Company News
February 5, 2024
Insulation Alternative
Whirlpool insulation creates waves
14th November 2023
USA: Home appliance manufacturer Whirlpool has introduced a new insulation technology which is up to 66% thinner and allows up to 25% more refrigerator capacity than conventional foam.
The new insulation, dubbed SlimTech, is described as a significant step forward in refrigeration technology, providing a more compact alternative to polyurethane foam. It is also said to create better temperature stability and could increase energy efficiency by up to 50%.
SlimTech employs a proprietary material that is vacuum-sealed within the door or sides of the refrigerator itself. It is said to reduce the wall thickness by up to 66% – allowing for up to 25% more capacity inside the refrigerator.
According to Whirlpool, the material used in SlimTech insulation technology also has the potential to be recycled, and says it is working to map out a path to reclaiming the material at a refrigerator’s end of use. While Whirlpool has not revealed the identity of the material, the company does hold a number of insulation patents based on silica-based materials.
“For years low recyclability due to polyurethane foam has created a significant barrier to making refrigerators more sustainable and reducing environmental impact,” said Pamela Klyn, Whirlpool Corporation executive vice president of corporate relations & sustainability. “This is an extremely important leap forward on the journey to a more circular approach to home appliances. Implementation of SlimTech insulation marks the beginning of the end for foam insulated refrigerators.”
Other potential benefits would include the ability to increase the thickness of SlimTech insulation to reduce thermal conductivity and allowing a refrigerator to be up to 50% more energy efficient.
Whirlpool claims that the SlimTech insulation can keep food fresh for longer by reducing temperature swings from door openings by cooling up to 30% faster.
Refrigerators with SlimTech insulation will be built at Whirlpool’s operation in Ottawa, Ohio. The company has invested $65m in the plant.
https://www.coolingpost.com/world-news/whirlpool-insulation-creates-waves/
January 30, 2024
Epoxy Highlights from Olin Investors Call
Olin Corporation (OLN) Q4 2023 Earnings Call Transcript
Jan. 26, 2024 11:38 AM ETOlin Corporation (OLN) Stock
143.43K Followers
Q4: 2024-01-25 Earnings Summary
EPS of $0.27 beats by $0.09 | Revenue of $1.61B (-18.33% Y/Y) beats by $94.55M
Olin Corporation (NYSE:OLN) Q4 2023 Results Conference Call January 26, 2024 9:00 AM ET
Company Participants
Steve Keenan – Director, IR
Scott Sutton – Chief Executive Officer
Todd Slater – Chief Financial Officer
Scott Sutton
Thanks Steve, and good morning to all. In the fourth quarter, the Olin team delivered the four items that were promised, which were $210 million of adjusted EBITDA overcoming a negative $100 million EBITDA impact from our purposeful value accelerator initiative. Stopping the decline of ECU values as a result of our value accelerator initiative, completing the remaining purchase of 10% of our outstanding equity in 2023, and setting the company up for a 2024 that is better than 2023.
We start that set up by making the first quarter of the New Year better than the fourth quarter of the past year. We are also very pleased that outside of the minor purchase price for the White Flyer acquisition, Olin’s net debt at the end of 2023 was essentially the same as the net debt at the beginning of 2023.
Since this could well be my last Olin earnings call. I wanted to remind everyone that Olin has a very unique value creation equation of lifting people to a higher level of fulfillment, delivering value on a contemporary basis through a novel idea pipeline and practicing absolute leadership in commerce. This unique value equation opens a long runway to a very positive future and our leadership team will take Olin there. The earnings and cash flow power of Olin is huge.
Arun Viswanathan
So I guess, I just wanted to ask first on the guidance. So, it looks like you’re expecting some growth in ’24. How do you see that proceeding? Looks like your Q1 guidance is a little bit below where we were expecting. So, I know that you’re implementing the value accelerator initiative. So, maybe you can just kind of walk us through some of the growth you expect, as you move through the quarters in ’24?
Scott Sutton
Good morning, Arun. Happy to do that. I mean, we’re really forecasting some profit growth, right. And if you just walk through the three businesses, and I’ll just start with Winchester. I mean, we are right in the middle of doubling our military business and that is on-track both domestically and internationally.
In the commercial side of that business, demand stays rather high. And on top of that, we have the White Flyer acquisition for a full year. And on top of that, there’s going to be a shortage of propellant across the industry this year and Winchester is well-positioned to take advantage of that. So, we feel really good about the profit growth in Winchester.
Look, in Epoxy, it’s much more a self-help story. We’re not necessarily anticipating demand growth, but clearly the restructuring work that we did is applicable for a whole year. Our focus on systems is working. We don’t have to clean up inventory as much as we did in 2023. And we’re going to work on the illegal flow of products coming from Asia as well.
Arun Viswanathan
And then if I could just ask, is there any update on the search for new CEO [indiscernible]?
Scott Sutton
Look, Arun, I mean, I really don’t have an update on that. And I’m really sorry for that, because look, our shareholders and our Olin women and men, who have really built this value for those shareholders, they deserve a lot better than that from me. But I’m out of the process. That process is 100% run buy our independent board members only. What I can say is to the best of my knowledge, I’m not aware of any offer being extended out there yet to any candidate.
Kevin McCarthy
Scott, I’d welcome your updated thoughts on the shape of the Epoxy cycle. If I look at Slide 8, it appears as though your prices eroded in 4Q versus 3Q. How do you think that will trend in the first quarter? And then, I’m also interested to hear your thoughts on Epoxy’s in Europe. We’re reading about disruptions in trade routes relative to the Red Sea and purchasing managers seem to want to kind of get ahead of those longer lead times and increased tensions and friction and so forth. How do you see the next quarter or two shaping up for Epoxy?
Scott Sutton
Look, I mean, we’ve announced price increase and we’re getting some price increase. And in fact, if you really looked at what’s happened over the last few months has been more of a wash tub bottom. It really hasn’t declined further. In fact, even the trade publications now are saying that this is a bottom. Believe me, we absolutely say that this is a bottom. And the disruptions for trade routes that is starting to have an impact, particularly in Europe.
So there’s a lot of momentum for the start of lifting prices again through Epoxy. It’s going to be slow though. I think, what you’ll end up seeing us do is sort of take that wash tub and profit up a little bit. I wouldn’t expect something really, really fast there, but we’re going to change the slope of that curve.
David Begleiter
And just again on Epoxy, what’s the path back to mid-cycle earnings given the amount of oversupply in the marketplace today?
Scott Sutton
Well, I guess it depends on what you call mid-cycle in that business. But I’ll just say it’s a multiyear path and maybe leave it at that.
Jeff Zekauskas
Earlier in the call, you spoke of a large contract that can end in 2030. Did that customer indicate that they didn’t wish to renew?
Scott Sutton
What I would say is that’s the natural expiration of that contract. And we’re currently in a dispute with a very significant value lift opportunity. So we’ll just have to see where that goes by 2030.
Vincent Anderson
So, maybe you have a different view, but it looks like China is probably still planning a fair amount of capacity up and down the Epoxy value chain over the next few years. So, to me at least it would appear that trade protections might be necessary even if we did see some amount of demand recovery. So, I guess to turn that into a question, are you still considering trade cases in Epoxy? And how important is sort of your renewed focus on fleshing out your derivative portfolio as a balance to the operating leverage on the base resin assets?
Scott Sutton
Yes, sure. I mean, no, we’re absolutely doing more than considering that, right. I mean, look, effectively this is illegal product trade flows coming into both Europe and the U.S. And this has to be stopped. And for some of the reasons that you said, it’s likely to continue. So, we’re absolutely going to pursue that.
I think in terms of getting rates up, we’ve reduced our on the ground capacity quite a bit and we’re using our systems portfolio to get some operating leverage back across our base resin. I think that was the second part of your question.
John Roberts
Thank you, and best wishes as well, Scott. I think acetone prices spiked during the quarter. Is that just the normal co-product dynamics with the weak BPA market for Epoxies or is there something else going on there?
Scott Sutton
Yes. I mean principally that’s it. You’re right. I mean phenol acetone co-production a little bit like chlorine caustic. And we sort of transferred some of our model that we run in the ECU world into our phenol acetone production and marketing scheme. And so you’ve seen us take advantage of that and get some value out of assets.
January 29, 2024
Who Remembers Company Watches?
The old time way of rewarding years of service. This was from Dow . . . Probably worth $1,000 bucks on Antiques Roadshow!!!
January 29, 2024
Arsenal Capital Invests in Polycorp
Arsenal Capital Invests in Polycorp January 29, 2024. New York, NY and Elora, Ontario, Canada. Arsenal Capital Partners (“Arsenal”), a private equity firm that specializes in investments in industrial and healthcare companies, today announced that it has completed a majority investment in Polycorp Ltd. (“Polycorp”), a leading manufacturer of engineered elastomer solutions. The terms of the transaction were not disclosed.
Polycorp is headquartered in Elora, Ontario, and employs approximately 250 full-time staff. The company serves its global customer base with rubber- and polyurethane- based elastomer solutions, that help reduce corrosion, abrasion, vibration, and noise. Polycorp’s leading engineering and design services, combined with its robust molding, calendering, and extrusion capabilities, underpin its success serving mission-critical, infrastructure and industrial focused applications for the mineral processing, rail, and protective linings industries.
“The transaction with Arsenal will accelerate Polycorp’s strategic growth initiatives and enable additional investment in our manufacturing and R&D capabilities, human capital, and strategic acquisitions,” said Peter Snucins, founder of Polycorp. “I am especially excited to partner with Arsenal given the firm’s established track record of building leading materials technology businesses in the elastomers sector.” Following the closing, Peter Snucins will remain as an investor and Board member of Polycorp.
Brett Schneider, an Operating Partner of Arsenal, commented, “The company’s portfolio of capabilities is a natural fit for Arsenal, given our previous successful experiences investing in elastomeric and polymeric technologies, such as rubber and polyurethanes.”
“We are excited to partner with Polycorp given the company’s best-in-class elastomeric technologies and customer service capabilities,” added Dan Bruck, a Principal of Arsenal. William Blair & Company, L.L.C. acted as exclusive financial advisor to Polycorp. Harris Williams served as a financial advisor to Arsenal.
About Polycorp Founded in 1996 and headquartered in Elora, Ontario, Polycorp is a leader in the design, manufacture, sale, and distribution of engineered elastomeric solutions. Polycorp serves critical, high cost of failure applications across infrastructure and industrial focused markets, globally across 35+ countries worldwide.
For more information, visit www.poly-corp.com.
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
January 29, 2024
Holcim to Spin Off North American Business
Holcim jumps on $30bn plan to spin off North American unit
Holcim Ltd shares jumped after the Swiss cement maker said it will spin off its North American unit into a separate US-listed entity, a move that could unlock a higher valuation for the business.
This content was published on January 29, 2024 – 13:37 January 29, 2024 – 13:37
3 minutes
The US arm had about $11 billion in sales last year — about one-third of Holcim’s total — and could be valued at more than $30 billion, the company said. Holcim shares climbed as much as 14% in early trading, the most since March 2020, and were up 4% as of 12pm Zurich time, valuing the entire company at almost CHF39 billion ($45 billion).
US listings have become increasingly appealing to European companies as a wider investor base and bigger pool of capital offer the prospect of higher valuations. Holcim’s move for its US division follows the decision of fellow materials giant CRH Plc to shift from London to New York last year.
Reacting to the news, Citigroup Inc. analyst Ephrem Ravi noted that US-listed building-product companies trade at a significant premium to European-listed peers. Zuercher Kantonalbank analyst Martin Huesler calculated the US business’s fair value at around $35 billion to $40 billion.
“It is a big advantage to have a customized capital structure for this business and to be in the US dollar,” Holcim Chief Executive Officer Jan Jenisch said in an interview on Monday with Bloomberg Television.
Jenisch is stepping down from his role as CEO, and will be replaced by Miljan Gutovic, currently the head of the European business. Jenisch will remain chairman and lead the planned US listing of the North American business. He said the company would consider buybacks to help smooth the transaction.
The US market is growing at a rapid pace as builders race to relieve a chronic lack of single-family homes and meet regulatory pressures for more energy-efficient buildings. The unit expanded through an acquisition spree that broadened its offering of building materials.
Holcim says the North American business is the No. 1 player in cement and No. 3 in roofing, and it aims to roughly double sales to about $20 billion by 2030.
Jenisch said the US housing market has great momentum, while downplaying risks of policy changes in case of a reelection of Donald Trump in the US presidential election in November. He said “economic policy is very consistent” and infrastructure and housing will remain a priority.
“We have a rockstar business in the US,” Jenisch said. “We will have a very strong capital structure for both companies so plenty of headroom to support the US listing.”
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