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VOLUME XXI
September 14, 2023
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December 22, 2021
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Lingering Impacts from Hurricane Ida Weighed on U.S. Chemical Production in October
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Jennifer Scott
WASHINGTON (December 1, 2021) – The U.S. Chemical Production Regional Index (U.S. CPRI) eased by 0.3% in October following a 1.6% decline in September and a 0.4% decline in August, according to the American Chemistry Council (ACC). Chemical output declined in all regions except the Northeast. With lingering hurricane and other supply chain disruptions, the largest decline was in the Gulf Coast region. The U.S. CPRI is measured as a three-month moving average (3MMA).
Chemical production was mixed in October (3MMA), with an improving trend in the production of synthetic rubber, manufactured fibers, other specialty chemicals, fertilizers, adhesives, coatings, and consumer products. These gains were offset by weakness in organic chemicals, plastic resins, basic inorganic chemicals, industrial gases, and crop protection chemicals.
US Chemical Regional Production Index
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Manufacturing output edged higher for a sixth consecutive month in October, by 0.1% (3MMA). The 3MMA trend in manufacturing production was mixed, with gains in the output of food and beverages, aerospace, construction supplies, fabricated metal products, machinery, computers, semiconductors, refining, iron and steel products, plastic products, rubber products, tires, paper, printing, apparel, and furniture.
Compared with October 2020, U.S. chemical production was ahead by 2.2%, a weaker comparison than last month, due to lingering impacts from Hurricane Ida. Chemical production continued to be higher than a year ago in all regions, however.
US Chemical Regional Production Index, Percentage Change – December 1, 2021
The chemistry industry is one of the largest industries in the United States, a $486 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96% of manufactured goods are touched by chemistry. The U.S. CPRI was developed to track chemical production activity in seven regions of the United States. The U.S. CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. The U.S. CPRI includes the most recent Federal Reserve benchmark revision released on May 28, 2021. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. Thus, the reading in October reflects production activity during August, September, and October.
Learn more at: https://www.americanchemistry.com/chemistry-in-america/news-trends/press-release/2021/lingering-impacts-from-hurricane-ida-weighed-on-us-chemical-production-in-october
December 22, 2021
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Lingering Impacts from Hurricane Ida Weighed on U.S. Chemical Production in October
CONTACT US
Jennifer Scott
WASHINGTON (December 1, 2021) – The U.S. Chemical Production Regional Index (U.S. CPRI) eased by 0.3% in October following a 1.6% decline in September and a 0.4% decline in August, according to the American Chemistry Council (ACC). Chemical output declined in all regions except the Northeast. With lingering hurricane and other supply chain disruptions, the largest decline was in the Gulf Coast region. The U.S. CPRI is measured as a three-month moving average (3MMA).
Chemical production was mixed in October (3MMA), with an improving trend in the production of synthetic rubber, manufactured fibers, other specialty chemicals, fertilizers, adhesives, coatings, and consumer products. These gains were offset by weakness in organic chemicals, plastic resins, basic inorganic chemicals, industrial gases, and crop protection chemicals.
US Chemical Regional Production Index
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Manufacturing output edged higher for a sixth consecutive month in October, by 0.1% (3MMA). The 3MMA trend in manufacturing production was mixed, with gains in the output of food and beverages, aerospace, construction supplies, fabricated metal products, machinery, computers, semiconductors, refining, iron and steel products, plastic products, rubber products, tires, paper, printing, apparel, and furniture.
Compared with October 2020, U.S. chemical production was ahead by 2.2%, a weaker comparison than last month, due to lingering impacts from Hurricane Ida. Chemical production continued to be higher than a year ago in all regions, however.
US Chemical Regional Production Index, Percentage Change – December 1, 2021
The chemistry industry is one of the largest industries in the United States, a $486 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96% of manufactured goods are touched by chemistry. The U.S. CPRI was developed to track chemical production activity in seven regions of the United States. The U.S. CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. The U.S. CPRI includes the most recent Federal Reserve benchmark revision released on May 28, 2021. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. Thus, the reading in October reflects production activity during August, September, and October.
Learn more at: https://www.americanchemistry.com/chemistry-in-america/news-trends/press-release/2021/lingering-impacts-from-hurricane-ida-weighed-on-us-chemical-production-in-october
December 21, 2021
BASF reaches next milestone on MDI capacity expansion project at Geismar site
- The second expansion phase is now complete and in operation, increasing MDI capacity by approximately one third.
- The final phase is designed to bring total capacity to approximately 600,000 metric tons per year, with start-up targeted by the middle of the decade.
WYANDOTTE, MI / GEISMAR, LA, December 14, 2021 – The implementation of the methylene diphenyl diisocyanate (MDI) capacity increase program for BASF’s Verbund site in Geismar, Louisiana, is progressing on schedule. Over time, BASF plans to double the capacity from 300,000 metric tons per year to approximately 600,000 metric tons per year.
“This investment in the attractive North American MDI market strengthens our position as a leading MDI supplier in North America as well as globally,” said Dr. Ramkumar Dhruva, President of Monomers Division.
“The Geismar site is ideally suited for this investment thanks to its existing infrastructure, competitive raw materials and ongoing strong business support from state and local government,” said Stefan Doerr, Senior Vice President, Monomers North America. “With this integrated facility, BASF will continue to support the growth of our North American MDI customers.”
The first phase involving the construction of a new MDI synthesis unit has been in operation since October of last year. The second phase, which started up recently, expanded several existing upstream units and increased the overall MDI output of the Geismar complex by approximately one third. Engineering for the final phase of the MDI expansion is progressing on schedule. This final phase of the expansion project, which includes several new upstream units, is targeted to be complete by the middle of the decade, with resulting total MDI capacity of approximately 600,000 metric tons per year.
December 21, 2021
BASF reaches next milestone on MDI capacity expansion project at Geismar site
- The second expansion phase is now complete and in operation, increasing MDI capacity by approximately one third.
- The final phase is designed to bring total capacity to approximately 600,000 metric tons per year, with start-up targeted by the middle of the decade.
WYANDOTTE, MI / GEISMAR, LA, December 14, 2021 – The implementation of the methylene diphenyl diisocyanate (MDI) capacity increase program for BASF’s Verbund site in Geismar, Louisiana, is progressing on schedule. Over time, BASF plans to double the capacity from 300,000 metric tons per year to approximately 600,000 metric tons per year.
“This investment in the attractive North American MDI market strengthens our position as a leading MDI supplier in North America as well as globally,” said Dr. Ramkumar Dhruva, President of Monomers Division.
“The Geismar site is ideally suited for this investment thanks to its existing infrastructure, competitive raw materials and ongoing strong business support from state and local government,” said Stefan Doerr, Senior Vice President, Monomers North America. “With this integrated facility, BASF will continue to support the growth of our North American MDI customers.”
The first phase involving the construction of a new MDI synthesis unit has been in operation since October of last year. The second phase, which started up recently, expanded several existing upstream units and increased the overall MDI output of the Geismar complex by approximately one third. Engineering for the final phase of the MDI expansion is progressing on schedule. This final phase of the expansion project, which includes several new upstream units, is targeted to be complete by the middle of the decade, with resulting total MDI capacity of approximately 600,000 metric tons per year.
December 21, 2021
HOUSTON (ICIS)–US-based Hexion on Monday has entered into a definitive agreement to be acquired by private equity American Securities for $2.06bn, including the assumption of around $1.24bn in net debt for a total enterprise value of around $3.3bn.
The transaction is expected to close in the first half of 2022 and is conditioned upon the closing of Hexion’s previously announced sale of its epoxy business to Westlake Chemical.
The purchase price represents a 15% premium to the closing price as of 17 December and a 53% premium to the company’s closing share price on 30 July, the day prior to its announcement of its ongoing strategic review.
“This transaction, along with the pending sale of our epoxy business, is the conclusion of a comprehensive evaluation of strategic actions aimed at maximising value for our shareholders and best positioning the company for long-term growth,” said Hexion CEO Craig Rogerson.
Hexion, after agreeing in late November to sell its epoxy business for $1.2bn to Westlake, was planning an initial public offering (IPO) on the New York Stock Exchange along with a sale in a dual track. The remaining adhesives and versatic acids business had sales of $1.38bn and earnings before interest, tax, depreciation and amortisation (EBITDA) of $272m in 2020.
Earlier in a November interview with ICIS, Hexion CEO Craig Rogerson said he was considering a “sale of Hexion or either of the parts”. The company in April closed the sale of its phenolic specialty resins, hexamine and European-based forest products resins businesses to Black Diamond and Investindustrial for $425m.
www.icis.com/explore/resources/news/2021/12/20/10717799/private-equity-firm-acquires-hexion-for-2-06bn/
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