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VOLUME XXI
September 14, 2023
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November 19, 2021
China power crisis: Zhejiang scraps rationing as electricity crunch shows signs of easing
Zhejiang province ended electricity rationing on Monday, but warned cities to watch consumption and reduce energy use The State Grid Corporation of China, the electric utility provider for most provinces, also says power shortages have eased
Luna Sun + FOLLOW
Published: 8:30pm, 9 Nov, 2021
Updated: 10:25pm, 9 Nov, 2021e
China has been ramping up its coal production since October, which has helped ease the nation’s power crisis. Photo: AFP
China’s eastern Zhejiang province has called time on electricity rationing that has throttled the nation’s economy over the past two months, offering relief to factories and businesses struggling to operate.
The Zhejiang Energy Bureau announced rationing would end on Monday, but said cities in the province must continue to watch consumption and reduce energy use, while remaining vigilant about further power cuts in the future.
China has endured one of its worst power crises in decades since September, a result of thermal coal shortages and Beijing’s carbon emissions targets, which prompted local governments to impose sudden electricity cuts to meet the goals.
But there are signs power supply may be normalising. The State Grid Corporation of China (SGCC), the electric utility provider in 26 of 31 provincial-level jurisdictions, said at the weekend power shortages have eased and supply and demand in the network have reached equilibrium. The supply of thermal coal has also increased, it said.
The company said most provinces affected by the power cuts had returned to normal electricity use late last week.
However, the company warned there were challenges ahead in winter, when power usage will peak.
“With the compounded challenges of high power consumption, the demand for winter heating in the north and a shortage of water for hydropower production, the grid is faced with a tight overall balance and regional shortages this winter and next spring,” SGCC said in a statement. Every Saturday SCMP Global Impact Newsletter By submitting, you consent to receiving marketing emails from SCMP.
“The grand challenge of electricity supply is still ongoing.”
Chinese manufacturing thrown into disarray as country’s electricity crisis rolls on
The slowdown in manufacturing is adding further pressure to China’s economic growth, which slowed in the third quarter to 4.9 per cent year on year, down from 7.9 per cent growth in the previous quarter.
The underwhelming third quarter gain came amid a host of economic challenges, but indications electricity supply is starting to normalise will be welcomed by policymakers in Beijing.
In addition to SGCC, China Southern Power Grid, which supplies electricity to five southern provinces, said it started easing power rationing last week – the first time blackouts had stopped since May.
The thermal coal inventory in Guangdong, Guangxi, Yunnan, Guizhou and Hainan provinces was also enough to last 23 days, the company said in a statement on the weekend.
China increases coal production to ensure winter supplies, easing energy shortage
State media outlet, the People’s Daily, has said last week most of the country has resumed regular power supply.
Officials say the main driver of the crisis, a shortage of thermal coal used to generate power, is easing.
On Monday, the National Development and Reform Commission (NDRC), the nation’s top economic planning agency, said domestic coal production has been rising since October, boosting inventories at power plants. The NDRC expected thermal coal prices to keep falling after hitting record highs this year.
Prices of thermal coal at mine-mouth electric plants – which are built close to coal mines – in Ordos city, Inner Mongolia, fell below 1,200 yuan (US$187) a tonne from 1,800 yuan a tonne in mid October, coal analyst SX Coal said.
Coal exports from Mongolia in October – a key supplier to China – also rose, but remained lower than a year ago, SX Coal said, using data from the Mongolian Customs General Administration.
Power cuts, no power cuts, they both just happened out of the blue Huang Feng
While relieved, many manufacturers in Zhejiang are still wary about the volatility of the country’s power supply.
“Power cuts, no power cuts, they both just happened out of the blue,” said Huang Feng, a textile manufacturer and exporter.
Before the announcement, Huang was bracing for limited production until the end of the year, but his factories have now resumed full operation.
On Tuesday, some companies in parts of Zhejiang were still operating at reduced capacity.
Yao Xiangmin, a factory worker from Taizhou city, said the car parts manufacturer he works for was still only running four weeks a day due to the rationing.
Factory owners are also grappling with raw material prices. Additionally, once production resumes, Huang said shipping costs might also rise.
Additional reporting by Su-Lin Tan
November 18, 2021
BASF to increase prices for polyurethane systems products in North America
WYANDOTTE, MI, November 17, 2021 – BASF will increase prices for polyurethane systems products in North America for orders shipping on or after December 1, 2021, or as contracts allow. Please note the required increase will depend on the particular chemistry of each polyurethane system.
November 18, 2021
BASF to increase prices for polyurethane systems products in North America
WYANDOTTE, MI, November 17, 2021 – BASF will increase prices for polyurethane systems products in North America for orders shipping on or after December 1, 2021, or as contracts allow. Please note the required increase will depend on the particular chemistry of each polyurethane system.
November 18, 2021
Recticel enters into binding agreement with the Aquinos Group on the divestment of its Bedding business line
Regulated information, Brussels, 18/11/2021 — 07:00 CET, 18.11.2021
- Binding agreement signed with Aquinos Group, one of the largest European mattress and upholstery manufacturers
- Cash consideration based on an enterprise value of EUR 122.4 million on a cash and debt free basis
- Strong strategic fit, highly complementary geographic presence and product offerings
- Transaction subject to shareholder approval and customary closing conditions and consultations
Recticel announces that it has entered into a binding agreement to sell its Bedding business line to the Portuguese privately owned Aquinos Group.
Under the terms of the agreement the Bedding business line, will be sold to the Aquinos Group for an enterprise value of EUR 122.4 million. The transaction is expected to be closed in the first quarter of 2022, subject to customary closing conditions and consultations. The Nordic bedding activities will remain with Recticel and be integrated in the Living & Care segment of Recticel Engineered Foams. The net proceeds after transaction costs are expected to amount to EUR 97 million subject to closing adjustments. EUR 17.9 million IFRS 16 liabilities will be transferred as well.
Recticel’s Bedding business line develops and produces consumer-ready mattresses, slat bases and box springs, primarily marketed under popular brand names such as Beka®, Lattoflex®, Literie Bultex®, Schlaraffia®, Sembella®, Superba® and Swissflex®, as well as ingredient brands including GELTEX inside®. The Bedding activities currently consist of 9 manufacturing locations in seven EU countries – Austria (1), Belgium (2), Germany (2), Poland (1), Romania (1), Switzerland (1) and The Netherlands (1) – employing around 1,555 people. In 2020 the business line generated total sales of EUR 225.9 million, excluding the Nordic bedding activities.
The Aquinos Group, founded in 1985, is privately owned and headquartered in Sinde – Tábua (Portugal). Aquinos is one of the largest producers of furniture upholstery and mattresses in Europe with more than 3,300 employees and production sites in Portugal, France, and Poland. Aquinos, with 2020 annual sales of EUR 370 million, intends to further develop its bedding activities by complementing its existing product offering with strong brands, and expanding its customer base and geographic reach.
November 18, 2021
Recticel enters into binding agreement with the Aquinos Group on the divestment of its Bedding business line
Regulated information, Brussels, 18/11/2021 — 07:00 CET, 18.11.2021
- Binding agreement signed with Aquinos Group, one of the largest European mattress and upholstery manufacturers
- Cash consideration based on an enterprise value of EUR 122.4 million on a cash and debt free basis
- Strong strategic fit, highly complementary geographic presence and product offerings
- Transaction subject to shareholder approval and customary closing conditions and consultations
Recticel announces that it has entered into a binding agreement to sell its Bedding business line to the Portuguese privately owned Aquinos Group.
Under the terms of the agreement the Bedding business line, will be sold to the Aquinos Group for an enterprise value of EUR 122.4 million. The transaction is expected to be closed in the first quarter of 2022, subject to customary closing conditions and consultations. The Nordic bedding activities will remain with Recticel and be integrated in the Living & Care segment of Recticel Engineered Foams. The net proceeds after transaction costs are expected to amount to EUR 97 million subject to closing adjustments. EUR 17.9 million IFRS 16 liabilities will be transferred as well.
Recticel’s Bedding business line develops and produces consumer-ready mattresses, slat bases and box springs, primarily marketed under popular brand names such as Beka®, Lattoflex®, Literie Bultex®, Schlaraffia®, Sembella®, Superba® and Swissflex®, as well as ingredient brands including GELTEX inside®. The Bedding activities currently consist of 9 manufacturing locations in seven EU countries – Austria (1), Belgium (2), Germany (2), Poland (1), Romania (1), Switzerland (1) and The Netherlands (1) – employing around 1,555 people. In 2020 the business line generated total sales of EUR 225.9 million, excluding the Nordic bedding activities.
The Aquinos Group, founded in 1985, is privately owned and headquartered in Sinde – Tábua (Portugal). Aquinos is one of the largest producers of furniture upholstery and mattresses in Europe with more than 3,300 employees and production sites in Portugal, France, and Poland. Aquinos, with 2020 annual sales of EUR 370 million, intends to further develop its bedding activities by complementing its existing product offering with strong brands, and expanding its customer base and geographic reach.
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