Company News
April 2, 2025
L & P Sells Aerospace Segment
Leggett & Platt Sells Its Aerospace Products Group for $285M
- Leggett & Platt (NYSE:LEG) said on Wednesday that it has signed an agreement to sell its Aerospace Products Group to affiliated funds managed by Tinicum Incorporated for a cash purchase price of $285M.
- The after-tax cash proceeds are expected to be approximately $240M.
- The Aerospace Products Group is a supplier of complex, highly engineered tube and duct assemblies for use primarily in commercial and military aircraft platforms and space launch vehicles.
- The business comprises seven manufacturing facilities located in the U.S., UK, and France and approximately 700 employees with net trade sales of $190M in 2024.
- This divestiture is part of the ongoing strategic business review, aimed at determining which businesses are the right long-term fit for the company.
March 27, 2025
IPDI Force Majeure
Evonik Declared Force Majeure for IPDI Supply
PUdaily | Updated: March 27, 2025
On March 24,2025, Evonik declared force majeure for the supply of product VESTANAT® IPDl with immediate effect. Due to unforeseeable and unavoidable technical problems at oursupplier, production is significantly impacted with immediate effect.
Evonik therefore will not be able to supply the confirmed or ordered or otherwise requested quantities of VESTANAT® IPDl tentatively within the next weeks. As of now,Evonik unfortunately cannot determine how long the situation will last and will keep you informed.
March 20, 2025
Klaussner Revival
Klaussner’s Leonardo is a six-piece sectional.
Investment fuels a new chapter for Klaussner, with a North Carolina factory and showroom planned
Cindy W. Hodnett //Executive Editor of Brand Development//March 19, 2025
HIGH POINT — When Klaussner Home Furnishings abruptly closed its doors in 2023, numerous retailers were left in the lurch, including John Garg, CEO of Jennifer Furniture.
At the time, Garg told Furniture Today that the sudden shutdown was a “worse situation than COVID for me” and one that was a “major loss we’re taking for making no mistakes in our business.”
Fast forward to 2025, and not only has Garg weathered the storm that followed Klaussner’s closing, he is actually leading the team that is reintroducing the Klaussner brand to the industry and consumers. Following his purchase of the U.S. market trading rights last year, Garg debuted Klaussner upholstery at retail in five Jennifer Furniture stores in November, and the strong response is fueling continued growth and investment.
Noting that Jennifer Furniture is up 25% year-over-year in sales and more than 40% this month, Garg explains that the time is right for expanding the Klaussner line, adding that the strategy implementation toward future growth is already underway.
“We are not just relaunching a brand; we are redefining American-made furniture with innovation, quality and craftsmanship at its core,” Garg said. “With the support of Jennifer Furniture, Klaussner is set to reclaim its position as a top national brand, offering a diverse range of motion furniture, sleepers, sectionals and stationary frames.”
A multifaceted “game plan” is in place with numerous strategies, including the spring opening of a state-of-the-art production facility in North Carolina that will focus on stationary and slipcover frames and the expansion of a distribution network of key warehouse collaborations in 40 states. Additionally, Garg and his team are focused on strengthening the company’s e-commerce partnerships with Wayfair, Amazon, Costco and others, while also preparing to open a to-the-trade flagship showroom in High Point by the fourth quarter of this year.
“We’re planning a 30,000-square-foot showroom in High Point, and we’ll be finalizing that deal sooner rather than later,” Garg said.
In addition to the physical growth, Garg and his team launched the Klaussner.com website earlier this month, and the early response has been strong, underscoring his belief in the brand as well as multiplatform marketing and social media.
Acknowledging that there are currently notable challenges in the home furnishings industry, Garg added that he also feels there is a lot of opportunity for U.S. companies. Consequently, to ensure continued growth against a backdrop of geopolitical economic uncertainty, he said he plans to follow sound business practices such as controlling expenses, working with the right partners and coaching the sales team to tell the story of a quality product.
“The American furniture market is never going to go away, and we want to support that and build furniture for middle-class American consumers who just want to have a better product,” said Garg. “People are craving the right mix of style, color and quality, and we’re creating it.”
March 19, 2025
European Update
European Polyether Polyol Prices Surge Amidst Supply Shortage
PUdaily | Updated: March 18, 2025
The European polyether polyol market has been facing noticeable supply chain pressure in recent months. Major European suppliers like Repsol and Dow are operating at low rates with reduced production levels, resulting in a relatively tight supply in the market. From February to March 2025, polyether polyol prices have surged by EUR 100/tonne due to the supply shortage. With a further widening supply gap and increased imports from China, European polyether polyol prices are anticipated to keep rising from March to April.
Additionally, there is a relatively small number of local traders in Europe, mainly due to the following reasons:
– Limited profit margins: Profits for polyols are relatively low, making large-scale trading markets unsustainable.
– High transport costs: Traders in Europe are feeling the strain of significant cost pressures.
In contrast, there are more traders in the Middle East and Africa regions, particularly in the African market, where large traders are not uncommon. Therefore, the focus of global polyether polyol trade is gradually shifting.
Shell’s Strategic Adjustment of Chemical Assets
Shell is considering selling its chemical assets in Europe and the U.S., with Morgan Stanley conducting a strategic review, according to a report from the Wall Street Journal. This move reflects the dual challenges facing the chemical industry. Uncertainty in regional markets: Shell owns multiple chemical complexes in Europe and the U.S., such as Rheinland in Germany, Moerdijk in the Netherlands, Mossmorran in the UK, Deer Park in Texas, Geismar and Norco in Louisiana, and Monaca in Pennsylvania. The operation of these facilities is affected by global market fluctuations and regional supply-demand dynamics. Particularly in Europe, amid the tight supply and continuous price increases of polyether polyols, the operational efficiency and profit margins of these assets are under severe tests. Margin pressure and strategic restructuring: Shell’s chemical business has been continuously incurring losses over the past three years, although the losses shrank in 2024 (reducing from USD 717 million to USD 392 million). As the European chemical industry faces significant pressure, strategic reviews and potential asset divestments have become important means for Shell to optimize resource allocation and reduce risks. Potential buyers include private equity and Middle Eastern companies who seek to expand capacity in the West. It reflects not only the market attention on chemical assets but also indicates potential shifts in the global chemical industry in the future.
Market Restructuring: Changes in Supply Chain Flows and Global Trade Patterns
By linking the current situation in the European polyether polyol market with Shell’s strategic adjustments, several underlying trends can be observed.
Supply Tightness Driving Price Increases
European producers are challenging to meet market demands due to the fragmented and relatively inefficient production models. Although Chinese products fill the supply gap, they also exacerbate the regional supply-demand imbalance. Consequently, price hikes become an inevitable trend. The continuously rising prices also prompt local producers to reevaluate their asset allocations and production strategies.
Cross-Regional Trade and Capital Restructuring
Global chemical giants like Shell are responding to losses and risks through strategic reviews and asset sales. In the future, if more companies choose to divest assets in Europe, it could lead to a round of capital restructuring and portfolio rebalancing.
Reallocation in the Global Supply Chain
With industry leaders like Shell increasing their investments in China and Singapore, the global polyol supply chain is gradually shifting its focus from Europe and the U.S. towards Asia. This trend not only underscores the reallocation of cost and production advantages but also is poised to have far-reaching implications on the future global trade landscape. Transport costs and trade barriers remain crucial variables in the polyether polyol market, potentially leading to more cross-regional collaborations and M&A restructuring in the future.
March 18, 2025
It’s Official
LyondellBasell and Covestro announce permanent closure of PO11 unit at Maasvlakte
March 18, 2025 09:00 ET | Source: LyondellBasell
MAASSVLAKTE, Netherlands, March 18, 2025 (GLOBE NEWSWIRE) — LyondellBasell (LYB) and Covestro have jointly decided to permanently close the Propylene Oxide Styrene and Monomer (POSM) production unit (PO11) at the Maasvlakte site in the Netherlands. This decision comes after thorough and careful consideration and is driven by the continued pressure on Maasvlakte’s profitability due to global overcapacities, a strong increase of imports from Asia and high costs of European production. Unfortunately, this situation is expected to continue, so longer-term profitable production is not anticipated.
“While the decision to shut down the PO11 unit is difficult, we must ensure all assets within our portfolio are a long-term strategic fit,” said Aaron Ledet, executive vice-president, I&D and Supply Chain. “We are prioritizing our core assets which play a key role in our technology differentiation and circularity or provide attractive returns over the cost of capital. We take our obligations toward our employees, European employee reps, councils and unions seriously. We have engaged with them in line with these obligations and will continue to do so. We would like to thank them for the constructive dialogue. We are also in communication with customers, suppliers and other parties across the value chain and will continue to do business as usual. There is no change to our working relationship, and we continue to focus on providing an exceptional customer and supplier experience.”
“As part of our Sustainable Future Strategy, we’re continuously working to optimally position Covestro to be a reliable partner for our customers and to operate competitively in a challenging market environment,” said Hermann-Josef Dörholt, head of the Performance Materials Business Entity at Covestro. “Due to global overcapacities, persistently weak demand, and high costs in Europe, we have jointly decided with LYB to close the PO11 plant. We will support LYB in implementing this change as socially responsibly as possible. At the same time, we remain committed to the European market and will continue to supply customers with our renowned polyether polyols portfolio.”
The Maasvlakte site, a joint venture between LYB and Covestro, has been operational in the Rotterdam region since 2003. Between now and the end of 2026, LYB will carry out a process to safely shut down and prepare for the demolition of the asset.
In 2024, LYB announced a strategic review of European assets of its Olefins & Polyolefins (O&P) and Intermediates & Derivatives (I&D) business units. LYB has taken the next step in evaluating the option to seek alternative ownership for the O&P sites in the strategic assessment. At this time no decisions have been made and various outcomes remain possible.
About LyondellBasell
We are LyondellBasell (NYSE: LYB) ― a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors, and society. As one of the world’s largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.
About Covestro
Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, Covestro aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group’s Scope 3 emissions are also set to be climate neutral by 2050. Covestro generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Editor’s Note: This one hurts. I worked at ARCO Chemical and Lyondell in the late 1990s when construction started on this plant. I still have photos somewhere of the reclaimed land it was built on!
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