Company News
October 14, 2024
Dow’s Polyol Plant in Argentina to Close
Dow Shuts Polyols Plant in Argentina
PUdaily | Updated: October 14, 2024
US chemical giant Dow Chemical Company revealed that, due to poor economic performance, it had made the decision to terminate the production of 50,000 tons per year of polyether polyols at its factory in San Lorenzo, Santa Fe Province, Argentina. Dow Chemical pointed out that the San Lorenzo factory had long been facing the issue of low operating rates due to an oversupply of polyols in the global market. Previously, the company had planned to cease polyurethane production activities at the factory in 2021, but was unable to do so at that time due to pressure from trade unions and the national government.
There is a discrepancy between Dow Chemical and the trade union regarding the number of employees affected by the factory closure. Dow Chemical claims that 40 employees will be affected, while the trade union insists that the number is 120.
According to local media reports from Santa Fe Province, the United Petrochemical Workers and Employees Union, representing the factory’s employees, accused the company of not notifying worker representatives when deciding to close the factory. In response, Dow Chemical stated that it had provided corresponding notifications to employees in accordance with Argentine labor laws. Dow Chemical also promised to maintain close cooperation with all stakeholders of the San Lorenzo factory to ensure an orderly and smooth transition process.
Furthermore, Dow Chemical maintains a significant business presence in Argentina, where it is the sole producer of polyethylene. Its main operating facilities are located in Bahia Blanca, south of Buenos Aires, where it owns 12 production plants and employs 3,000 workers.
October 14, 2024
Arsenal’s ATP Adhesive Systems acquires NESCHEN Coating
Arsenal’s ATP Adhesive Systems acquires NESCHEN Coating GmbH
from Blue Cap AG
Wollerau, Switzerland, 7th of October 2024 — ATP adhesive systems AG (ATP), a global leader in solvent-free adhesive technologies, proudly announces the acquisition of NESCHEN Coating GmbH (NESCHEN), a well-established manufacturer of solvent-free adhesive products, from Blue Cap AG. This strategic acquisition is a pivotal step in ATP’s mission to enhance production capacity, further its commitment to sustainable products, and strengthen its supply chain resiliency.
The acquisition of NESCHEN aligns with ATP’s long-term strategy of delivering innovative, solvent-free solutions to its customers across various industries. Both companies share a strong focus on sustainability, as NESCHEN, like ATP, is dedicated to producing eco-friendly, solvent-free adhesives and products thereof. This shared vision ensures a seamless integration of NESCHEN COATING GMBH into the ATP family and reinforces ATP’s position as a market leader in environmentally responsible adhesive technologies.
Expansion of the Graphic Arts Product Portfolio and Capacity Enhancement
With NESCHEN’s advanced production capabilities, ATP significantly increases its manufacturing capacity, enabling higher production volumes and improved operational efficiency. This acquisition also facilitates strategic diversification, allowing ATP to tap into new markets and broaden its product offerings, particularly within the graphic arts segment and other key sectors. In addition to expanding production, the acquisition fortifies ATP’s supply chain strategy, ensuring operational resilience and redundancy. By incorporating NESCHEN’s assets and capabilities, ATP enhances its ability to respond quickly to market demands and potential disruptions, ensuring uninterrupted service for its global customer base.
A Step Forward in Sustainability
NESCHEN’s expertise in producing solvent-free adhesive products perfectly complements ATP’s core focus on sustainability. This acquisition strengthens ATP’s position as a leader in eco-friendly adhesive technologies, aligning with the increasing demand for sustainable products across industries such as automotive, construction, and medical.
Quote from ATP Leadership:
“We are thrilled to welcome NESCHEN into the ATP family. This acquisition is not just about increasing our production capacity, but also about advancing our shared commitment to sustainability. Together, we will continue to lead the market with innovative, solvent-free solutions,” said Daniel Heini, CEO of the ATP Group.
About ATP adhesive systems AG:
ATP adhesive systems AG has been a pioneer in the development of high-performance, solvent-free adhesive tapes for over 30 years. With production sites in Germany, USA and the UK, and headquarters in Switzerland, ATP serves a broad range of industries, providing tailor-made adhesive solutions that meet the highest standards of sustainability and quality.
For further information, visit ATP website.
About Neschen Coating GmbH:
Neschen is a leading international company for modern self-adhesive products and high-quality coated media for a wide range of applications in book protection and repair, graphic media and industrial coatings. Neschen has a worldwide distribution network. For further information, visit Neschen’s website.
About Arsenal Capital Partners
Arsenal Capital Partners is a leading private equity firm that specializes in investments in industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds totaling over $10 billion, completed more than 290 platform and add-on acquisitions, and achieved more than 35 realizations. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. For more information, visit www.arsenalcapital.com.
October 8, 2024
UBE Corp Acquires Lanxess Prepolymers Business
LANXESS’ Urethane Systems business to sold to UBE Corporation
Specialty chemicals company LANXESS (Cologne, Germany) signed a contract on October 3, 2024 to sell its Urethane Systems business to Japanese UBE Corporation (Tokyo). The enterprise value amounts to €460 million with expected proceeds of around €500 million. With this transaction LANXESS exits the last remaining polymer business.
The Urethane Systems business comprises 5 manufacturing sites globally as well as application laboratories in the USA, Europe and China. UBE Corporation will take over all operations from LANXESS with a total of around 400 employees. The Urethane Systems business generated sales of around €250 million last twelve months June 2024.
LANXESS will use the proceeds to reduce its net debt. The leverage ratio (net debt / EBITDA pre) will likely be reduced by ~0.5x.
“The sale of Urethane Systems marks another milestone in our fast transformation into a pure-play specialty chemicals company, as we are divesting the last remaining polymer business in our portfolio. We are convinced that the Urethanes business will have significantly enhanced opportunities for growth and development under the umbrella of UBE,” says Matthias Zachert, Chairman of the Board of Management of LANXESS AG. ”At the same time, we are using the proceeds from the transaction to strengthen our balance sheet by further reducing our net debt.”
The transaction remains subject to the approval of the relevant authorities. LANXESS expects the transaction to close in the first half of 2025.
October 1, 2024
ADNOC to Acquire Covestro
Abu Dhabi’s ADNOC to buy German chemicals firm Covestro for $16 bln
By Ludwig Burger and Yousef Saba
October 1, 20249:44 AM EDTUpdated 5 hours ago
- Summary
- Companies
- ADNOC to pay 62 euros per Covestro share, take on 3 bln in debt
- To buy additional 1.2 bln euros worth of new shares in Covestro
- Covestro shares jump 3.7% to a three-year high
- Deal could fuel debate over foreign takeovers of German firms
BERLIN/DUBAI Oct 1 (Reuters) – Abu Dhabi’s ADNOC has struck a deal to buy German chemicals maker Covestro (1COV.DE)
, opens new tab for 14.7 billion euros ($16.3 billion), including debt, in the energy giant’s biggest ever acquisition.
The deal is one of the largest foreign takeovers by a Gulf state as countries in the region seek to reduce their dependence on oil amid the global switch to cleaner energy.
It also comes at a sensitive time in Germany for foreign acquisitions, as Commerzbank and the government seek to fend off interest in the bank from Italy’s UniCredit.
The 62 euros-per-share cash deal, which will also see ADNOC take on about 3 billion euros in debt, follows protracted negotiations and is a cornerstone of the energy giant’s drive to grow in petrochemicals along with gas and renewable energy.
ADNOC said that when the transaction closes it would also buy 1.17 billion euros worth of new shares in Covestro to improve funding at the former Bayer (BAYGn.DE)
, opens new tab unit.
“We believe that the fundamentals of chemicals are strong,” Khaled Salmeen, ADNOC head of downstream, marketing, and trading, told Reuters, adding he saw Covestro as a platform for growth.
“This sector, and specifically Covestro’s space in the sector, will grow higher than GDP from now to 2050,” he added.
Shares in Covestro, which makes plastics and chemicals for the automotive, construction, and engineering sectors, jumped 3.7% to a three-year high of 58 euros.
ADNOC has also been in talks with Austria’s OMV to merge their petrochemical joint ventures Borealis and Borouge. ADNOC took a 24.9% stake in OMV from Abu Dhabi sovereign fund Mubadala in February.
Covestro was created in 2015 after being spun off from Bayer. It opened its books to ADNOC in June – a year after ADNOC’s initial interest was reported.
The takeover offer will be subject to a minimum acceptance threshold of 50% plus one share of Covestro’s capital.
“The long negotiations have paid off – both for Covestro and for the shareholders. The deal is well structured and now has a good chance of coming to a successful conclusion,” said Arne Rautenberg, a fund manager at Union Investment, one of Covestro’s top-15 shareholders.
LIMITS TO CONTROL
The deal could stoke a debate in Germany about foreign takeovers of blue-chip companies amid a weak economy.
ADNOC, however, granted some autonomy to Covestro.
Covestro said that half of the seats on its supervisory board would continue to be held by labour representatives, as is the norm at German listed companies, and two members of the board’s shareholder representatives would be independent of ADNOC.
ADNOC pledged not to sell, close or significantly reduce Covestro’s business activities and to protect its technology and intellectual property, Covestro said.
The German company added its management board would stay in charge of management and strategic direction, and Covestro CEO Markus Steilemann told Reuters he planned to serve out his contract running until 2028.
“I believe this is the right step not only to keep Covestro on a growth path but also to move it to the fast lane,” Steilemann said of the deal.
Covestro reported a net loss of 72 million euros in the first six months of the year, versus a 46 million euro profit a year earlier.
The agreement highlights an increase in dealmaking between the Middle East and Europe as Gulf investors are drawn to company valuations that lag those in the United States, as well as an easier regulatory backdrop for buyers and a generally warmer welcome because of investment needs, advisers and analysts have told Reuters.
It is the Middle East’s second biggest acquisition after Israel’s Teva Pharmaceuticals’ purchase of Allergan’s generic drugs business for around $40 billion in 2015, according to Dealogic data.
The deal also follows several failed bids by Emirati companies to buy foreign targets.
Abu Dhabi utility TAQA’s $22 billion attempt to buy Spain’s Naturgy collapsed earlier this year, partly over disagreements on governance, people with direct knowledge of the talks said.
Britain also blocked an Abu Dhabi-backed group’s plan to buy the Telegraph newspaper, and only cleared Abu Dhabi state-controlled telecoms firm e&’s purchase of a 14.6% stake in Vodafone after ordering the UK company to take steps to manage national security risks that the government said the deal posed.
Covestro said its management board was advised by investment banks Goldman Sachs (GS.N), opens new tab and Perella Weinberg (PWP.O)
, opens new tab as well as by law firm Linklaters. Its supervisory board was advised by Rothschild & Co and Macquarie Capital as well as by law firm SZA Schilling, Zutt & Anschuetz.
ADNOC said Morgan Stanley (MS.N), opens new tab exclusively provided financial advice while Freshfields Bruckhaus Deringer was its legal adviser.
September 27, 2024
Monument Chemical Strike Has Ended
STRIKE ENDS: New Union Contract Reached For Approximately 120 Monument Chemical Workers
Berry Craig
03 Sep, 2024
32BJ SEIU Members ratified a contract that ensures better wages, job security, and safe working conditions
(Brandenburg, KY) – On Friday, 32BJ SEIU and representatives with Monument Chemical reached an agreement for a new contract. A weeklong strike of 120 Monument Chemical Workers ended this morning, after reaching a historic deal that protects workers’ jobs and safe working conditions while also raising their wages.
The three year contract includes:
- Historic wage increases of 9% over the course of the contract.
- Protection against workforce changes that would pull skilled workers from their primary functions.
- Protection of seniority benefits at the plant including workers’ schedules.
- Mediated labor management meetings so that workers can provide direct input on their working conditions.
- An increase in eligible holiday pay from 8 hours to 12 hours.
“I’m glad to see the members get back to work and get a fair contract, but we wish it didn’t have to get to this point,” said Kevin Duke, a Monument Chemical Shipper. “This deal means that the shifts and wage increases that many of us have worked decades to earn will remain intact.”
“Getting a fair deal done for our members was crucial to this community because they are such an enormous part of Meade County,” said Robert Smith, Kentucky State Director of 32BJ SEIU. “This agreement ensures that experienced workers will continue to handle these potentially dangerous chemicals, ensuring the plant’s safety. They are happy to get back to work with a contract that reflects the importance and excellence of what they do.”
“We are thankful to everyone who honked, brought food, and supported us throughout this difficult week,” said Larry Houglan, a Monument Chemical Operator. “We were able to negotiate something that was beneficial for both sides. This deal will help the company with retention and morale around the plant. When you have long time employees it shows it is somewhere worth working and growing at.”
The workers are vital to the safe and efficient operation of the plant and include Plant Operators, Polychem Specialists, Shippers, Lab Technicians, Wastewater Treatment workers, and others. They handle dangerous chemicals – such as carbide and ethylene oxide – maintain the boiler system, and manage wastewater, among other duties, ensuring compliance with environmental and safety standards. The workers will return to their duties Saturday.
https://ky.aflcio.org/news/strike-ends-new-union-contract-reached-approximately-120-monument
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