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
October 8, 2023
VPC Group USA plans to buy former Klaussner subsidiary Prestige Fabricators
Sale would reopen 2 former foam production plants that were closed Aug. 7 when Klaussner also ceased operations
ASHEBORO, N.C. — VPC Group USA, a producer of foam and fiber material, is planning to purchase Klaussner subsidiary Prestige Fabricators for about $7 million as part of a sale of the company’s assets.
The company has sought court approval to buy the assets of Prestige, which also produces foam materials for upholstery. As part of the purchase, it plans to continue the operations, which employed about 27 at its foam plant and 30 at its fabrication plant prior to their closing on Aug. 7. VPC plans to extend offers of employment to some of these workers.
When it closed on Aug. 7, Prestige effectively ceased operations at two foam manufacturing facilities, including a foam plant and a fabrication plant in Randolph County, North Carolina, where Klaussner was based. Klaussner also ceased operations Aug. 7, putting 884 people out of work, including those employed by Prestige. The defunct company went into receivership soon after.
Legal sources describe a receivership as a court-appointed tool that helps creditors recover funds that are owed to them while also helping companies avoid a bankruptcy. This process also is said to help make it easier for a lender to collect funds owed to them in the event a borrow defaults on a loan.
“Based on VPC’s reputation as an industry leading foam manufacturer, the receiver believes that VPC has made a good faith offer and has the ability to consummate the transaction,” Focus Management Group, the general receiver for Klaussner, and Focus agent Michael Grau said in a court filing earlier this month. The deadline for objections to the purchase is 5 p.m. Sept. 28 and the closing date has been scheduled for Oct. 6.
The court filing obtained by Home News Now said that about seven parties expressed interest in Prestige and six executed nondisclosure agreements. Two of those submitted purchase offers.
VPC’s offer was accepted as part of the negotiations and it included a deposit of 10% of the proposed purchase price, with $50,000 as a nonrefundable portion. VPC proposes a cash closing with the intent to acquire substantially all of Prestige’s assets. This includes machinery and equipment, accounts receivable, assignable contracts, personal property leases identified by the purchaser, technology and intellectual property and all proprietary rights to the sellers’ ERP system, to name several key fixed assets.
The filing by the receiver states that “the court should approve the sale to VPC and authorize the parties to enter into the asset purchase agreement because the sale is in the best interest of the receivership estate, its creditors and other interested parties. … VPC’s purchase of the Prestige assets would yield $7 million to the receivership estate, which in the receiver’s business judgment is substantially more than a liquidation process, including more value than prior appraisals have indicated on a liquidation basis accounting for costs of sale.”
It added that VPC’s experience as a foam manufacturer “will aid VPC in the rehiring of former employees that were terminated when Prestige ceased operations in August. Such employment opportunities would likely be unavailable in a liquidation process or if the Prestige assets were otherwise sold to a buyer who did not plan to operate the Prestige business as a going concern. If VPC is able to take over the business operations pursuant to the proposed sale, the impact on the individuals previously employed by Prestige will be mitigated.”
October 5, 2023
Japan’s Tosoh to build MDI splitter in Vietnam
Published date: 02 October 2023
Japanese petrochemical producer Tosoh plans to build a methylene diphenyl diisocyanate (MDI) splitter in south Vietnam’s Ba Ria–Vung Tau province, targeting to begin commercial operations by October 2026.
Tosoh plans to operate the splitter, which will have manufacturing capacity of 100,000 t/yr of monomeric and polymeric MDIs, using crude MDI as a feedstock. MDI is used as feedstock to produce polyurethane. It aims to start construction from November 2024 and complete the splitter by June 2026.
The company will bring the crude MDI from Japan to the splitter in Vietnam. Tosoh produces 400,000 t/yr of crude MDI at its Nanyo plant in south Japan’s Yamaguchi prefecture.
Tosoh has an 85,000 t/yr splitter in China and another at its Nanyo plant of undisclosed output capacity, although its said annual production is 400,000t. Its MDI production will be unchanged even after the launch of the Vietnamese splitter, as Tosoh plans to modify manufacturing in Japan and China based on demand.
It also plans to set up a wholly-owned subsidiary Tosoh Vietnam Polyurethane by January next year to enhance MDI sales in southeast Asia.
By Nanami Oki
October 4, 2023
Auto Sales: General Motors Takes Q3 Crown, But GM Stock Drops To New Low
- APARNA NARAYANAN
- 02:15 PM ET 10/04/2023
Auto sales in the U.S. grew for Ford Motor (F), General Motors (GM), Toyota Motor (TM) and Honda (HMC) in the third quarter, fueled by rising inventories and fleet demand. But GM stock made a new low on Wednesday.
Bucking the trend, Chrysler parent Stellantis (STLA) saw declining new vehicle sales.
As expected, GM took the Q3 sales crown, while the autoworkers’ strike extends into its third full week. Both GM and Ford reported sales momentum for electric vehicles, after challenges in the prior quarter.
Auto Stock Ratings
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| Stellantis | (STLA) | 97 | 95 | 94 | A | C+ |
| Tesla | (TSLA) | 96 | 93 | 94 | A | C |
| Toyota Motor | (TM) | 93 | 79 | 92 | C | B- |
| Ford Motor | (F) | 84 | 95 | 41 | B | B- |
| General Motors | (GM) | 73 | 84 | 28 | A | C- |
Here is how automakers performed in Q3. The estimates from Cox Auto show sales volume for the quarter, as well as sales growth or decline vs. a year ago.
U.S. Auto Sales: General Motors
Q3 sales estimate: 658,433 vehicles, up 19.3% vs. Q3 2022.
Results: GM sold 674,336 vehicles, up 21% year over year. Year to date, GM sales are up 19%.
For Q3, the auto giant reported growth across all its car brands. Robust sales of traditional, gas-powered pickup trucks and new SUVs continued to drive gains, along with fleet sales.
GM sold 20,092 EVs in the third quarter, mostly older Bolts.
However, sales of newer-gen EVs also surged, albeit from low levels, as production headwinds eased. Lyriq EV sales more than doubled vs. Q2 to 3,018. Hummer EV sales rocketed to 1,167 from 47 in Q2.
GM also began initial sales of the Silverado electric truck.
Both GM and Ford are trying to ramp up EV production and sales after supply issues. In the second quarter, GM’s EV sales disappointed many investors.
Globally, automakers are shifting to electric vehicles, in the wake of Tesla’s success.
Shares of General Motors shed 2.9% Tuesday and a further 1.9% on the stock market today. GM stock hit a new 52-week low of 30.74 on Wednesday. It remains well below the 50-day moving average.
This week, GM and Ford boosted layoff in response to an expanded workers’ strike. According to a Bloomberg report Wednesday, General Motors said that the strike has already cost $200 million in the first two weeks, prompting the company to secure credit as it braces for more losses.
On Monday, Tesla (TSLA) reported disappointing global EV sales for the third quarter. EV startup Rivian (RIVN) reported better-than-expected Q3 deliveries.
Toyota Motor
Q3 sales estimate: 572,764 vehicles, up 8.9% vs. Q3 2022.
Results: Toyota sold 590,296 vehicles in Q3, up 12.2%.
A strong September finished the quarter. Toyota sold 203,904 vehicles for the month, a 13.9% increase from a year ago. “Electrified” vehicles made up nearly a third of the September total, Toyota said. The term includes battery electric vehicles, as well as fuel cell, hybrid and plug-in hybrid vehicles.
Toyota stock slid 3.1% Tuesday and a further 3% Wednesday, sliding below the 50-day moving average.
Ford Motor
Q3 sales estimate: 493,373 vehicles, up 6.9% vs. Q3 2022.
Results: Fold sold 500,504 vehicles, up 7.7% year over year. Year to date, Ford sales are up 9%.
In Q3, Ford truck sales grew 15% to 275,554 units. Ford SUV sales fell 0.3% to 194,723 units.
The automaker touted its “best ever sales” electric vehicles, including 20,962 battery-electric vehicles (BEVs) and 34,861 hybrid-electric vehicles.
Ford’s BEV sales jumped 15% year over year and were also up quarter over quarter. The gains were driven by the E-Transit van and the Mustang Mach-E SUV, for which Ford reported the highest sales since its debut in 2021. However, sales of the F-150 Lightning, the all-electric version of Ford’s top-selling truck, fell last quarter.
Sales of Ford hybrid-electric vehicles surged 41% year over year and were up slightly quarter over quarter. The new Maverick hybrid truck fueled gains, selling 23,931 units, an 83% increase year on year.
Ford stock shed 1.3% Wednesday, falling further below the 50-day line.
The auto giant said Tuesday it had made a new contract offer to resolve the UAW strike, but said a dispute over battery plants remains.
Stellantis
Q3 sales estimate: 384,371 vehicles, down 0.3% vs. Q3 2022.
Results: Stellantis sold 380,563 vehicles, down 1% from a year ago.
Shares of Stellantis stock gave up nearly 1% Wednesday.
Honda Motor
Q3 sales estimate: 331,608 vehicles, up 49.3% vs. Q3 2022.
Results: Honda sold 339,143 vehicles in Q3, up 52.7%. Like Toyota, Honda also signaled sales momentum heading into the close of 2023. Electric and hybrid-electric vehicles account for almost a quarter of its sales.
Honda stock gave up 3.5%, uncercutting the 50-day line.
U.S. Auto Sales Outlook
The annualized pace of September sales should reach 15.5 million, up from August’s 15 million rate, Cox Automotive analysts said. Citing strong Q3 sales momentum, the firm also raised its full-year forecast.
For 2023, Cox Auto now expects 15.3 million-15.4 million new vehicles to be sold in the U.S. market.
That is up from its forecast of 15 million at the end of June.
“Year-over-year sales gains have been surprising indeed,” said Cox analyst Charlie Chesbrough.
Consumers face high interest rates and ongoing inflation, which have put new cars out of reach for many.
However, pent-up demand has been fueling the vehicle market this year. Consumers and, especially, fleet customers are buying as the supply of new vehicles improves.
The UAW strike over a new labor contract has had little impact so far, analysts said. But a protracted strike could reverse gains the industry has made on inventory this year, they warned.
https://www.investors.com/news/auto-sales-q3-2023-gm-ford-gains/
October 3, 2023
Mon, Oct 2, 4:40 PM (17 hours ago) to me 
A Special Event At PFA’s Fall Meeting New FPF Hall Of Fame Honorees 
PFA is pleased to announce that the its Executive Committee has voted to induct two longtime industry professionals into the Flexible Polyurethane Foam Hall of Fame. The induction ceremony will take place during PFA’s General Business Meeting on the morning of Thursday, November 2.
Our honorees are Bill Gollnitz of Plastomer Corporation and Dr. Hamdy Khalil of The Woodbridge Group. Most of you know these two individuals, and many of you have worked with them (or have been mentored by them) in their decades of service.
Gollnitz has spent the past 20 years of his career as technical director at Plastomer Corporation, a family owned and operated business founded in 1954 by Walter Baughman, one of PFA’s founders and also a member of the Flexible Polyurethane Foam Hall of Fame.
Prior to Plastomer, Gollnitz spent seven years in business group management positions with ARCO Chemical and seven years with Olin Corporation. He began his career in the foam industry with Firestone Foam. He holds a B.A. in chemistry from Lipscomb University in Tennessee, and an MBA from Bryant University in Rhode Island.
He is a Past President of PFA and subsequently served on the Executive Committee.
Dr. Khalil is the Senior Global Director for Advanced Technologies Research and Product Development and Innovation for the Woodbridge Foam Corporation, a major manufacturer of flexible molded polyurethane foam for the global automotive industry. Dr. Khalil pioneered the introduction and commercialization of renewable materials into the polyurethane chemistry used in interior automotive parts manufacturing. Under his guidance, Woodbridge became one of the early adopters of green technologies using biobased polyols. Khalil also played a leading role in ongoing efforts to harmonize OEM specifications for VOC emissions from plastics in auto interiors.
Dr. Khalil served on the Board of Directors of Ontario Bio Auto Council, and the Center for Research and Innovation in the Bio Economy ( CRiBE). He acted as an advisor to the National Research Council of Canada on renewable and sustainable materials technology. Dr. Khalil received the Outstanding Leadership From the Center For the Polyurethane Industry (CPI), and the Technical Leadership Award from The Nano Division of the Technical Association for the Pulp and Paper Industry (TAPPI). He was selected to the Advisory Panel For Arbora Nano for the Advancement of Lignocellulosic Products. Dr. Khalil received the “Le Sueur Memorial Award” from the Society of Chemical Industry for Outstanding Industrial Contribution.
His passion is to mentor the new generation of scientists and engineers.
Prior to Woodbridge, Dr. Khalil held positions at Labatt’s in the pharmaceutical Division, for PolySar Corporation as analytical laboratory supervisor and as Senior Technical Manager for BFGoodrich.
He holds a BSc with majors in chemistry and physics from the University of Alexandria in Egypt, an MSc in Nutritional Biochemistry from Cairo University in Egypt and a PhD from Windsor University. He has long served on PFA’s Executive Committee and taken on other roles in the association.
Please join us on Thursday morning to honor these two legends of our industry.
RSVP for Events And Register for Fall Meeting Here Deadline To Make Hotel Reservations At PFA Preferred Rate: October 6
IMPORTANT: If you haven’t made your room reservations yet, please do so before October 6, when PFA’s room bloc (and special rate) expires. (Note: on the Omni website, room rates are in Canadian dollars.)
Meeting and Room Registration: https://www.pfa.org/2023-fall-meetingPFA Fall Meeting Social/Networking Events 
Be sure to RSVP for our networking events (free to meeting participants). Note: the Distillery Tour is limited to 30 people, so sign up soon.
RSVP for Events And Register for Fall Meeting Here
October 2, 2023
PCC makes progress on plan for Oxyalkylates production in the USA
Duisburg, September 15, 2023. PCC is making progress on its plan to establish an Oxyalkylates production in the USA, thereby advancing the expansion of the PCC Group’s core business areas in the important US market. PCC has now reached a milestone at the possible location in Bay City, Matagorda County, Texas, on the Gulf of Mexico. On September 15, 2023, the project company PCC Chemicals Corporation signed a terminable lease agreement with the Port of Bay City for a property in the immediate vicinity of the port there. Although the site selection and final investment decision is far from over, the contract with the port ensures that PCC Chemicals Corporation has the opportunity to intensively examine an investment at this location as part of due diligence.
“Working with the Port of Bay City and fellow entities over these past two years have been a most enjoyable experience,” said Dr. Peter Wenzel, CEO of PCC SE, and emphasized: “We still have many several project milestones to achieve and will require additional partnerships for the economic development of the project.”
Contract signing between PCC and Port of Bay City on September 15, 2023. Dr. Peter Wenzel, CEO of PCC SE (3rd from left), Waldemar Preussner, Chairman of the Supervisory Board of PCC SE (6th from left), and Peter Berger, Head of Legal Department (7th from left), together with representatives from Bay City.
Bay City Port Director George Harrison said: “This is a proud day for Matagorda County. We’ve been pursuing PCC Chemicals Corporation for two years and it feels good to secure their lease agreement.”
The region at the port of Bay City on the Gulf of Mexico is a possible location for a planned new production of Oxyalkylates (special non-ionic surfactants and polyether polyols) in the USA. In 2022, PCC SE founded the project company PCC Chemicals Corporation which is examining the development and construction of petrochemical production plants in the USA. PCC is currently setting up an Oxyalkylates production in Malaysia in a joint venture with PETRONAS Chemicals Group Berhad to cover the Asian market. The planned project in the USA would further advance the expansion of the PCC´s core business in the Group segments Polyols & Derivatives and Surfactants & Derivatives in the US market, too.
Contract signing between PCC and Port of Bay City on September 15, 2023. Dr. Peter Wenzel, CEO of PCC SE (3rd from left), Waldemar Preussner, Chairman of the Supervisory Board of PCC SE (2nd from left), and Peter Berger, Head of Legal Department (left), together with representatives from Bay City.
Profile of PCC SE
Headquartered in Duisburg, Germany, PCC SE is the parent and investment holding company of the globally active PCC Group with its approx. 3,400 employees. Its Group companies have core competencies in the production of chemical feedstocks and specialty chemicals, silicon and silicon derivatives, and in container logistics. An investor committed to the longer term, PCC SE concentrates on continuously increasing the enterprise value of its portfolio companies through sustainable investments and the ongoing creation of new value. The largest chemical producers of the PCC Group are PCC Rokita SA, a major chlorine manufacturer and Eastern Europe’s leading producer of polyols, and PCC Exol SA, one of Europe’s most advanced surfactant manufacturers. PCC BakkiSilicon hf. operates in Iceland one of the world’s most modern and climate-friendly silicon production facilities. PCC was founded in 1993 by Waldemar Preussner, sole shareholder of PCC SE, who today holds the position of Chairman of the Supervisory Board. The PCC Group generated consolidated sales of around € 1.3 billion and earnings before interest/financial result, taxes, depreciation and amortization (EBITDA) of some € 292.0 million in fiscal 2022, with capital expenditures in the same year amounting to around € 116.3 million.
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