Company News
September 29, 2020
Hexion to Sell Businesses
Hexion to sell phenolic specialty, two other businesses September 29/2020 MOSCOW (MRC) — Hexion (Columbus, Ohio) has agreed to sell its phenolic specialty resin, hexamine, and European-based forest products resins businesses for approximately USD425 million to private equity firms Black Diamond Capital Management (Greenwich, Connecticut) and Investindustrial (Luxembourg), said Chemweek.
The deal consists of USD335 million in cash and certain assumed liabilities, with the remainder in future proceeds to be based on the performance of the business, says Hexion. The transaction is expected to close in the first quarter of 2021, subject to regulatory approvals and other customary closing conditions, including works council consultation. The company expects to use the sale proceeds to invest in its business and further reduce its debt, it says.
The combined businesses being sold posted sales of approximately USD530 million for the last 12 months ended 30 June 2020, according to Hexion. The sale includes approximately 900 personnel and 11 manufacturing facilities worldwide, where phenolic specialty resins and engineered thermoset molding compounds are produced for end markets including building and construction, industrial, automotive, electronics, agriculture, and consumer, it says.
“We continue to strategically manage our portfolio providing us the ability to further strengthen our balance sheet and maintain a strong business going forward. As we proceed, we will leverage our differentiated technology and global manufacturing footprint to serve the diversified customers of our remaining businesses,” says Hexion president and CEO, Craig Rogerson.
The businesses being acquired “boast globally recognizable brands and trademarks,” say Black Diamond and Investindustrial in a joint statement. The equity firms have partnered in the past on a collective investment in Polynt (Scanzorosciate, Italy) and Reichold (Durham, North Carolina), which saw the two companies merged into Polynt-Reichold in 2017. “Black Diamond has prior experience investing in phenolic specialty resin businesses and looks forward to bringing that experience to the acquired businesses,” they say.
Credit Suisse is acting as Hexion’s financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison as legal counsel. Hexion reported a first-quarter 2020 net loss in May of USD59 million, compared with a USD52-million loss in the year-ago quarter, with net sales declining 6.8% year on year to USD826 million.
As MRC informed earlier, Hexion, a major American manufacturer of phenol and bisphenol A (BPA), plans to close its BPA plant in Pernis (Pernis, The Netherlands) in early October for scheduled maintenance. This 120 ktpa BPA production facility will be closed in the second week of October and is expected to resume production in three weeks.
Phenol is the main raw material for bisphenol A (BPA) production, which in turn is used to produce polycarbonate (PC).
According to MRC’s ScanPlast, in Russia, following the results of the first two quarters, the total estimated consumption of PC granulate in the Russian Federation (excluding imports and exports to Belarus) amounted to 47.3 thousand tonnes against 40.7 thousand tonnes in 2019. Total demand increased by 16%.
Hexion Inc., formerly Momentive Specialty Chemicals Inc., is a chemical company based in Columbus, Ohio. It manufactures thermosetting resins and related technologies and specialty products. Hexion has two divisions: the epoxy, phenolic and coating resins division and the forest products division. 
September 28, 2020
BASF Announces TDI Increase
September 25, 2020
Dear Valued Customer,
Effective October 5th, or as contracts allow, BASF Corporation is raising the price for all Lupranate® TDI products by $0.12 per pound.
Your BASF Account Manager will provide further details of this announced increase and is available to answer any questions you may have. We appreciate your continued support for BASF Urethane Chemicals.
September 28, 2020
BASF Announces TDI Increase
September 25, 2020
Dear Valued Customer,
Effective October 5th, or as contracts allow, BASF Corporation is raising the price for all Lupranate® TDI products by $0.12 per pound.
Your BASF Account Manager will provide further details of this announced increase and is available to answer any questions you may have. We appreciate your continued support for BASF Urethane Chemicals.
September 28, 2020
Sampson Rejoins Dow
DOW
John Sampson to rejoin US group as successor to head of engineering Peter Holicki
 Holicki started with Dow in Germany in 1987 (Photo: Dow) |
US materials supplier Dow (Midland, Michigan; www.dow.com) has named John Sampson senior vice-president for operations, manufacturing and engineering. He is to succeed Peter Holicki, who is set to retire in 2021 after over 34 years with the company.
Dow said Sampson was previously executive vice-president for business operations at US epoxy resins specialist Olin (Clayton, Missouri; www.olin.com). Before joining Olin in 2015, Sampson had a long career with Dow, beginning in 1983 in Louisiana in polymers R&D. He will assume his new responsibilities on 1 October 2020 as part of Dow’s leadership team, and will be based in Midland, the company said.
Holicki joined Dow in 1987 in Stade / Germany. Over more than three decades, he held numerous leadership positions in sites across Europe, the Middle East and Africa, including serving as global manufacturing vice president of Dow’s hydrocarbons business, the company said.
September 28, 2020
Sampson Rejoins Dow
DOW
John Sampson to rejoin US group as successor to head of engineering Peter Holicki
| Holicki started with Dow in Germany in 1987 (Photo: Dow) |
US materials supplier Dow (Midland, Michigan; www.dow.com) has named John Sampson senior vice-president for operations, manufacturing and engineering. He is to succeed Peter Holicki, who is set to retire in 2021 after over 34 years with the company.
Dow said Sampson was previously executive vice-president for business operations at US epoxy resins specialist Olin (Clayton, Missouri; www.olin.com). Before joining Olin in 2015, Sampson had a long career with Dow, beginning in 1983 in Louisiana in polymers R&D. He will assume his new responsibilities on 1 October 2020 as part of Dow’s leadership team, and will be based in Midland, the company said.
Holicki joined Dow in 1987 in Stade / Germany. Over more than three decades, he held numerous leadership positions in sites across Europe, the Middle East and Africa, including serving as global manufacturing vice president of Dow’s hydrocarbons business, the company said.
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