The Urethane Blog

December 12, 2018

Chinese Mattress Company Expanding to SC

China-based memory foam mattress manufacturer coming to Fairfield Co., creating 250 new jobs

The company is expected to launch its new, 650,000-square-foot facility in the first quarter of 2019.

 

China-based memory foam mattress manufacturer coming to Fairfield Co., creating 250 new jobs
By Miranda Parnell | December 11, 2018 at 10:57 AM EST – Updated December 11 at 7:32 PM

FAIRFIELD COUNTY, SC (WIS) – A China-based business is bringing its manufacturing operations to Fairfield County.

Healthcare US Co., Ltd., a memory-foam mattress manufacturer, announced Tuesday that they will invest $45 million into the project and create 250 new jobs. The facility will be located at 1 Guardian Way in Winnsboro.

The company is expected to launch its new, 650,000-square-foot facility in the first quarter of 2019.

“We’re happy to be establishing this new facility in Fairfield County, and we are very appreciative of the ongoing support from both the local and state governments,” Healthcare Co., Ltd. President James Ni said. “This is a milestone for our company, and we are excited to support the community we will soon be calling home.”

The Coordinating Council for Economic Development has awarded a $300,000 Rural Infrastructure Fund grant to Fairfield County to assist with the costs of building renovations.

“South Carolina has been attracting business from all over the world for years because we have worked hard to create a business-friendly climate and a workforce that is second to none,” Gov. Henry McMaster said. “We’re thrilled that Healthcare US Co., Ltd. has chosen to join the ranks of international companies that call our state home and look forward to many years of success.”

Founded in Jiangsu, China in 2003, Healthcare Co., Ltd. is the first publicly-traded, memory-foam mattress manufacturer in China and is now the largest such manufacturer in that country. Becoming a global industry leader, the company has established production operations in both Serbia and Spain, with approximately 3,600 workers worldwide.

Fairfield County Council Chairman Billy Smith says people in the area have been hit hard by the abandonment of the VC Summer expansion, and they’re ready to work.

“Some of those folks are still unemployed and they’re kind of struggling to get by,” Smith said. “So we hope that this will give them some hope.”

Healthcare US is already accepting applications, and they’ll need a variety of jobs to be filled as they go through the process of revamping the property.

“Initially, it’ll be construction,” Smith said. “They’ve got a very automated process, and because of that, the ramp up and getting all that infrastructure in place will take some time, so those will be the first things, and it’ll grow from there.”

The new facility will open on the property where the old Fairfield County Mack Truck plant was located.

Hiring is also slated to begin early next year, and interested applicants should contact healthcare.us@hkfoam.com for more information.

https://www.wistv.com/2018/12/11/china-based-memory-foam-mattress-manufacturer-coming-fairfield-co-creating-new-jobs/

December 10, 2018

Chinese TDI Update

Why the TDI Price Move in a Different Pattern This Year?

2018-12-04    [Source:PUdaily]

share:

  1. Price movement throughout the year

The pattern of global TDI price movement for the full year takes shape as the year of 2018 is drawing to an end. This year, both prices in Renminbi and dollar terms show a downward trend. This is mainly because the facilities of BASF in Germany (with an annual capacity of 300,000 tons) and Sadara in Saudi Arabia (with an annual capacity of 200,000 tons) started normal operation, leading to increased global supply. On the other hand, due to the slowing global economy and growing uncertainties, the growth in demand slows, putting downward pressure on the prices.

But the Renminbi price and dollar one show different patterns of decline. Overall, the dollar price drops sharply. In contrast, the decline of Renminbi price is slower. In May and August, the price even bounced back. But in September and October, on the news that Wanhua put its new facilities into production, the price fell sharply. The patterns of decline are different because few of the additional TDI products from Germany and Saudi Arabia entered China as they mainly went to foreign markets. From January to September, over 11,000 tons of goods from Saudi Arabia entered China, only accounting for about 1% of domestic TDI consumption. This means limited impact on domestic demand and supply. In addition, it is worth mentioning that China exported more than 66,000 tons of TDI for the January-September period, decreasing by about 22% from the same period last year.

  1. Average price for the full year
    The table below shows the TDI average price for 2017-2018. As for the average prices in Renminbi terms, the lower price is offered by Chinese manufacturers in east China, and the higher price is offered by foreign producers in Shanghai. In terms of the average prices in dollar terms, they reflect the price of goods sold in southeast Asia by Japanese and South Korean manufacturers. From the table it can be seen that although the global TDI price is on a downward trajectory, the average price remain high throughout the year, suggesting that TDI manufacturers can still make decent profits. Besides, benefitting from the faster decline in raw material cost than in sponge price the profits of downstream manufacturers rally. However, the dealers are faced with a difficult situation this year. The distinct pattern of price movement compared with the previous years and growing uncertainties have made their decision-making on trading more difficult. As a result, it is harder for them to make a profit.
  2018 (January-November) 2017 (January-November) Change
Average price in RMB 29,080-29,864 31,087-31,802 -6%
Asian average price in USD 3,667-3,802 3,790-3,904 -3%

 

3.Recent price movement
The recent TDI price has broken the law that the price will surely fall after it consolidates for a while. In the second half of November, the price neither went up nor fell. It didn’t go up because whether Wanhua would put into production its new facilities remained uncertain. And it didn’t fall due to short supply of goods from Shanghai. During the second half of the month, the trading remained thin and the market players were pessimistic about the future. The long sideways movement suggests that currently balance has been struck between supply and demand. The future movement of the price depends more on supply and demand than market players’ mentality.

http://www.pudaily.com/News/NewsView.aspx?nid=75067

December 10, 2018

Chinese TDI Update

Why the TDI Price Move in a Different Pattern This Year?

2018-12-04    [Source:PUdaily]

share:

  1. Price movement throughout the year

The pattern of global TDI price movement for the full year takes shape as the year of 2018 is drawing to an end. This year, both prices in Renminbi and dollar terms show a downward trend. This is mainly because the facilities of BASF in Germany (with an annual capacity of 300,000 tons) and Sadara in Saudi Arabia (with an annual capacity of 200,000 tons) started normal operation, leading to increased global supply. On the other hand, due to the slowing global economy and growing uncertainties, the growth in demand slows, putting downward pressure on the prices.

But the Renminbi price and dollar one show different patterns of decline. Overall, the dollar price drops sharply. In contrast, the decline of Renminbi price is slower. In May and August, the price even bounced back. But in September and October, on the news that Wanhua put its new facilities into production, the price fell sharply. The patterns of decline are different because few of the additional TDI products from Germany and Saudi Arabia entered China as they mainly went to foreign markets. From January to September, over 11,000 tons of goods from Saudi Arabia entered China, only accounting for about 1% of domestic TDI consumption. This means limited impact on domestic demand and supply. In addition, it is worth mentioning that China exported more than 66,000 tons of TDI for the January-September period, decreasing by about 22% from the same period last year.

  1. Average price for the full year
    The table below shows the TDI average price for 2017-2018. As for the average prices in Renminbi terms, the lower price is offered by Chinese manufacturers in east China, and the higher price is offered by foreign producers in Shanghai. In terms of the average prices in dollar terms, they reflect the price of goods sold in southeast Asia by Japanese and South Korean manufacturers. From the table it can be seen that although the global TDI price is on a downward trajectory, the average price remain high throughout the year, suggesting that TDI manufacturers can still make decent profits. Besides, benefitting from the faster decline in raw material cost than in sponge price the profits of downstream manufacturers rally. However, the dealers are faced with a difficult situation this year. The distinct pattern of price movement compared with the previous years and growing uncertainties have made their decision-making on trading more difficult. As a result, it is harder for them to make a profit.
  2018 (January-November) 2017 (January-November) Change
Average price in RMB 29,080-29,864 31,087-31,802 -6%
Asian average price in USD 3,667-3,802 3,790-3,904 -3%

 

3.Recent price movement
The recent TDI price has broken the law that the price will surely fall after it consolidates for a while. In the second half of November, the price neither went up nor fell. It didn’t go up because whether Wanhua would put into production its new facilities remained uncertain. And it didn’t fall due to short supply of goods from Shanghai. During the second half of the month, the trading remained thin and the market players were pessimistic about the future. The long sideways movement suggests that currently balance has been struck between supply and demand. The future movement of the price depends more on supply and demand than market players’ mentality.

http://www.pudaily.com/News/NewsView.aspx?nid=75067

December 6, 2018

More California Regs

California Bans Sale of Upholstered Products Containing FRs Above 1000ppm

Published on 2018-11-29. Author : SpecialChem

TAGS:  Flame Retardants 

California has joined states to ban flame retardants in certain household products. Starting January 1, 2020, it will be prohibited to sell or distribute children’s products, mattresses, and upholstered furniture that contain flame retardants in concentrations above 1,000 parts per million (ppm) in the state of California.

Link Between Flame Retardants and Various Health Problems

FR-ban-california
California has joined states to ban flame
retardants in certain household products

In passing the bill, the Legislature cited proof that flame retardants do little to increase fire safety, and expressed concerns about the link between flame retardants and various health problems, such as developmental problems in children and cancer.

Implementing Rules and Regulations

The law needs the International Sleep Products Association to survey mattress producers every three years to determine what materials are being used to meet flammability standards.

The Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation is sanctioned to enforce the new law and adopt implementing rules and regulations.

California is one of a number of states that have banned flame retardants or specific chemicals commonly used in FRs.

San Francisco’s Flame Retardant Ban to Take Effect

  • On January 1, 2019, San Francisco’s similar ban on sale of upholstered furniture and juvenile products containing flame retardants goes into effect
  • From next year, it will be prohibited to sell upholstered furniture, reupholstered furniture, or juvenile products which have been made with, or contain a flame retardant chemical at a level above 1, 000 parts per million.
  • The same ban goes into effect on July 1, 2019 for similar products that have electrical or electronic components.

Labeling Requirements

  • In addition to banning the sale of products with added flame retardants, the San Francisco ordinance includes labeling requirements for all upholstered furniture and children’s products sold in the city.
  • The products must be affixed with labels that state that the item does not contain the flame retardants.
  • The labels required by San Francisco’s ordinance are the same as those currently required under California’s SB 1019, but the label must be marked to indicate that the upholstery materials contain NO added flame retardant chemicals.

Penalties for Violation

Penalties for violation of the ordinance may not exceed $1,000 per day per violation, with each day constituting a separate violation, and each product for sale also constituting a separate violation. In determining the appropriate penalty, the Director or the court will consider “the extent of harm caused by the violation, the nature and persistence of the violation, the frequency of past violations, any action taken to mitigate the violation, and the financial burden to the violator.”

Source: SpecialChem

https://polymer-additives.specialchem.com/news/industry-news/california-bans-frs-1000ppm-000216623?lr=ipa1812478&li=200190118&utm_source=NL&utm_medium=EML&utm_campaign=ipa1812478&m_i=7YU9LhTjW8hfOIEYf65YWIwC6mJd8Bc_vz%2BqhyypxaX9Lim_s3zYo0mLu6nzI55aCE71W_47xZn0%2BfY8bvm6Yxn0nXkx7%2B

December 6, 2018

More California Regs

California Bans Sale of Upholstered Products Containing FRs Above 1000ppm

Published on 2018-11-29. Author : SpecialChem

TAGS:  Flame Retardants 

California has joined states to ban flame retardants in certain household products. Starting January 1, 2020, it will be prohibited to sell or distribute children’s products, mattresses, and upholstered furniture that contain flame retardants in concentrations above 1,000 parts per million (ppm) in the state of California.

Link Between Flame Retardants and Various Health Problems

FR-ban-california
California has joined states to ban flame
retardants in certain household products

In passing the bill, the Legislature cited proof that flame retardants do little to increase fire safety, and expressed concerns about the link between flame retardants and various health problems, such as developmental problems in children and cancer.

Implementing Rules and Regulations

The law needs the International Sleep Products Association to survey mattress producers every three years to determine what materials are being used to meet flammability standards.

The Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation is sanctioned to enforce the new law and adopt implementing rules and regulations.

California is one of a number of states that have banned flame retardants or specific chemicals commonly used in FRs.

San Francisco’s Flame Retardant Ban to Take Effect

  • On January 1, 2019, San Francisco’s similar ban on sale of upholstered furniture and juvenile products containing flame retardants goes into effect
  • From next year, it will be prohibited to sell upholstered furniture, reupholstered furniture, or juvenile products which have been made with, or contain a flame retardant chemical at a level above 1, 000 parts per million.
  • The same ban goes into effect on July 1, 2019 for similar products that have electrical or electronic components.

Labeling Requirements

  • In addition to banning the sale of products with added flame retardants, the San Francisco ordinance includes labeling requirements for all upholstered furniture and children’s products sold in the city.
  • The products must be affixed with labels that state that the item does not contain the flame retardants.
  • The labels required by San Francisco’s ordinance are the same as those currently required under California’s SB 1019, but the label must be marked to indicate that the upholstery materials contain NO added flame retardant chemicals.

Penalties for Violation

Penalties for violation of the ordinance may not exceed $1,000 per day per violation, with each day constituting a separate violation, and each product for sale also constituting a separate violation. In determining the appropriate penalty, the Director or the court will consider “the extent of harm caused by the violation, the nature and persistence of the violation, the frequency of past violations, any action taken to mitigate the violation, and the financial burden to the violator.”

Source: SpecialChem

https://polymer-additives.specialchem.com/news/industry-news/california-bans-frs-1000ppm-000216623?lr=ipa1812478&li=200190118&utm_source=NL&utm_medium=EML&utm_campaign=ipa1812478&m_i=7YU9LhTjW8hfOIEYf65YWIwC6mJd8Bc_vz%2BqhyypxaX9Lim_s3zYo0mLu6nzI55aCE71W_47xZn0%2BfY8bvm6Yxn0nXkx7%2B