The Urethane Blog

Everchem Updates

VOLUME XXI

September 14, 2023

Everchem’s Closers Only Club

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 22, 2018

Covestro Expanding MDI in Shanghai

Covestro plans to expand MDI capacity at Shanghai facility

By Jane Ho
Urethanes Technology International

Photo by Covestro A look at Covestro Integrated Site Shanghai.

SHANGHAI—Covestro plans to invest $12 million to expand MDI capacity at its plant in Shanghai where it recently began a second round of assessments into the facility’s environmental impact.

According to the Leverkusen, Germany-based company, annual capacity for MDI at the Shanghai facility will rise by 100,000 metric tons, from 500,000 tons per year to 600,000 tons per year. Its monomer MDI capacity will go up by 50,000 tons to 200,000 tons per year, while its polymeric MDI capacity also will rise by 50,000 tons, to 400,000 tons annually.

The first phase of the expansion will account for 50,000 additional tons of capacity per year, and will extend annual operations from 8,000 hours to 8,760 hours.

Phase two of the expansion will increase capacity by 50,000 tons annually through the upgrade of waste treatment facilities pumps, control valves and heat exchangers. Three tubes will be added to carry monochlorobenzene.

The existing phosgenation production process will not be changed, according to Covestro.

Phase one is scheduled to come on stream by the end of 2018, while phase two is anticipated to be completed by the end of 2020.

The Covestro Integrated Site Shanghai represents the company’s largest investment outside of Germany. In addition to producing polyurethane raw materials, the site manufactures high-grade polycarbonate as well as raw materials for coatings and adhesives.

Globally, Covestro operates 30 sites, including technical centers, manufacturing facilities and an innovation center. It employs about 16,200.

http://www.rubbernews.com/article/20181002/NEWS/181009981/covestro-plans-to-expand-mdi-capacity-at-shanghai-facility

October 22, 2018

Rhine River Issues

Record-low Rhine levels bring widespread disruption across energy and commodities

London — Critically low water levels on the River Rhine, the main European shipping artery, are jeopardizing shipments of a wide range of different commodities, such as grains, chemicals and coal, and are affecting operations of both manufacturing and power generating plants along the river, which rely heavily on its waters for transportation and cooling purposes. This is creating acute imbalances between the coastal and inland markets and has already triggered declarations of force majeure on deliveries from some chemical and metals plants.

Though railcars and trucks are often considered an alternative to barge shipments along the Rhine, possible capacities appear to have been reached.

Rhine water levels at the key chokepoint of Kaub in Germany, dipped to 33 cm Friday, a record low, and with no rain forecast for the next few days the German water Authorities expect the levels to plunge to 23 cm by Monday.

Click here for full-size image

The following are the key facts across sectors and commodities:

SHIPPING

INFRASTRUCTURE

* Double hull barges unable to go in the Upper Rhine region.

* Maximum loading on a barge at Karlsruhe is about 500 mt.

TRADE FLOWS

* Upper Rhine almost no longer navigable.

* Inability to go past Kaub has freed up some tonnage for shipments in the lower Rhine.

PRICES

* Rates for shipping clean oil/petrochemical products from Rotterdam upriver soared to a three-year high, with the Rotterdam-Karlsruhe route now fetching just under $94/mt on 1,000-5,000 mt barges.

* Barge rates on the lower Rhine could ease amid better availability of barges which now can’t go past Kaub.

* Rates to barge coal have also increased multifold from usual Eur4-5/mt to Eur35/mt (about $40.20/mt).

PETROCHEMICALS

INFRASTRUCTURE

* BASF has declared a force majeure on 2-ethylhexyl acrylate, butyl acrylate and ethyl acrylate from its site at Ludwigshafen, Germany.

* Other chemical derivatives plants along the Rhine are struggling to source feedstocks, such as propylene or methanol, and this will continue affecting production rates.

TRADE FLOWS

* Where possible, traders have switched to alternative modes of transport, such as railtanks and trucks. Freight costs are rising across the board, pushing up prices for delivered chemical products.

* Stocks in import markets, such as methanol, are piling up in Rotterdam and simultaneously are creating shortages in Germany. In export markets, the converse is true with the Amsterdam-Rotterdam-Antwerp trading hub getting short, while length is building up the river.

PRICES

* Methanol prices in Rotterdam are under pressure, with spot shedding 7.6% over the past week, falling to Eur359/mt FOB Rotterdam Friday.

* Propylene prices are also falling with the spot price on the coast flipping from a premium to a 2% discount to the monthly contract price. It was last traded at a discount in the spring.

 

–Staff reports, newsdesk@spglobal.com

–Edited by Maurice Geller, maurice.geller@spglobal.com

https://www.spglobal.com/platts/en/market-insights/latest-news/shipping/101918-factbox-record-low-rhine-levels-bring-widespread-disruption-across-energy-and-commodities

October 22, 2018

Rhine River Issues

Record-low Rhine levels bring widespread disruption across energy and commodities

London — Critically low water levels on the River Rhine, the main European shipping artery, are jeopardizing shipments of a wide range of different commodities, such as grains, chemicals and coal, and are affecting operations of both manufacturing and power generating plants along the river, which rely heavily on its waters for transportation and cooling purposes. This is creating acute imbalances between the coastal and inland markets and has already triggered declarations of force majeure on deliveries from some chemical and metals plants.

Though railcars and trucks are often considered an alternative to barge shipments along the Rhine, possible capacities appear to have been reached.

Rhine water levels at the key chokepoint of Kaub in Germany, dipped to 33 cm Friday, a record low, and with no rain forecast for the next few days the German water Authorities expect the levels to plunge to 23 cm by Monday.

Click here for full-size image

The following are the key facts across sectors and commodities:

SHIPPING

INFRASTRUCTURE

* Double hull barges unable to go in the Upper Rhine region.

* Maximum loading on a barge at Karlsruhe is about 500 mt.

TRADE FLOWS

* Upper Rhine almost no longer navigable.

* Inability to go past Kaub has freed up some tonnage for shipments in the lower Rhine.

PRICES

* Rates for shipping clean oil/petrochemical products from Rotterdam upriver soared to a three-year high, with the Rotterdam-Karlsruhe route now fetching just under $94/mt on 1,000-5,000 mt barges.

* Barge rates on the lower Rhine could ease amid better availability of barges which now can’t go past Kaub.

* Rates to barge coal have also increased multifold from usual Eur4-5/mt to Eur35/mt (about $40.20/mt).

PETROCHEMICALS

INFRASTRUCTURE

* BASF has declared a force majeure on 2-ethylhexyl acrylate, butyl acrylate and ethyl acrylate from its site at Ludwigshafen, Germany.

* Other chemical derivatives plants along the Rhine are struggling to source feedstocks, such as propylene or methanol, and this will continue affecting production rates.

TRADE FLOWS

* Where possible, traders have switched to alternative modes of transport, such as railtanks and trucks. Freight costs are rising across the board, pushing up prices for delivered chemical products.

* Stocks in import markets, such as methanol, are piling up in Rotterdam and simultaneously are creating shortages in Germany. In export markets, the converse is true with the Amsterdam-Rotterdam-Antwerp trading hub getting short, while length is building up the river.

PRICES

* Methanol prices in Rotterdam are under pressure, with spot shedding 7.6% over the past week, falling to Eur359/mt FOB Rotterdam Friday.

* Propylene prices are also falling with the spot price on the coast flipping from a premium to a 2% discount to the monthly contract price. It was last traded at a discount in the spring.

 

–Staff reports, newsdesk@spglobal.com

–Edited by Maurice Geller, maurice.geller@spglobal.com

https://www.spglobal.com/platts/en/market-insights/latest-news/shipping/101918-factbox-record-low-rhine-levels-bring-widespread-disruption-across-energy-and-commodities

October 22, 2018

Arsenal Acquires Polytek

ARSENAL CAPITAL PARTNERS ACQUIRES POLYTEK

Acquisition Platform for Formulated Polymer Technologies

 

NEW YORK, October 22, 2018 – Arsenal Capital Partners (“Arsenal”), a leading private equity firm that invests in middle-market specialty industrials and healthcare services companies, announced today the acquisition of Polytek Development Corp. (“Polytek”), a leading manufacturer of liquid mold rubbers and casting plastics, from Morgenthaler Private Equity.  The terms of the acquisition were not disclosed. 

Polytek’s proprietary specialty polymers are used by customers to create flexible molds to reproduce highly-detailed, complex objects for a variety of industrial and consumer applications, including concrete casting, special effects, tooling, sculpture, and prototyping. 

Arsenal brings significant experience investing in the global polymers market, having previously built Accella Performance Materials, a polyurethanes systems company, through nine strategic acquisitions, and Elite Comfort Solutions, a leading manufacturer of specialty polyurethane foam technologies serving the bedding market.

Roy Seroussi, an Investment Partner at Arsenal said, “Polytek has developed niche technologies in a number of applications, with a strong reputation of innovation and technical support.  The company’s portfolio fits well with Arsenal’s previous expertise in polymer technologies, such as in polyurethanes, silicones, and epoxies, where we have successfully invested in the past.  We look forward to partnering with Polytek and its employees and to accelerating Polytek’s growth plans by delivering more solutions and capabilities to its customers.” 

Don Nolan, Chair of Polytek’s board, added, “We are delighted to partner with Jonathan Kane and his team.  Polytek has a track record of successfully acquiring and integrating complementary technologies and product lines focused on its key markets.  We will continue the trajectory of acquiring high-value polymer solutions and expect robust acquisition activity over the next few years.”

Jonathan Kane, CEO of Polytek, said, “The team at Polytek and I are excited to partner with Arsenal.  Their deep experience in specialty chemicals and their operating model will bring tremendous value to Polytek, its customers, and its employees, and accelerate our plans for growth.”

About Polytek Development Corp.

Founded in 1984 and headquartered in Easton, PA, Polytek® Development Corp. is a leading manufacturer of specialty polymers including: polyurethane elastomers and casting resins, silicones, epoxies, and latex.  These systems are used primarily in mold making and casting applications in industrial, construction, entertainment, fine arts, and technology sectors.  For more information, visit https://www.polytek.com.

 

About Arsenal Capital Partners

Established in 2000, Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare business services companies.  Since inception, Arsenal has raised institutional equity investment funds of approximately $3 billion.  Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience and seeks companies typically in the range of $100 – $500 million of initial enterprise value.  The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add.  For more information, visit www.arsenalcapital.com.

October 22, 2018

Arsenal Acquires Polytek

ARSENAL CAPITAL PARTNERS ACQUIRES POLYTEK

Acquisition Platform for Formulated Polymer Technologies

 

NEW YORK, October 22, 2018 – Arsenal Capital Partners (“Arsenal”), a leading private equity firm that invests in middle-market specialty industrials and healthcare services companies, announced today the acquisition of Polytek Development Corp. (“Polytek”), a leading manufacturer of liquid mold rubbers and casting plastics, from Morgenthaler Private Equity.  The terms of the acquisition were not disclosed. 

Polytek’s proprietary specialty polymers are used by customers to create flexible molds to reproduce highly-detailed, complex objects for a variety of industrial and consumer applications, including concrete casting, special effects, tooling, sculpture, and prototyping. 

Arsenal brings significant experience investing in the global polymers market, having previously built Accella Performance Materials, a polyurethanes systems company, through nine strategic acquisitions, and Elite Comfort Solutions, a leading manufacturer of specialty polyurethane foam technologies serving the bedding market.

Roy Seroussi, an Investment Partner at Arsenal said, “Polytek has developed niche technologies in a number of applications, with a strong reputation of innovation and technical support.  The company’s portfolio fits well with Arsenal’s previous expertise in polymer technologies, such as in polyurethanes, silicones, and epoxies, where we have successfully invested in the past.  We look forward to partnering with Polytek and its employees and to accelerating Polytek’s growth plans by delivering more solutions and capabilities to its customers.” 

Don Nolan, Chair of Polytek’s board, added, “We are delighted to partner with Jonathan Kane and his team.  Polytek has a track record of successfully acquiring and integrating complementary technologies and product lines focused on its key markets.  We will continue the trajectory of acquiring high-value polymer solutions and expect robust acquisition activity over the next few years.”

Jonathan Kane, CEO of Polytek, said, “The team at Polytek and I are excited to partner with Arsenal.  Their deep experience in specialty chemicals and their operating model will bring tremendous value to Polytek, its customers, and its employees, and accelerate our plans for growth.”

About Polytek Development Corp.

Founded in 1984 and headquartered in Easton, PA, Polytek® Development Corp. is a leading manufacturer of specialty polymers including: polyurethane elastomers and casting resins, silicones, epoxies, and latex.  These systems are used primarily in mold making and casting applications in industrial, construction, entertainment, fine arts, and technology sectors.  For more information, visit https://www.polytek.com.

 

About Arsenal Capital Partners

Established in 2000, Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare business services companies.  Since inception, Arsenal has raised institutional equity investment funds of approximately $3 billion.  Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience and seeks companies typically in the range of $100 – $500 million of initial enterprise value.  The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add.  For more information, visit www.arsenalcapital.com.