Company News
April 30, 2024
HP Polymers Acquired
MILWAUKEE (April 30, 2024) – Platte River Equity (“Platte River”), a Denver-based private equity firm focused on aerospace, chemical, and industrial sectors, announced its portfolio company MFG Chemical (“MFG”), a specialty custom manufacturer of complex chemistries, has acquired H.P. Polymers (“HPP” or the “Company”).
Based in Puslinch, Ontario, HPP is an independent resin and polymers manufacturer for paints and coatings. The Company’s products are used in diverse end markets across North America including metal, wood, marine, specialty, and coil applications. The combined company will continue to provide its customers with advanced technologies, technical support, and customer service.
“H.P. Polymers has a rich legacy of being a value-added partner to its customers, and we are excited to leverage the broader capabilities available through MFG to continue to grow and support our customers,” said H.P. Polymers President, Darren VanNeck.
“We are thrilled to welcome the HPP team to MFG. The acquisition of H.P. Polymers represents a tremendous opportunity for MFG to expand its capabilities and product portfolio within the paint and coatings sector,” said MFG CEO, Paul Turgeon.
“Platte River is excited about the acquisition of HPP, MFG’s third in the past two years, and we believe that HPP will enhance MFG’s product offering and accelerate the combined company’s growth,” added Tarun Kanthety, Vice President of Platte River.
Grace Matthews, Inc. (“Grace Matthews”) served as financial advisor to H.P. Polymers on the transaction.
ABOUT H.P. POLYMERS
H.P. Polymers is a North American independent manufacturer of resin and polymer solutions for customers across the paint and coatings value chain based in Puslinch, Ontario. To learn more, visit https://www.hppolymers.com/.
April 29, 2024
Recticel Results
Recticel Trading update first quarter 2024
• Net sales increase from EUR 127.7 million in 2023 to EUR 140.6 million (+10.1%) in 2024, including REX sales in 20241
• Net cash position: EUR 74.9 million (31 December 2023: EUR 161.9 million), reflecting the REX acquisition in the first quarter of 2024 and seasonal working capital investment
Jan Vergote (CEO Recticel):
“New construction is not recovering as yet in the first quarter, but renovation activities are resilient at the vanguard of the European renovation wave.
First quarter sales are up 10.1%, including a 0.8% currency effect and 8.1% attributable to the acquisition of REX Panels & Profiles, which we completed on 10 January 2024.
Organic revenue growth is 1.2% resulting from the balance of substantial raw material deflation and significantly higher sales volumes, both in our Insulation Boards and Insulated Panels divisions.
Price pressures, especially in Insulation Boards, continue to be very high, but are being offset by operational improvements.
We are currently facing price hikes for our most important chemicals and are implementing price increases in all key geographies.
We confirm our confidence in the significant increase of our full year adjusted EBITDA.”
1 REX Panels & Profiles is fully consolidated as of 10 January 2024.
https://www.recticel.com/recticel-trading-update-first-quarter-2024.html
April 29, 2024
Olin Results
Olin Announces First Quarter 2024 Results
Apr. 25, 2024 4:05 PM ETOlin Corporation (OLN)
Q1: 2024-04-25 Earnings Summary
EPS of $0.45 beats by $0.09 | Revenue of $1.64B (-11.33% Y/Y) misses by $12.71M
Highlights
- First quarter 2024 net income of $48.6 million, or $0.40 per diluted share
- Quarterly adjusted EBITDA of $242.1 million
- Share repurchases of $105.4 million in first quarter 2024
CLAYTON, Mo., April 25, 2024 /PRNewswire/ — Olin Corporation (OLN) announced financial results for the first quarter ended March 31, 2024. First quarter 2024 reported net income was $48.6 million, or $0.40 per diluted share, which compares to first quarter 2023 reported net income of $156.3 million, or $1.16 per diluted share. First quarter 2024 adjusted EBITDA of $242.1 million excludes depreciation and amortization expense of $129.7 million and restructuring charges of $8.3 million. First quarter 2023 adjusted EBITDA was $434.1 million. Sales in the first quarter 2024 were $1,635.3 million, compared to $1,844.3 million in the first quarter 2023.
Ken Lane, President and Chief Executive Officer, said, “All first quarter 2024 business segment results improved sequentially from fourth quarter 2023, which begins Olin’s recovery from trough-level earnings. During the quarter, the Olin team delivered on our commitment to accelerate a favorable inflection point for our Chlor Alkali Products and Vinyls business. We expect this momentum to continue with second quarter 2024 results, as demand and pricing continue to improve. We expect our Chemical businesses to be sequentially higher than first quarter 2024 levels and our Winchester business to be in line with first quarter results, as a less favorable mix and higher raw material costs offset stronger military volumes. Overall, we anticipate Olin’s second quarter 2024 adjusted EBITDA to improve from first quarter 2024 levels. Based on our current outlook for the pace of demand and pricing improvement for our Chemical businesses, we currently believe Olin’s full year 2024 adjusted EBITDA to be similar to or slightly higher than 2023 levels.”
Commenting on his recent appointment as President and CEO, Lane continued, “I am excited about building upon Olin’s strong foundation and confident in our ability to sustain strong earnings and cash flow performance. As such, we will continue our disciplined capital allocation strategy, while committing to maintain an investment-grade balance sheet. We remain committed to our approach to preserve electrochemical unit (“ECU”) values and will continue to align our operating rates and product purchases to match the weaker side of the ECU, while refraining from selling incremental volume into poor-quality markets.”
SEGMENT REPORTING
Olin defines segment earnings as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income, other income, and income taxes.
EPOXY
Epoxy sales for the first quarter 2024 were $341.3 million, compared to $360.7 million in the first quarter 2023. The decrease in Epoxy sales was primarily due to lower product pricing partially offset by improved volumes. First quarter 2024 segment loss was ($11.8) million, compared to segment earnings of $21.4 million in the first quarter 2023. The $33.2 million decrease in Epoxy segment earnings was primarily due to lower pricing, partially offset by increased volumes and lower raw material and operating costs. Epoxy first quarter 2024 results included depreciation and amortization expense of $13.5 million compared to $14.5 million in the first quarter 2023.
April 29, 2024
MDI Overview
MDI Facility Disruptions Resurface? China PMDI Market Review – April 2024
PUdaily | Updated: April 29, 2024
MDI Facility Disruptions Resurface?
The MDI facility dynamics in North America are attracting market attentions. According to market sources, unplanned shutdowns have occurred at some North American MDI facilities, including BASF and Covestro. Their combined capacity contributes 44% of the total MDI capacity in North America. The impact on their supply and deliveries are under assessment. Before it, and in late March, BorsodChem Hungary declared force majeure on MDI products supply, which led to increasing PMDI exports from China to Europe in March. In March 2024, China exported 37 kT PMDI to Europe, a 345.1% increase from this February, according to China’s customs statistics. If excluding the factors related to Chinese New Year holiday, China’s PMDI exports to Europe in March increased by 62.2% compared to this January.
China PMDI Market Review – April 2024
As of April 26, 2024, the average price of spot PMDI goods in China is around CNY 16,438/tonne, showing a 0.5% increase compared to this March (CNY 16,350/tonne), according to PUdaily. In this month, Chinese PMDI market showed a trend of bottoming out. The PMDI market prices climbed gradually from CNY 15,700-16,300/tonne on April 1 to CNY 16,400-17,000/tonne on April 29. The increase trend was attributed by the supports both from supply and demand sides.
In terms of supply, The settlement prices from major PMDI suppliers were higher than market expectations; Covestro also increased its weekly contract prices to distributors week-by-week. All above provided strong support for the April market because the purchase costs from distributors and traders kept at relatively high levels. Major PMDI suppliers also reduced supplies to direct and/or indirect customers, alleviating ovearll sales pressures in distribution market. In terms of demand, the refrigerator and formaldehyde-free panel sectors continued their year-on-year growths in sales and outputs; following destocking measures, downstream manufacturers in construction sectors significantly increased their purchases for PMDI this month to gear up for the May Day holiday.
China PMDI Market Outlook – May 2024
In terms of supply, MDI facilities of BASF Shanghai and Wanhua Ningbo are scheduled to shut down for maintenance in this May, which may lead to supply allocations. In terms of demand, refrigerator, one of major PMDI downstream sectors, the production in May is forecasted to reach 8.5 million units, the highest level since the year of 2005, and will increase by 13.4% year-on-year, according to ChinaIOL.com. The robust demand provides a support for Chinese PMDI market.
April 29, 2024
Wanhua TDI Expansion Plans
Wanhua Chemical’s TDI Expansion to Lead Global Production
PUdaily | Updated: April 25, 2024
Wanhua Chemical, a significant player in the chemical industry, recently announced key developments in its TDI (toluene diisocyanate) production capacity expansion plans. The company’s official website disclosed the Environmental Impact Assessment Reports for two crucial projects.
On April 18, the Phase II Expansion Project of TDI, with a capacity of 360,000 tons per year, was unveiled by Wanhua Chemical (Fujian) Co., Ltd. This expansion project marks a notable step forward in the company’s strategic growth initiatives.
Shortly thereafter, on April 23, Wanhua Chemical’s official website released the Environmental Impact Assessment Report for the Phase I Technological Improvement and Capacity Expansion Project of TDI, also with a capacity of 360,000 tons per year.
The Phase I project involves significant upgrades to existing TDI production units, including nitration, acid concentration, hydrogenation, phosgenation, and refining units. These enhancements will boost the production capacity from 250,000 tons per year to 360,000 tons per year.
Meanwhile, the Phase II Expansion Project of TDI by Wanhua Chemical (Fujian) Co., Ltd. is poised to have a notable impact. Situated in the Jiangyin Industrial Concentration Zone in Fuzhou, Fujian Province, this project covers an area of 49,065 square meters. It encompasses the construction of advanced process units, including nitration, hydrogenation, and phosgenation units, alongside auxiliary and public engineering units. Once operational, the facility will produce 360,000 tons of TDI annually.
Together, these expansion projects will increase Wanhua Chemical’s TDI production capacity by 470,000 tons. With a total TDI production capacity of 1.42 million tons per year, Wanhua Chemical is poised to solidify its position as a significant player in the global chemical industry landscape.
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