The Urethane Blog
November 20, 2024
Artisan Partners Doubles Stake in Brenntag to 10%
Published: Nov. 19, 2024 at 12:03 p.m. ET
By Adam Whittaker
Brenntag said that U.S. asset manager Artisan Partners doubled its stake in the company and now holds 10.06% of voting rights.
The German chemicals distributor said Tuesday in a voting-rights announcement that Artisan Partners increased its stake from 5.03% in July and is now the second-largest Brenntag shareholder behind Kuehne Holding’s 15% stake.
Artisan Partners has held the 10.06% stake since Nov. 13, the company said.
Write to Adam Whittaker at adam.whittaker@wsj.com
November 19, 2024
Builder confidence increases for third month as election uncertainty lifts
By Larry Adams
November 18, 2024 | 1:38 pm CST
WASHINGTON — Builder sentiment improved for the third straight month and builders expect market conditions will continue to improve with Republicans winning control of the White House and Congress.
Builder confidence in the market for newly built single-family homes was 46 in November, up three points from October, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today.
“With the elections now in the rearview mirror, builders are expressing increasing confidence that Republicans gaining all the levers of power in Washington will result in significant regulatory relief for the industry that will lead to the construction of more homes and apartments,” said NAHB Chairman Carl Harris, a custom home builder from Wichita, Kan. “This is reflected in a huge jump in builder sales expectations over the next six months.”
“While builder confidence is improving, the industry still faces many headwinds such as an ongoing shortage of labor and buildable lots along with elevated building material prices,” said NAHB Chief Economist Robert Dietz. “Moreover, while the stock market cheered the election result, the bond market has concerns, as indicated by a rise for long-term interest rates. There is also policy uncertainty in front of the business sector and housing market as the executive branch changes hands.”
The latest HMI survey also revealed that 31% of builders cut home prices in November. This share has remained essentially unchanged since July, hovering between 31% and 33%. Meanwhile, the average price reduction was 5%, slightly below the 6% rate posted in October. The use of sales incentives was 60% in November, slightly down from 62% in October.
Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
All three HMI sub-indices were up in November. The index charting current sales conditions rose two points to 49, the component measuring sales expectations in the next six months increased seven points to 64 and the gauge charting traffic of prospective buyers posted a three-point gain to 32.
Looking at the three-month moving averages for regional HMI scores, the Northeast increased four points to 55, the Midwest moved three points higher to 44, the South edged up one point to 42 and the West held steady at 41.
November 18, 2024
November 18, 2024
Kumho Mitsui Chemicals Begins Operations at New MDI Production Facilities
2024.10.23
Mitsui Chemicals, Inc
Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: HASHIMOTO Osamu) announced that affiliate Kumho Mitsui Chemicals Inc. (Seoul, South Korea; CEO: PARK Chan-Koo) has commenced operations late September at additional production facilities for methylene diphenyl diisocyanate (MDI).
Kumho Mitsui Chemicals’ Yeosu Plant
■Overview
| １．Product | Methylene diphenyl diisocyanate (MDI) |
|---|---|
| ２．Location | Yeosu, Jeonnam, South Korea |
| ３．Capacity increase | 200,000 tons/year (410,000 tons/year → 610,000 tons/year) |
MDI is a key raw material for polyurethane, a signature material used in numerous fields such as auto parts, bedding and furniture, insulation for homes and fridges, elastic fibers, and various adhesives. Demand for MDI is projected to grow at an annual rate of 6 percent going forward on account of policy measures around the globe to improve residential insulation as a means of global warming suppression, as well as due to the heightened demand accompanying economic growth.
Kumho Mitsui Chemicals manufactures and sells high-performance monomeric MDI and modified MDI used for making auto parts, elastic fibers and synthetic leather, as well as commodity polymeric MDI used for making insulation materials. The newly implemented capacity increase is intended to accommodate increased demand growth for high-performance MDI – employed primarily in electric vehicles for the purposes of noise, vibration and harshness (NVH) mitigation – as well as the existing demand growth for insulation materials.
In addition to expanding its production facilities, Kumho Mitsui Chemicals will install recycling facilities that can reuse the by-products created during the manufacturing process as raw materials. This will not only aid in significant cost rationalization by improving self-sufficiency for raw materials but will also reduce wastewater emissions from the plant and greenhouse gas emissions from the overall supply chain.
Kumho Mitsui Chemicals is aiming to become a global leader for MDI. With the capacity increase provided by these cutting-edge new facilities, Mitsui Chemicals will pursue both expansion of the MDI business – which is projected for continued growth moving forward – and further improvements to the performance of its MDI products.
■Overview of Kumho Mitsui Chemicals
| 1. Establishment | March 1989 |
|---|---|
| 2. Capital | 35 billion won |
| 3. Ownership | Mitsui Chemicals, Inc.: 50% Kumho Petrochemical Co., Ltd.: 50% |
| 4. HQ & plant location | Headquarters: Seoul, South Korea Plant: Yeosu, Jeonnam, South Korea |
| 5. Business | Production and sale of MDI |
https://jp.mitsuichemicals.com/en/release/2024/2024_1023/index.htm
November 13, 2024
Evonik breaks ground on specialty amine production in Nanjing
Shanghai, China/Essen, Germany. Evonik has officially broken ground on its plant expansion for specialty amines in Nanjing, during a ceremony attended by Nanjing government delegates on November 8.
- Strategic double-digit million euro investment boosts production and access to raw materials, fueling regional and global growth
- Plant expansion highlights commitment to polyurethane and epoxy markets, enhancing competitiveness
- New facility supports the introduction of new specialty amines to commercial scale starting 2026
Shanghai, China/Essen, Germany. Evonik has officially broken ground on its plant expansion for specialty amines in Nanjing, during a ceremony attended by Nanjing government delegates on November 8. This milestone underscores Evonik’s commitment to the development of the polyurethane and epoxy curing agent markets. The expansion at the existing production site strengthens Evonik’s presence in China, a vital region for the company’s global operations.
The expansion represents a strategic investment in the double-digit million euro range, allowing Evonik to enhance its amine portfolio by accessing cost-effective raw materials. By increasing production in China, Evonik strengthens its competitiveness and improves market efficiency, optimizing its production network. This expansion supports future market growth and aligns with Evonik’s global amine strategy to further differentiate its product offerings.
“The groundbreaking of our new specialty amines plant is testament to Evonik’s strategic focus on expanding our capabilities in Asia and our confidence in its potential. China’s role as a competitive production hub is pivotal for both our regional and global business strategies,” said, Dr. Claudine Mollenkopf, Head of Evonik’s Specialty Additives division. “This investment not only strengthens our position in the polyurethane and epoxy markets, but also highlights our commitment to sustainable growth and innovation.”
The Nanjing plant runs on green electricity and specializes in producing amine-based additives crucial for industries such as construction, automotive, and furnishings. These additives play a significant role as catalysts during polyurethane foam formation. Innovative catalysts also reduce odor and VOC emissions. In November 2023, Evonik signed a Letter of Intent with the Nanjing authorities to expand the plant with construction to be completed in 2026.
“The amine expansion project is key to our business, enabling us to continue serving our customers in the automotive, construction, furniture and consumer goods markets with high-performance amine-based additives,” said Roberto Vila-Keller, Head of the Comfort & Insulation business line. “By expanding our production capabilities in China, bolstering our other sites in Japan and Singapore, we are even better positioned to meet the increasing demand for sustainable polyurethane additives across the region.”
Evonik’s cooperation with the Nanjing government continues to flourish, as demonstrated by the successful groundbreaking ceremony attended by local government officials. This expansion aligns with Evonik’s strategy to enhance competitiveness by leveraging cost-efficient production locations in China.
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