The Urethane Blog
August 31, 2023
Recticel announces the departure of Olivier Chapelle as CEO and appoints Jan Vergote as new CEO
Occasional information, Brussels, 31/08/2023 — 06:50 CET, 31.08.2023
After the finalisation of the transformation of Recticel in a pure insulation player, the Board of Directors and Olivier Chapelle have agreed that after 13 years at the helm of Recticel, the timing was ideal to pass the torch to a new CEO, who would lead the next phase of expansion of the Company. Olivier Chapelle and the Board of Directors have aligned on a handover, to begin on 1 September 2023, with Jan Vergote who succeeds him. Jan Vergote will resign from all his operational functions at Baltisse Group.
Johnny Thijs, Chairman: “In the name of the Board of Directors, I wish to thank Olivier Chapelle wholeheartedly for having successfully transformed Recticel under difficult circumstances. The company can now fully focus on its next phase of expansion as a pure insulation player. The successor of Olivier, Jan Vergote, has accumulated a lot of experience as Managing Director and CEO in several European and international companies, active in the construction industry. He brings the experience needed to realize our ambitious growth targets.”
August 30, 2023
Cheniere and BASF sign long-term LNG sale and purchase agreement
MOSCOW (MRC) — Cheniere Energy Inc, announced that Cheniere’s subsidiary, Cheniere Marketing LLC, has entered into a long-term liquefied natural gas sale and purchase agreement with BASF, said the FT.
Under the SPA, BASF has agreed to purchase up to approximately 0.8 million tonnes per annum of LNG from Cheniere Marketing on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence in mid-2026 and, subject to a positive Final Investment Decision with respect to the first train of the Sabine Pass Liquefaction Expansion Project in Louisiana, will increase to approximately 0.8 mtpa upon the start of commercial operations of Train Seven. The term of the SPA extends through 2043.
“We are pleased to enter into this long-term relationship with BASF, a global leader in the chemical industry,” said Anatol Feygin, Cheniere’s Executive Vice President and Chief Commercial Officer. “This SPA demonstrates the critical role US natural gas plays in providing long-term secure, sustainable and affordable energy for Europe. With this agreement, we are supporting the objectives of one of Europe’s key industrial end-use consumers to ensure stability of its supply chain.”
“By establishing our own dedicated LNG supply chain with Cheniere, we are diversifying our energy and raw materials portfolio at a time of critical changes in the European gas market, which is marked by increased demand and volatile prices for LNG,” said Dr. Dirk Elvermann, BASF’s Chief Financial Officer. “While we are reducing our dependence on fossil fuels to reach our goal of net zero CO2 emissions by 2050, this agreement will ensure reliable supply of natural gas at competitive terms.”
The SPL Expansion Project is being developed for up to approximately 20 mtpa of total LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. (NYSE American: CQP) entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.
We remind, BASF, Huntsman and their Chinese partners in the joint venture Shanghai Lianheng Isocyanate Co (SLIC) complete the planned separation of their joint MDI production in Caojing. The two MDI (diphenylmethane diisocyanate) plants at the Caojing site in China will be operated independently by the two companies in the future. Huntsman, together with Shanghai Chlor-Alkali Chemical, and BASF, together with Shanghai Hua Yi (Group company) and Sinopec Shanghai Gaoqiao Petrochemical, will each take over one of the MDI plants.
https://www.mrchub.com/news/409100-cheniere-and-basf-sign-long-term-lng-sale-and-purchase-agreement
August 29, 2023
China PMDI Imports and Exports in July 2023
PUdaily | Updated: August 29, 2023
PMDI Export
China’s PMDI exports totaled 77.6 thousand tonnes in July 2023, experiencing a month-on-month decrease of 12.8% and a year-on-year decrease of 5.9%, according to the latest data from China Customs. From January to July 2023, China’s cumulative exports of PMDI reached 684.8 thousand tonnes, which showed a year-on-year increase of 7.2% compared to the same period last year.
The average exporting price of PMDI in this July was USD 1,722/tonne, which represents a year-on-year decrease of 23.8%, but increased by 4.7% from the price in this June.
China PMDI Export Volume, Value & Avgerage Exporting Price from January to July 2023
By region, the United States was the largest destination for China’s PMDI exports from this January to July. The cumulative export volume of PMDI from China to the United States during this period reached 162 thousand tonnes, with a year-on-year growth of 2.8% but a month-on-month decrease of 31.6%. Besides, during the same period, the total volume of PMDI imported from China to countries of Belt and Road Initiative (BRI) reached 287 thousand tonnes, showing a year-on-year growth of 34.5%. (Note: As of January 6, 2023, China had signed over 200 cooperation documents with 151 countries and 32 international organizations under the BRI framework. BRI countries are important markets for China’s export trade.)
PMDI Import
China’s imports of PMDI (including crude MDI) totaled 31.8 thousand tonnes in July 2023, showing a month-on-month growth of 77.2% and a year-on-year growth of 37.8%. The month-on-month growth was mainly due to the recovery of imports from Saudi Arabia and Japan, reaching the normal levels seen in previous months. From January to July 2023, the cumulative imports of PMDI in China reached 170.6 thousand tonnes, representing a year-on-year increase of 12.6% compared to the same period last year.
In July, China imported 13.3 thousand tonnes of PMDI from Saudi Arabia, which has returned to normal levels. Imports of PMDI and crude MDI from Japan reached 9 thousand tonnes, showing a month-on-month growth of 89.0%. This increase was mainly due to the completion of maintenance at Tosoh Japan, resulting in the recovery of supply. However, during the same period, China imported 7 thousand tonnes of PMDI from South Korea, experiencing a month-on-month decrease of 8.3%.
August 28, 2023
Mitchell Gold + Bob Williams abruptly ceases operations
By Larry Adams
August 26, 2023 | 9:49 pm CDT
A sign informing workers and vendors that the company was closed.
Photo By Taylorsville Times
Mitchell Gold + Bob Williams has abruptly shut down its operations telling its employees by letter and email that the company has “recently and unexpectedly learned that we are unable to secure critical financing to continue business operations.
“In the wake of this unfortunate development, the Company will sadly need to wind down operations and terminate the employment of our employees beginning on August 26, 2023.”
According to the report in the Taylorsville Times, the company posted signs on the truck gate and office door of the Taylorsville plant at One Comfortable Place off Millersville Road dated Saturday, August 26.
The signs, according to images taken by Times reporters and posted to their website, said:
“Mitchell Gold + Bob Williams has recently and unexpectedly learned that we are unable to continue business operations.
“Any MG+BW employees that are located at the following NC locations should not report to work as of Monday, August 28th:
- Main Plant: Taylorsville
- Frame Plant: Hiddenite
- NCDC: Statesville
- Any home office remote workers are not to log in
- All home office workers.
“We are sorry about the difficulties this may cause.
“As soon as we have a schedule to get your tools & personal belongings, we will contact you. Thank you.”
A copy of the letter addressed to employees was taped to an entry door. Dated August 26, the letter was from Chris Moye, the interim CEO named to the post in April 2023, who said the current economic climate has presented significant challenges to the furniture industry.
According to the WARN notice letter:
“Because these events were unforeseen, we were unable to provide you and others before notice of this difficult decision.
“Your position will be affected by these events. And, your last day of employment with the company is expected to be on October 25, 2023. Unless you are asked to perform additional services during the 14-day period from that date, or your layoff date is otherwise revised from that date. We are sorry to have to bring you this news.
“There are no ‘bumping rights’ to determine who will be separated and this is a permanent separation.”
According to the notice, workers will receive final wages through their last day of employment. Benefits from the company including health insurance benefits will end on August 31, 2023.
Mitchell Gold was ranked #60 in the FDMC300 list of North American wood products companies. According to the most recent ranking, the company had annual sales of $197.2 million, employed 750 workers, and operated three manufacturing plants encompassing 579,500 total square footage.
This marks the third major company to shutter its doors in August. All three were ranked in the FDMC300 ranking. Of the three, two were North Carolina-based companies.
On Aug. 7, Asheboro, N.C.-based Klaussner Home Furnishings announced it was shuttering its operations effective immediately. The company ranked #36 on the FDMC 300 listing with estimated sales of more than $300 million in 2022.
Much like Mitchell Gold, the company pointed to “challenging and unexpected business circumstances” that impacted their business and forced them to “unexpectedly wind down the operations.” The closure impacted 884 workers, and, of those, more than 800 were employed at five Asheboro, North Carolina, plants, and 58 were employed at a Candor, North Carolina, facility.
Also in August, Solid Comfort, a Fargo, North Dakota-based company closed its doors and began the process of selling its manufacturing plant and auctioning its equipment.
According to its most recent FDMC 300 listing, the company ranked #191, had sales of $34 million, employed 125 workers, and had more than 225,000 square feet of manufacturing space.
August 28, 2023
3M Shares Jump As Litigation Payout On Defective Military Earplugs Viewed Favorably By Analysts
by Tyler Durden
Monday, Aug 28, 2023 – 07:45 AM
3M shares gained in premarket trading in New York after Bloomberg reported the company “tentatively agreed” to pay $5.5 billion to settle the largest mass tort in US history, with 300,000 lawsuits by veterans that claim earplugs made for combat failed to protect them from hearing loss.
Under the discussed terms, people familiar with the settlement said 3M would pay $5.5 billion, resolving the massive lawsuit overhang, which is half of the $10 billion some Wall Street analysts predicted. Shares are up 6% because of this.
“Sounds like 3M negotiated a pretty good deal for itself, given this litigation has been weighing on them for the better part of a decade,” Carl Tobias, a University of Richmond law professor who teaches about product liability cases, told Bloomberg.
Bloomberg Intelligence projected the possibility that 3M would have had to pay out around $9.5 billion, whereas Barclays analysts estimated $8 billion.
Commentary from Wall Street analysts was favorable regarding the smaller settlement (list provided via Bloomberg):
Citi (Neutral, PT $111)
- The potential settlement is smaller than some investors expected, analyst Andrew Kaplowitz writes in a note; could mark another step in 3M alleviating its legal burden and moving away from litigation noise that has been weighing on the valuation and could be received favorably by investors
- Notes 3M still faces uncertainty regarding its per- and polyfluoroalkyl substances related exposure
RBC (Underperform, PT $100)
- News of any settlement is typically initially seen as good news, since it represents some tangible progress toward resolving what is still expected to be a long litigation road ahead for 3M along multiple fronts, writes analyst Deane Dray
- Positive stock reaction is due to a combination of slightly lower than expected settlement figure and a positive reaction associated with the potential alleviation of one of its two legal headwinds
Bloomberg Intelligence (No rating)
- Analysts including Joel Levington say, “3 M’s $5.5 billion agreement to resolve 300,000 lawsuits over military earplugs, as reported by Bloomberg News, may not stop the A2/A- rated company’s ratings from being downgraded further”
Bloomberg noted, “3 M’s board still must sign off on the deal.” And comes as the company faces thousands of other lawsuits over PFAS “forever chemicals.”
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