Company News
December 9, 2024
Dow Sells Stake in Infrastructure Assets
Dow unveils partnership with Macquarie, sells Gulf Coast asset stake in $2.4B deal
Dec. 09, 2024 6:52 AM ETDow Inc. (DOW) StockBy: Carl Surran, SA News Editor
Dow (NYSE:DOW) +5.1% pre-market Monday after saying it agreed to sell a 40% equity stake in some U.S. Gulf Coast infrastructure assets, with an option to increase its equity stake to 49% within six months of closing, to Macquarie Asset Management, forming a new partnership as an infrastructure provider to Dow and other industrial customers at its five locations in Texas and Louisiana.
Dow (DOW) expects to receive ~$2.4B in initial cash proceeds based on the initial transaction, with potential to receive up to ~$3B in total.
The companies will launch a new partnership, Diamond Infrastructure Solutions, which will aim to “leverage Dow’s operational excellence and Macquarie Asset Management’s infrastructure and energy expertise to generate growth opportunities by opening access to Dow’s U.S. Gulf Coast sites to third party customers.”
Diamond will be comprised of certain non-product producing assets – power and steam production, pipelines, environmental operations and general site infrastructure – located at five of Dow’s (DOW) manufacturing sites on the U.S. Gulf Coast: Freeport, Texas City, and Seadrift in Texas, as well as Plaquemine and St. Charles in Louisiana.
Dow (DOW) said the deal represents another step in the evaluation of its ownership of non-product producing assets across its global portfolio, building on the previous sales of the company’s rail infrastructure assets at six North American sites and of its U.S. Gulf Coast marine and terminal operations and assets.
December 3, 2024
Shrieve Acquires Connection Chemical
Shrieve Chemical Announces Acquisition of Connection Chemical
Shrieve
2,873 followers
November 6, 2024
THE WOODLANDS, TX (November 5, 2024) — Shrieve Chemical Company (“Shrieve”), a portfolio company of Gemspring Capital and a value-added chemicals distributor, announced today that it has acquired Connection Chemical, LP (“Connection”), a full-service distributor of industrial chemicals and fine ingredients based in Newtown, Pennsylvania. Terms of the transaction were not disclosed.
Founded in 2010, Connection has built a reputation as a trusted partner to a broad range of customers and suppliers, with stocking locations throughout the United States, multiple deep-draft storage tanks, and in-house logistics capabilities that seamlessly connect customers to the global chemical market.
With global expertise and relationships, Connection offers dynamic supply chain solutions and consistent value to both customers and suppliers.
The acquisition broadens Shrieve’s product portfolio and enhances its global sourcing capabilities. Additionally, the combination enables Shrieve to strategically extend its existing product lines to Connection’s customers while introducing Connection’s offerings to new and established clients.
“I am excited to welcome Connection Chemical into the Shrieve Chemical family. This transaction reflects our ongoing commitment to expanding the products and capabilities we offer our customers,” said George Fuller, CEO of Shrieve. “The Connection team has built a world-class business with industry-leading product import capabilities, deep supplier relationships, and a diverse product portfolio serving attractive end markets. In partnership with Frank and the Connection team, we look forward to delivering even greater value to our customers and supplier partners.”
Frank Farish, President of Connection, added, “We are excited to partner with Shrieve and continue leveraging our global supply chain to deliver a consistent supply of high-quality products to customers across North America. Our shared values and dedication to customer service make this partnership a perfect fit, and we are eager to harness the strength of the combined organization to better serve our customers and suppliers.”
Connection was advised by Truist on the transaction.
About Shrieve
Shrieve, based in The Woodlands, TX, is a value-added chemicals distributor serving attractive markets and end-use applications globally. Since its founding in 1978, Shrieve has leveraged its knowledge network to find the best match between suppliers, customer needs, and product applications. Through its four operating segments, Chemical Distribution, Specialty Lubricants and Enhancers, Energy Products and Services, and Custom Packaging, Shrieve markets nearly 1,500 products across more than 40 countries. For more information, visit www.shrieve.com.
About Connection Chemical
Connection, headquartered in Newtown, PA, is a chemical distributor of industrial chemicals and fine ingredients in North America. Founded in 2010, Connection leverages extensive market knowledge, unmatched expertise in supply chain optimization, and a deep network of global supply partners to support customers’ needs for dynamic supply chain solutions. For more information, visit www.connectionchemical.com.
December 2, 2024
ADNOC and Covestro Update
ADNOC says Covestro shareholders accept takeover offer
Reuters Images
ADNOC said the additional acceptance period would start on Tuesday, allowing Covestro shareholders to accept the offer until Dec. 16.
It said the transaction is expected to close in the second half of 2025.
Bartosz Dabrowski, Reuters News
November 26, 2024
Summary of a Busy Year in Global Polyurethanes
Global Transformation in the Polyurethane Industry in 2024
PUdaily | Updated: November 26, 2024
The global polyurethane industry is undergoing a seismic shift in 2024. Facing challenges ranging from macroeconomic fluctuations, soaring energy costs and increasing environmental pressures to restructuring market landscape, major players are adopting various strategies to tackle challenges and seek long-term development. This article will provide an in depth analysis on this industry transformation from three aspects: plant closures, M&As and capacity expansions.
1. Force Majeure Events & Plant Closures: Signals of Self-Adjustment
Dow Closes Two Plants
- Closure of the U.S. PO Plant: Dow has announced its plan to close its PO plant located in Freeport, Texas, by the end of 2025, aiming to optimize cost structures and ensure long-term value creation. This decision epitomizes the self-adjustment of the global chemical industry under multiple pressures such as economic slowdown, rising energy prices, stricter environmental regulations, and intensified competition in Asian markets.
- Closure of the Argentina Polyols Plant: Similarly, Dow has made the decision to terminate the production of 50 ktpa of polyether polyols at its plant in San Lorenzo, Santa Fe Province, Argentina. The plant had long been facing the issue of low operating rates due to an oversupply of polyols in the global market, coupled with Argentina’s deteriorating economy, high inflation, and sluggish domestic demand. These factors made it challenging to maintain smooth operation. This move reflects Dow’s reevaluation of its global asset portfolios and strategic adjustments to improve asset efficiency and focus on businesses with greater growth potential.
Argentina’s Rio Tercero Shut down TDI Plant
Argentina’s Petroquimica Rio Tercero shut down its 28 ktpa TDI plant on October 14, 2024, due to global oversupply and its inadequate competitive edge.
Dow Underwent MDI Force Majeure In North America
Between May and September 2024, Dow’s North American MDI plant underwent force majeure due to hurricanes and supply disruptions from upstream raw material supplier Olin. The 340 ktpa plant kept a low operating rate even after resuming production, further highlighting the impact of natural disasters on the stability of chemical supply chain.
2. M&As: Restructuring and Strategic Transformation
LANXESS Sold Urethane Systems Business
On October 3, 2024, German specialty chemicals giant LANXESS sold its Urethane Systems business to Japanese UBE Corporation for nearly EUR 460 million, signaling the company’s exit from the last remaining polymer business to undergo a transformation towards a pure-play specialty chemicals company. The aim of this sale is to strengthen its overall competitiveness through portfolio transformation.
Covestro to be Acquired by UAE’s Oil Giant ADNOC
In the same month, Abu Dhabi National Oil Company (ADNOC) agreed to buy Covestro, providing financial support to avoid the risks of layoffs and strategic contraction due to deteriorating market conditions. ADNOC’s involvement not only supports Covestro’s “Sustainable Future” strategy but also helps achieve its growth targets. This acquisition will provide ADNOC with access to a leading global platform for MDI, TDI, polyols production and chemical materials development, extending its strategic positioning from upstream to downstream applications.
3. Capacity Expansions: Strong Momentum of Chinese Enterprises
Amidst a general contraction in the global polyurethane industry, Chinese enterprises are demonstrating robust growth momentum.
Wanhua Chemical’s Expansion Plans: Wanhua Chemical has increased its MDI capacity to 800 ktpa and TDI capacity to 250 ktpa in Fujian; besides, its Yantai site will see an additional 850 ktpa of polyols capacity, showcasing its ambitions in the global polyurethane market.
Capacity Expansions at Longhua New Material, ZPC and Shenghong Petrochemical: Longhua New Material’s expansion project will bring its polyols capacity to 930 ktpa, while ZPC, Shenghong Petrochemical and others are also adding new polyols capacities, further solidifying China’s position in the global polyurethane industry chain.
Summary: Strategic Differentiation amidst Industry Transformation
In 2024, the polyurethane industry is undergoing a profound transformation. Many multinationals are facing challenges and adopting strategies such as closures and strategic contractions to optimize assets and unlock profit potential. In contrast, Chinese enterprises are accelerating their pace of capacity expansion under the dual drivers of policy support and market demand. They are continuously strengthening their core competencies by enhancing supply chain stability and increasing R&D investments. In the future, Chinese polyurethane enterprises will play a more important role in the global market to promote the industry development. This transformation is not only a test of the strategic wisdom in enterprises but also a guide to the future for the industry.
November 20, 2024
Big Shareholder at Brenntag
Artisan Partners Doubles Stake in Brenntag to 10%
Published: Nov. 19, 2024 at 12:03 p.m. ET
By Adam Whittaker
Brenntag said that U.S. asset manager Artisan Partners doubled its stake in the company and now holds 10.06% of voting rights.
The German chemicals distributor said Tuesday in a voting-rights announcement that Artisan Partners increased its stake from 5.03% in July and is now the second-largest Brenntag shareholder behind Kuehne Holding’s 15% stake.
Artisan Partners has held the 10.06% stake since Nov. 13, the company said.
Write to Adam Whittaker at adam.whittaker@wsj.com
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