The Urethane Blog
October 9, 2023
Chemical Deal Results
| Seller | Buyer | Business | Date |
|---|---|---|---|
| Belle Chemical | Arclin | methylamines and derivatives | 3rd Quarter 2023 |
| Eastman | Ineos | Texas City TX site (acetic acid) – $490v | 3rd Quarter 2023 |
| M. Holland | Interfacial (Nagase) | 3D Printing Group | 3rd Quarter 2023 |
| Tredegar | Oben Group | Terphane flexible packaging films – $152s/$116v | 3rd Quarter 2023 |
| LRBG Chemicals | Bakelite Synthetics | liquid phenolic resins, amino resins and amino spray-dried powdered resins | 3rd Quarter 2023 |
| M. Holland | Ravago | distribution of thermoplastic resins and ancillary materials (acquisition of majority stake) – $1,500s | 3rd Quarter 2023 |
| DuPont | TJC | 80.1% stake in Delrin acetal homopolymer business – $1,800v | 3rd Quarter 2023 |
| Advanced Color Technologies | Techmer | color and additive compounds | 3rd Quarter 2023 |
| Specialty Products International | Everchem | technologies for polyurethane foams and elastomers | 3rd Quarter 2023 |
| Chase Corporation | KKR | acquisition of whole company (adhesives, sealants, additives, industrial tapes, corrosion protection and waterproofing) – $326s/$1,300v | 3rd Quarter 2023 |
| Seller | Buyer | Business | Date |
|---|---|---|---|
| Thiessen Team USA | Sika | shotcrete and grouting products for the mining industr3 | 3rd Quarter 2023 |
You can tell M&A is slow this quarter!
http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=3rd+Quarter+2023
October 9, 2023
Abu Dhabi’s Adnoc bets on global expansion
Energy major seeks opportunities in renewables, LNG and others
By Reuters
Published: Mon 9 Oct 2023, 8:13 PM
The UAE is refashioning state-owned Abu Dhabi National Oil Company (Adnoc) in the image of an international oil major by stepping up its global expansion and finding new revenue streams.
As part of this strategy, Adnoc told Reuters it was actively pursuing select opportunities in the areas of renewable energy, gas, petrochemicals and liquefied natural gas (LNG).
Two people with knowledge of the matter said the company was on the hunt for LNG assets in Africa and was considering buying Galp’s 10 per cent stake in a multi-billion-dollar natural gas project in the Rovuma basin off the coast of Mozambique.
Adnoc has already bought a stake in an Azerbaijani gas field, has put in an offer with BP for a stake in Israeli gas producer NewMed Energy , has opened takeover talks with German plastics maker Covestro and is looking to create a $20 billion chemicals giant with Austria’s OMV.
The state-owned company also told Reuters it was investing in energy trading. “As part of our international growth strategy, we are focused on expanding our presence in renewables, gas, LNG and chemicals, and are actively pursuing select opportunities, while also investing in and growing our trading capabilities,” an Adnoc spokesperson said in response to written questions.
Adnoc has two trading arms, both set up in 2020: Adnoc Trading, which is focused on crude oil, and Adnoc Global Trading, a joint venture with Italy’s Eni and OMV which is more focused on refined products.
While Adnoc’s deal-making dates back to 2017 when it listed its fuel distribution unit, the pace of change accelerated after a board meeting in November. The board brought forward to 2027 plans to up production capacity to 5 million barrels per day and also approved a five-year business plan and capital spending of $150 billion. “The thinking is to move away from a traditional state oil firm model to more like an IOC (international oil company),” a source with knowledge of the matter said.
The transformation at Adnoc is similar to ongoing changes at state-owned energy giants in Saudi Arabia and Qatar.
The national energy champions – Adnoc, Saudia Arabia’s Aramco and QatarEnergy – drive their economies but were traditionally focused on oil and gas production at home.
Now, as the transition to renewable energy accelerates, the timeline is shortening for the national oil companies (NOCs) to monetise their reserves and they are also doubling-down on opportunities further afield.
To propel its changes, Adnoc has hired more than 3,370 staff, including 28 senior managers, so far this year from companies such as global energy firms, trading houses, banks and consultancies, according to data on employment network LinkedIn.
LinkedIn data shows Adnoc’s headcount is up 13 per cent this year, and by a quarter over the past two years, to about 32,750. The actual number, however, which Adnoc has never disclosed, is now over 40,000, one person familiar with the matter said. “As we continue to grow our business, we are creating exciting opportunities for our talented workforce as we accelerate the transformation, decarbonisation of and future-proof our company,” the Adnoc spokesperson said in response to questions about hiring.
Michele Fiorentino, who was chief investment officer from 2017-2020, confirmed to Reuters that he recently returned to Adnoc from US oil services firm Baker Hughes as executive vice president for low carbon solutions and business development.
Other recent hires include Bart Cornelissen, who left Deloitte to become Adnoc’s senior vice president for group strategy and portfolio last month, according to LinkedIn.
Michael Hafner, a long-time investment banker in the energy sector – most recently at Greenhill & Co and previously at Deutsche Bank and UBS – also joined Adnoc last month as a senior adviser to the executive office for business development.
Other senior managers have recently been hired from Western firms including Morgan Stanley, HSBC, Natixis , Litasco, Borealis, TotalEnergies, Shell and Eni, according to LinkedIn.
Recent senior hires for Adnoc’s trading arms include alumni of Gunvor, Litasco, Shell and TotalEnergies, the employment network showed.
The UAE firm was looking to buy energy trader Gunvor Group last year but talks fell apart because Adnoc wanted a controlling stake and Gunvor’s shareholder only wanted to cede a minority, sources familiar with the matter have said.
“Adnoc wants to expand in Europe, whether it was through Gunvor or organically,” a source with knowledge of the matter said. “Now that the Gunvor deal is off the table, it will focus on organic growth.”
https://www.khaleejtimes.com/business/abu-dhabis-adnoc-bets-on-global-expansion
October 8, 2023
VPC Group USA plans to buy former Klaussner subsidiary Prestige Fabricators
Sale would reopen 2 former foam production plants that were closed Aug. 7 when Klaussner also ceased operations
ASHEBORO, N.C. — VPC Group USA, a producer of foam and fiber material, is planning to purchase Klaussner subsidiary Prestige Fabricators for about $7 million as part of a sale of the company’s assets.
The company has sought court approval to buy the assets of Prestige, which also produces foam materials for upholstery. As part of the purchase, it plans to continue the operations, which employed about 27 at its foam plant and 30 at its fabrication plant prior to their closing on Aug. 7. VPC plans to extend offers of employment to some of these workers.
When it closed on Aug. 7, Prestige effectively ceased operations at two foam manufacturing facilities, including a foam plant and a fabrication plant in Randolph County, North Carolina, where Klaussner was based. Klaussner also ceased operations Aug. 7, putting 884 people out of work, including those employed by Prestige. The defunct company went into receivership soon after.
Legal sources describe a receivership as a court-appointed tool that helps creditors recover funds that are owed to them while also helping companies avoid a bankruptcy. This process also is said to help make it easier for a lender to collect funds owed to them in the event a borrow defaults on a loan.
“Based on VPC’s reputation as an industry leading foam manufacturer, the receiver believes that VPC has made a good faith offer and has the ability to consummate the transaction,” Focus Management Group, the general receiver for Klaussner, and Focus agent Michael Grau said in a court filing earlier this month. The deadline for objections to the purchase is 5 p.m. Sept. 28 and the closing date has been scheduled for Oct. 6.
The court filing obtained by Home News Now said that about seven parties expressed interest in Prestige and six executed nondisclosure agreements. Two of those submitted purchase offers.
VPC’s offer was accepted as part of the negotiations and it included a deposit of 10% of the proposed purchase price, with $50,000 as a nonrefundable portion. VPC proposes a cash closing with the intent to acquire substantially all of Prestige’s assets. This includes machinery and equipment, accounts receivable, assignable contracts, personal property leases identified by the purchaser, technology and intellectual property and all proprietary rights to the sellers’ ERP system, to name several key fixed assets.
The filing by the receiver states that “the court should approve the sale to VPC and authorize the parties to enter into the asset purchase agreement because the sale is in the best interest of the receivership estate, its creditors and other interested parties. … VPC’s purchase of the Prestige assets would yield $7 million to the receivership estate, which in the receiver’s business judgment is substantially more than a liquidation process, including more value than prior appraisals have indicated on a liquidation basis accounting for costs of sale.”
It added that VPC’s experience as a foam manufacturer “will aid VPC in the rehiring of former employees that were terminated when Prestige ceased operations in August. Such employment opportunities would likely be unavailable in a liquidation process or if the Prestige assets were otherwise sold to a buyer who did not plan to operate the Prestige business as a going concern. If VPC is able to take over the business operations pursuant to the proposed sale, the impact on the individuals previously employed by Prestige will be mitigated.”
October 5, 2023
Japan’s Tosoh to build MDI splitter in Vietnam
Published date: 02 October 2023
Japanese petrochemical producer Tosoh plans to build a methylene diphenyl diisocyanate (MDI) splitter in south Vietnam’s Ba Ria–Vung Tau province, targeting to begin commercial operations by October 2026.
Tosoh plans to operate the splitter, which will have manufacturing capacity of 100,000 t/yr of monomeric and polymeric MDIs, using crude MDI as a feedstock. MDI is used as feedstock to produce polyurethane. It aims to start construction from November 2024 and complete the splitter by June 2026.
The company will bring the crude MDI from Japan to the splitter in Vietnam. Tosoh produces 400,000 t/yr of crude MDI at its Nanyo plant in south Japan’s Yamaguchi prefecture.
Tosoh has an 85,000 t/yr splitter in China and another at its Nanyo plant of undisclosed output capacity, although its said annual production is 400,000t. Its MDI production will be unchanged even after the launch of the Vietnamese splitter, as Tosoh plans to modify manufacturing in Japan and China based on demand.
It also plans to set up a wholly-owned subsidiary Tosoh Vietnam Polyurethane by January next year to enhance MDI sales in southeast Asia.
By Nanami Oki
October 4, 2023
Auto Sales: General Motors Takes Q3 Crown, But GM Stock Drops To New Low
- APARNA NARAYANAN
- 02:15 PM ET 10/04/2023
Auto sales in the U.S. grew for Ford Motor (F), General Motors (GM), Toyota Motor (TM) and Honda (HMC) in the third quarter, fueled by rising inventories and fleet demand. But GM stock made a new low on Wednesday.
Bucking the trend, Chrysler parent Stellantis (STLA) saw declining new vehicle sales.
As expected, GM took the Q3 sales crown, while the autoworkers’ strike extends into its third full week. Both GM and Ford reported sales momentum for electric vehicles, after challenges in the prior quarter.
Auto Stock Ratings
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| Stellantis | (STLA) | 97 | 95 | 94 | A | C+ |
| Tesla | (TSLA) | 96 | 93 | 94 | A | C |
| Toyota Motor | (TM) | 93 | 79 | 92 | C | B- |
| Ford Motor | (F) | 84 | 95 | 41 | B | B- |
| General Motors | (GM) | 73 | 84 | 28 | A | C- |
Here is how automakers performed in Q3. The estimates from Cox Auto show sales volume for the quarter, as well as sales growth or decline vs. a year ago.
U.S. Auto Sales: General Motors
Q3 sales estimate: 658,433 vehicles, up 19.3% vs. Q3 2022.
Results: GM sold 674,336 vehicles, up 21% year over year. Year to date, GM sales are up 19%.
For Q3, the auto giant reported growth across all its car brands. Robust sales of traditional, gas-powered pickup trucks and new SUVs continued to drive gains, along with fleet sales.
GM sold 20,092 EVs in the third quarter, mostly older Bolts.
However, sales of newer-gen EVs also surged, albeit from low levels, as production headwinds eased. Lyriq EV sales more than doubled vs. Q2 to 3,018. Hummer EV sales rocketed to 1,167 from 47 in Q2.
GM also began initial sales of the Silverado electric truck.
Both GM and Ford are trying to ramp up EV production and sales after supply issues. In the second quarter, GM’s EV sales disappointed many investors.
Globally, automakers are shifting to electric vehicles, in the wake of Tesla’s success.
Shares of General Motors shed 2.9% Tuesday and a further 1.9% on the stock market today. GM stock hit a new 52-week low of 30.74 on Wednesday. It remains well below the 50-day moving average.
This week, GM and Ford boosted layoff in response to an expanded workers’ strike. According to a Bloomberg report Wednesday, General Motors said that the strike has already cost $200 million in the first two weeks, prompting the company to secure credit as it braces for more losses.
On Monday, Tesla (TSLA) reported disappointing global EV sales for the third quarter. EV startup Rivian (RIVN) reported better-than-expected Q3 deliveries.
Toyota Motor
Q3 sales estimate: 572,764 vehicles, up 8.9% vs. Q3 2022.
Results: Toyota sold 590,296 vehicles in Q3, up 12.2%.
A strong September finished the quarter. Toyota sold 203,904 vehicles for the month, a 13.9% increase from a year ago. “Electrified” vehicles made up nearly a third of the September total, Toyota said. The term includes battery electric vehicles, as well as fuel cell, hybrid and plug-in hybrid vehicles.
Toyota stock slid 3.1% Tuesday and a further 3% Wednesday, sliding below the 50-day moving average.
Ford Motor
Q3 sales estimate: 493,373 vehicles, up 6.9% vs. Q3 2022.
Results: Fold sold 500,504 vehicles, up 7.7% year over year. Year to date, Ford sales are up 9%.
In Q3, Ford truck sales grew 15% to 275,554 units. Ford SUV sales fell 0.3% to 194,723 units.
The automaker touted its “best ever sales” electric vehicles, including 20,962 battery-electric vehicles (BEVs) and 34,861 hybrid-electric vehicles.
Ford’s BEV sales jumped 15% year over year and were also up quarter over quarter. The gains were driven by the E-Transit van and the Mustang Mach-E SUV, for which Ford reported the highest sales since its debut in 2021. However, sales of the F-150 Lightning, the all-electric version of Ford’s top-selling truck, fell last quarter.
Sales of Ford hybrid-electric vehicles surged 41% year over year and were up slightly quarter over quarter. The new Maverick hybrid truck fueled gains, selling 23,931 units, an 83% increase year on year.
Ford stock shed 1.3% Wednesday, falling further below the 50-day line.
The auto giant said Tuesday it had made a new contract offer to resolve the UAW strike, but said a dispute over battery plants remains.
Stellantis
Q3 sales estimate: 384,371 vehicles, down 0.3% vs. Q3 2022.
Results: Stellantis sold 380,563 vehicles, down 1% from a year ago.
Shares of Stellantis stock gave up nearly 1% Wednesday.
Honda Motor
Q3 sales estimate: 331,608 vehicles, up 49.3% vs. Q3 2022.
Results: Honda sold 339,143 vehicles in Q3, up 52.7%. Like Toyota, Honda also signaled sales momentum heading into the close of 2023. Electric and hybrid-electric vehicles account for almost a quarter of its sales.
Honda stock gave up 3.5%, uncercutting the 50-day line.
U.S. Auto Sales Outlook
The annualized pace of September sales should reach 15.5 million, up from August’s 15 million rate, Cox Automotive analysts said. Citing strong Q3 sales momentum, the firm also raised its full-year forecast.
For 2023, Cox Auto now expects 15.3 million-15.4 million new vehicles to be sold in the U.S. market.
That is up from its forecast of 15 million at the end of June.
“Year-over-year sales gains have been surprising indeed,” said Cox analyst Charlie Chesbrough.
Consumers face high interest rates and ongoing inflation, which have put new cars out of reach for many.
However, pent-up demand has been fueling the vehicle market this year. Consumers and, especially, fleet customers are buying as the supply of new vehicles improves.
The UAW strike over a new labor contract has had little impact so far, analysts said. But a protracted strike could reverse gains the industry has made on inventory this year, they warned.
https://www.investors.com/news/auto-sales-q3-2023-gm-ford-gains/
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