Company News
October 16, 2023
TDI in China
TDI Market is Poised to Take Off Amidst Intensive Maintenance Plans
PUdaily | Updated: October 13, 2023
Not long after the restart of Wanhua Chemical’s facility in Yantai, several TDI facilities have started or are about to undergo maintenance. The maintenance plans of TDI suppliers in the fourth quarter of this year are intensively scheduled.
Table 1: Recent TDI Facility Maintenance Plans in China and South Korea
| Juli Chemical | Maintenance started on September 25, expected to last about 40 days. |
| Wanhua Chemical | Rumored to start maintenance on October 6, expected to last about 15 days. |
| Yinguang Chemical | Temporary shutdown for maintenance on October 9. |
| Hanwha | Maintenance started on October 13, expected to last about 25 days. |
| Cangzhou Dahua | Maintenance scheduled to start on October 20, expected to last for 1 month. |
| Covestro Shanghai | Maintenance to start in mid-November, expected to last about 40 days. |
| BASF Korea | Maintenance to start on November 17, expected to last about 25 days. |
Although TDI suppliers have typically concentrated their maintenance plans in the fourth quarter in previous years, this year the maintenance at Wanhua Chemical and Yinguang Chemical have exceeded industry expectations, and Cangzhou Dahua did not undergo maintenance last year. The maintenance duration of the facilities at Juli Chemical and Covestro is also longer than in previous years.
Amidst the contradiction between intensive maintenance plans and the recovery of demand, TDI suppliers, especially Covestro, have frequently raised their guide prices:
- On October 7, Covestro raised its opening price for October and only offered 50% of supplies to distributors in November, while providing 80% to direct customers.
- On October 8, Covestro stopped trading due to strong demand and extremely low inventory.
- On October 9, the price offered by the North China plant was raised to CNY 20,000/tonne. Covestro raised its fixed price to CNY 19,200/tonne.
- As of the latest update on October 11, Covestro has stopped trading again due to tight supply…
Looking back at October last year, the price of TDI surged from CNY 19,000/tonne to surpass CNY 26,000/tonne due to tight supply. And in the same period this year, with the same supply significantly reduced, the price level remains the same… Stay tuned for the subsequent market trend!
October 16, 2023
Eagle Industries Layoffs
Wixom automotive supplier announces layoffs as UAW strike persists
Detroit Free Press
A Wixom-based automotive supplier announced it may need to lay off a substantial portion of its 171 hourly workers, citing “unforeseen business circumstances” at a time when similar companies are blaming the ongoing UAW strike for financial challenges.
This could become more common, as the strike against Ford Motor Co., General Motors and Stellantis moves through its second week.
In a document filed Thursday with the state, Eagle Industries, Inc. indicated “total laid off” employees as 171. The move affects plant workers, production and administration employees.
“As a result of unforeseen business circumstances, we are providing information in anticipation of a potential layoff at the worksite. The estimated number of workers is subject to change due to evolving business circumstances,” the company said in a statement provided to the state.
But Eagle Industries President John Bull said his company filed the paperwork as a precaution. While they employ approximately 171 hourly workers, he said any possible layoff would likely affect 55 to 60 employees.
“It 100% is related to the strike,” he said, noting that in general his business is actually hiring employees.
The company specializes in foam products for the automotive and other industries, according to its website. That includes a product called “EagleZorb,” used in components for vehicle doors, trim and other areas to help prevent injuries. Although there is no mention of specific clients on its website, an association that recognizes companies in the field noted Eagle components have been used in Ford vehicles.
Entering its 10th day, the UAW’s strike is designed to create sustained pressure on the Detroit Three auto manufacturers. That includes what the union considers targeted strikes at one large factory for each company and parts distribution centers for GM and Stellantis. All of these locations rely on third party suppliers to ensure their ongoing ability to function.
Experts noted the downstream impact of a lengthy strike on the related manufacturing industry. One analysis from the University of Michigan predicted 150,000 people in Michigan could lose their jobs if the strike lasts four weeks.
However, the analysis suggested suppliers might avoid layoffs for the first two weeks of a protracted strike. At that point, companies could be in real trouble.
“These growing spillover effects across the automotive supply chain produce successively larger spillovers to the broader economy, as well, as laid-off workers in the supply chain lose purchasing power and cut back on spending in other parts of the economy,” the analysis states.
A separate expert told the Free Press the current strike strategy may result in higher prices for people looking for cars or parts, something that might swing public opinion away from the UAW.
On Friday, union leaders indicated Ford appeared closer to offering an amenable contract than the other two companies. But there’s no indication any agreement with any of the companies is imminent.
October 12, 2023
Prestige Update
Business Court judge approves sale of Klaussner business unit
- Richard Craver
- Oct 9, 2023
An N.C. Business Court judge approved on Oct. 2 a Canadian home furnishings manufacturer’s $7 million offer for the Prestige Fabricators business unit of defunct Klaussner Furniture Industries Inc. of Asheboro.
As part of the transaction, VPC Foam USA Inc. would acquire the leases for the 2206 Dumont St. and 905 N.C. South 49 facilities in Asheboro.
The Business Court has oversight of the Prestige properties via a complaint filed in the court by Bank of America Corp. related to its Klaussner loans.
VPC would enter into new leases for both facilities effective with the closing dale of the overall sale. VPC said in its offer that it “intends to operate the Prestige business and will hire a substantial number of former employees to work in the business.”
Klaussner listed in its WARN notice to the N.C. Commerce Department having 127 at its 905 N.C. 49 South, Asheboro plant and 26 at its 2206 Dumont St. plant.
Klaussner entered into federal bankruptcy protection on Aug. 8, immediately shutting down operations and is letting go of 893 employees following an inability to access additional funding from its lender. Klaussner had been in business since 1963.
Klaussner said the tipping point for the decision was that its lending source “unexpectedly refused to continue to fund the company’s operations. This outcome was not reasonably foreseeable, but due to these unexpected circumstances, Klaussner can no longer sustain its operations.”
October 12, 2023
Shell Fire at Singapore POSM Plant
Shell’s Singapore Petrochemical Unit Puts Out Fire; Styrene Impact Likely — OPIS Update
Provided by Dow Jones
Oct 11, 2023 9:39 AM EDT
Singapore’s Shell Jurong Island (SJI) has extinguished a fire that broke out at one of its petrochemical unit manufacturing site on Jurong Island, according to market sources.
The fire occurred at around 3:00 hours Singapore time on Oct.10 and was extinguished with no reported casualties, according to the source.
Market sources said that the fire would most likely impact Shell’s styrene monomer (SM) production.
“The specific impact of the styrene plant is still being evaluated by Shell. We will have to wait and see how serious the damages are,” said a China-based SM broker.
A Shell spokesperson confirmed the incident and said no injuries were reported.
“Our emergency response team is currently monitoring the situation closely. Safety is a key priority to Shell,” the spokesperson said.
At its site, SJI can produce a total of 1,040 million metric ton (mt) per year of SM and 490,000 mt/year propylene oxide (PO) between its two POSM lines, according to its website.
Operations at Shell’s cracker on the same site do not appear to have been disrupted, sources said.
“Besides PO and SM, there should be no disruption to the other chemical production,” added the SM broker.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
–Reporting by Hazel Kumari, hkumari@opisnet.com; Editing by Hanwei Wu, hwu@opisnet.com
October 11, 2023
Tempur Sealy Refinances
Tempur Sealy Announces Refinancing of Credit Facilities
Oct. 11, 2023 6:45 AM ETTempur Sealy International, Inc. (TPX)
LEXINGTON, Ky., Oct. 11, 2023 /PRNewswire/ — Tempur Sealy International (TPX), Inc. announced today that it has successfully completed the closing of its $1.65 billion senior secured credit facilities, which include a $1.15 billion revolving credit facility and a $500 million term loan facility.
The proceeds of the senior secured credit facilities will be used to refinance Tempur Sealy’s existing credit facilities and, in the case of the revolving credit facility, for general corporate purposes. The senior secured credit facilities have an accordion feature that permits incremental borrowings of up to $850 million and potentially substantially more subject to compliance with a specified secured leverage ratio and certain other conditions.
Tempur Sealy Chairman and CEO Scott Thompson said, “We are very pleased with the refinancing of our credit facilities. With this refinancing, we have meaningfully extended our debt maturities, improved our financial flexibility, and increased our potential total senior credit funding while maintaining our current cost of funds in what is clearly a tight commercial banking market.”
Thompson added, “We appreciate the strong support from the 13 market-leading lenders who participated in the financing of these facilities. The transaction was substantially over-subscribed, evidencing support for our strategic vision.”
Additional details regarding the refinanced credit facilities are available in Tempur Sealy’s Current Report on Form 8-K filed today with the Securities and Exchange Commission.
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