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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
October 15, 2021
HFI subsidiary begins pouring foam in the U.S.
Home Textiles Today Staff // News & Commentary • October 13, 2021
David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic
Palmetto Pedic LLC, the two-year-old foam manufacturer owned by fabric and home fashions manufacturer Home Furnishing International, is unveiling a new line of conventional foam and memory foam for use in mattresses, foundations, upholstery and accessories.
“The combination of global supply chain difficulties and the imposition of anti-dumping duties means that there is a huge demand for foam and foam bedding products here in the U.S.,” said David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic. “We are offering an expansive selection of made-in-America products that will give major U.S. bedding suppliers innovative and sustainable choices and at the same time, alleviate many of the supply chain difficulties that have plagued the bedding market in recent months.”
Palmetto Pedic poured its first U.S.-made foam at its Gaffney, S.C. plant on Sept.17. The company currently has the capacity to produce 3,000 mattresses per day, and the recent purchase of a 350,000-square-foot plant in Blacksburg, S.C. will increase that capacity to 8,000 mattresses per day. The new Blacksburg plant is located just down the Interstate-85 highway corridor from the Gaffney plant, which will enable both plants to easily and efficiently collaborate on production runs.
Palmetto Pedic was formed in March 2019 as a joint venture between a group of private investors and Home Furnishing International, a privately held vertical fabric and home fashions supplier with annual sales estimated in excess of $200 million.
The buying power of both Home Furnishings International and its private investors also benefits Palmetto Pedic when it comes to negotiating for chemicals and other raw materials, according to Li.
“It is no secret that there have been major shortages of the chemicals used to make foam, which has led to delays and shortages in the mattress manufacturing sector,” Li states. “We are able to leverage the strong relationships that Home Furnishings International and our investors have with raw materials suppliers in order to ensure that we have a steady supply of the chemicals and other resources that we need for Palmetto Pedic.”
Palmetto Pedic is targeting the line to major U.S. bedding producers and upholstered furniture manufacturers, and will be meeting with customers in the showroom of its sister company, American Decorative Fabrics, located at 312 S. Hamilton St., Second Floor, Suite 201-D, in High Point.
October 15, 2021
HFI subsidiary begins pouring foam in the U.S.
Home Textiles Today Staff // News & Commentary • October 13, 2021
David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic
Palmetto Pedic LLC, the two-year-old foam manufacturer owned by fabric and home fashions manufacturer Home Furnishing International, is unveiling a new line of conventional foam and memory foam for use in mattresses, foundations, upholstery and accessories.
“The combination of global supply chain difficulties and the imposition of anti-dumping duties means that there is a huge demand for foam and foam bedding products here in the U.S.,” said David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic. “We are offering an expansive selection of made-in-America products that will give major U.S. bedding suppliers innovative and sustainable choices and at the same time, alleviate many of the supply chain difficulties that have plagued the bedding market in recent months.”
Palmetto Pedic poured its first U.S.-made foam at its Gaffney, S.C. plant on Sept.17. The company currently has the capacity to produce 3,000 mattresses per day, and the recent purchase of a 350,000-square-foot plant in Blacksburg, S.C. will increase that capacity to 8,000 mattresses per day. The new Blacksburg plant is located just down the Interstate-85 highway corridor from the Gaffney plant, which will enable both plants to easily and efficiently collaborate on production runs.
Palmetto Pedic was formed in March 2019 as a joint venture between a group of private investors and Home Furnishing International, a privately held vertical fabric and home fashions supplier with annual sales estimated in excess of $200 million.
The buying power of both Home Furnishings International and its private investors also benefits Palmetto Pedic when it comes to negotiating for chemicals and other raw materials, according to Li.
“It is no secret that there have been major shortages of the chemicals used to make foam, which has led to delays and shortages in the mattress manufacturing sector,” Li states. “We are able to leverage the strong relationships that Home Furnishings International and our investors have with raw materials suppliers in order to ensure that we have a steady supply of the chemicals and other resources that we need for Palmetto Pedic.”
Palmetto Pedic is targeting the line to major U.S. bedding producers and upholstered furniture manufacturers, and will be meeting with customers in the showroom of its sister company, American Decorative Fabrics, located at 312 S. Hamilton St., Second Floor, Suite 201-D, in High Point.
October 13, 2021
Asia’s propylene-naphtha spread touches near six-week high on stronger propylene
Propylene-naphtha spread at $332.75/mt
FOB Korea propylene at four-month high of $1,105/mt
Asia’s propylene-naphtha spread touched a near six-week high Oct. 12 as China’s mandated curbs on power consumption lifted domestic propylene prices, while benchmark C+F Japan naphtha saw volatility in crude markers as prices dipped day on day.
The spread between FOB Korea propylene and C+F Japan naphtha cargo rose 44% on the week to $332.75/mt at the Asian close Oct. 12, Platts data showed. The spread was last higher Sept. 2 at $337/mt, S&P Global Platts data showed. This is above the typical breakeven spread of $250/mt.
China’s mandated dual control on power consumption and production boosted domestic propylene prices over the weekend as buyers raised their inventory anticipating a supply shortage.
Firmer crude oil and other propylene-making feedstock aided the spot market.
The East China propylene price rose Yuan 1,100/mt from Oct. 7 to Yuan 9,000/mt ex tank price Oct. 12 , while the Shandong propylene price rose Yuan 1,600/mt to Yuan 9,700/mt ex tank price over the same period.
Chinese industry sources said that the government continued to be strict on its double control policy and there was little leeway for propylene producers to increase their run rates after the National Day holidays, as the country still faced lack of coal and other energy resources, Platts reported earlier.
“Many provinces face power cuts, and many propylene productions units are operating on reduced run rates, but the demand for propylene is still there because downstream polypropylene demand, buoyed by strong PP futures, is gaining traction and now there is a shortage of propylene,” said a China-based trader.
FOB Korea propylene rose $130/mt week on week to $1,105/mt Oct. 12, Platts data showed.
Meanwhile, the olefin producers’ margin for ethylene production was weak, as it narrowed $3.375/mt week on week and $18.625/mt month on month to $387.75/mt at the Asian close Oct. 12. This remained above the breakeven level of $350/mt for non-integrated producers and is likely to support the high cracker run rates, market sources said.
Volatility in crude markers saw benchmark C+F Japan naphtha fall $1.125/mt day on day but rise $28.375/mt week on week to $772.25/mt at the Asian close Oct. 12, Platts data showed. The mixed picture was also reflected as the CFR Japan naphtha physical crack against front-month ICE Brent crude futures narrowed $0.975/mt day on day, but rose $12.025/mt week on week to $142.475/mt at the Asian close Oct. 12, Platts data showed.
Cracker feedstock demand for naphtha was also tepid as prices of LPG eased on the day. This narrowed the propane-naphtha spread $10.375/mt on the day and $54.875/mt on the week to $99.75/mt at the Asian close Oct. 12, Platts data showed. LPG typically becomes economically viable as a steam cracking feedstock when its price is 90% that of naphtha, or lower.
October 13, 2021
Asia’s propylene-naphtha spread touches near six-week high on stronger propylene
Propylene-naphtha spread at $332.75/mt
FOB Korea propylene at four-month high of $1,105/mt
Asia’s propylene-naphtha spread touched a near six-week high Oct. 12 as China’s mandated curbs on power consumption lifted domestic propylene prices, while benchmark C+F Japan naphtha saw volatility in crude markers as prices dipped day on day.
The spread between FOB Korea propylene and C+F Japan naphtha cargo rose 44% on the week to $332.75/mt at the Asian close Oct. 12, Platts data showed. The spread was last higher Sept. 2 at $337/mt, S&P Global Platts data showed. This is above the typical breakeven spread of $250/mt.
China’s mandated dual control on power consumption and production boosted domestic propylene prices over the weekend as buyers raised their inventory anticipating a supply shortage.
Firmer crude oil and other propylene-making feedstock aided the spot market.
The East China propylene price rose Yuan 1,100/mt from Oct. 7 to Yuan 9,000/mt ex tank price Oct. 12 , while the Shandong propylene price rose Yuan 1,600/mt to Yuan 9,700/mt ex tank price over the same period.
Chinese industry sources said that the government continued to be strict on its double control policy and there was little leeway for propylene producers to increase their run rates after the National Day holidays, as the country still faced lack of coal and other energy resources, Platts reported earlier.
“Many provinces face power cuts, and many propylene productions units are operating on reduced run rates, but the demand for propylene is still there because downstream polypropylene demand, buoyed by strong PP futures, is gaining traction and now there is a shortage of propylene,” said a China-based trader.
FOB Korea propylene rose $130/mt week on week to $1,105/mt Oct. 12, Platts data showed.
Meanwhile, the olefin producers’ margin for ethylene production was weak, as it narrowed $3.375/mt week on week and $18.625/mt month on month to $387.75/mt at the Asian close Oct. 12. This remained above the breakeven level of $350/mt for non-integrated producers and is likely to support the high cracker run rates, market sources said.
Volatility in crude markers saw benchmark C+F Japan naphtha fall $1.125/mt day on day but rise $28.375/mt week on week to $772.25/mt at the Asian close Oct. 12, Platts data showed. The mixed picture was also reflected as the CFR Japan naphtha physical crack against front-month ICE Brent crude futures narrowed $0.975/mt day on day, but rose $12.025/mt week on week to $142.475/mt at the Asian close Oct. 12, Platts data showed.
Cracker feedstock demand for naphtha was also tepid as prices of LPG eased on the day. This narrowed the propane-naphtha spread $10.375/mt on the day and $54.875/mt on the week to $99.75/mt at the Asian close Oct. 12, Platts data showed. LPG typically becomes economically viable as a steam cracking feedstock when its price is 90% that of naphtha, or lower.
October 12, 2021
Arsenal’s Applied Adhesives Acquires American Chemical MINNETONKA, Minn., October 12, 2021 — APPLIED Adhesives, a premier custom adhesive solutions provider in North America, today announced the acquisition of American Chemical, a regional supplier of adhesives and sealants located in Minneapolis, MN. APPLIED’s acquisition of American Chemical serves to strengthen its commitment of providing industry leading technical expertise and exceptional service to its customers.
“American Chemical has consistently delivered innovative solutions and exceptional value to its customers, which aligns with our culture of relentless customer focus,” said John Feriancek, president and chief executive officer of APPLIED Adhesives. “We look forward to welcoming American Chemical’s customers to the APPLIED family and providing them outstanding service, support, and value.”
For over 30 years, American Chemical has supported the needs of its customers through new product development and in-house lab services for unique applications. “I am very proud of American Chemical’s legacy of innovation and customer support,” said Dennis Werneke, former owner of American Chemical. “I’m excited that our customers will now have the opportunity to partner with APPLIED and their talented, customer-focused team of professionals. Our customers are in good hands.”
American Chemical is APPLIED Adhesives’ third acquisition in 2021 and its eighth in the last four years.
Financing & Advisors Krahn Capital Group, LLC advised American Chemical in the transaction.
About APPLIED Adhesives APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider for the packaging, paper converting, graphic arts, bottle labeling, product assembly, and automotive industries. The company is a value-added distributor of hot melt, water-based, and reactive adhesives as well as dispensing equipment. APPLIED Adhesives serves as a critical supply chain partner to leading adhesive manufacturers and formulators by offering reach and high service levels to an expansive customer base. For more information, please visit appliedadhesives.com.
About Krahn Capital Group, LLC Krahn Capital Group is a boutique investment banking firm specializing in mergers and acquisitions and capital advisory services for privately held businesses in the lower middle market. For more information, please visit www.krahncapitalgroup.com.
About Arsenal Capital Partners Arsenal is a leading private equity firm that specializes in investments in middle-market industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, has completed more than 200 platform and add-on investments, and achieved more than 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. Visit www.arsenalcapital.com.
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