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
May 2, 2022
Jury Awards Huntsman $94 Million in Case Against Praxair/Linde
Download as PDF May 02, 2022 7:21am EDT
Total Damages to Exceed $125 Million After Court Applies Interest
THE WOODLANDS, Texas, May 2, 2022 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today announced that a New Orleans jury awarded it $93,878,108 in the Company’s long-running court battle against Praxair/Linde, one of the industrial gas suppliers to Huntsman’s Geismar, Louisiana MDI manufacturing site. The case was filed after Praxair refused to properly maintain its own Geismar facility and then repeatedly failed to supply Huntsman’s requirements for industrial gas needed to manufacture MDI under long-term supply contracts that expired in 2013. The 12-person jury returned their verdict this past Friday, April 29, and, after the Court applies the appropriate amount of interest, total damages awarded Huntsman will exceed $125 million.
Peter R. Huntsman, Chairman, President and Chief Executive Officer, commented on the case after the jury verdict was returned: “This lawsuit was filed in 2014 and justice was a very long time coming. I could not be prouder of the entire Huntsman team – from our PU division and purchasing personnel who managed the constant operational and commercial upsets occurring when Praxair’s poorly-maintained facilities went down from 2004 through 2013, to our corporate legal and finance teams that pursued the litigation through trial after we filed suit. They displayed the integrity, professionalism, perseverance, and ingenuity – hallmarks of Huntsman associates around the world – needed to take on and defeat an irresponsible and better-funded adversary on the ground at Geismar and in the courts in New Orleans. I’d like to recognize all of them and thank the 12 members of the jury and the trial judge for their time and commitment to fairness in the courtroom.
Mr. Huntsman continued: “After winning more than $600 million against Albemarle this past October, this jury verdict, which we are confident will be affirmed on appeal, makes the second substantial damages award Huntsman has secured in the past seven months. David Stryker, our General Counsel, led both these efforts and has put together an incredibly talented internal and external team of lawyers to ensure no legal wrong against the Company goes unredressed. My management team and I were more than happy to testify in each of these cases and I will be happy to testify whenever necessary in the future to make sure our shareholders get the full value of their stock ownership.”
The case against Praxair was first filed in 2014 but owing to Covid-19 among other matters, did not go to trial until this April. After a three-week trial, the 12-person jury took less than three hours to render its verdict, unanimously finding that Praxair repeatedly breached its promises to Huntsman and that those breaches directly caused Huntsman substantial financial damages. Huntsman was represented in the case by Vinson & Elkins and the New Orleans-based trial firm of Chehardy, Sherman & Williams. James M. Williams of Chehardy and Jim Thompson of V&E were co-lead counsel during the trial.
May 2, 2022
Jury Awards Huntsman $94 Million in Case Against Praxair/Linde
Download as PDF May 02, 2022 7:21am EDT
Total Damages to Exceed $125 Million After Court Applies Interest
THE WOODLANDS, Texas, May 2, 2022 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today announced that a New Orleans jury awarded it $93,878,108 in the Company’s long-running court battle against Praxair/Linde, one of the industrial gas suppliers to Huntsman’s Geismar, Louisiana MDI manufacturing site. The case was filed after Praxair refused to properly maintain its own Geismar facility and then repeatedly failed to supply Huntsman’s requirements for industrial gas needed to manufacture MDI under long-term supply contracts that expired in 2013. The 12-person jury returned their verdict this past Friday, April 29, and, after the Court applies the appropriate amount of interest, total damages awarded Huntsman will exceed $125 million.
Peter R. Huntsman, Chairman, President and Chief Executive Officer, commented on the case after the jury verdict was returned: “This lawsuit was filed in 2014 and justice was a very long time coming. I could not be prouder of the entire Huntsman team – from our PU division and purchasing personnel who managed the constant operational and commercial upsets occurring when Praxair’s poorly-maintained facilities went down from 2004 through 2013, to our corporate legal and finance teams that pursued the litigation through trial after we filed suit. They displayed the integrity, professionalism, perseverance, and ingenuity – hallmarks of Huntsman associates around the world – needed to take on and defeat an irresponsible and better-funded adversary on the ground at Geismar and in the courts in New Orleans. I’d like to recognize all of them and thank the 12 members of the jury and the trial judge for their time and commitment to fairness in the courtroom.
Mr. Huntsman continued: “After winning more than $600 million against Albemarle this past October, this jury verdict, which we are confident will be affirmed on appeal, makes the second substantial damages award Huntsman has secured in the past seven months. David Stryker, our General Counsel, led both these efforts and has put together an incredibly talented internal and external team of lawyers to ensure no legal wrong against the Company goes unredressed. My management team and I were more than happy to testify in each of these cases and I will be happy to testify whenever necessary in the future to make sure our shareholders get the full value of their stock ownership.”
The case against Praxair was first filed in 2014 but owing to Covid-19 among other matters, did not go to trial until this April. After a three-week trial, the 12-person jury took less than three hours to render its verdict, unanimously finding that Praxair repeatedly breached its promises to Huntsman and that those breaches directly caused Huntsman substantial financial damages. Huntsman was represented in the case by Vinson & Elkins and the New Orleans-based trial firm of Chehardy, Sherman & Williams. James M. Williams of Chehardy and Jim Thompson of V&E were co-lead counsel during the trial.
April 28, 2022
Olin Corp Force Majeure Notice. April 22th, 2022
In Pricing by PattyHApril 22, 2022
Due to circumstances beyond our reasonable control, Olin Corporation, for and on behalf of itself
and its subsidiaries (collectively, “Olin”), hereby notifies you that Olin is declaring force majeure.
This force majeure declaration applies system-wide for the following products: caustic soda
(membrane and diaphragm grades), chlorine, bleach, hydrochloric acid, ethylene dichloride,
methylene chloride, chloroform and perchloroethylene. This force majeure declaration also
includes hydrogen produced at our Plaquemine, LA facility.
Olin is experiencing ongoing disruptions across our system, including significant, unplanned
production and power outages at our facilities in Plaquemine, Louisiana and Freeport, Texas.
Olin is working diligently to minimize the impact of these events and restore normal operations
as quickly and safely as possible. The duration of these interruptions is uncertain at this time.
Your account manager will be in touch with you as soon as possible to discuss how this event may
affect your orders. We regret this unforeseen situation and thank you for your continued business
relationship.
Click here to read the official announcement.
Be sure to reach out to your dedicated GreenChem Sales Rep for further insight on how the latest chemical news might effect you.
April 28, 2022
Olin Corp Force Majeure Notice. April 22th, 2022
In Pricing by PattyHApril 22, 2022
Due to circumstances beyond our reasonable control, Olin Corporation, for and on behalf of itself
and its subsidiaries (collectively, “Olin”), hereby notifies you that Olin is declaring force majeure.
This force majeure declaration applies system-wide for the following products: caustic soda
(membrane and diaphragm grades), chlorine, bleach, hydrochloric acid, ethylene dichloride,
methylene chloride, chloroform and perchloroethylene. This force majeure declaration also
includes hydrogen produced at our Plaquemine, LA facility.
Olin is experiencing ongoing disruptions across our system, including significant, unplanned
production and power outages at our facilities in Plaquemine, Louisiana and Freeport, Texas.
Olin is working diligently to minimize the impact of these events and restore normal operations
as quickly and safely as possible. The duration of these interruptions is uncertain at this time.
Your account manager will be in touch with you as soon as possible to discuss how this event may
affect your orders. We regret this unforeseen situation and thank you for your continued business
relationship.
Click here to read the official announcement.
Be sure to reach out to your dedicated GreenChem Sales Rep for further insight on how the latest chemical news might effect you.
April 26, 2022
Bank of America sounding the alarm on collapsing freight demand
Demand for truckers is at 22-month low
Rachel PremackMonday, April 25, 2022 3 minutes read
Listen to this article 0:00 / 3:50 BeyondWords
Trucking demand is “near freight recession levels,” according to Bank of America. Shippers’ outlook on rates, capacity and inventory levels are matching attitudes not seen since May and June 2020, when pandemic lockdowns sent freight volumes into a historic decline.
In a Friday note to investors, Ken Hoexter, the managing director of Bank of America’s trucking research, wrote that shippers’ view of demand is down 23% year-over-year. The proprietary Truckload Demand Indicator hit 58 — the lowest since June 2020.
Hoexter said the shippers’ view of rates have “melt(ed) down,” hitting a low not seen since May 2020. Bank of America’s survey represented views from 44 shippers in industries including retail, consumer goods and manufacturing.
Meanwhile, these shippers are finding it easy to find capacity to move their loads; outlook on capacity hit its highest level since June 2020. They also noted their view on inventory levels had climbed to its highest point since May 2020.
A few anecdotal examples from the Bank of America survey illustrate that data. One food shipper said it was receiving more cold calls from freight brokers rather than those brokers having to seek capacity for shipments on their own. A shipper moving home-building products said flatbed capacity is loosening slightly, though is still tight. And a representative of a forest products company said rates were beginning to soften as truck capacity opened up.
Other indicators are pointing to freight recession
FreightWaves has previously reported that a “sharp, painful downturn” in the U.S. trucking market is coming. The Friday note to investors is the latest indicator of the trucking bloodbath that many in the industry are spotting.
“The way the rates are, you have to run twice as hard to make ends meet,” Dan Guzman, a San Antonio-based fleet owner, recently told FreightWaves.
One key indicator is the FreightWaves SONAR Outbound Tender Reject Index (SONAR: OTRI.USA) . At this time last year, truckers were rejecting a whopping 25.76% of loads they had previously arranged through contract. That indicated they were able to find better loads through the spot market, where shipments are available on demand.
Now that spot market rates have declined, more drivers are moving their contracted loads. As of Sunday, the rejection rate had sunk to 9.92%.
Earlier this month, the Cass Transportation Index Report said the freight market is in a slowdown, though Cass analysts said it’s too soon to declare a recession yet.
A key leading indicator
Freight is often looked at as a bellwether for the rest of the economy. If industries ranging from retail to housing to lumber are estimating that they’ll need fewer truckers, many economists see that as an omen of an economic downturn. If people aren’t buying or building as much stuff, there’s less of a need for truckers. Trucks move 72% of all freight.
One 2019 study from Convoy, a trucking brokerage firm, found that six out of 12 trucking recessions led to macroeconomic downturns. For example, the trucking industry dipped in April 2006 — more than a year before the Great Recession slammed the larger economy.
Trucking experiences recessionary periods twice as much as the rest of the economy. But for the 2 million American truck drivers who power much of this industry, the effects can be brutal.
“Like any recession, these periodic freight industry recessions cause real turmoil for the people who work in freight: Businesses go bankrupt, people lose their livelihoods, and families are disrupted,” said the Convoy report.
Do you work in the trucking industry? Share your story at rpremack@freightwaves.com.
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