The Urethane Blog
August 29, 2025
U.S. Customs accuses 23 importers in shipping scheme to evade duties
Sheila Long O’Mara //Executive Editor, Furniture Today//August 29, 2025
WASHINGTON – More than 20 mattress importers were part of a U.S. Customs and Border Protection investigation into illegal transshipment of goods to evade trade duties.
In an investigation that spans back to the spring of 2024, companies brought products into the U.S. through “evasion” and a “network of Chinese shell companies” funneling products manufactured in China through South Korea, Indonesia, Taiwan and Vietnam. CBP estimated that the scheme resulted in more than $250 million in revenue owed.
“Never before has CBP identified this many importers evading AD/CVD in a single consolidated EAPA investigation,” said Susan S. Thomas, acting executive assistant commissioner for CBP’s office of trade. “The revenue identified for collection exceeds $250 million, but this figure may increase as we uncover additional importers in the scheme.”
The evasion scheme, the government said, hinges on the lower duty rate in countries other than China. As an example, CBP pointed out that under the China antidumping order, duty rates were up to 1,731.75%, while the Indonesia Order carried a duty rate of 2.2%.
The CBP carried out port inspections, analyzed trade data and conducted “on-the-ground” verifications in Indonesia and Taiwan. As part of its investigation, CBP said it visited a number of the companies’ listed factories only to learn that the locations were not operational. In one instance, a factory was said to have been destroyed in a fire in 2023 and never rebuilt.
In its determination, CBP paints a picture of companies that have U.S. addresses that are in strip centers and other suspect locations. A quick Google search indicates one company’s address as the location of a restaurant, Bean Bandit, in Colorado Springs, Colo. Another has the address of a PostNet location in Denver. Some companies in the filing share an address, and a number of the companies’ U.S. addresses are in residential areas with two as neighbors.
Ten companies are listed with U.S. locations in Colorado, six in New Jersey, two in New York with a shared address, four in California and one in Houston.
Companies listed as part of the investigation include the following companies, some of which, the government says, are tied to a larger entity, Foshan Aiyi, previously investigated for transshipping. The companies cited are:
Alexand Inc., Alloech Inc., Anlowo Inc., Bentensh Inc., Calimoon Inc., Day Day Up Inc., Deluxe Home of USA Inc., Gemmeo Inc., Haiide Inc., Hondex Inc., Incoroy Inc., Inland Empire Decor Home Furnishing Inc., Lincody Inc., Lirachy Inc., Newland Technology Inc., Outlier Inc., Splendid Life Distribute Inc., Startown Inc., Sunshine International Inc., Vovyace Inc., Weekaly Inc., Wuleitex Inc. and Zozonid Inc.
Products from some of the companies are sold via Amazon, Wayfair, Walmart and other furniture retailers, according to an online search.
Earlier this year, the Department of Commerce and the U.S. International Trade Commission also published its continuation of the order from the 2018 antidumping case that resulted in duties on mattresses imported into the U.S. from China. The ITC said revoking the order would likely lead to continued or recurrent dumping and injury to the U.S. mattress market.
August 26, 2025
Avery Dennison to acquire Meridian’s flooring business 
MENTOR, Ohio – August 25, 2025 — Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced it has signed a definitive agreement to acquire the U.S.-based flooring adhesives business of Meridian Adhesives Group, a global adhesives manufacturer, for the purchase price of $390 million. The acquisition is subject to certain customary closing and post-closing adjustments.
Meridian’s flooring adhesives business is a leader in the development, manufacture and commercialization of specialty adhesives and coatings for the U.S. flooring industry, with projected 2025 revenue of approximately $110 million and attractive operating margins. Headquartered in Dalton, Georgia, it operates four manufacturing facilities in the United States and employs approximately 110 people.
“Avery Dennison remains sharply focused on expanding in high-value categories, both organically and through M&A,” said Deon Stander, Avery Dennison president and CEO. “This acquisition will leverage our materials science capabilities, while deepening our specialty adhesives solutions, with a business that is highly regarded within the floor covering industry for its product quality, strong customer relationships and continuous innovation.”
Upon completion of the transaction, the flooring adhesives business will become part of the Avery Dennison Materials Group business. The Meridian flooring adhesives business includes Taylor Adhesives, Polycom and Frontier Products’ brands.
“This acquisition is an excellent fit with Materials Group,” said Ryan Yost, president, Avery Dennison Materials Group. “It adds a valuable set of application-oriented solutions in high-value categories to our adhesives portfolio. We see strong cost and technology synergies that will build on our materials science capabilities, acrylic adhesive expertise and open new application opportunities for us in the flooring industry.”
Ralph Grogan, commercial president of flooring, Meridian, added: “I am incredibly proud of what our teams at Taylor Adhesives, Polycom and Frontier Products have built. With Avery Dennison’s backing and reach, these brands are well-positioned to continue growing and delivering even greater value to our customers.”
Avery Dennison expects the transaction to close in the fourth quarter. It is not expected to have a material impact on the company’s adjusted earnings per share in 2025. Chemlink Partners, LLC and Goodwin Procter LLP advised Avery Dennison on the transaction. Piper Sandler, Moelis & Company, and Weil, Gotshal & Manges LLP advised Meridian on the transaction.
About Avery Dennison Avery Dennison Corporation (NYSE: AVY) is a global materials science and digital identification solutions company. We are Making Possible™ products and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands and consumers. We design and develop labeling and functional materials, radio-frequency identification (RFID) inlays and tags, software applications that connect the physical and digital, and offerings that enhance branded packaging and carry or display information that improves the customer experience. Serving industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2024 were $8.8 billion. Learn more at www.averydennison.com.
About Meridian Meridian Adhesives Group is a leading manufacturer of high-performance adhesives, providing cutting-edge solutions across electronics, flooring, infrastructure, packaging, and product assembly markets. With a strong portfolio of innovative brands, Meridian is dedicated to delivering superior adhesive technologies to meet the evolving needs of global customers.
https://www.arsenalcapital.com/news/avery-dennison-to-acquire-meridians-flooring-business
August 25, 2025
Furniture Retailer Stocks Shaken Up by Trump Plan for Tariffs
By
Updated August 25, 2025
09:45 AM EDT
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Key Takeaways
- President Donald Trump said the administration would being a “Tariff investigation” of furniture imports.
- The president explained that after the 50-day study was completed, he would be putting tariffs on imported furniture.
- Shares of retailers that rely heavily on imports fell, while those with stronger U.S. manufacturing bases rose.
Shares of some big furniture retailers slumped Monday after President Donald Trump announced that he will soon be slapping tariffs on imported furniture.1
Trump wrote on his social media site, Truth Social, last week that his administration was beginning a “Tariff investigation” of furniture coming into the country, which will be completed in 50 days. After that, he would determine tariffs on imports “at a Rate yet to be determined.”
The president added that the move was designed to “bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union.”
Shares of retailers that rely heavily on imports, including RH (RH), Wayfair (W), and Williams-Sonoma (WSM), all slumped at the opening bell. However, Ethan Allen Interiors (ETD) and La-Z-Boy (LZB), which make more of their products in the U.S., saw their shares rise.
https://www.investopedia.com/furniture-retailer-stocks-shaken-up-by-trump-plan-for-tariffs-11796667
August 21, 2025
China PMDI Trade Update: Exports Regionalize, Imports Increase from ME with Lower Prices
PUdaily | Updated: August 21, 2025
PMDI Export
In July 2025, China exported 64,100 tonnes of polymeric MDI, down 18% year‑on‑year and down 24.8% month-on-month, according to data released by the General Administration of Customs (GAC).
China’s polymeric MDI exports from January to July amounted to 476,500 tonnes, down 18% year-on-year.
Exports to ASEAN Countries and India Rise, With Pronounced Regionalization Trend
From January to July, cumulative exports from China to most of Top 10 destinations fell year-on-year, with the exceptions of India, Vietnam, and Thailand, which recorded increases. The polyurethane supply chain is exhibiting an increasingly pronounced regionalization trend. U.S. tariff policies have disrupted global trade flows, accelerating a shift from globalization toward regional trade for China’s polymeric MDI exports.
China’s FTAs with ASEAN economies, and geographic proximity, have also encouraged Chinese appliance, textile and automobile manufacturers to invest in or relocate production to Vietnam, Thailand, Indonesia and other nearby countries. These shifts hedge the trade uncertainty and reduce supply chain disruption risks of enterprises.
Table 1: China’s Top 10 PMDI Export Destinations, Jan-Jul 2025
| No. | Export Destination | Export Volume (tonne) | Export Value (US$1,000) | Avg. Price (USD/tonne) | Share (%) | YoY Change |
| 1 | Russia | 50,309 | 111,730 | 2,221 | 10.6% | -2.2% |
| 2 | Netherlands | 44,852 | 58,270 | 1,299 | 9.4% | -49.7% |
| 3 | Turkey | 38,863 | 64,410 | 1,657 | 8.2% | -18.6% |
| 4 | India | 35,570 | 62,330 | 1,752 | 7.5% | 18.3% |
| 5 | USA | 30,697 | 36,140 | 1,177 | 6.4% | -82.1% |
| 6 | S. Korea | 30,625 | 52,560 | 1,716 | 6.4% | -30.6% |
| 7 | Vietnam | 23,790 | 46,480 | 1,954 | 5.0% | 0.1% |
| 8 | Brazil | 23,075 | 38,500 | 1,668 | 4.8% | -14.5% |
| 9 | Thailand | 22,366 | 41,740 | 1,866 | 4.7% | 5.7% |
| 10 | UAE | 22,301 | 42,360 | 1,899 | 4.7% | -31.1% |
| Others | 154,100 | 273,660 | 1,776 | 32.3% | – | |
| Total | 476,548 | 828,170 | 1,738 | 100.0% | -34.0% |
PMDI Import
In July 2025, China imported 42,300 tonnes of polymeric MDI, up 70.1% year-on-year and up 85.6% month-on-month.
China’s polymeric MDI imports from January to July totaled 205,400 tonnes, up 16.9% year-on-year. Monthly imports had ranged between 20,000-35,000 tonnes from January through June, but surged to 42,000 tonnes in July, driven by higher imports from Saudi Arabia and South Korea, the increase from Saudi Arabia was particularly notable.
China imported 19,700 tonnes of polymeric MDI from Saudi Arabia in July, up 50.7% month-on-month. January-July imports from Saudi Arabia totaled 92,200 tonnes, up 27.6% year-on-year. Strength in China’s PMDI market in May-June, combined with relatively low price levels in the Middle East and Europe (around USD 1,700/tonne), encouraged increased Middle East shipments into China.
Imports from South Korea also rose (Jan-Jul volumes up 27% year-on-year), but Korean goods carried a higher average price – about USD 1,949/tonne – exceeding the average import prices from Saudi Arabia and Japan.
Table 2: China’s polymeric MDI Imports, Jan-July 2025
| No. | Import Source | Import Volume (tonne) | Import Value (US$1,000) | Avg. Price (USD/tonne) | Share (%) | YoY Change |
| 1 | Saudi Arabia | 92,167 | 124,970 | 1,356 | 44.9% | 27.6% |
| 2 | Japan | 53,810 | 77,270 | 1,436 | 26.2% | -14.3% |
| 3 | S Korea | 48,593 | 94,700 | 1,949 | 23.7% | 27.2% |
| Others | 10,838 | 22,250 | 1,776 | 32.3% | – | |
| Total | 205,408 | 319,190 | 1,738 | 100.0% | -34.0% |
August 21, 2025
Covestro to Expand Aliphatics Production with Acquisition of Vencorex Sites in Thailand and Texas
August 20, 2025
Covestro has signed an agreement with Vencorex Holding SAS, a subsidiary of Thai chemical company PTT Global Chemical Public Co. Ltd, to acquire two legal entities with stand-alone production sites for HDI (hexamethylene diisocyanate) derivates in Rayong, Thailand, and Freeport, Texas. The legal entities and sites were formerly part of the French aliphatics specialist Vencorex. With this acquisition, Covestro strategically expands and improves its aliphatics production portfolio in the United States and in the Asia-Pacific region. This allows the company to advance the implementation of its “Sustainable Future” corporate strategy by continuing its growth in profitable and innovative business areas like coatings and adhesives.
Both parties have agreed not to disclose the purchase price. The transaction is expected to close by the end of 2025.
“The acquisition of these two former Vencorex sites fits perfectly to our portfolio and our strategic goals,” said Christian Baier, chief financial officer of Covestro. “While we maintain cost discipline to secure our short-term performance, we strengthen our long-term competitiveness through targeted investments like this one.”
Covestro is a well-known supplier for of derivatives, an essential component in polyurethanes coatings, adhesives, and sealants. It can be found in a myriad of applications, like coatings and adhesives for cars, trucks, bridges, ships, wood furniture, and electronics, to name a few. Through the acquisition, Covestro complements its existing capacities in the United States, Germany, China, and India, among others.
“These new capacities in Thailand and the U.S. will augment our existing comprehensive production capabilities across all major regions. They will enable us to produce and deliver according to our customer’s demands even better, especially during current market challenges,” says Thomas Roemer, Head of the Business Entity Coatings and Adhesives at Covestro. “After the acquisition of the Resins & Functional Materials (RFM) business from DSM and investments in organic growth this is yet another sign of confidence the company has in the coatings and adhesives business. I look forward to welcoming the new colleagues into our organization!”
Learn more about Covestro at www.covestro.com.
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