Company News
September 16, 2024
Floods Distrupt Borsodchem
2024 09 16T090703Z 1 LYNXMPEK8F07J RTROPTP 4 EUROPE WEATHER CENTRALEUROPE FLOODS CZECH
·6 hours ago
Central Europe factories and retailers shut in flood-hit areas
By Jan Lopatka
PRAGUE (Reuters) -Factories and stores across central Europe shut down production lines and closed their doors on Monday due to flooding that has killed at least 10 people, forced tens of thousands to evacuate and submerged towns from Poland to Romania.
In Ostrava – an industrial city of 290,000 people in northeast Czech Republic – the BorsodChem chemical plant was shut, a spokesperson for the company, partially owned by China’s Wanhua Chemical Group, said.
The OKK Koksovny coking plant – one of the largest producers of foundry coke in Europe – stopped chemicals production but was continuing to keep coking batteries heated to minimum levels, spokesman Jindrich Vanek said.
“There is water that has started rising and there must be a breach of the flood barriers,” he said. “We are without electricity and we are heating our batteries with coking gas, keeping them at technological minimum.”
Czech soft drinks maker Kofola CeskoSlovensko said it was pumping water out of its production facilities in Krnov, some 70 km (44 miles) from Ostrava, and would have a better view on the length of the outage early next week.
The company said it was premature to estimate damage and that it could cover supplies of most products from other plants.
Border areas between the Czech Republic and Poland were hit hard over the weekend, following days of heavy rain. Some bridges collapsed and homes were destroyed, while villages and towns in eastern Romania were submerged.
While rivers in the Czech-Polish border area were starting to recede on Monday, flooding was widening to more areas and leaving bigger cities in both countries on alert.
Veolia Energie has shut its Trebovice electricity and heating plant, which has cut hot water and heating supplies to large parts of Ostrava following flood damage, the company said in a statement.
“At the moment, the supply of heat and hot water in Ostrava is interrupted,” the company said. “The key technologies remained undamaged and therefore if the situation develops favourably we estimate the restoration of supplies in a few days.”
TRANSPORT PROBLEMS
An economist for Czech bank Ceska Sporitelna predicted industry in general would take a hit.
“Industry will receive a negative impulse of one or two percentage points, while the construction sector will receive a positive impulse… thanks to the reconstruction of damaged buildings and infrastructure,” Ceska Sporitelna Chief Economist David Navratil wrote.
The Czech Confederation of Industry said some companies not directly affected by the flooding still had to stop production in hard-hit regions because or problems transporting materials by rail.
Belgian firm Umicore said both its battery materials site in the Polish city of Nysa and its automotive catalysts facility in Nowa Ruda had been secured with limited impact from the floods.
Power utility Tauron said six of its hydroelectric plants in southern Poland were not working due to the floods.
More than 60,000 people were left without power on Monday morning, its press service said.
Polish retailer Zabka said around 80 outlets were currently closed, mainly in the area around the southwest town of Klodzko. The shops were closed due to flooding, lack of electricity or evacuation ordered by the emergency services, its press service told Reuters via email on Monday.
The retailer, owned by private equity fund CVC Capital Partners, added that it had provided water, provisions and transport support to its franchisees and was gathering information on their needs.
(Reporting by Tymon Miller and Michal Aleksandrowicz in Gdansk and Jan Lopatka in Prague; Writing by Michael Kahn; Editing by Alex Richardson)
https://business.express/central-europe-factories-and-retailers-shut-in-flood-hit-areas/
September 15, 2024
Tempur Info
Tempur Sealy gains amid report of divestiture buyer in Mattress Firm deal
Sep. 13, 2024 3:26 PM ETTempur Sealy International, Inc. (TPX) StockBy: Joshua Fineman, SA News Editor
Tempur Sealy (NYSE:TPX) rose 4% amid a report that a potential buyer for the divestiture package for its deal with Mattress Firm has been identified before a November trial from the Federal Trade Commission challenging the combination.
The buyer has met with the FTC, according to a CTFN report on Friday, which said it didn’t know the identity of the bidder.
It wasn’t known if the proposed remedy package has been or will be altered, according to the report.
The FTC sued in early July to block mattress maker Tempur Sealy’s (TPX) planned $4 billion purchase of retailer Mattress Firm. The regulator issued an administrative complaint and authorized a lawsuit in federal court to prevent the deal, alleging that Tempur Sealy — the world’s largest mattress supplier and manufacturer – will have the ability and incentive to “suppress competition” and raise prices for mattresses. The Commission voted 5-0 to authorize the lawsuit to challenge the transaction.
Piper Sandler analyst Peter Keith said in a July note that TPX will have no issue divesting 200 stores that may raise competitive concerns in specific markets.
Tempur Sealy (TPX) agreed to buy Mattress Firm in a $4 billion deal in May 2023.
September 12, 2024
Huntsman Spray Foam President
Huntsman Appoints Douglas Brady as Its Spray Polyurethanes Foam Business President
September 11, 2024
Huntsman Corporation announced the appointment of Douglas Brady as president of Huntsman Building Solutions, its global spray polyurethanes foam business. Brady succeeds Simon Baker, who is leaving Huntsman to return to his home in England.
Brady has extensive knowledge in construction markets, with commercial and technical expertise in insulation, coatings, adhesives and sealants applications. He joined Huntsman in March 2018 with the acquisition of Demilec, a leading North American SPF insulation manufacturer. He went on to become vice president of global innovation and product management for HBS following Huntsman’s February 2020 acquisition of SPF manufacturer Icynene-Lapolla. Demilec and Icynene-Lapolla were integrated to form Huntsman Building Solutions, which is now the largest SPF company in the world.
“I’m excited that Doug has taken on the leadership of our spray foam business,” said Tony Hankins, Huntsman’s polyurethanes division president. “He has deep market expertise and a strong track record of success. Moving forward, we’re optimistic about the opportunities for the business. We aim to expand spray foam markets, reduce energy costs and improve home affordability within the new building code landscape.”
Huntsman Building Solutions is a business unit within Huntsman’s polyurethanes division.
September 11, 2024
Epoxy Antidumping Update
Early antidumping ruling is somewhat negative for Olin, Westlake: KeyBanc
Sep. 11, 2024 9:35 AM ETOlin Corporation (OLN) Stock, WLK StockBy: Rob Williams, SA News Editor
A preliminary finding by the U.S. Commerce Department on whether imports of epoxy resin from several Asian countries were dumped in the United States is “moderately negative” for chemical makers Olin (NYSE:OLN) and Westlake (NYSE:WLK), according to analysts at KeyBanc Securities.
The Commerce Department on Sept. 10 concluded that government subsidies are being provided to producers and exporters of epoxy resins from Taiwan, India and China, but not South Korea, which was below the allowed threshold. The department will issue a final determination by Jan. 21.
“The announcement is a negative read for both Westlake (WLK) and Olin (OLN) as the proposed countervailing subsidy rates will not affect South Korea, the largest exporting country,” Aleksey Yefremov, analyst at KeyBanc, said in a Sept. 10 report. “We had earlier expected Olin (OLN) and Westlake (WLK) to each see approximately $75 million to $150 million annualized ebitda benefit from import duties on epoxy resins in the U.S. and EU.”
The U.S. Epoxy Resin Producers Ad Hoc Coalition, which consists of Olin (OLN) and Westlake (WLK), in April filed antidumping duty and countervailing duty petitions with the Commerce Department on imports of epoxy resin from China, India, South Korea, Taiwan and Thailand.
The Commerce Department’s preliminary proposal suggests a countervailing subsidy of about 109% for epoxy resins originating from China, about 1%-3% from Taiwan and about 2% from India except for those produced by Champion Advanced Materials, which will see a counter subsidy rate of about 114%.
Importantly, the European Union investigation is pending with a decision likely next year, according to KeyBanc.
“The benefit of tariffs will be fairly inconsequential unless the EU imposes a more meaningful duty than the U.S.,” KeyBanc said. “In the best-case scenario, we wouldn’t expect more than $30 million-$50 million annualized ebitda benefit for key producers, starting at some point in 2025.”
Olin (OLN) and Westlake’s (WLK) joint petition alleged that imports of epoxy resin from the targeted countries were being sold in the United States at less than fair value, or dumped.
The countervailing duty petition alleged that the governments of the targeted countries provide countervailable subsidies for the production and export of epoxy resin.
Olin (OLN) and Westlake (WLK) together alleged that domestic industry was materially injured and is threatened by the imports with further material injury.
More on Olin, Westlake Corporation, etc.
- Westlake Corporation (WLK) Q2 2024 Earnings Call Transcript
- Olin Corporation (OLN) Q2 2024 Earnings Call Transcript
- Olin Corporation 2024 Q2 – Results – Earnings Call Presentation
- Westlake, major PVC pipe makers accused of price-fixing in lawsuit
- Westlake raised at RBC as rate cuts seen driving stronger demand
September 11, 2024
Latest Reports on Adnoc and Covestro
Adnoc to acquire chemical company Covestro for $16bn
By Reuters & Staff Writer
September 11, 2024
Abu Dhabi National Oil Company (Adnoc) is expected to make a formal offer to buy German chemical company Covestro AG.
The Financial Times reported that the 14.4 billion euros ($15.90 billion) offer will set up the state-owned energy producer to expand its overseas holdings.
The companies have been in talks since Adnoc made an initial informal offer in September 2023.
In June Covestro confirmed it had started “concrete negotiations” over a $12.5 billion offer, with €62 ($67) a share as a starting point for the negotiations.
Covestro, which makes plastics and chemicals for construction and engineering, said at the time it was opening its books to Adnoc because an agreement on core aspects including Covestro’s growth strategy may be reached.
- Adnoc’s acquisition strategy could lead to something major
- Adnoc makes final bid for German chemicals maker
- Covestro begins formal talks with Adnoc on its $12bn bid
A spokesperson for Covestro said the company had read the FT report with interest and did not comment further. Adnoc declined to comment.
Covestro generated sales of €14.4 billion in 2023. At the end of that year the company had 48 production sites worldwide and employed approximately 17,500 people.
https://www.agbi.com/energy/2024/09/adnoc-to-acquire-chemical-company-covestro-for-16bn/
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