schultz, SA News Editor
UBS takes up coverage on the U.S. mattress industry with four new ratings as it looks at housing as a near-term tailwind.
Analyst Atul Maheswari: “We believe the mattress sector should see strong trends over the next few quarters on the back of wallet share gains and continued strength in housing. Some of the long-term unknowns like the shift online & intense competition will likely take a backseat to unit gains over the next couple of quarters. Our top down industry model forecasts the $21 bn mattress industry growing 5.4% in 2020 followed by 4.1% in FY’21. Our 2020 estimate bakes in a -LSD decline for the ~$16.5 bn traditional channel and 35% growth for the ~$4bn DTC channel.”
Purple Innovation (NASDAQ:PRPL) is the top pick in the group from UBS. “PRPL is a profitable DTC player with several unique drivers to sustain 20-25% revenue growth and 25%+ EBITDA growth over an extended period of time. Still, it’s trading at just 13x FY’22E EBITDA and ~2x EV/Sales, which is below its consumer/retail high growth peers (FIVE/FND),” previews the firm. Coverage is launched by UBS with a Buy rating.
Tempur-Sealy International (NYSE:TPX) and Casper (NYSE:CSPR) are started off at Neutral. “We believe TPX will capitalize on industry tailwinds & should report strong trends in the near term. However, there are concerns on how it will lap these gains in 2H’21. This will likely act as an overhang on the stock. Finally, we believe CSPR needs to show better balance between sales growth & profitability for its shares to attract a higher valuation,” updates UBS.
Sleep Number (NASDAQ:SNBR) is seen as the laggard and initiated with a Sell rating. “SNBR’s lofty valuations (22x NTM P/E) coupled with mall exposure and low online penetration keeps us cautious on the name,” warns UBS.
October 13, 2020
UBS Now Covering the Mattress Sector
Purple Innovation the top pick at UBS in sweeping coverage of mattress sector
Oct. 13, 2020 7:46 AM ET|About: Purple Innovation, Inc. (PRPL)|By: Clark Schultz, SA News Editor
UBS takes up coverage on the U.S. mattress industry with four new ratings as it looks at housing as a near-term tailwind.
Analyst Atul Maheswari: “We believe the mattress sector should see strong trends over the next few quarters on the back of wallet share gains and continued strength in housing. Some of the long-term unknowns like the shift online & intense competition will likely take a backseat to unit gains over the next couple of quarters. Our top down industry model forecasts the $21 bn mattress industry growing 5.4% in 2020 followed by 4.1% in FY’21. Our 2020 estimate bakes in a -LSD decline for the ~$16.5 bn traditional channel and 35% growth for the ~$4bn DTC channel.”
Purple Innovation (NASDAQ:PRPL) is the top pick in the group from UBS. “PRPL is a profitable DTC player with several unique drivers to sustain 20-25% revenue growth and 25%+ EBITDA growth over an extended period of time. Still, it’s trading at just 13x FY’22E EBITDA and ~2x EV/Sales, which is below its consumer/retail high growth peers (FIVE/FND),” previews the firm. Coverage is launched by UBS with a Buy rating.
Tempur-Sealy International (NYSE:TPX) and Casper (NYSE:CSPR) are started off at Neutral. “We believe TPX will capitalize on industry tailwinds & should report strong trends in the near term. However, there are concerns on how it will lap these gains in 2H’21. This will likely act as an overhang on the stock. Finally, we believe CSPR needs to show better balance between sales growth & profitability for its shares to attract a higher valuation,” updates UBS.
Sleep Number (NASDAQ:SNBR) is seen as the laggard and initiated with a Sell rating. “SNBR’s lofty valuations (22x NTM P/E) coupled with mall exposure and low online penetration keeps us cautious on the name,” warns UBS.
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