Company News
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/
June 19, 2023
Quadrant Returns to Spray Foam
Quadrant, Synonymous with Quality and Customer Service, Returns to Spray Foam Industry: Highly Experienced Team, Same Great Products
Quadrant Performance Materials (QPM) today launched as the latest spray foam manufacturing company to serve the construction industry.
McKinney, TX, June 14, 2023 –(PR.com)– With a people-first approach in all aspects of the business, Quadrant is positioning itself as a relationship focused company, delivering superb service and exceptional products.
“We are very excited to be back serving the spray foam industry. We had people in this industry ask Quadrant to return and that spray foam was not the same without us,” said QPM President & CEO Robert Jamieson. “We believe we can deliver high-touch service, great products, and back that with a team of the best and most experienced people in the industry. Our people, with an average experience tenure of 20 years, are ready to go, to help lead the industry, driving service, and product innovation.”
The new line of spray polyurethane products, EnviroSeal®, includes an HFO closed-cell spray foam, and three open-cell insulation products, No Mix, High Yield, and OCX. EnviroSeal® products are environmentally friendly, have low global warming potential, and deliver outstanding comfort and savings for home and building owners.
For more information on the line of spray foam products, please visit www.QuadrantPM.com or call 972-542-0072.
June 16, 2023
Covestro Appoints New CTO
Dr. Thorsten Dreier appointed as new CTO of Covestro
Dr. Thorsten Dreier
The Supervisory Board of Covestro unanimously appointed Dr. Thorsten Dreier as Covestro’s new Chief Technology Officer. The 49-year-old will take over on July 1, 2023, from Dr. Klaus Schäfer, who most recently extended his expiring contract by six months to ensure personnel stability for Covestro during a challenging period in the market as a result of the ongoing energy crisis.
“Dr. Thorsten Dreier has demonstrated his technological expertise, customer focus, market orientation and management qualities in our company over the last twenty years, and with great success. He has played a decisive role in shaping Covestro’s development,” said Dr. Richard Pott, Chairman of Covestro’s Supervisory Board. “He is therefore the ideal successor as Chief Technology Officer and will continue to successfully drive Covestro’s transformation towards a circular economy and to achieving climate neutrality.”
“I am grateful for the trust placed in me. I am looking very much forward to working with Covestro employees and the other members of the Board of Management, give new impetus to the transformation of our company and to fulfill our aspired position as a pioneer in the chemical industry in decisively driving forward the circular economy,” said Dreier.
In his role as Chief Technology Officer, Dreier will assume responsibility for the corporate functions Process Technology, Engineering, Group Health, Safety & Environment and Group Procurement. In the coming months, he will work with Dr. Klaus Schäfer, to prepare for the smooth takeover of his duties and familiarize himself with all the tasks of his future area of responsibility.
About Dr. Thorsten Dreier:
Dr. Thorsten Dreier, born in Münster in 1972, is currently Global Head of the Coatings & Adhesives Business Entity. He began his career in 2002 as a laboratory manager in the Bayer Group and subsequently held various management positions at Bayer, Bayer MaterialScience and Bayer Technology Services. With the spin-off of Covestro, Dreier became global Head of Production & Technology in the Coatings, Adhesives & Specialties business unit and later of the Specialty Films and Thermoplastic Polyurethanes business units. He studied chemistry and received his doctorate from the University of Münster in 2001.
https://www.covestro.com/investors/news/dr-thorsten-dreier-appointed-as-new-cto-of-covestro/
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