Company News
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/
September 3, 2024
BASF to Shutter Adipic Acid in Ludwigshafen
BASF to shut down adipic acid production at Ludwigshafen next year
Tom Brown
29-Aug-2024
LONDON (ICIS)–BASF is to end production of adipic acid and several downstream units at Ludwigshafen, Germany, as part of structural changes underway at the site, the company said on Thursday.
Production of adipic acid will conclude at the site over the course of 2025, while units to manufacture cyclododecanone (CDon) and cyclopentanone (CPon), which utilize adipic acid as a raw material, will cease in the first half of the year.
The company is planning to cut around €1 billion in costs from the site, with new CEO Markus Kamieth expected to fully set out what steps will be taken at the company’s capital markets day in September this year.
The company had already cut back adipic acid production capacity at the site in 2023, but had kept a some capacity onstream to feed into those downstream units.
BASF expects to cease deliveries of CDon and CPon, which are used in nylon 12 and pharmaceuticals production respectively, and is in talks with customers, the company added.
It will continue to produce adipic acid in Onsan, South Korea, and Chalampe, France, BASF added.
The decision was taken as part of the ongoing strategic review of site operations to “ensure competitiveness under changing market conditions”, the company said in a statement.
Around 180 workers will be affected by the closures, with BASF planning to explore the possibility of employment positions elsewhere within the group.
“These closures are part of the development of a long-term target picture for the transformation of the Ludwigshafen site,” said BASF industrial relations director Katja Schwarpwinkel.
August 29, 2024
More Strikes at Brandenburg
SEIU Monument Chemical workers in Brandenburg Ky go on strike at midnight tonight
Berry Craig
21 Aug, 2024
In addition to IBEW and UA workers on strike at Monument Chemical, 120 SEIU members who run the plant operations will walk out at 12:01 am Thursday morning. All of this comes after we have had our brothers and sisters of CWA and Machinists go out earlier this week. In addition to all of the solidarity you have shown recently, please reach out to our strong sister Alexis Hardesty to find out what their needs are.
In solidarity,
Dustin
https://ky.aflcio.org/news/seiu-monument-chemical-workers-brandenburg-ky-go-strike-midnight
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