The Urethane Blog
Everchem Updates
VOLUME XXI
September 14, 2023
Everchem’s exclusive Closers Only Club is reserved for only the highest caliber brass-baller salesmen in the chemical industry. Watch the hype video and be introduced to the top of the league: — read more
August 4, 2022
Wanhua Chemical posts 23% decrease on H1 profit
MOSCOW (MRC) — China’s Wanhua Chemical said on Friday that its net profit in the first half of 2022 dropped by over 23% amid rising feedstock and energy costs, said the company.
Revenue increased by 31.7% on surging prices and sales. Feedstocks costs rose steeply. In the first six months, average prices of benzene and coal increased by 30% and 52% year on year, respectively. Contract prices of propane and butane were 47% and 54% higher than the same period in previous year.
Polyurethane (PU) sector saw rebounding operating rates and high inventories. Supply and demand were basically balanced, but demand growth slowed down amid rising costs, manufacturing slump and high inflation.
Petrochemicals faced squeezed margins. Prices of oil and gas rallied fast and were highly volatile, major overseas economies suffered from inflation pressure, while domestic downstream consumptions of petrochemicals were curbed or delayed by sporadic outbreaks of COVID-19.
We remind, Wanhua Chemical posted a 49.56% decrease in net profits in the first half of 2021, as sales and prices both took a hit from the coronavirus pandemic. Slump in oil prices also dampened demand and prices of its products.
Prices of pure methylene diphenyl diisocyanate (MDI), its major product, decreased to CNY15,800-CNY18,700 in the first half year from CNY23,700-CNY27,200 in the same period of 2019. Prices of petrochemical products the company makes also recorded a double-digit drop.
https://www.mrchub.com/news/403310-wanhua-chemical-posts-23-percent-decrease-on-h1-profit
August 4, 2022
Wanhua Chemical posts 23% decrease on H1 profit
MOSCOW (MRC) — China’s Wanhua Chemical said on Friday that its net profit in the first half of 2022 dropped by over 23% amid rising feedstock and energy costs, said the company.
Revenue increased by 31.7% on surging prices and sales. Feedstocks costs rose steeply. In the first six months, average prices of benzene and coal increased by 30% and 52% year on year, respectively. Contract prices of propane and butane were 47% and 54% higher than the same period in previous year.
Polyurethane (PU) sector saw rebounding operating rates and high inventories. Supply and demand were basically balanced, but demand growth slowed down amid rising costs, manufacturing slump and high inflation.
Petrochemicals faced squeezed margins. Prices of oil and gas rallied fast and were highly volatile, major overseas economies suffered from inflation pressure, while domestic downstream consumptions of petrochemicals were curbed or delayed by sporadic outbreaks of COVID-19.
We remind, Wanhua Chemical posted a 49.56% decrease in net profits in the first half of 2021, as sales and prices both took a hit from the coronavirus pandemic. Slump in oil prices also dampened demand and prices of its products.
Prices of pure methylene diphenyl diisocyanate (MDI), its major product, decreased to CNY15,800-CNY18,700 in the first half year from CNY23,700-CNY27,200 in the same period of 2019. Prices of petrochemical products the company makes also recorded a double-digit drop.
https://www.mrchub.com/news/403310-wanhua-chemical-posts-23-percent-decrease-on-h1-profit
August 4, 2022
3M Unit Goes Bankrupt in Bid to Resolve Lawsuits Over Military Earplugs
- 3M pledges $1 billion for veterans claiming hearing damage
- Bankruptcy strategy to be challenged by victim lawyers
By
Steven Church and
Jeremy HillJuly 26, 2022 at 11:06 AM EDTUpdated onJuly 26, 2022 at 1:03 PM EDT
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3M Co. put its Aearo Technologies unit into bankruptcy in a bid to resolve more than 230,000 lawsuits brought mainly by US military veterans over allegedly faulty combat earplugs.
The conglomerate has already spent nearly $350 million defending the sprawling litigation, according to court papers. Putting the unit into bankruptcy is the fastest and most equitable way to resolve the claims, 3M said.
The case is the latest in a string of so-called mass tort bankruptcies, in which profitable companies use insolvency proceedings to settle onerous legal liabilities. Lawsuits against a bankrupt company are paused as soon as a Chapter 11 petition is filed and the claims are moved in front of a bankruptcy judge.
3M plans to funnel $1 billion to a trust that would pay people suing over the earplugs and has set aside $240 million to fund the bankruptcy itself. The strategy is similar to those proposed by other lawsuit-addled companies like Johnson & Johnson and Purdue Pharma LP. 3M itself is not in bankruptcy.
The Chapter 11 filing will “reorganize a business with healthy operations that has become saddled with unsustainable tort liabilities,” John R. Castellano, chief restructuring officer of Aearo, said in a sworn declaration. Outside of bankruptcy, the lawsuits “could go on for decades, continue to consume millions of dollars in defense costs annually, and continue to result in highly disparate outcomes for plaintiffs,” he said.
The company is likely to face pressure to pay more than $1 billion, analysts said.
“The $1 billion that is being seeded by 3M to cover claims should be viewed as a first installment,” Nigel Coe, senior research analyst with Wolfe Research, said in a note. “We maintain that $10 billion is more realistic.”
J&J’s Victory Over Cancer Victims Clears Path for 3M, Others
Victims will fight the bankruptcy filing, attorneys for one of the leading law firms representing veterans said in a statement.
“3M’s bankruptcy maneuver is further proof that they value their profits and stock price more than the well-being of veterans,” lawyer Bryan Aylstock said in the emailed statement. “Instead of negotiating in good faith, 3M decided to move its relentless attack on US soldiers from the civil courts to the bankruptcy system.”
Those suing 3M and Aearo — primarily military veterans — claim they suffered hearing injuries after using noise reduction earplugs designed for and sold to the US military. Aearo began selling the earplugs in “significant quantities” in the early 2000s and continued selling them until 2015, Castellano said.
So far, only a handful of the 3M earplug cases have been tried, according to court documents. A jury in one case said the company should pay $77.5 million. The company has lost 13 of the 19 cases that went to trial, with juries awarding more than $300 million in damages, according to Aylstock, the victims lawyer.
Such bankruptcy cases can take years to complete, in part because setting up a victim’s trust typically takes a vote of 3/4ths of creditors. Getting that much support typically takes negotiations including top victim lawyers, insurance companies that have to help pay claims and the company.
Should 3m’s proposal win enough victim support and approval from a bankruptcy judge, all current and future claims would be paid by the company-funded trust.
3M purchased Aearo in 2008. The company has more than 300 employees and generated $108 million in direct sales last year, according to court papers. It is based in Indiana.
The bankruptcy is Aearo Technologies LLC, 22-02890, United States Bankruptcy Court for the Southern District of Indiana (Indianapolis).
— With assistance by Ryan Beene
August 4, 2022
3M Unit Goes Bankrupt in Bid to Resolve Lawsuits Over Military Earplugs
- 3M pledges $1 billion for veterans claiming hearing damage
- Bankruptcy strategy to be challenged by victim lawyers
By
Steven Church and
Jeremy HillJuly 26, 2022 at 11:06 AM EDTUpdated onJuly 26, 2022 at 1:03 PM EDT
Share this article
Follow the authors+ Get alerts for+ Get alerts for
3M Co. put its Aearo Technologies unit into bankruptcy in a bid to resolve more than 230,000 lawsuits brought mainly by US military veterans over allegedly faulty combat earplugs.
The conglomerate has already spent nearly $350 million defending the sprawling litigation, according to court papers. Putting the unit into bankruptcy is the fastest and most equitable way to resolve the claims, 3M said.
The case is the latest in a string of so-called mass tort bankruptcies, in which profitable companies use insolvency proceedings to settle onerous legal liabilities. Lawsuits against a bankrupt company are paused as soon as a Chapter 11 petition is filed and the claims are moved in front of a bankruptcy judge.
3M plans to funnel $1 billion to a trust that would pay people suing over the earplugs and has set aside $240 million to fund the bankruptcy itself. The strategy is similar to those proposed by other lawsuit-addled companies like Johnson & Johnson and Purdue Pharma LP. 3M itself is not in bankruptcy.
The Chapter 11 filing will “reorganize a business with healthy operations that has become saddled with unsustainable tort liabilities,” John R. Castellano, chief restructuring officer of Aearo, said in a sworn declaration. Outside of bankruptcy, the lawsuits “could go on for decades, continue to consume millions of dollars in defense costs annually, and continue to result in highly disparate outcomes for plaintiffs,” he said.
The company is likely to face pressure to pay more than $1 billion, analysts said.
“The $1 billion that is being seeded by 3M to cover claims should be viewed as a first installment,” Nigel Coe, senior research analyst with Wolfe Research, said in a note. “We maintain that $10 billion is more realistic.”
J&J’s Victory Over Cancer Victims Clears Path for 3M, Others
Victims will fight the bankruptcy filing, attorneys for one of the leading law firms representing veterans said in a statement.
“3M’s bankruptcy maneuver is further proof that they value their profits and stock price more than the well-being of veterans,” lawyer Bryan Aylstock said in the emailed statement. “Instead of negotiating in good faith, 3M decided to move its relentless attack on US soldiers from the civil courts to the bankruptcy system.”
Those suing 3M and Aearo — primarily military veterans — claim they suffered hearing injuries after using noise reduction earplugs designed for and sold to the US military. Aearo began selling the earplugs in “significant quantities” in the early 2000s and continued selling them until 2015, Castellano said.
So far, only a handful of the 3M earplug cases have been tried, according to court documents. A jury in one case said the company should pay $77.5 million. The company has lost 13 of the 19 cases that went to trial, with juries awarding more than $300 million in damages, according to Aylstock, the victims lawyer.
Such bankruptcy cases can take years to complete, in part because setting up a victim’s trust typically takes a vote of 3/4ths of creditors. Getting that much support typically takes negotiations including top victim lawyers, insurance companies that have to help pay claims and the company.
Should 3m’s proposal win enough victim support and approval from a bankruptcy judge, all current and future claims would be paid by the company-funded trust.
3M purchased Aearo in 2008. The company has more than 300 employees and generated $108 million in direct sales last year, according to court papers. It is based in Indiana.
The bankruptcy is Aearo Technologies LLC, 22-02890, United States Bankruptcy Court for the Southern District of Indiana (Indianapolis).
— With assistance by Ryan Beene
August 2, 2022
Tenex Capital Management Exits SES Foam
| New York, NY – August 2, 2022 – Tenex Capital Management (“Tenex”) is pleased to announce the sale of SES Foam, a leading manufacturer of spray foam insulation, to Holcim, a global leader in sustainable building solutions. The sale marks the realization of Tenex’s SES Foam insulation portfolio, which also included an investment in US GreenFiber in 2013 and continued with its investment in SES Foam in 2016. Since Tenex’s initial investment in SES Foam, the business has expanded rapidly, with revenue increasing approximately six-fold, entirely through organic growth. SES Foam CEO Charles Valentine commented, “Tenex was an invaluable partner for SES, providing us the resources we needed to help execute on our ambitious growth plans. The Tenex team aided SES in scaling our team, supporting critical new product launches, and vertically integrating our blending operations, which enabled SES to thrive throughout the pandemic and capture market share over the years by delivering superior products and best-in-class service to the marketplace.” Tenex Managing Director Gabe Wood said, “We are thrilled for Charles, Adam Faber and the entire SES team for their remarkable achievements over the last six years, and we’re honored to have played a small part in this latest chapter of their incredible story. This is an exciting new phase for the company, and we are confident that SES will continue to ascend to new heights as part of Holcim.” The transaction closed on July 29, 2022. Houlihan Lokey served as lead financial advisor to SES Foam, and Lazard served as co-advisor. |
| About SES Foam: Founded in 2009 and based in Spring, TX, SES has a history of innovation with solutions like SucraSeal®, the first sucrose-based spray foam insulation to be certified by the US Department of Agriculture for its high bio-based content. SES offers superior products that improve buildings’ energy efficiency and thermal comfort, while lowering their carbon footprint. The company stands out for its value-added services to contractors, including onsite technical instruction, business consulting, branding and lead generation support. For additional information, please visit www.sesfoam.com. |
| About Tenex Capital Management: Tenex Capital Management is a private equity firm that invests in middle market companies. Tenex uses an in-house team of hybrid investment professionals skilled in operational leadership, investing, and capital markets structuring to maximize long-term value creation. Tenex’s deep operating experience allows the firm to collaborate with management teams to capitalize on business and market opportunities. Tenex has successfully invested in a diverse range of industries, including industrials, business and tech-enabled services, healthcare, building products, and auto aftermarket, among others. For additional information, please visit www.tenexcm.com. |
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