The Urethane Blog
September 12, 2023
Foam industry firming up
Around 200 companies have entered the polyurethane foam industry of Bangladesh over the past 30 years. Photo: Collected
The market for polyurethane foam is growing in Bangladesh as the material is being increasingly used for making upholstered furniture as well as packaging and insulation, according to industry insiders.
For example, the automotive industry is contributing to the increased use as many car seats and door panels now incorporate foam fillings, they said.
As such, around 200 companies have entered the polyurethane foam industry over the past 30 years.
Besides, big companies like EuroAsia, Pran-RFL, Swan, Karmo, Bengal, Apex, Expo Group, Akhter, HomeTex, Hatil, and Classical Home have already established a firm grip on the market.
Pran-RFL Group entered the market in 2016 under the brand name “Comfy”.
The company produces several polyurethane foam products of varying density that have different uses.
These include soft and supper soft foam for mattresses and pillows, rigid foam for fridge insulation, flexible foam for footwear, and high-density foam for car accessories such as seats and panelling.
Kamruzzaman Kamal, director of marketing at Pran-RFL Group, said his company has grabbed about 15 percent of the market for foam products over the past seven years.
According to him, they have invested at least Tk 100 crore so far only for the manufacturing segment.
Kamal believes the business has potential for more branded companies to enter as demand has been increasing by about 10 percent annually for the past three decades.
Echoing the same, Shubhrajit Sarker, head of corporate at Euroasia, said the market for foam products is currently worth around Tk 360 crore annually.
Having entered the foam making business in 2015, Euroasia has grabbed a substantial share of the market since then by delivering quality products and after-sales service.
“By virtue of our quality and commitment, Euroasia has won the minds of customers as an authentic brand in Bangladesh,” Sarker added.
Referring to their market analysis, he said the overall demand for foam is worth Tk 30 crore per month.
Besides, the sector has so far created at least 1.5 lakh opportunities for direct and indirect employment.
But other than making furniture and footwear, foam is also used for packaging and insulation.
“So, the growth of e-commerce and subsequent rise in shipping of fragile products has further boosted the demand for foam packaging materials,” he said.
Furthermore, the construction industry in Bangladesh has witnessed a surge in foam usage for thermal insulation purposes, Hossain added.
Ali Hossain, general manager of Swan Foam, a leading foam manufacturer, said they have been in the business for more than 30 years and never compromised on quality.
According to him, there is no market data regarding the foam segment even though the material’s usage has been increasing in making furniture and other purposes.
Foam usage was once furniture centric but now, it is used in cars, fridges, footwear and more.
Also, the demand in rural areas has increased in line with the peoples’ growing purchasing power.
And while around 200 companies are currently involved with the business as it requires little investment, the quality of products made by most manufacturers is considerably limited, he added.
Selim H Rahman, chairman and managing director of Hatil, said they set up a foam production unit as a backward linkage industry so that they can ensure good quality materials in their furniture products.
However, this means that none of the foam produced at their unit is sold in the market.
According to him, the usage of foam is multidimensional, so the market is growing in line with the country’s economy.
Also, different sectors develop silently when a country’s economy develops like that of Bangladesh, which is not understood by the common people, Rahman added.
Quazi Anwarul Haque, proprietor of M/S RR Enterprise in the Baitul Mukarram area, said the foam making sector is unorganised as the market is still dominated by informal traders.
https://www.thedailystar.net/business/economy/news/foam-industry-firming-3401586
September 11, 2023
UAW Begins Negotiations With Detroit Automakers, Admits ‘Things Moving Slowly’ As Deadline Looms
by Tyler Durden
Monday, Sep 11, 2023 – 01:55 PM
Update (1355ET):
After United Auto Workers rejected all three offers from Detroit’s “Big Three” automakers – General Motors, Ford, and Stellantis, the producer of Chrysler – last week, the union said they’re now ready to negotiate.
As quoted by Bloomberg, UAW President Shawn Fain stated, “We are ready to negotiate in Detroit 24/7, just as we have been for the past seven weeks since we gave them our Members Demands.”
Fain continued, “Despite receiving no response for over a month, when the CEOs are ready to make a serious offer, we’ll be there, day or night.”
Bloomberg said UAW officials already met with the automakers on Monday. The union boss said, “Things are moving but they’re moving very slow, and we’ve got a long way to go in four days.”
Thursday is the deadline for a new four-year labor agreement for approximately 146,000 workers. A strike will follow shortly after that if a labor deal is not agreed upon.
Members are preparing for a strike.
* * *
The pro-union Biden administration has been very confident United Auto Workers won’t strike against Detroit’s “Big Three” automakers – General Motors, Ford, and Stellantis, the producer of Chrysler – and a deal will be struck before Thursday. Even though Bank of America Securities warned clients, a “strike is almost guaranteed.”
Earlier this month, Biden was vacationing at his beach house in liberal white-elitest Rehoboth Beach when he said, “I’m not worried about a strike. I don’t think it’s going to happen.”
As the Thursday deadline looms, one which UAW’s current contract with the automakers expires, Deputy Treasury Secretary Wally Adeyemo reaffirmed Biden’s stance that there will be no strike.
Adeyemo told CNBC this morning that UAW leaders and automakers are well-positioned to hammer out a new four-year labor agreement for approximately 146,000 workers before the deadline.
He said both sides want to reach a new labor contract because it’s in their best economic interests, adding, “They’re well positioned to cut this deal, that’s what we expect them to do.”
However, John Murphy, a senior auto analyst at Bank of America Securities, warned clients last week that a strike was “almost guaranteed.”
Murphy expects negotiations will result in a 25-30% increase in labor costs over the next four years with “sizable cash signing bonuses and adjustments to other benefits” once contracts are finalized.
He said the word on the street is “UAW may offer a counter-proposal to the OEM offers shortly” but warned, “We continue to believe a strike is very likely after the Master Agreement expires next Thursday, September 14.”
Bloomberg cited new data from economic consultancy Anderson Economic Group that showed just ten days of strikes at General Motors, Ford, and Stellantis factories could reduce US gross domestic product by $5.6 billion and quickly spiral Michigan’s economy into a recession.
“If we were to have a long strike in 2023, the state of Michigan and parts of the Midwest would go into a recession,” said Patrick Anderson, chief executive officer of Anderson Economic.
Anderson said, “When GM workers went on strike in 2019, you saw gross state product drop in Michigan in the fourth quarter, while in the rest of the country it was largely unaffected. That won’t be the case this time if the UAW goes through on its threat to strike all three companies.”
Here’s Anderson Economic’s economic loss forecast for a ten-day strike:
Any such labor action could be bad news for car buyers as it would cause some models to soar in price due to scarcity issues. However, the walkout could send key commodity prices lower, especially hot-rolled steel.
Charlie Chesbrough, senior economist at Cox Automotive, said major automakers have about 58 days’ worth of inventory. He said, “I don’t know that a couple of weeks would have a noticeable impact in the marketplace.”
Chesbrough said it would be a different story if the strike “goes on for a couple of months,” indicating supply chain snarls as ones experienced during Covid could reemerge.
What became evident last week is that the labor contract offers from all three automakers to UAW fell significantly short of the union leader’s demands. UAW President Shawn Fain described GM’s labor contract proposal as “insulting.”
The only issue with unions demanding higher wages, and some even succeeding, such as UPS Teamsters locking in a handsome contract for their delivery drivers, comes when the Federal Reserve is trying to cool inflation. And if unions get what they want, this will make the Fed’s job even harder.
September 10, 2023
Covestro’s supervisory board to discuss negotiations with Adnoc
Today at 14:45
LEVERKUSEN (dpa-AFX) – The supervisory board of plastics group Covestro plans to discuss the start of formal negotiations with prospective buyer Abu Dhabi National Oil Co (Adnoc) this week, according to a report. The news agency Bloomberg reported this on Friday, citing people familiar with the matter. According to the report, the oil company had most recently offered 60 euros per Covestro share, which would give the DAX-listed group a valuation of 11.6 billion euros. Neither Adnoc nor Covestro would comment on the matter when asked by Bloomberg. Covestro is said to have rejected earlier informal offers of 55 euros and 57 euros per share as too low.
On the stock exchange, the news provided a boost: Covestro’s shares shot up by almost ten percent in the afternoon. At last count, the share price was around 52.48 euros, the highest since the outbreak of the Ukraine war.
As Bloomberg further reports, Adnoc is beckoning with investments in the group. According to the report, the oil company could secure a cash injection of $8 billion (7.5 billion euros) if a deal goes through. That would help win over both management and representatives of the workforce.
Adnoc has been expanding its involvement around the chemicals business for some time. The group claims almost all the oil for the United Arab Emirates. It has investment plans of $150 billion to expand its natural gas, chemicals and clean energy businesses worldwide./jcf/nas
September 10, 2023
Mitchell Gold + Bob Williams files for bankruptcy
Staff
Wed, September 6, 2023 at 6:00 PM EDT·2 min read
Homepage image: Courtesy of Business of Home
Bankruptcy | Sep 6, 2023
By Staff
Mitchell Gold + Bob Williams filed for Chapter 11 bankruptcy today, less than two weeks after it ceased operations of its 27 retail locations and its North Carolina–based manufacturing facilities.
The filing, submitted to Delaware bankruptcy court this afternoon, lists between 200 and 300 creditors, which are owed between $10 million and $50 million. Among the list: logistics firms Transportation Insight and Ryder Last Mile; fabric powerhouse Kravet; leather purveyor Moore & Giles; and 3D product visualization firm Cylindo. The document states that MG+BW has between $10 million and $50 million in assets on hand.
As part of the restructuring plan outlined in its bankruptcy petition, the company said it will hire a chief restructuring officer—listed in the filing as Dalton Edgecomb, senior managing director of the consulting company Riveron—to carry out duties instructed by the company’s CEO or board. The filings also point to the hiring of M&A firm Stump & Company to supervise a potential sale of assets out of bankruptcy.
Speaking to Business of Home last week, Gold, who stepped down as the company’s CEO in 2019, said that the company’s abrupt shutdown was the result of a disagreement between its private equity owners, The Stephens Group, and its lender, PNC Bank, about how to finance its continued operations. The filings state that the company ceased taking deposits at all its retail locations and online on the morning of August 25, following PNC’s decision to deny further funding.
Founded in 1989 by Gold and Williams, the brand was well-liked by the trade and consumer audiences alike, and its abrupt closure was met with shock. Last week, Gold told BOH that he was actively looking for investors to finance a $20 million to $30 million revitalization of the company.
The filing hints that the company is still hoping for a buyer in some form, stating that MG+BW has secured debtor-in-possession financing—a type of loan for companies in bankruptcy that allow them to continue operating—“in order as it is able to preserve its assets” and has received “multiple third party expressions and indications of interest for groups of assets.”
https://www.yahoo.com/lifestyle/mitchell-gold-bob-williams-files-220000451.html
15 Mitchell Gold + Bob Williams suppliers account for 91% of money owed to top unsecureds
Furniture Today Staff//Staff Editors//September 7, 2023
By Sheila Long O’Mara
WILMINGTON, Del. – Mitchell Gold + Bob Williams owes nearly $11 million to its top 30 unsecured creditors, according to the company’s Chapter 11 petition filed with the U.S. Bankruptcy Court here Wednesday, less than two weeks after the sudden shutdown of its three North Carolina facilities and retail stores.
The top 15 unsecured creditors are owed more than $8.6 million.
Companies on the list include a number of furniture, lighting, fabric and leather suppliers, as well as foam and frame producers. Foam supplier Carpenter Co., leather supplier Moore & Giles, Hudson Valley Lighting Group, Surya, Kravet, Stone & Leigh and Global Textile Alliance all hold unsecured claims with the company.
Atlanta-based Transportation Insight, a logistics company, is owed $3.92 million. Nahan Printing is No. 2 on the list and is owed $554,589.84.
The company’s top 30 creditors and the amount of the unsecured claims are:
- Transportation Insight – $3.92 million
- Nahan Printing – $554,589.84
- Ryder Last Mile – $490,940.22
- Need It Now – $490,306.44
- Cigna – $419,864.25
- Interstate Foam & Supply – $385,843.04
- Cylindo – $316,032.42
- Danao Living – $303,701.78
- Carpenter Co. – $297,555.66
- J.B. Hunt – $284,381.10
- Global Response – $284,344.08
- Moore & Giles – $277,984.47
- Fenom Digital – $238,565.24
- Healthstat – $218,083.71
- Ideal Frames – $184,092.98
- Carolina Casting – $175,206.96
- Hudson Valley Lighting Group – $173,758.84
- Locke Co., Ltd. – $167,756.00
- Ramsey’s Finishing – $166,361.15
- Kravet – $153,616.50
- Queen Transportation – $153,272.52
- Hilco Merchant Resources – $152,362.40
- Harlee Packaging Components – $139,509.68
- Surya Carpet Inc. – $138,026.65
- Stone & Leigh – $136,161.13
- Framewright – $136,146.00
- Phuc Thang Fine Furniture – $135,657.00
- Global Textile Alliance – $129,274.06
- Content Square – $125,535.18
- H. Nicholas & Co. Joint Stock Co. – $123,401.93
September 8, 2023
CertiPUR-US® Program Begins Certifying Biobased Foams
Future Foam, FXI, NCFI Polyurethanes and Kuka Home are first foam producers to offer CertiPUR-US® certified 25% biobased foams
(Rochester Hills, Mich. – September 8, 2023) The CertiPUR-US® foam certification program is now certifying biobased slabstock flexible polyurethane foam. To achieve biobased foam certification, foams must meet all current criteria for foam certification and contain a minimum of 25% biobased content.
U.S.-based foam producers Future Foam, FXI, NCFI Polyurethanes and Mexico-based Kuka Home are the first to offer CertiPUR-US certified biobased foam, having participated in the pilot program which was launched earlier this year.
“We praise the foam producers who are early adopters and expect many other foam producers to follow,” said CertiPUR-US Executive Director Michael Crowell. “We are confident that bedding and upholstered furniture manufacturers will see the tremendous environmental and marketing benefits in using biobased foam and will create demand for this category of certified foams.”
All certified foams must undergo emissions testing, chemical analysis and physical property testing to meet the rigorous standards set forth in the program’s Technical Guidelines. In addition, all biobased foams are tested by Beta Analytic laboratories in Miami to determine the percentage of biocontent.
Beta Analytic, an ISO/IEC 17025:2017 accredited laboratory, provides radiocarbon dating and biobased testing services. The biobased content of product ingredients is based on the ASTM D6866-22 Method B standard, which uses an Accelerator Mass Spectrometer (AMS) instrument to measure how much of the carbon within a product is derived from biomass. The result indicates the percentage of the product’s biobased carbon versus fossil-derived carbon.
Certified biobased foams will have permission to use an exclusive, new CertiPUR-US logo, which will be an easily recognized adaptation of the current CertiPUR-US logo and only used in association with products that contain certified biobased foams.
As with all certified foams, once a biobased foam is certified, it must be recertified six months later and annually thereafter. Random verification testing is conducted by the CertiPUR-US program to ensure continued compliance. Producers and their customers also must agree to new Terms of Use, which establish guidelines on how a CertiPUR-US biobased foam may be marketed.
The CertiPUR-US program, now celebrating its fifteenth year, is administered by a nonprofit organization. For more information about certified biobased foam and to contact foam producers currently offering certified biobased foam, visit certipur.us/biobased.
www.certipur.us
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