April 3, 2020

European Flex Foam Update

COVID-19 News / Europur: Impact of epidemic on flexible PU foam industry

According to a survey by Europur, the European Association of Flexible Polyurethane Foam Blocks Manufacturers, based on about 30 interviews with foam producers and suppliers, the production of flexible PU foam is as of 30 March 2020 heavily impacted by the present Covid-19 epidemic. The situation is expected to further worsen in April with a reduced production of between 30 % – 80 % of normal.

The association said the production of polyurethane flexible foam in Europe quickly weakened by mid-March 2020 due to a lack of demand, reduced workforce availability or government decisions. Now, at the end of March, all European foam plants that produce for the automotive industry have been closed. Foam plants which supply mainly the bedding and furniture industry have been largely closed down in Southern Europe and production has been heavily reduced in other regions. The greatest demand is still for online sales articles or medical mattresses, but is far from closing the gap for all other lost production volumes. This production stream, however, is also clogged due to shortages along the supply chain. These disruptions are anticipated to grow in the coming weeks, due to border closures, reduced workforce availability and tighter controls at border crossings, leading to delays in deliveries.

Europur also said that the situation for companies that are still producing is expected to further worsen in April. This reduction in activity might force more plants to temporarily close voluntarily even without a government order. In most countries companies can obtain some sort of support from national governments for temporary unemployment.

Europur obtained information from member companies across Europe to assess the situation in more detail. The following summarizes their findings for each region:

Impact of Covid-19 epidemic on flexible foam production in Europur member countries as of 30 March 2020. (Source: Europur)

• Austria, Germany and Switzerland: PU foam plants are allowed to remain open but operate at much reduced capacity. Most of the PU foam produced is for special orders (e.g. medical mattresses) or online sales.
• Benelux: Production was strongly reduced since mid-March and all plants are operating at a much reduced capacity. PU foam plants can remain open provided additional precautions are taken. Most PU foam produced is for special orders or online sales.
• France: Even though there is no formal government order to do so, nearly all foam plants are currently closed due to lack of demand. However, some production for medical foams still exists.
• Greece, Balkans and Cyprus: All companies are currently operating at reduced capacity due to lack of demand. However, there is no formal government order imposing this closure. All expect the situation to worsen in April. They also currently have major logistical problems due to increased border controls and quarantine measures for incoming transport.
• Hungary, Czech Republic, Croatia, Slovakia, Slovenia: There is no formal government order imposing the closure of industries. However due to lack of demand, all companies are currently operating at much reduced capacity.
• Spain: Most foam plants are closed until 11 April 2020 following a government order to close all non-essential businesses. Some production for medical foams and online-sales still exists. Some companies, however, will remain closed through mid-May.
• Portugal: All foam plants are voluntarily closed, some plan to re-open in the second week of April.
• Italy: Foam plants are closed to protect their workers, from lack of demand and from supply chain disruptions. Some companies provide support to local initiatives to produce medical equipment.
• Poland: There is no formal government order imposing the closure of industries. However due to lower demand, especially from other European countries that usually import foam from Poland, all companies are currently operating at much reduced capacity. All expect the situation to worsen in April with some companies expecting to produce only 20 % of what they usually produce in April.
• Romania and Bulgaria: There is no formal government order for industry closure. However, due to lack of demand all companies are currently operating at very low levels.
• Turkey: Most foam plants are closed until 6 April 2020, but whether they re-open after that date is unclear.
• Scandinavia and the Baltics: There is no formal government restriction. PU foam plants remain open but operate at reduced capacity.
• United Kingdom: All plants are still open but are producing at reduced levels.
• Ireland: Foam plants are producing at reduced capacity to make foams for medical equipment.
• Russia: All plants have been closed since 28 March 2020, when the country went on a one week national paid holiday.
• Ukraine, Belarus, Kazakhstan: All plants are still open but are producing at reduced volumes.

www.europur.org

https://www.gupta-verlag.com/news/industry/23999/covid-19-news-europur-impact-of-epidemic-on-flexible-pu-foam-industry

April 3, 2020

European Flex Foam Update

COVID-19 News / Europur: Impact of epidemic on flexible PU foam industry

According to a survey by Europur, the European Association of Flexible Polyurethane Foam Blocks Manufacturers, based on about 30 interviews with foam producers and suppliers, the production of flexible PU foam is as of 30 March 2020 heavily impacted by the present Covid-19 epidemic. The situation is expected to further worsen in April with a reduced production of between 30 % – 80 % of normal.

The association said the production of polyurethane flexible foam in Europe quickly weakened by mid-March 2020 due to a lack of demand, reduced workforce availability or government decisions. Now, at the end of March, all European foam plants that produce for the automotive industry have been closed. Foam plants which supply mainly the bedding and furniture industry have been largely closed down in Southern Europe and production has been heavily reduced in other regions. The greatest demand is still for online sales articles or medical mattresses, but is far from closing the gap for all other lost production volumes. This production stream, however, is also clogged due to shortages along the supply chain. These disruptions are anticipated to grow in the coming weeks, due to border closures, reduced workforce availability and tighter controls at border crossings, leading to delays in deliveries.

Europur also said that the situation for companies that are still producing is expected to further worsen in April. This reduction in activity might force more plants to temporarily close voluntarily even without a government order. In most countries companies can obtain some sort of support from national governments for temporary unemployment.

Europur obtained information from member companies across Europe to assess the situation in more detail. The following summarizes their findings for each region:

Impact of Covid-19 epidemic on flexible foam production in Europur member countries as of 30 March 2020. (Source: Europur)

• Austria, Germany and Switzerland: PU foam plants are allowed to remain open but operate at much reduced capacity. Most of the PU foam produced is for special orders (e.g. medical mattresses) or online sales.
• Benelux: Production was strongly reduced since mid-March and all plants are operating at a much reduced capacity. PU foam plants can remain open provided additional precautions are taken. Most PU foam produced is for special orders or online sales.
• France: Even though there is no formal government order to do so, nearly all foam plants are currently closed due to lack of demand. However, some production for medical foams still exists.
• Greece, Balkans and Cyprus: All companies are currently operating at reduced capacity due to lack of demand. However, there is no formal government order imposing this closure. All expect the situation to worsen in April. They also currently have major logistical problems due to increased border controls and quarantine measures for incoming transport.
• Hungary, Czech Republic, Croatia, Slovakia, Slovenia: There is no formal government order imposing the closure of industries. However due to lack of demand, all companies are currently operating at much reduced capacity.
• Spain: Most foam plants are closed until 11 April 2020 following a government order to close all non-essential businesses. Some production for medical foams and online-sales still exists. Some companies, however, will remain closed through mid-May.
• Portugal: All foam plants are voluntarily closed, some plan to re-open in the second week of April.
• Italy: Foam plants are closed to protect their workers, from lack of demand and from supply chain disruptions. Some companies provide support to local initiatives to produce medical equipment.
• Poland: There is no formal government order imposing the closure of industries. However due to lower demand, especially from other European countries that usually import foam from Poland, all companies are currently operating at much reduced capacity. All expect the situation to worsen in April with some companies expecting to produce only 20 % of what they usually produce in April.
• Romania and Bulgaria: There is no formal government order for industry closure. However, due to lack of demand all companies are currently operating at very low levels.
• Turkey: Most foam plants are closed until 6 April 2020, but whether they re-open after that date is unclear.
• Scandinavia and the Baltics: There is no formal government restriction. PU foam plants remain open but operate at reduced capacity.
• United Kingdom: All plants are still open but are producing at reduced levels.
• Ireland: Foam plants are producing at reduced capacity to make foams for medical equipment.
• Russia: All plants have been closed since 28 March 2020, when the country went on a one week national paid holiday.
• Ukraine, Belarus, Kazakhstan: All plants are still open but are producing at reduced volumes.

www.europur.org

https://www.gupta-verlag.com/news/industry/23999/covid-19-news-europur-impact-of-epidemic-on-flexible-pu-foam-industry

March 31, 2020

India TDI Plant Update

GNFC undertakes unscheduled shutdown at TDI plant in India

MOSCOW (MRC) — Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), has shut its toluene diisocyanate (TDI) units at Bharuch & Dahej, according to Apic-online.

A Polymerupdate source in India informed that, the company has halted operations at the units last week owing to a nation-wide lockdown caused by the COVID-19 outbreak. Further details on duration of the shutdown could not be ascertained.

Located in Gujarat, India, the Bharuch unit has a production capacity of 50,000 mt/year and the Dahej unit has a production capacity of 17,000 mt/year.

TDI is a chemical used in the production of polyurethanes, primarily for flexible foam applications including furniture, bedding and carpet underlay, as well as packaging applications. TDI is also used in the manufacture of coatings, sealants, adhesives and elastomers.

As MRC wrote previously, India lockdown adds uncertainty for polyvinyl chloride (PVC) exports. Last week India’s Prime Minister Narendra Modi announced a nationwide lockdown from Wednesday for 21 days in an effort to slow the spread of the coronavirus in the world’s second-most populous country, which has 1.3 billion people. The lockdown applies to ports, which will slow imports of all kinds of goods, including PVC, to a country that was dependent on PVC imports to meet demand before the pandemic gripped the globe.

According to MRC’s ScanPlast report, contrary to seasonal factors, Russian producers of unmixed PVC have maintained a high level of capacity utilisation. Russia’s overal PVC output totalled 91,700 tonnes in January 2020, up by 4% year on year. January production of unmixed PVC was 91,700 tonnes versus 87,760 tonnes in January 2019 and 81,400 tonnes in December 2019. Thus, despite relatively weak demand for resin from the domestic market, the average capacity utilisation exceeded 95% last month. Russia’s overall PVC production reached 975,000 tonnes in 2019, compared to 958,600 tonnes a year earlier.

Author:Margaret Volkova

http://www.mrcplast.com/news-news_open-368449.html

March 31, 2020

India TDI Plant Update

GNFC undertakes unscheduled shutdown at TDI plant in India

MOSCOW (MRC) — Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), has shut its toluene diisocyanate (TDI) units at Bharuch & Dahej, according to Apic-online.

A Polymerupdate source in India informed that, the company has halted operations at the units last week owing to a nation-wide lockdown caused by the COVID-19 outbreak. Further details on duration of the shutdown could not be ascertained.

Located in Gujarat, India, the Bharuch unit has a production capacity of 50,000 mt/year and the Dahej unit has a production capacity of 17,000 mt/year.

TDI is a chemical used in the production of polyurethanes, primarily for flexible foam applications including furniture, bedding and carpet underlay, as well as packaging applications. TDI is also used in the manufacture of coatings, sealants, adhesives and elastomers.

As MRC wrote previously, India lockdown adds uncertainty for polyvinyl chloride (PVC) exports. Last week India’s Prime Minister Narendra Modi announced a nationwide lockdown from Wednesday for 21 days in an effort to slow the spread of the coronavirus in the world’s second-most populous country, which has 1.3 billion people. The lockdown applies to ports, which will slow imports of all kinds of goods, including PVC, to a country that was dependent on PVC imports to meet demand before the pandemic gripped the globe.

According to MRC’s ScanPlast report, contrary to seasonal factors, Russian producers of unmixed PVC have maintained a high level of capacity utilisation. Russia’s overal PVC output totalled 91,700 tonnes in January 2020, up by 4% year on year. January production of unmixed PVC was 91,700 tonnes versus 87,760 tonnes in January 2019 and 81,400 tonnes in December 2019. Thus, despite relatively weak demand for resin from the domestic market, the average capacity utilisation exceeded 95% last month. Russia’s overall PVC production reached 975,000 tonnes in 2019, compared to 958,600 tonnes a year earlier.

Author:Margaret Volkova

http://www.mrcplast.com/news-news_open-368449.html

March 27, 2020

CFATS Extension

NACD Welcomes Three-Month CFATS Extension, but Urges Long-Term Reauthorization

Today, National Association of Chemical Distributors (NACD) President and CEO Eric R. Byer issued the following statement on the passage of legislation that would extend for an additional three months the Chemical Facility Anti-Terrorism Standards (CFATS) program ahead of its expiration on April 18, 2020.

“CFATS is vital to ensuring the chemical industry and regulators work together to keep our nation’s chemical facilities secured against potential acts of terrorism, and its continuation is a critical component of the broader U.S. national security strategy. While NACD welcomes a CFATS extension of three months and five days to get us beyond the April 18 program deadline, our industry needs a much longer program authorization to ensure both regulators and industry leaders alike have the certainty needed to administer this program.

“While we understand the intense political pressure placed upon Congress right now because of COVID-19, they cannot allow this program to sunset. It must be a priority for elected officials to reauthorize this program for the long-term to ensure that chemical facilities and communities are protected from potential acts of terrorism. We therefore urge the passage of long-term reauthorization legislation that would keep CFATS in place for many years to come, and certainly in place beyond July. Leaders in Congress on both sides of the aisle should prioritize CFATS reauthorization so this program can continue running strong.”

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NACD and its nearly 430 member companies are vital to the chemical supply chain providing products to over 750,000 end users. NACD members are leaders in health, safety, security, and environmental performance through implementation of Responsible Distribution, established in 1991 as a condition of membership and a third-party-verified management practice. For more information, visit www.NACD.com.

https://www.nacd.com/media-center/press-releases/three-month-cfats-extension/