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Everchem Updates
VOLUME XXI
September 14, 2023
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September 30, 2020
Johns Manville Breaks Ground on New Polyiso Production Plant in Texas
(Photo: Business Wire)
September 22, 2020 06:01 AM Eastern Daylight Time
DENVER–(BUSINESS WIRE)–Johns Manville (JM), a global building and specialty products manufacturer and a Berkshire Hathaway Company, broke ground this month on a new production plant in Hillsboro, Texas.
“Increasing the availability of our products while creating new jobs is a win-win.”
The plant, which is projected to be completed by mid-2022, will manufacture polyiso products including ENRGY 3® roof insulation, ProtectoR® HD high density cover board, AP® Foil Faced Foam sheathing and GoBoard® tile backer. These products are preferred in the market due to their high R-value per inch and the strength and durability they offer.
“We continue to invest in our business, customers and communities,” said Joe Smith, President of Roofing Systems at Johns Manville. “Increasing the availability of our products while creating new jobs is a win-win.”
When complete, the Hillsboro plant will employ more than 50 people and include a JM roofing distribution center. The warehouse will stock many JM products, including TPO and accessories to expand customer service. Hughes Commercial Real Estate and Development will develop the site and FA Peinado Construction will be the general contractor.
The groundbreaking in Hillsboro comes on the heels of a recent expansion of JM’s Milan, Ohio, roofing products plant. That expansion increased the facility’s production capacity and added approximately 50 jobs.
Career opportunities at all JM facilities can be found at JM.com/en/Careers.
September 30, 2020
High polyol prices depress Middle East TDI demand
Author: Prateek Pillai
2020/09/30
SINGAPORE (ICIS)–The unceasing rise of polyol prices in the Middle East along with scarce availability of cargoes has dampened demand for toluene diisocyanate (TDI) in the region.
With polyol supply expected to remain tight up to the end of the year, TDI demand is likely to be negatively affected for the foreseeable future.
TDI and polyols (both the POP and the conventional variety) are used in combination to manufacture polyurethane (PU) foams which have multiple applications, including for mattresses, furniture and automobile seat covers.
Due to the months-long rise in prices of upstream propylene oxide (PO) in China, polyol producers have had to increase their quotes.
Average prices of 10-13.5% polyether polyol (POP) reaching $2,430/tonne CFR Middle East and those of conventional polyols at $2,405/tonne CFR Middle East – their highest levels in more than five years.
The non-stop rise of upstream PO prices has trimmed the margins of polyol producers. This has made it difficult for them to ramp up production to meet demand, which has picked up markedly since lockdown restrictions were relaxed in the region during the summer.
Polyol supply to the Middle East is currently very limited with many buyers unable to procure cargoes that they need. This extremely tight supply situation has, in turn, caused polyol prices to spike.
Buyers now find themselves in a situation where either the record high polyol prices have made it prohibitively expensive to buy cargoes; or the limited supply makes any procurement difficult.
Since the primary application of both TDI and polyols is in the manufacturing of PU foams, the tight supply conditions prevalent in the polyol market has cooled buying interest in TDI too.
It does not make sense to buy TDI when polyol was not available, a downstream buyer said.
The reluctance to buy new TDI cargoes has also halted the rise of TDI prices in the region, which had been on a continuous upswing since July.
With most market players expecting the polyol market to be marked by tight supply for the remainder of the year, unless TDI prices begin to decline, demand for the product is likely to continue weakening.
Focus article by Prateek Pillai
September 30, 2020
High polyol prices depress Middle East TDI demand
Author: Prateek Pillai
2020/09/30
SINGAPORE (ICIS)–The unceasing rise of polyol prices in the Middle East along with scarce availability of cargoes has dampened demand for toluene diisocyanate (TDI) in the region.
With polyol supply expected to remain tight up to the end of the year, TDI demand is likely to be negatively affected for the foreseeable future.
TDI and polyols (both the POP and the conventional variety) are used in combination to manufacture polyurethane (PU) foams which have multiple applications, including for mattresses, furniture and automobile seat covers.
Due to the months-long rise in prices of upstream propylene oxide (PO) in China, polyol producers have had to increase their quotes.
Average prices of 10-13.5% polyether polyol (POP) reaching $2,430/tonne CFR Middle East and those of conventional polyols at $2,405/tonne CFR Middle East – their highest levels in more than five years.
The non-stop rise of upstream PO prices has trimmed the margins of polyol producers. This has made it difficult for them to ramp up production to meet demand, which has picked up markedly since lockdown restrictions were relaxed in the region during the summer.
Polyol supply to the Middle East is currently very limited with many buyers unable to procure cargoes that they need. This extremely tight supply situation has, in turn, caused polyol prices to spike.
Buyers now find themselves in a situation where either the record high polyol prices have made it prohibitively expensive to buy cargoes; or the limited supply makes any procurement difficult.
Since the primary application of both TDI and polyols is in the manufacturing of PU foams, the tight supply conditions prevalent in the polyol market has cooled buying interest in TDI too.
It does not make sense to buy TDI when polyol was not available, a downstream buyer said.
The reluctance to buy new TDI cargoes has also halted the rise of TDI prices in the region, which had been on a continuous upswing since July.
With most market players expecting the polyol market to be marked by tight supply for the remainder of the year, unless TDI prices begin to decline, demand for the product is likely to continue weakening.
Focus article by Prateek Pillai
September 30, 2020
Dow outlines actions to deliver structural cost improvements and further enhance competitiveness
Wed September 30, 2020 6:00 AM|Business Wire|About: DOW
Today Dow will close the sale of its rail infrastructure assets at six North American sites; transaction to close three months earlier than planned and demonstrates best-owner mindset and continued evaluation of non-revenue-generating assets across its global portfolio
MIDLAND, Mich.–(BUSINESS WIRE)– Dow Inc. (DOW) today outlined the series of actions it will take to achieve previously announced structural cost improvement targets and further enhance its long-term competitiveness as the global economy recovers from the coronavirus pandemic.
As announced during the Company’s second quarter earnings on July 23, 2020, Dow is implementing a restructuring program to reduce its global workforce costs by approximately six percent and to rationalize certain manufacturing assets. These actions are expected to result in total annualized EBITDA savings of more than $300 million by the end of 2021.
Manufacturing asset impacts include:
- Industrial Intermediates & Infrastructure will rationalize its asset footprint by shutting down certain amines and solvents facilities in the United States and Europe as well as select small-scale downstream polyurethanes manufacturing facilities.
- Performance Materials & Coatings will shut down manufacturing assets, primarily small-scale coatings reactors, and will also rationalize its upstream asset footprint in Europe and in the United States and Canada by adjusting the supply of siloxane and silicon metal to balance to regional needs.
“Given the expected gradual and uneven global economic recovery from COVID-19, we announced in July that we are taking necessary actions to continue to optimize our asset footprint, reduce structural costs and enhance the competitiveness of our business over the long-term,” said Jim Fitterling, Dow chairman and CEO. “We continue to stay focused on delivering strong cashflow, strengthening our financial profile and maximizing our operational advantages, and we remain well positioned to capture significant growth as market conditions improve.”
The Company will record a charge in the third quarter of 2020 for costs associated with the restructuring program activities. In total, these costs are expected to be in the range of $500 million to $600 million and will consist of severance and related benefit costs; costs associated with exit and disposal activities; and asset write-downs and write-offs.
The restructuring program is in addition to the $500 million of operating expense savings Dow will achieve by the end of 2020. The Company also remains on target to achieve its reduced target of $1.25 billion for capital expenditures in 2020, down from $2 billion in 2019.
Dow will involve local stakeholders as defined in each country and in compliance with relevant information and consultation processes.
Dow also confirmed that today it will close the sale of its rail infrastructure assets at six North American sites to Watco, three months ahead of its initial planned closing, for cash proceeds in excess of $310 million. Earlier this month the Company also announced plans to divest certain marine and terminal operations and assets to Vopak Industrial Infrastructure Americas for cash proceeds of $620 million, which is expected to close by year-end.
September 30, 2020
Dow outlines actions to deliver structural cost improvements and further enhance competitiveness
Wed September 30, 2020 6:00 AM|Business Wire|About: DOW
Today Dow will close the sale of its rail infrastructure assets at six North American sites; transaction to close three months earlier than planned and demonstrates best-owner mindset and continued evaluation of non-revenue-generating assets across its global portfolio
MIDLAND, Mich.–(BUSINESS WIRE)– Dow Inc. (DOW) today outlined the series of actions it will take to achieve previously announced structural cost improvement targets and further enhance its long-term competitiveness as the global economy recovers from the coronavirus pandemic.
As announced during the Company’s second quarter earnings on July 23, 2020, Dow is implementing a restructuring program to reduce its global workforce costs by approximately six percent and to rationalize certain manufacturing assets. These actions are expected to result in total annualized EBITDA savings of more than $300 million by the end of 2021.
Manufacturing asset impacts include:
- Industrial Intermediates & Infrastructure will rationalize its asset footprint by shutting down certain amines and solvents facilities in the United States and Europe as well as select small-scale downstream polyurethanes manufacturing facilities.
- Performance Materials & Coatings will shut down manufacturing assets, primarily small-scale coatings reactors, and will also rationalize its upstream asset footprint in Europe and in the United States and Canada by adjusting the supply of siloxane and silicon metal to balance to regional needs.
“Given the expected gradual and uneven global economic recovery from COVID-19, we announced in July that we are taking necessary actions to continue to optimize our asset footprint, reduce structural costs and enhance the competitiveness of our business over the long-term,” said Jim Fitterling, Dow chairman and CEO. “We continue to stay focused on delivering strong cashflow, strengthening our financial profile and maximizing our operational advantages, and we remain well positioned to capture significant growth as market conditions improve.”
The Company will record a charge in the third quarter of 2020 for costs associated with the restructuring program activities. In total, these costs are expected to be in the range of $500 million to $600 million and will consist of severance and related benefit costs; costs associated with exit and disposal activities; and asset write-downs and write-offs.
The restructuring program is in addition to the $500 million of operating expense savings Dow will achieve by the end of 2020. The Company also remains on target to achieve its reduced target of $1.25 billion for capital expenditures in 2020, down from $2 billion in 2019.
Dow will involve local stakeholders as defined in each country and in compliance with relevant information and consultation processes.
Dow also confirmed that today it will close the sale of its rail infrastructure assets at six North American sites to Watco, three months ahead of its initial planned closing, for cash proceeds in excess of $310 million. Earlier this month the Company also announced plans to divest certain marine and terminal operations and assets to Vopak Industrial Infrastructure Americas for cash proceeds of $620 million, which is expected to close by year-end.
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