The Urethane Blog
June 5, 2024
Polyurethane Foam Association Fall Meeting Addresses Sustainability, Industry Innovation
Manning and Gallagher Win Dr. Herman T. Stone Technical Excellence Award
Dr. Herman Stone Technical Excellence Award Winners: Michael Gallagher of The Mattress Recycling Council and Liz Manning of Econic Technologies were winners of the Dr. Herman Stone Technical Excellence Award for their presentations on New Markets for Recycled Foam and CO2-Based Polyols. The Award is voted on by the audience in PFA’s Technical program. Gallagher and Manning tied in the voting, so two awards were given.
ST. PETERSBURG, FL (May 31, 2024)—
The Polyurethane Foam Association’s
Spring Meeting in St. Petersburg featured a
spectrum of presentations on topics of
interest to the flexible polyurethane foam
industry, many focusing on a common
theme: Sustainability.
PFA’s Industry Issues Session provided updates on isocyanates, end use markets, sustainability programs, and “Made In USA” claims.
In the Technical Program on the following day, presentations covered foam recycling, new polyol technology, equipment for process controls, memory foam evaluations, sustainability certifications and circular economy.
Philippe Knaub of FXI, PFA’s President, recognized new PFA members including Midwest Foam and Dynamic Systems, and noted that the association’s work for its membership is more valuable than ever.
“PFA has earned a reputation as a resource for good science and accurate information about flexible polyurethane foam,” Knaub said. “This credibility is important as we address challenges such as sustainability, reliable testing and proposed regulations that may affect our business. PFA has proven that cooperative efforts by its members can be much more effective than any individual company managing such challenges alone.”
After PFA’s Technical Program, two presenters were named as winners of the Dr. Herman Stone Technical Excellence Award. The award is voted on by the audience at the Technical Program, and the vote resulted in a tie. Liz Manning of Econic Technologies won for her presentation, “Update: CO2-Based Polyols for Polyurethane Applications,” and Michael Gallagher of the Mattress Recycling Council won for his presentation, “Developing New Markets For Recycled Foam.”
The award is named for Dr. Herman T. Stone, who served as PFA’s first Technical Director. In 2007, Dr. Stone was inducted into the Flexible Polyurethane Foam Hall of Fame.
“A number of attendees told me that this year’s technical presentations were exceptionally good,” said Bill Gollnitz of Plastomer Corporation, Past PFA President and moderator of the Technical Program. “It’s very fitting that we were able to provide awards to two presenters.”
To learn more, visit www.pfa.org.
June 5, 2024
CalFibre raising funds to restart rice-straw MDF plant
By Larry Adams
June 4, 2024 | 9:52 am CDT
CalPlant was the manufacturer of Eureka MDF, the world’s first no-added-formaldehyde rice straw-based MDF. In 2023, it liquidated its assets. The original inventor of the material has put together a group that is looking to restart the plant.
Photo By CalFibre
WILLOWS, Calif. — CalFibre, a California-based bio-material company, is seeking $75 million in funding to acquire and reopen a factory to produce 300,000 tons per year of tree-free boards.
The factory, strategically located in Willows, at the heart of the Californian rice growing region, spans 276-acre and at one point was the world’s first commercial-scale producer of annually renewable, rice straw-base MDF.
Last year, in May, CalPlant I Holdco LLC, the original owner of the facility, focused on creating a no-added-formaldehyde, rice straw-based medium-density fiberboard, Eureka MDF, liquidated its assets. In October 2021, CalPlant entered into a plan support agreement with its senior bondholders, while pursuing a sale of the company. To facilitate the sale process, CalPlant voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware.
It took California rice farmer Jerry Uhland 20 years, 8 months, and 17 days to raise $325 million to achieve his mission to convert rice straw, a residue of rice farming, historically burned after each harvest, into the MDF product, a common construction material conventionally made of wood, and used for a variety of interior purposes like cabinets, doors, floors, and molding.
It took so long to convince funders to support his first-of-its-kind rice straw board plant because the raw material supply, the manufacturing plan, and the markets all had to be perfect. “I had 20-year contracts with fellow farmers and balers for 400,000 tons of rice straw, a full guarantee from the equipment-maker to make my technology work at scale, and a 20-year purchase contract for 100% of the production from the plant,” said Uhland.
Construction was completed on the plant in 2020, and beginning in early 2021, hundreds of truckloads of formaldehyde-free and tree-free 100% rice straw fiber boards started reaching the marketplace. Uhland said, “the buyers loved getting a product with our substantial green credentials, and at the same quality and price as their everyday wood-based boards.”
Hard luck all around
But, the production and distribution of products were fraught with problems. According to Uhland, first it was about a $100 million “laundry list of bad luck.”
There were the major construction costs over-runs from an over-promising and under-delivering contractor. The Federal Aviation Administration demanded the company lower the height and move one of its major installations, a dryer tower. Then came Covid shutdowns, and if that wasn’t enough, a dry lightning storm caused a fire and burned 50,000 tons of stored straw. After construction completed, the final financial blow came when a small but critical part of the guaranteed equipment line didn’t work properly, causing the plant to only reach 40% of the designed manufacturing capacity.
“The creditors carried us through the hard times during the challenges of the construction phase with additional investments, but the expense of a long shutdown to solve that one process issue exceeded what they were willing to invest. They were then forced to choose bankruptcy and asset liquidation,” according to Uhland.
CalFibre to the rescue
Uhland joined forces with several industry allies to form CalFibre LLC. CalFibre is currently seeking investors for a capital raise of $75 million to acquire, repair, restart, and operate the distressed asset. There have been numerous bids on the asset, according to Uhland, but none of the potential buyers have committed to restart the plant using local crop residues as the raw material, and the intention of some is to disassemble the mill and ship out the pieces.
“CalFibre has all the elements for success in hand: 150,000 tons of rice straw at the plant site and 400,000 tons per year of ongoing straw contracts; a guaranteed equipment fix; a full turnaround team from line workers to the CEO; unwavering support of the local community, and buyers lined up for our MDF products,” he said. “Once CalFibre is up and running, we have a ready-made solution for the rest of the world to save trees, to reduce greenhouse gas, to reduce harmful construction chemicals, and to demonstrate the potential of the bio economy and circular economy.”
June 3, 2024
How mattresses are made: An inside look at an American mattress factory
3Z Brands, makers of Brooklyn Bedding, Leesa and more, manufactures 2,200 mattresses daily in its Arizona factory. Jaclyn Turner/Business Insider
Many steps go into making the modern mattress. Most include a complex combination of foam, metal, and fabric assembled just right to ensure you sleep great. We recently got an in-depth look at how mattresses were made on a tour of the 3Z Brands factory in Glendale, Arizona. This 650,000-square-foot vertically integrated manufacturing plant enables 3Z, to oversee the entire mattress-making process from materials to packaging.
The 3Z Brands portfolio includes Helix, Leesa, Brooklyn Bedding, Nolah, Bear, and Birch mattresses and specializes in bed-in-a-box mattresses that ship free straight to your door. Several of these mattresses are featured in our best mattress guides. 3Z manufactures about 2,200 mattresses daily in its factory and has the capacity to make 4,000. With the extra capacity, 3Z Brands also makes mattresses for other companies, including Nectar, GhostBed, Allswell, and Nest Bedding.
Here’s a detailed account of our tour of the 3Z Brands factory and a look into how mattresses are made, from sewing to packaging.
Making the foam
Finished layers of foam are ready for assembly. Different colors help differentiate the foams. James Brains/Business Insider
Before 3Z Brands can assemble their mattresses, they must fabricate the various parts. As of 2023, 3Z makes all of its foams in-house, meaning they control the entire foam-making process from recipe development to cutting. Foam is one of the most important parts; it takes the longest to prepare. Unfortunately, the only area we couldn’t photograph or record was one of my favorite parts to watch: the foam pouring. This was done to protect trade secrets.
Since I can’t lean on the “thousand words” of a photo, I’ll do my best to describe what I saw. The foam pouring machine is roughly 40 feet long, 10 feet wide, and rises 20 feet. The foam’s chemicals are mixed before entering a long metal bar. The concoction is forced through hundreds of holes in the bar to get more air into the foam.
As the foam sets, a plastic-covered conveyer belt slowly moves the massive foam block forward. The foam is poured into 100-foot-long blocks about 4 feet deep and maybe 7 feet wide. A huge elevator moves the blocks to a spot in the warehouse for curing in the dry Arizona heat for 24 to 72 hours.
Cured blocks of foam that are the dimensions of a bed before being sliced down to layers. Jaclyn Turner/Business Insider
Pouring foam is dangerous, so most companies outsource this step. If you get the formula wrong, the internal temperature of the foam block will rise too high and could start a fire. The foam temperature at the 3Z factory reaches 280 degrees Fahrenheit.
Once it has cured long enough, it’s time to cut the foam blocks down to size. First, it’s cut vertically to match the dimensions of a mattress, as shown above. Then, it’s cut horizontally using a machine I like to call “the Decapitator.”
At this point, the foam layers are ready for the mattress. Leftover scraps are put to good use, such as filling pillows.
Constructing the pocket coils
The pocket springs found in hybrid mattresses arrive at the factory in huge coils. James Brains/Business Insider
Pocket springs, or coils, are a signature feature of hybrid mattresses. They provide durability, support, and airflow. The springs arrive at the factory as a giant coil. The end of the coil is fed into a machine that turns the long steel “thread” into smaller springs appropriate for a mattress.
The “thread” of steel is fed into the machine from the top right. Then, faster than the eye can see, the machine coils and cuts it to make springs. Jaclyn Turner/Business Insider
The spring assembly line is wrapped in fabric to make individual “pockets.” Unlike traditional spring mattresses, the springs in hybrids are usually separated to assist with motion isolation.
Narrower, denser coils are used for the edges to help with edge support.
Several machines work nonstop making pocket springs of different sizes. The pile of narrow springs on the floor will be used on the edges to provide edge support. Jaclyn Turner/Business Insider
The springs are put together in a single layer to be layered and assembled into a mattress.
The pocket spring layers await the mattress assembly process. While it varies significantly, hybrid mattresses often have around 1,000 pocket springs. James Brains/Business Insider
Sewing the cover
Between the quilting, borders, and handles, a lot of work goes into sewing a mattress cover, and each step requires a specialized machine. 3Z employs a team of mechanics to maintain the equipment and ensure everything keeps running smoothly.
The machine below just makes the mattress borders. It features 65 sewing needles and makes eight border rolls at a time.
Some borders feature vertical stitching, which requires a whole other machine.
And you better believe there’s a separate device for adhering handles to the borders.
The same machine that creates the borders is also used to quilt and combine the mattress top, which combines fabric, foam, and a flame-retardant layer. The manufacturer can program the design and materials based on their desired model and size.
Here, you can see what the finished quilted mattress top looks like. On the right is 3Z Brands CEO John Merwin. I was impressed by his knowledge of every step of the mattress-making process. James Brains/Business Insider
During the tour, my editor tried serging together the mattress’s top layers on an air hockey-like table. She did a good job, but her effort didn’t quite pass quality control. Keep at it, Jaclyn!
Assembling the mattress
Once the foam, pocket springs, and mattress covers are ready, it’s time to assemble all the components together. First, the layers are glued together to keep them in place. Above, workers put together zoned-support mattresses, which must be assembled by hand. You can also see mattresses glued together by a machine on the conveyor belt behind them.
Once the layers are assembled, the cover is stapled in place, and the mattress starts to resemble its final product.
Boxing it up
Ever wonder how they get a mattress into those mini fridge-sized boxes? I always have. You may not be surprised that they rely on a specialized machine. The fully assembled mattress is crushed flat and vacuum-sealed in plastic. Then, it’s folded, rolled, wrapped in more plastic, and stuffed in a box to be delivered to your door. Here’s the whole process at four times the normal speed:
Mattresses can’t stay in the box forever, so most 3Z mattresses are made to order. They should be unboxed within 30 days; any longer than that could compromise their ability to expand. Manufacturers must nail the delicate balance of producing enough beds to meet demand while ensuring they don’t stay on shelves for long.
Once boxed up, the clock is ticking to get these mattresses in consumers’ bedrooms. James Brains/Business Insider
Testing and constant modifications
Nolah CEO Stephen Light loves getting geeky with mattress design. Here, he shows off an upcoming release: an Alaskan king bed delivered to you in three boxes. James Brains/Business Insider© James Brains/Business Insider
With hundreds of mattress brands competing for your dollar, manufacturers must stay ahead of the trends and incorporate the latest technology in their mattresses. When we asked 3Z CEO John Merwin and Nolah Mattress CEO Stephen Light about the mattress they’re sleeping on, the answers were related to experimenting with the next product in development, like an expansion into a largely untapped mattress category: the Alaskan King, a 9 foot by 9 foot mattress. 3Z Brands employs a foam engineer with a room full of reference samples for experimenting with new foam variations. The factory also featured an area where you can design your own mattress using the materials made at the facility to help with product development.
What stood out to me were all the companies worldwide that manufacture mattress-making and testing machines. The machine below simulates years of sleeping on the mattress. It’s used to quickly assess durability and determine the warranty length 3Z will offer.
The bottom line
The next time you look at a mattress, think of all the work that went into it. Maybe, take a closer look at the materials and their origin. As you’re drifting off to sleep, think of the hundreds of people who worked together to ensure you get that good night’s sleep. It’s pretty astounding. Sweet dreams!
June 3, 2024
Pending home sales slumped 7.7% in April
By Larry Adams
May 31, 2024 | 12:59 pm CDT
Contract signings retreated in all regions compared to the previous month and one year ago. The Midwest and West experienced the largest monthly declines.
WASHINGTON — The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – decreased to 72.3 in April. Year over year, pending transactions were down 7.4%. An index of 100 is equal to the level of contract activity in 2001.
“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said NAR Chief Economist Lawrence Yun. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”
Regional breakdown
The Northeast PHSI fell 3.5% from last month to 62.9, a decline of 3.1% from April 2023. The Midwest index dropped 9.5% to 70.7 in April, down 8.7% from one year ago.
The South PHSI lowered 7.6% to 88.6 in April, dropping 8.2% from the prior year. The West index decreased 8.5% in April to 55.9, down 7.3% from April 2023.
“Home prices are hitting record highs, but the pace of gains should decelerate with more supply,” said Yun. “However, the prospect of measurable home price declines appears minimal. The few markets experiencing price declines will be viewed as second-chance opportunities for buyers to enter the market if those regions continue to add jobs.”
May 30, 2024
Supply Shock: Shipping Container Costs Top $10,000 Amid Red Sea Turmoil Thinning Global Capacity
by Tyler Durden
Thursday, May 30, 2024 – 02:45 AM
A more conventional supply shock is underway – nowhere near the nuclear-level hit by government-enforced lockdowns several years ago. The Israel-Hamas war has led to Iran-backed Houthis freezing the critical maritime chokepoint of the Bab al-Mandab Strait, attacking Western commercial vessels with missiles and drones (the latest incident on Tuesday), and forcing major shipping operators to reroute containerized freight around the Cape of Good Hope, which strains the world’s containerized capacity and has just sent shipping costs surging once again.
Bloomberg reports new data from France-based CMA CGM SA, the world’s third-largest carrier, indicating that the cost of shipping a 40-foot container from Asia to northern Europe jumped to $7k in the second half of June, up from $5k in the first half of the month. Rates ranged from $6k to $6.5k, with premium services approaching $1k.
“With capacity stretched by more than five months of attacks on vessels in the Red Sea, the container shipping industry is scrambling to meet demand that’s picking up in the US and Europe,” Bloomberg said.
Data from Bloomberg shows that Shanghai to Los Angeles, Shanghai to Rotterdam, Shanghai to Genoa, and Shanghai to New York are some of the most critical shipping lanes experiencing a price jump.
Trine Nielsen, senior director and head of ocean EMEA at Flexport, said companies are “double-booking or increasing booking numbers to secure space” amid thinning capacity.
The chief executive of Germany-based Hapag-Lloyd AG, the world’s number five container carrier, blamed the surge in shipping rates on the continued Red Sea chaos and shrinking capacity, plus “really strong demand.”
There are no forecasts on how long the price surge will last. However, Hapag-Lloyd CEO Rolf Habben Jansen said, “It could still last for another couple of months if the Red Sea situation doesn’t improve.”
News today from Bloomberg says Israel will need at least seven more months to defeat Hamas. This suggests the fight could expand outside of Gaza to either Lebanon or Iran. If that’s the case, expect continued bombardment of ships in critical maritime chokepoints by Houthi rebels – with increasing risks of an oil supply shock that could send Brent crude over $100/bbl.
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