Company News
October 23, 2024
Quadrant Communication Regarding TCPP
October 18, 2024
Update: Compliance with Antidumping Duties and Tariffs for Spray Foam Products
U.S. International Trade Commission (USITC) into imports of alkyl phosphate esters (TCPP fire retardants) from China for price dumping (701-TA-721 and 731-TA-1689).
To all Quadrant Performance Materials Customers,
On September 30, 2024, the Department of Commerce International Trade Administration announced their preliminary determination, concluding that countervailable subsidies—financial assistance and other unfair trade practices—have been provided by the Chinese government to its domestic producers of alkyl phosphate esters (TCPP), thus distorting international trade. These subsidies have given unfair advantages to Chinese manufactures, enabling them to sell goods at lower prices. For more details, please see the Federal Register notice: Federal Register Document C-570-169.
Countervailing duties (additional tariffs) have been imposed on the importation of Chinese manufactured TCPP, with tariffs ranging from 50% to 564%, depending on the company.
A variety of US Industries, including spray foam, use imported TCPP as the US domestic production capacity is insufficient to meet Industry demands. Consequently, the raw material costs for spray foam are expected to increase.
Furthermore, the investigation is still ongoing, to further assess additional antidumping tariff and or penalties; with a final determination expected in late November and or before February 9, 2025.
We strongly recommend that you obtain documentation from your spray foam suppliers to ensure that the products you have purchased since 2018, as well as those you are currently buying, comply with all applicable duty and tariff regulations.
Quadrant’s Commitment to Compliance
Quadrant Performance Materials has and will continue to adhere to all relevant duties and tariffs for any imported materials used in our spray foam systems and other products. We verify and ensure the payment of these duties and tariffs, to maintain transparency and compliance.
If you have any questions or need further clarification on this issue, please do not hesitate to contact us.
Quadrant Performance Materials
200 Industrial Blvd, McKinney, TX 75069
(972)542-0072
October 14, 2024
Petroquímica Río Tercero to Close TDI Plant in Argentina
The closure of the TDI plant due to lack of competitiveness causes the first layoffs
The closure of the TDI (toluene diisocyanate) production plant, belonging to the Petrochemical company Río Tercero, begins to cause layoffs and suspensions of personnel, as the firm had anticipated.
On Sunday night, the Petrochemical Chemical Industries Staff Union of Río Tercero promoted a protest measure in front of the entrance to the chemical center, which consisted of the total closure of Savio Avenue in that sector for a few hours.
The action is a direct union response to the first telegrams of dismissal and dismissal of personnel that, they claim, were sent by the company to the workers via email. In principle, about 120 separations are mentioned.
The lack of competitiveness in the face of the national government’s opening of TDI imports from Asian countries was the cause alleged by the Piero group firm to close the main production unit of the local factory, although it stressed that it will remain active. the rest of the plants.
In that direction, Mayor Marcos Ferrer expressed his concern about the conflict, and blamed the national economic policies of indiscriminate opening of foreign products.
He argued that the national industry cannot compete on equal terms with Asia, due to the great asymmetry of tax, labor, and energy costs.
In that sense, he assured that he will begin negotiations with the Nation to attempt some dialogue that could lead to concrete measures to protect the industry, although he admitted that it is a very difficult option to achieve.
Regarding the layoffs, Ferrer said that he fears a domino effect in the rest of the industries in the chemical sector, mainly in the Military Factory, since Petrochemical buys almost all of the nitric acid production from him as an input for the TDI, which it will no longer produce.
Thus, there are fears for the future of the almost 60 workers affected by the operation of the state company’s nitric plant.
This Monday, at 10, a presentation by the chemical union is scheduled before the Provincial Labor Secretariat, in order to request a mandatory conciliation that takes the conflict back to its origin, to open a stage of negotiation.
Meanwhile, at 6:30 p.m. a protest march is called through the streets of the city.
TDI is the main input for the manufacture of foam rubber for mattresses and pillows, as well as accessories for the automotive industry.
October 14, 2024
Honeywell Spin Off
HONEYWELL ANNOUNCES PLAN TO SPIN OFF ADVANCED MATERIALS BUSINESS TO SHAREOWNERS
Oct. 08, 2024 6:00 AM ETHoneywell International Inc. (HON)
- Independent company to be a leading provider of sustainability-focused specialty chemicals and materials with approximately $3.8 billion of revenue and an EBITDA margin greater than 25% expected in FY24
- Advanced Materials portfolio includes leading brands such as Solstice®, Spectra®, Hydranal® and Aclar®, among others
- Honeywell (HON) continues to simplify and optimize its portfolio around three compelling megatrends: automation, the future of aviation and energy transition
- Tax-free spin to shareowners targeted to be completed by the end of 2025 or early 2026
CHARLOTTE, N.C., Oct. 8, 2024 /PRNewswire/ — Honeywell (Nasdaq: HON) today announced a plan to spin off its Advanced Materials business into an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026. Honeywell expects to execute the planned spin in a tax-free manner to its shareowners.
As a leading global provider of sustainability-focused specialty chemicals and materials, this pure-play business will be well-positioned to benefit from an enhanced strategic focus and the financial flexibility to pursue innovation and growth opportunities through investment cycles. Further, the planned spin-off will enable Honeywell to progress its strategic priorities of accelerating organic growth, evolving its Accelerator operating system, and optimizing its portfolio.
“Given the sustained market demand for advanced specialty chemicals and materials around the globe, we are confident now is the right time for this business to grow independently, leveraging its leading technologies and deep customer relationships. As a sector leader, this new company will have a greater strategic focus on innovation, enabling it to develop new, more sustainable solutions and products with next-generation chemistry to create further value for shareowners,” said Vimal Kapur, Chairman and CEO of Honeywell.
Kapur added, “Today’s announcement is the latest step in the optimization of the Honeywell portfolio, a key priority I laid out in my first year leading the company. Through the powerful combination of strategic bolt-on acquisitions and subtractions of high quality but non-core business lines, we continue to enhance our portfolio mix and further tighten Honeywell’s alignment to three compelling megatrends: automation, the future of aviation, and energy transition—underpinned by our Accelerator business models.”
The planned spin-off is expected to create value for all stakeholders as both Honeywell and the Advanced Materials business will benefit from:
- A simplified strategic focus;
- A greater financial flexibility to pursue prioritized organic growth opportunities throughout investment cycles;
- An improved ability to customize capital allocation priorities in alignment with strategic focus; and
- Distinct investment profiles that position each company to unlock greater long-term value for shareowners.
Honeywell’s Continued Simplification and Portfolio Optimization
The planned spin-off of the Advanced Materials business follows four recent acquisitions Honeywell announced as part of its disciplined capital deployment strategy. The company is focused on high-return acquisitions that will drive future growth across its portfolio in alignment with the three powerful megatrends. In the past 12 months, Honeywell completed the acquisitions of: Carrier Access Solutions, Civitanavi, CAES and Air Products’ liquified natural gas (LNG) business.
Honeywell is currently on pace to exceed its commitment to deploy at least $25 billion toward high-return capital expenditures, dividends, opportunistic share purchases and accretive acquisitions through 2025, with approximately $9 billion deployed towards acquisitions to date in 2024.
Following the completion of the planned spin of the Advanced Materials business, Honeywell will be positioned to further improve its organic sales growth, lower capital intensity, reduce cyclicality of sales and enhance free cash flow generation capability.
Advanced Materials
Upon completion of the spin-off, the Advanced Materials business will be a sustainability-focused specialty chemicals and materials pure play with leading positions across fluorine products, electronic materials, industrial grade fibers, and healthcare packaging solutions. The business offers technologies that include the breakthrough low global warming Solstice® hydrofluoro-olefin (HFO) technology, which has helped avoid the potential release of the equivalent of more than 326 million metric tons of carbon dioxide into the atmosphere.[1] Additionally, the business manufactures a wide variety of high-performance specialty materials technologies ranging from Spectra®, a fiber used in high-end armor technology to protect in law enforcement and military applications, to Hydranal®, the most trusted brand in Karl Fischer titration, to Aclar®, a high-performance pharmaceutical packaging material critical to preserving prescription drugs and keeping them safe.
Advanced Materials is expected to have FY24 estimated revenue of between $3.7 billion and $3.9 billion with an EBITDA margin greater than 25%. As a standalone company with a large-scale domestic manufacturing base, it will be positioned to benefit from a compelling investment profile and a more flexible and optimized capital allocation strategy.
Transaction Details
The planned spin-off transaction is targeted for completion by the end of 2025 or early 2026, subject to certain customary conditions, including, among others, the filing and effectiveness of applicable filings (including a Form 10 registration statement) with the U.S. Securities and Exchange Commission, assurance that the spin-off of the Advanced Materials business will be tax-free to Honeywell’s shareowners, receipt of applicable regulatory approvals and final approval by Honeywell’s board of directors. Approval by Honeywell’s shareowners is not required.
The spin transaction will not impact Honeywell’s FY24 guidance.
As the process progresses, Honeywell intends to provide additional information regarding the future management team and board of directors for the independent Advanced Materials company.
Goldman Sachs & Co. LLC is serving as financial advisor to Honeywell. Skadden, Arps, Slate, Meagher & Flom LLP is providing external legal counsel.
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.
Everchem Updates Archive 
Sign Up for Email Updates