January 17, 2024

Mattress Tagging in Europe

Euro bedding giant Aquinos to tag a million mattresses by 2027, starting next year

ByJames Blackman

January 17, 2024

Internet of Things (IoT)IoT

US materials science and digital identification company Avery Dennison is working with European mattress manufacturer Aquinos Group to tag bedding products from 2024 with radio frequency identification (RFID)  technology so fewer go to waste, and the company plays an active role in the circular economy, according to a press statement. The project will make Aquinos the first company in its sector to comply with new European Union (EU) Digital Product Passport (DPP) rules.

Avery Dennison makes labeling materials, bonding solutions, and tagging solutions for industrial, medical, and retail applications. It has engaged RFID specialist TripleR on the project. Aquinos Group is one of Europe’s largest mattress manufacturers and operates 20 European factories. It sells products under the BEKA, Lattoflex, Schlaraffia, Sembella, Superba, and Swissflex mattress brands. It forecasts RFID tags will be used in one million of its mattresses by 2027, and “usher in a new era of transparency and circularity” for the firm.

Data from the RFID tags will connect to Avery Dennison’s atma.io platform via RFID readers as they are scanned, creating a digital twin of their whereabouts and history. Data will show information about the origins and materials used in the production of the mattresses. They will also be scanned at recycling centres so that “product dismantlers” can separate materials from the mattresses more efficiently for recycling, and reuse. Consumers will also be able to scan QR codes with smartphones to access product information before and after purchase.

The EU’s new DPP rules will deliver information about products’ environmental sustainability, accessible by scanning a data carrier. Data will include attributes such as the durability and reparability, the recycled content or the availability of spare parts of a product. The DPP scheme is due to come into force for mattresses in 2027. By then, it will have already shipped a million tagged units, it reckons. DPP rules for mattresses will be active sooner in certain European markets, such as Belgium (by 2025), where Aquinos is based. 

Aquinos said it will be the “first producer to comply with the DPP scheme at a pan-EU scale”. Aquinos and TripleR are in alliance with the Belgian industry association Valumat as part of a collaboration that also includes product dismantlers.

Benjamin Marien, international commercial director for bedding at Aquinos, said: “DPP sets the next important step in circularity. By being the first in the industry to begin compliance, we want to lead by example to inspire the markets, our industry partners, and the bedding sector to advance environmentally responsible practices…. We will use the power of [our] brands to raise external awareness of the importance of DPPs… We are moving bedding sustainability beyond niche implementation to mainstream. This will be crucial to put an end to bedding materials going to waste.”

Michael Goller, senior director for atma.io at Avery Dennison, said: “We are proud to be working on this project with Aquinos and TripleR. Mattresses are complex and bulky products  that require a highly sophisticated sorting and dismantling process. To date, it has proven difficult to do this in a cost-efficient manner – leading to millions of mattresses going to landfill each year. This is precisely why DPPs have been established and we are excited to push boundaries with our partners towards greater traceability, efficiency, and circularity.”

Stefaan Cognie, co-founder at TripleR, commented: “This project is an important milestone and sets a benchmark for how the DPP scheme will operate across Europe to enable sustainability and circularity. We have already developed a digital Identification standard in the bedding industry in Belgium and are engaging with extended producer responsibility (EPR) bodies and mattress associations in different European countries, as well as with the overarching European Mattress Association EBIA to bring DPP compliance to fruition.”

January 16, 2024

Enverge

HOLCIM BUILDING ENVELOPE INTRODUCES ENVERGE SPRAY FOAM

PR Newswire

Tue, January 16, 2024 at 10:07 AM EST·3 min read

Gaco SprayFoam and SES Foam brands have merged under the new Enverge Spray Foam brand name and identity.

NASHVILLE, Tenn., Jan. 16, 2024 /PRNewswire/ — Today, Holcim Building Envelope announces the launch of Enverge^®, an innovative, sustainability-focused spray foam insulation brand with a mission of changing the way the world insulates, creating more energy-efficient buildings and healthier living environments.

Enverge unites two market-leading spray foam brands, Gaco^™ SprayFoam and SES^™ Foam, bringing together over 40 years of experience in providing high-performance spray foam insulation, technical support, building science expertise, and training to the market.

“Enverge has the products, resources, people, expertise, and conviction to become the market leader in the spray foam industry,” says Charles Valentine, President of Enverge Spray Foam. “As the previous owner of the legacy SES Foam brand, it’s rewarding to see Holcim’s commitment to this vision under the Enverge brand. We believe that our customers’ success is our success, and we are committed to serving them with products they can trust, expert guidance they can rely on, and a partnership invested in their success.”

Foundational Beliefs

The new Enverge brand is built on three foundational beliefs:

• Spray foam is one of the best insulating materials due to its superior performance properties, not only because of its high thermal efficiency but also its ability to be a highly effective air, moisture, and vapor barrier. For this reason, Enverge is on a mission to change the way the world insulates, growing spray foam share within the residential and commercial insulation industries.
• The success of Enverge depends on our customers’ success. We lift them up through extraordinary support, collaboration, and training by sharing our knowledge and expertise.
• The Enverge team has top experts in R&D and building science, creating innovative, sustainable products and solutions for our partners.

“We are proud to continue the legacy of excellence of Gaco SprayFoam and SES Foam under the Enverge brand name,” said Jamie Gentoso, President, Holcim Building Envelope and Global Head, Holcim Solutions & Products. “Alongside the portfolio of Holcim Building Envelope brands, Enverge provides high-performance insulating solutions to support Holcim’s mission of building progress for people and the planet. Enverge is a critical piece of our portfolio, providing the construction community with the premier insulating material, tools, and training to build more energy-efficient buildings.”

For more information, please visit www.envergesprayfoam.com.

Note: Only the Gaco SprayFoam name will transition to Enverge Spray Foam. The Gaco portfolio of roof foam and coatings, decking, and waterproofing solutions will remain unchanged, and Gaco will continue to lead and expand in the commercial construction space.

About Holcim Building Envelope
Holcim Building Envelope delivers high-performance solutions that make the entire building envelope more sustainable for customers around the world. We are committed to raising the standards of building solutions by delivering superior quality and innovation while addressing industry needs. Our offerings cover a comprehensive range of residential and commercial roofing, wall and lining systems, insulation, and waterproofing solutions for a variety of industries from construction to marine and aerospace. Our powerful portfolio of brands includes Enverge, Gaco, GenFlex, Malarkey Roofing Products, Duro-Last, and Elevate, the new name for Firestone roofing, wall and lining systems. Visit HolcimBE.com to learn more.

About Holcim
Holcim builds progress for people and the planet. As a global leader in innovative and sustainable building solutions, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy, Holcim is becoming a net zero company, with its people and communities at the heart of its success. The company is driving circular construction as a world leader in recycling to build more with less.

https://finance.yahoo.com/news/holcim-building-envelope-introduces-enverge-150700582.html

January 16, 2024

Leggett & Platt Restructuring in Bedding Products

LEGGETT & PLATT ANNOUNCES RESTRUCTURING PLAN TO DRIVE IMPROVED PERFORMANCE AND PROFITABLE GROWTH

Jan. 16, 2024 7:00 AM ETLeggett & Platt, Incorporated (LEG)

CARTHAGE, Mo., Jan. 16, 2024 /PRNewswire/ —

• Continuing to adapt Bedding Products strategy to advance innovative, higher-value content and provide additional product solutions for our customers
• Optimizing manufacturing and distribution footprint to enhance the efficiency of our business while maintaining ability to service our customers
• Executing plan initiatives expected to generate $40 to $50 million of annualized EBIT benefit when fully implemented in late 2025
• Withdrawing company’s long-term financial targets
• Recording an estimated $450 million long-lived asset impairment charge in 4Q23 related to prior year acquisitions in Bedding Products segment

Diversified manufacturer Leggett & Platt (LEG) announced that it is implementing a Restructuring Plan primarily in its Bedding Products segment and to a lesser extent, in its Furniture, Flooring & Textile Products segment. In response to evolving markets, the Company is taking actions to improve manufacturing and distribution efficiency, advance its product strategy, and further support customer needs. These actions are expected to generate $40 to $50 million in EBIT benefit on an annualized run-rate basis when fully implemented in late 2025.

President and CEO Mitch Dolloff commented, “We are taking actions to create a more focused, agile organization with a portfolio of products and operating footprint aligned with the markets we serve. The bedding market has experienced unprecedented change in recent years and the competitive landscape has continued to evolve. Reshaping our Bedding Products strategy is expected to better position us for long-term success as the leading provider of bedding solutions across the value chain. In addition, optimizing our operating footprint in both Bedding Products and Furniture, Flooring & Textile Products will reduce complexity and enhance the efficiency of our business. Looking forward, we expect to advance key product growth, improve profitability, and drive enhanced value for customers and shareholders.”

OVERVIEW OF INITIATIVES
The major Bedding Products initiatives that are part of the Restructuring Plan include:

• Refocusing Strategy: We are continuing to reshape our Bedding Products business to focus on innovative, higher-value content, driven by customer and end-consumer needs. We are proud of our long history of providing product solutions our customers value and see further opportunities to do so in both innersprings and specialty foam, from components to private label finished goods.
• Optimizing Manufacturing and Distribution Footprint: We plan to consolidate certain locations across the Bedding Products segment, reducing our manufacturing and distribution footprint of 50 facilities to approximately 30 to 35 facilities. Creating a new and more efficient regional distribution network will support our ability to maintain sufficient manufacturing capacity in fewer, higher-output facilities to effectively serve our customers and better align with anticipated future market demand. These actions should allow us to integrate our specialty foam and innerspring capabilities while maintaining market- leading service and product quality levels and improving overall efficiency.

The initiatives outlined above are expected to enable profitable growth through expanded product capabilities and increased content at attractive price points, reduce costs, and create shareholder value.

In Furniture, Flooring & Textile Products we plan to consolidate a small number of production facilities in Home Furniture and Flooring Products to better align capacity with regional demand and drive operating efficiencies. 

FINANCIAL IMPACT
In total, the initiatives are expected to reduce annual sales by approximately $100 million and generate $40 to $50 million in EBIT benefit on an annualized run-rate basis when fully implemented in late 2025, with some of the benefit starting to be realized in the second half of 2024. Additionally, we anticipate receiving approximately $60 to $80 million in net cash proceeds from the sale of real estate associated with the initiatives, with transactions largely complete by the end of 2025.

We expect to incur restructuring and restructuring-related costs of $65 to $85 million, of which approximately half are anticipated to be incurred in 2024 and the remainder in 2025. This includes $30 to $40 million in cash costs, the majority of which are anticipated to be incurred in 2024. In the first half of 2024, we anticipate $20 to $25 million of restructuring and restructuring-related costs (approximately half in cash costs).

LONG-TERM FINANCIAL TARGETS
In connection with the Restructuring Plan, we are withdrawing our previously stated Total Shareholder Return goal of 11–14% and financial targets, including revenue growth, EBIT margin, and dividend payout ratio. Revised financial targets will be issued at a future date. We are not changing our objectives of maintaining our investment grade debt ratings and our current dividend practices.

FOURTH QUARTER 2023 IMPAIRMENT CHARGE
In addition, but unrelated to the Restructuring Plan, we are impairing an estimated $450 million of long-lived assets (primarily intangibles) associated with prior year acquisitions in the Bedding Products segment. Prolonged weak demand and changing market dynamics have created disruption and financial instability for some of our customers. As a result, recent efforts by certain customers to improve their financial position are expected to reduce our future sales and earnings. We are not otherwise updating guidance for, or reporting upon, our fourth quarter 2023 or full year 2023 financial results. These financial results and 2024 full year guidance will be released on February 8, 2024.

https://seekingalpha.com/pr/19591410-leggett-and-platt-announces-restructuring-plan-to-drive-improved-performance-and-profitable?mailingid=34011317&messageid=2900&serial=34011317.388

January 10, 2024

Q4 Chemical M&A Activity

Chemical Deal Results

http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=4th+Quarter+2023

January 8, 2024

German Deindustrialisation

De-industrialisation in Germany dramatically reduces emissions in 2023

Germany led Europe in reducing emissions in 2023, but the fall had more to do with the painful de-industrialisation the country is going through as a result of the end of cheap Russian gas rather than green policies. / bne IntelliNews

By bne IntelliNewsJanuary 5, 2024

Germany led the way in reducing emissions in 2023, but the fall had more to do with the dramatic de-industrialisation due to the effects of the war in Ukraine and soaring energy costs than it did with green policies.

Greenhouse gas emissions in Germany fell by approximately 20% in 2023, reaching their lowest level since the 1950s, according to a report by Berlin-based think-tank Agora Energiewende, as reported by the Financial Times on January 4.

The country emitted 673mn tonnes of carbon dioxide equivalent in 2023, with about half of the reduction attributed to a decline in coal-fired power generation.

However, emissions from the construction and transport industries remained largely unchanged in 2023, following several years of failure to reach reduction targets. The chemical industry, Germany’s third largest industrial sector, has also lost 23% of its production volume within two years, Handelsblatt reports. As a result, Germany is expected to miss EU-wide emission reduction goals as set out under the so-called Effort Sharing Regulation, Agora said.

Leading industrial managers in the German chemistry are sceptical as to whether the industry will be able to return to the production volume of 2021 in the next few years. “We are in the middle of a deep, long valley,” Markus Steilemann, president of the Chemical Industry Association (VCI) and CEO of Covestro, told Handelsblatt, one of Germany’s leading business newspapers.

0124 EURO German chemical production index HANDELSBLATT

This failure highlights that the headline reduction in emissions has more to do with Germany’s economic slowdown than successful implementation of green policies. Lethargic German industrial activity, influenced by the war in Ukraine and energy price crises, played a crucial role, accounting for half of the emissions drop, the report found, whereas the growth in renewable energy contributed 15% to the fall in emissions.

However, the leading German industrial companies report that the fall in customer orders since spring 2023 is now slowing and the market appears to be finding a new, albeit lower, equilibrium, according to leading suppliers such as BASF and the world’s largest chemical retailer Brenntag. But that’s not enough to create any optimism, because there is a lack of real growth. German companies’ hopes are based on a slow recovery starting in the second half of 2024.

As reported by bne IntelliNews, the sanctions on Russia and the halt in delivery of Russian piped gas after the Nord Stream 1 & 2 gas pipelines were destroyed last September have had a heavy impact on Germany’s heavy industry.

Accounting for about a quarter of German GDP – twice the level of other large European powers – some 10% of heavy industry has been forced to close down or dramatically reduce production.

German chemical companies are now very cautious when it comes to investing at home: around 40% of them will reduce their investments in Germany in 2023 and 2024, according to recent industry survey. However, the majority of companies are planning to increase foreign investments or leave completely.

Up to a third of Germany’s heavy industry is either planning to move, or has already started the process of moving, abroad to lower-cost markets. The biggest hope for the chemical industry is China, where almost half of global chemical demand already comes from.

The German industrial lobby has said that German heavy industry should start recovering in 2025, but that assumes energy prices will fall to previous levels. A recent IMF white paper concluded that the higher prices, caused by the remake of Europe’s energy markets and the end of cheap Russian gas imports, means the higher energy prices are likely to be a permanent change that will fundamentally affect Germany’s business model.

Germany’s economy has already stalled as a result of the seismic changes to its economic make-up. Agora said that while preliminary figures showed German economic output dropped 0.3% in 2023, the equivalent figure for energy-intensive production in industries such as chemicals and steel was 11%, the FT reports.

German Vice-Chancellor Robert Habeck acknowledged the decline in fossil fuel use but highlighted the importance of distinguishing between the impact of the war and energy price crises on industrial production. He emphasised the need to maintain Germany as a strong industrial location while transitioning to climate neutrality.

Siegfried Russwurm, president of Germany’s industrial lobby, criticised the government for not grasping the critical situation facing manufacturing businesses, the FT reported. Rising energy costs and a lack of government support were identified as challenges for industries aiming to be both green and globally competitive.

Agora Energiewende stressed the importance of preventing emissions from being relocated abroad and called for a stable framework to encourage investment in climate-friendly technologies. The think-tank highlighted the need for an “investment offensive” to achieve long-term goals, including the rollout of hydrogen pipelines and improvements to electricity grids.

While the 21% drop in emissions is a positive development, after Germany shuttered its six nuclear power stations last year it has been forced to start importing electricity. However, that also contributed to the drop in its emissions, as almost half of electricity imports came from renewable sources, mainly hydro and wind, and another quarter from nuclear. Coupled with a 5% increase in domestic renewable energy supplies thanks to record solar and wind production investments, this took the share of total renewable energy in Germany to more than 50% for the first time.

https://intellinews.com/de-industrialisation-in-germany-dramatically-reduces-emissions-in-2023-306518