Company News
July 10, 2023
Wanhua Continues Expansion
Wanhua Chemical’s Polyether Polyols Capacity will Exceed 2 mtpa in 2024!
PUdaily | Updated: July 7, 2023
Wanhua Rongwei Co., Ltd is a subsidiary of Wanhua Chemical Group, specifically part of the Polyol Business Unit. Wanhua Chemical has three major production bases located in Yantai, Ningbo, and Foshan. It is the largest polyols supplier and service provider in terms of production capacity, with the most diverse product portfolio and a well-established industry supply chain. Wanhua is also the largest exporter of polyether polyols in China.
In order to fully leverage the synergies between polyether polyols and MDI/TDI, Wanhua Group aims to further expand its market share in polyether polyols, enhance its brand image, and consolidate its dominant position in the polyether polyols industry.
Against this background, leveraging the advantageous port location, public infrastructure, and industrial chain advantages of Ningbo Daxie Development Zone, Wanhua Chemical (Ningbo) Rongwei Polyurethane Co., Ltd. continues to expand its production capacity based on the operational experience of its existing polyether polyols plant. Its annual production capacity of polyether polyols will be increased from 110 ktpa to 280 ktpa through the expansion project, aiming to meet the demand for polyurethane raw materials and lead the industry’s long-term stability and development, while establishing a new brand presence for Wanhua in the polyurethane industry. Currently, Wanhua’s 280kt polyether polyols expansion and transformation project has been completed and the commissioning phase has begun, scheduled from July 1, 2023, to October 1, 2023.
As of 2023, Wanhua’s total capacity of polyether polyols reached 1.23 mtpa. Furthermore, Wanhua Chemical Group announced a 850 ktpa polyether polyols expansion project at the end of 2021. This includes a 120kt ordinary flexible slabstock polyols production line, a 120kt flexible high resilience polyols production line, a 72kt differentiated polyols production line, a 58kt PPG230 polyols production line, a 240kt polymer polyols (POP) production line, a 240kt continuous DMC polyols production line, as well as supporting public works and facilities for storage, transportation and environmental protection. With these expansions, Wanhua Chemical’s total production capacity of polyether polyols is expected to exceed 2 mtpa.
June 29, 2023
SSB Emerges
Serta Simmons Bedding Completes Financial Restructuring and Emerges from Chapter 11
Serta Simmons Bedding, LLC (“SSB” or the “company”), a leading global sleep company, today announced that it has concluded its financial restructuring and emerged from Chapter 11, marking the completion of a critical step in the company’s turnaround effort.
“The financial restructuring process we completed today signifies an important step forward that will enable us to accelerate our turnaround and strengthen our leadership position in the market,” said Shelley Huff, CEO, SSB. “The Serta and Beautyrest brands in our portfolio have a deep heritage in innovation and have played meaningful roles in the lives of consumers for generations. With our financial restructuring behind us, we are taking steps to drive growth by getting back to our innovation roots, reinvesting in our iconic brands, and nailing the fundamentals of our business with a focus on commercial and supply chain excellence.”
SSB, which has been executing on its strategic initiatives over the past 18 months, is advancing its turnaround across the following pillars:
- Leading with Product Innovation – The company is bringing significant newness to the market this year through the refresh of the vast majority of its product portfolio. Looking ahead, SSB will more frequently update its product mix to deliver consumer-driven innovations as well as high-value products across brands and price points.
- Brand Reinvigoration – Alongside SSB’s commitment to innovation, the company is increasing marketing investments and sharpening its brand positioning to create greater differentiation for the brands in its portfolio, as well as maximize the potential of each brand.
- Commercial Excellence – As it brings new products to market, SSB is focused on better supporting retail partners and their sales associates to drive sales growth. The company is also leveraging its direct-to-consumer platforms to test new shopping concepts and improve the omnichannel consumer experience.
- Operating a HighPerforming Supply Chain – The investments SSB continues to make in its supply chain are enabling the company to efficiently deliver quality products and excellent service levels to retail partners and sleepers. Supply chain enhancements include the implementation of new processes and technology as well as the optimization and upgrading of its manufacturing network.
“As we execute our turnaround, we will become an even stronger partner to retailers and will help them better serve their customers with our trusted brands and refreshed product portfolio,” added Huff.
As SSB emerges from Chapter 11, a new Board of Directors has been appointed to oversee the company. Previous board members Huff and Brandi Thomas (Group Vice President and Chief Audit Executive, General Electric) will continue to hold board positions. Established private equity investor Mark Genender (Managing Partner, Bristol Growth Capital, LLC), who previously sat on the Simmons Board, will serve as Chairman. The rest of the Board is made up of business leaders with relevant experience in manufacturing, consumer durables and retail, including Charlie Eitel (Former CEO, Simmons Bedding Company), Jim Fogarty (CEO, FULLBEAUTY Brands), Alan Shaw (Former President and CEO, North America, Electrolux), and an additional board member to be announced.
“I look forward to partnering with Shelley and the management team, as well as the rest of the Board of Directors and the company’s investors, to help advance SSB’s turnaround effort,” said Genender. “Serta and Beautyrest are among the most valuable brands in the industry. These brands, in combination with SSB’s strategic areas of focus, executive leadership, and investor support, will drive the next phase of growth for the company.”
SSB is emerging with ample liquidity and a more flexible capital structure that will enable it to execute its turnaround. As a result of the Chapter 11 process, SSB successfully reduced its funded debt from approximately $1.9 billion to approximately $315 million. The nearly $1.6 billion debt reduction lowers the company’s annual cash interest expense by more than $100 million, enabling more investments back into the business. In addition, in connection with emergence, SSB has obtained a $100 million revolving credit facility which, along with substantial cash on hand and cash generated from operations, will provide additional financial flexibility to support the company’s strategic initiatives.
During the Chapter 11 process, Weil, Gotshal & Manges LLP served as SSB’s legal counsel, Evercore Group L.L.C. served as SSB’s investment banker and FTI Consulting, Inc. served as SSB’s financial and restructuring advisor. Gibson, Dunn & Crutcher LLP served as legal counsel, and Centerview Partners served as financial advisor and investment banker, to an ad hoc group of SSB’s priority lenders.
June 23, 2023
Olin Epoxy Moves
Olin Updates Second Quarter 2023 Outlook and Announces Additional Epoxy Restructuring Actions
Jun. 20, 2023 8:30 AM ETOlin Corporation (OLN)
CLAYTON, Mo., June 20, 2023 /PRNewswire/ — Olin Corporation (NYSE: OLN) announced today an updated outlook for the second quarter 2023. Olin’s second quarter 2023 adjusted EBITDA is expected to be in the $350 to $360 million range, which is lower than previously expected mainly due to an approximately $50 million impact from an extended vinyl chloride monomer plant turnaround and additionally due to a lower market participation rate by Olin in the face of deteriorating market conditions. The planned vinyl chloride monomer plant maintenance turnaround at the Freeport, Texas facility required an extension of approximately seven weeks and resulted in higher unabsorbed fixed manufacturing costs, reduced profit from lost sales, and higher turnaround expense. The vinyl chloride monomer plant has returned to operations at a reduced rate.
Olin also announced the decision to cease all operations at its Gumi, South Korea facility, reduce epoxy resin and upstream capacity at its Freeport, Texas facility, and reduce our sales and support staffing across Asia. Olin’s second quarter 2023 results are forecast to include approximately $12 million of restructuring charges associated with these plans of which approximately $6 million represents non-cash asset impairment charges. The cash component of these charges is expected to be paid over the next year.
“The restructuring actions announced on March 21, 2023, and in this announcement will complete the rightsizing of the Epoxy business and are expected to deliver $50 million of improved annual EBITDA beginning in fourth quarter 2023 continuing our commitment to elevate our Epoxy business earnings to a more sustainable level. Through these actions, we will have configured our global Epoxy asset capability to improve profitability through future recessions,” remarked Scott Sutton, Chairman, President, and Chief Executive Officer. “Both of our chemical businesses continue to experience a challenging demand environment. Our team remains focused on demonstrating our winning model’s resilience and ability to deliver significantly higher trough level adjusted EBITDA compared to Olin’s historical approach.”
June 20, 2023
Big Day for Deals or Offers
Abu Dhabi’s ADNOC in almost $11 billion approach for Covestro -sources
Story by By Emma-Victoria Farr, Ludwig Burger and Patricia Weiss • 2h ago
FILE PHOTO: A general view of ADNOC headquarters in Abu Dhabi© Thomson Reuters
(Reuters) -Abu Dhabi National Oil Company (ADNOC) has approached German plastics and chemicals maker Covestro AG with a takeover proposal worth more than 10 billion euros ($10.9 billion), two people familiar with the matter said on Tuesday.
The energy giant has made an informal offer for a per share price in the mid-50 euros, which compares with a Monday closing price of 40.31 euros, said the sources, asking not to be named because the matter is confidential.
ADNOC and Covestro declined to comment.
Covestro, a maker of transparent polycarbonate plastics, as well as chemicals for insulation and upholstery foams, in April issued earnings guidance that reassured markets about its growth prospects. It also resumed a share buyback programme.
Earlier on Tuesday it confirmed its outlook for 2023.
Shares in Covestro were up 14% at 46 euros at 1400 GMT, trading at their highest in more than a year.
A combination would give energy giant ADNOC, also a maker of refined products and petrochemicals, access to more advanced materials that go into electric vehicles, thermal insulation for buildings as well as coatings, adhesives and engineering plastics.
It would also support Abu Dhabi’s plans to diversify the economy away from energy.
As part of that transformation strategy, which also invited foreign investment, ADNOC began floating units in late 2017.
Over the past two years, it has separately listed businesses offering investors exposure to its petrochemicals, fertilisers, drilling services, gas as well as logistics businesses.
ADNOC Chief Executive Sultan al-Jaber is leading the company’s push into new energy, low carbon fuels, such as ammonia and hydrogen, as well as liquefied natural gas and chemicals.
ADNOC has expanded in Europe previously, agreeing to buy 24.9% of Austrian oil and gas group OMV last December.
The OMV deal would indirectly also increase ADNOC’s holding in both European petrochemicals maker Borealis and Abu Dhabi-listed petrochemicals company Borouge.
A move for Covestro would mirror the expansion of other Middle Eastern energy and petrochemical players into European materials and plastics businesses.
Saudi Aramco in 2018 acquired the shares it did not already own in synthetic-rubber maker Arlanxeo from German co-owner Lanxess for 1.4 billion euros.
SABIC, also of Saudi Arabia, in the same year purchased a stake of almost 25% in Swiss chemicals maker Clariant.
Thanks to a 2007 deal to buy GE’s plastics unit, SABIC competes with Covestro in polycarbonate plastics.
June 20, 2023
Jiahua’s Plant Headed to Mexico
Jiahua Chemicals invests $20 million in Mexico
Reading time 1 minChristian Fernsby ▼ | June 20, 2023
Jiahua Chemicals, one of the leading companies in the production of polyurethane in China, has announced an investment of $20 million for the construction of a new plant in Ramos Arizpe, Coahuila.
Mexico Jiahua Chemicals
This new facility, which is expected to begin operations in early 2024, aims to supply the automotive industry market in the country.
The new Jiahua Chemicals plant will enable the manufacture and supply of polyurethane inputs for the growing demand of the domestic automotive industry.
Jiahua Chemicals annually produces 1.6 million tons of polyurethane raw materials and has eight plants and two distribution centers in Asia and Europe, focused on research and development of biobased products, carbon negative products and rigid biofoams for the automotive industry.
Jiahua Chemicals’ presence in Mexico underscores the country’s importance as one of the world’s leading polyurethane markets. Mexico currently ranks fourth in the polyurethane market, after China, the United States and Germany.
With the new plant in Ramos Arizpe, Jiahua Chemicals expects to strengthen its position in the Mexican market and meet the growing demand for polyurethane inputs from the automotive industry in the country. ■
https://www.poandpo.com/companies/jiahua-chemicals-invests-20-million-in-mexico/
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