The Urethane Blog
July 9, 2024
Dow, Texas Gulf Coast petrochemical producers begin restarting after hurricane
Jul. 09, 2024 7:35 PM ETDow Inc. (DOW) StockXOM, UNP, BRK.A, BAK, BRK.BBy: Carl Surran, SA News Editor
Texas petrochemical manufacturers are assessing damage from Hurricane Beryl and in some cases are restarting idled facilities, Dow Jones reported Tuesday.
Dow Chemical (NYSE:DOW) said it kept most of its Texas assets running throughout the storm, including sites in Deer Park, Sabine, Texas City and Beaumont.
Dow’s (DOW) huge Freeport petrochem complex, located on the Texas coast ~45 miles northeast of where Beryl made landfall, maintained operations at its major assets.
The company said it has begun the restart processes at its Seadrift, Texas, site, which was shut ahead of Beryl’s arrival.
Braskem (BAK), which had idled its Oyster Creek, Texas, polypropylene plant before the storm, reportedly was in the process of restarting Tuesday afternoon.
Exxon Mobil (XOM) reportedly notified customers that all its PP lines in Texas and Louisiana remained in operation on Tuesday.
Railroads also were making progress on storm recovery efforts, as Union Pacific (UNP) said all its affected track segments except the Galveston area have been returned to service, and Berkshire’s (BRK.A) (BRK.B) BNSF said operations have resumed in the areas of its network affected by Beryl.
July 9, 2024
Certain Alkyl Phosphate Esters From the People’s Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation
A Notice by the International Trade Administration on 07/05/2024
AGENCY:
Enforcement and Compliance, International Trade Administration, Department of Commerce.
DATES:
Applicable July 5, 2024.
FOR FURTHER INFORMATION CONTACT:
Benjamin Nathan or Gregory Taushani, Office II, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, telephone: (202) 482-3834 or (202) 482-1012, respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 13, 2024, the U.S. Department of Commerce (Commerce) initiated a countervailing duty (CVD) investigation of imports of certain alkyl phosphate esters from the People’s Republic of China. Currently, the preliminary determination is due no later than July 17, 2024.
Postponement of Preliminary Determination
Section 703(b)(1) of the Tariff Act of 1930, as amended (the Act), requires Commerce to issue the preliminary determination in a CVD investigation within 65 days after the date on which Commerce initiated the investigation. However, section 703(c)(1) of the Act permits Commerce to postpone the preliminary determination until no later than 130 days after the date on which Commerce initiated the investigation if: (A) the petitioner makes a timely request for a postponement; or (B) Commerce concludes that the parties concerned are cooperating, that the investigation is extraordinarily complicated, and that additional time is necessary to make a preliminary determination. Under 19 CFR 351.205(e), the petitioner must submit a request for postponement 25 days or more before the scheduled date of the preliminary determination and must state the reasons for the request. Commerce will grant the request unless it finds compelling reasons to deny the request.
On June 21, 2024, the petitioner [1] submitted a timely request to postpone the preliminary determination in the investigation.[2] The petitioner stated that postponement of the preliminary determination is necessary because the current schedule does not provide Commerce with adequate time to fully analyze the forthcoming questionnaire responses of the mandatory respondents and issue supplemental questionnaires, as necessary.[3]
In accordance with 19 CFR 351.205(e), the petitioner submitted its request for postponement of the preliminary determination in this investigation 25 days or more before the scheduled date of the preliminary determination and stated the reasons for its request. Commerce finds no compelling reason to deny the request. Therefore, in accordance with section 703(c)(1)(A) of the Act, Commerce is postponing the deadline for the preliminary determination in this investigation to no later than 130 days after the date on which it initiated this investigation. The postponed deadline for the preliminary determination is September 20, 2024. Pursuant to section 705(a)(1) of the Act and 19 CFR 351.210(b)(1), the deadline for the final determination in this investigation will continue to be 75 days after the date of the preliminary determination.
This notice is issued and published pursuant to section 703(c)(2) of the Act and 19 CFR 351.205(f)(1).
Dated: June 28, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Footnotes
1. The petitioner is ICL-IP America, Inc. Back to Citation
2. See Petitioner’s Letter, “Request for Postponement of the Preliminary Determination,” dated June 21, 2024. Back to Citation
3. Id.
[FR Doc. 2024-14760 Filed 7-3-24; 8:45 am]
BILLING CODE 3510-DS-P
July 9, 2024
German chemicals association: Industry past its rock bottom, but export-driven model might be over
By Jonathan Packroff | Euractiv
Est. 3min
0:30 (updated: 7:10)
Content-Type:
Building of industry leader BASF in Ludwigshafen, Germany. [Firn/shutterstock]
Euractiv is part of the Trust Project >>>
Languages: Deutsch
Germany’s chemical industry has overcome its low point, but the previous model of exporting basic chemicals has ended, the sector’s umbrella association VCI said on Monday (8 July).
The group, representing industrial giants such as BASF, Bayer and Fresenius, expects chemical and pharma industry production to climb 3,5% this year and sales to gain 1.5%.
This comes after two years of faltering production – with an aggregate 15% slide between 2021 and 2023.
However, production was still 11% below the “pre-crisis level”, said VCI president Markus Steilemann while presenting the sector’s half-year results in Berlin on Monday, referring to the energy crisis that was triggered by the full-scale invasion of Russia in Ukraine in February 2022.
The recovery was particularly strong in the production of inorganic basic chemicals – such as hydrogen, chlorine and sulphuric acid, which saw a year-on-year increase of 12% in the first six months of 2024.
Similarly, the production of petrochemicals – i.e. chemicals based on oil and gas – saw an increase of 8.5%.
“Energy prices are back at a more tolerable level,” said Steilemann, “and at the same time it has to be said that we still do not have competitive industrial prices for the basic chemicals industry in Germany due to the overall international energy price situation,” he added.
The combination of relatively high electricity prices and high prices for oil and gas derivates, needed as feedstock for some products, “continues to put products manufactured in Germany at a competitive disadvantage,” he said.
In terms of exports, therefore, many basic chemicals produced in Germany are “no longer competitive,” he said.
Hundreds of closures
Steilemann said he believed that “what Germany actually did very successfully in the chemicals sector for many decades up to 2016/2017 – the basic chemicals export model – has come to the end of its life for Germany”.
In 2023, Germany’s biggest chemical company, BASF, made headlines by closing one of its ammonia production sites in Ludwigshafen. The site, which is currently for sale, is only one of numerous examples.
“To our knowledge, around 300 companies in the chemical industry actually ceased operations last year,” Steilemann said, noting,g however, that this would also include small firms such as laboratories.
Nevertheless, he said, “Those who recklessly assumed that production would return 1:1 after the energy crisis were wrong.”
“Unfortunately, for many companies, what’s gone is gone.”
Shift away from prescriptive regulation?
From the next European Commission, Steilemann joined the ranks of many stakeholders calling for the Green Deal to be complemented by an Industrial Deal.
“We need to put a business plan behind this transformation because, so far, it has led to more rules, more regulation – very fine-grained regulation,” he said.
He said the chemical industry alone was affected by 43 laws adopted over the last legislative term. He said this would lead to up to 600 additional regulations, such as implementing acts or national implementation, parts of which are still outstanding.
“In this respect, no matter what approach the new Commission takes, we will initially see a knock-on effect from the legislation of the last Commission,” he said.
German chemicals association: Industry past its rock bottom, but export-driven model might be over
July 8, 2024
Hurricane Beryl shutters Texas coastal shipping lanes
Ports in Houston, Corpus Christi, Galveston, Freeport and Texas City halt operations
· Monday, July 08, 2024
Texas ports along the Gulf Coast closed operations and vessel traffic before Hurricane Beryl made landfall in southeast Texas at 4:30 a.m. Monday CDT as a Category 1 storm packing 94 mph winds, heavy rainfall and the potential for life-threatening storm surges.
Ports in Houston, Corpus Christi, Galveston, Freeport and Texas City were shuttered Sunday morning after the Coast Guard declared condition “Zulu,” according to Reuters.
Under port condition Zulu, all vessel movement and cargo operations are restricted.
“Due to the expected weather, all Port Houston facilities will be closed,” port officials said on X.
They said they would provide an update by noon Monday about Tuesday operations.
Texas ports are major shipping hubs for crude oil, gasoline, liquefied natural gas, steel, automotive goods and chemicals, as well as a variety of consumer commodities.
Rainfall totals in the Houston metro area over the past 24 hours range from 5 to 8 inches. Storm surges of 3 to 7 feet have been reported in parts of the middle and upper Texas coasts.
It’s unclear when the Coast Guard will lift condition Zulu and allow the ports to resume regular operations.
The storm has already caused power outages to more than 1 million homes and businesses in the Houston area, according to The Associated Press. Houston and other parts of southeast Texas have flood warnings in effect until Monday night.
Hurricane Beryl’s track shifted eastward over the past 48 hours, with the storm making landfall in the coastal town of Matagorda, about 95 miles south of Houston. The storm had been predicted to make landfall near or south of Corpus Christi and travel north through Laredo, San Antonio and Austin.
The storm’s path was expected to track through east Texas on Monday and then up toward Shreveport, Louisiana, and Arkansas into Tuesday.
July 8, 2024
Tempur Sealy International, Inc. (TPX) Special Call Transcript
Jul. 08, 2024 9:10 AM ETTempur Sealy International, Inc. (TPX) Stock
Tempur Sealy International, Inc. (NYSE:TPX) Special Call July 8, 2024 8:00 AM ET
Company Participants
Aubrey Moore – Investor Relations
Scott Thompson – Chairman, President & Chief Executive Officer
Scott Thompson
Thank you, Aubrey. Good morning, everyone. And thank you for joining us on our call today. As we announced last week, the FTC has initiated litigation to challenge the combination of Tempur Sealy and Mattress Firm. We felt that sharing a bit more information would be beneficial, not just for investors, but also for our employees and Mattress Firm’s employees who drive the company’s successes. We’re working hard to properly and timely communicate a consistent message to all interested parties.
So, I’d like to take a moment to share some remarks on the current situation, but as I’m sure you’ll understand, as this acquisition is being challenged in court, the company’s commentary is limited. We’ve received some questions via email and we’ll address them as appropriate towards the end of the call. Additionally, we are in a quiet period regarding market conditions and earnings, so I’ll not be able to comment on those topics. We expect to report second-quarter earnings in the coming weeks.
Turning to the topic of the call today, we’ve been working constructively with the FTC to secure regulatory approval for this transaction for over a year. Since complying with the agency’s second request on November 17, 2023, we have voluntarily granted the FTC six extensions of time to complete its review. The FTC has a key role as a regulatory body, and we appreciate their extensive effort to understand the industry and the transaction. While we spent more time in FTC staff review than we planned, we felt it was appropriate given their important job. We are disappointed by the FTC’s position, but have always believed this transaction is consistent with the law, and in the current regulatory environment, we’re prepared for this step.
The bedding industry is highly competitive, offering consumers a diverse selection of products, brands, price points, and purchasing channels. Brick-and-mortar retailers and direct-to-consumer bedding brands sell millions of bedding products online each year. In fact, we believe e-commerce, which includes mattresses at all price points, is the fastest growing channel in our industry. Our own websites provide clear proof point of the ability to sell high-end bedding online. Additionally, there are thousands of brick-and-mortar stores across the United States where consumers can purchase bedding products, only a small fraction of which are operated by Mattress Firm. A quick Google Search or even driving down the street presents numerous bedding distribution options. We remain confident that our combination will unlock incremental benefits for all stakeholders.
In particular, we are confident that the combination will drive exceptional benefits to consumers. Mattress Firm’s strong retail presence complements Tempur Sealy’s manufacturing capability, which facilitates more targeted innovation, improves the customer experience, and ensures high quality, durable products. Additionally, we expect to achieve cost synergies by leveraging our global scale and vertically integrated infrastructure to drive efficiencies through logistics, product lifecycle management, manufacturing optimization, and sourcing initiatives. All of these factors allow us to further execute on Tempur Sealy’s mission to improve sleep of more people’s lives through sleep.
We manufacture 100% of our mattresses we sell domestically in the United States. Let me reread that for you. We manufacture 100% of our mattresses we sell domestically in the United States. Supporting thousands of jobs across 38 states and territories, we disagree with the FTC’s statement that the transaction may harm the U.S. workforce. We’ve had extensive discussions about this transaction with our labor unions representing our employees, and the majority of the unions submitted letters to support the transaction reflecting their belief that the transaction will benefit their members and not adversely impact workers of other bedding companies that they represent. None of the unions representing our employees have expressed opposition to the transaction.
Let me be clear from the start. We have planned for and publicly stated that we see Mattress Firm as a multi-branded bedding retailer. They’ve been a valued retail partner for more than 35 years, and we know one of their many strengths is their diverse offering, which includes leading brands and complementary private label products, providing a broad range of innovative consumer solutions. We are committed to maintaining a curated, comprehensive, and diversified product assortment that is core to their business success and inherent in the intrinsic value of Mattress Firm that we are paying over $4 billion to acquire. Keeping Mattress Firm in multi-brand retail is consistent with how we operate the multi-branded bedding retailers we have acquired in Europe.
In our prior retail acquisitions in the international market, both our brand and others have flourished. Further confirming our intention to run Mattress Firm consistent with its current multi-branded strategy, we also, underscoring the — excuse me, left startup. Furthermore confirming our intention to run Mattress Firm consistent with its current multi-branded strategy, and also underscoring the absence of any possible theory of competitive harm as part of this transaction, we have committed: one, to make a substantial divestiture of stores and supporting infrastructure to rapidly growing US mattress retailer; two, to maintain floor slots at Mattress Firm for third-party brands; and third, to take additional actions. Our slot commitment ensures a portion of the floor will be reserved for the best non-Tempur Sealy products in the market. We’ve successfully engaged with numerous Mattress Firm suppliers on post-merger supply agreements and have executed several, including one with a supplier who does not currently supply Mattress Firm. We’re confident in our pro-competitive rationale of this transaction and look forward to presenting the many benefits of the combination.
We believe that a successful litigation process can be completed in the coming months, which would allow us to close the transaction in late 2024 or early 2025. As I mentioned previously, relative to our original expectations, the timeline has elongated a bit as we worked constructively with the FTC. Lastly, [forward] (ph) to all the Tempur Sealy and Mattress Firm employees who every day provide customers with great products and services. Despite the elongated regulatory process, nothing has dissuaded us from wanting to come together and to continue to succeed. Thank you for your patience and ongoing support for the combination.
Now, let me touch on a couple of questions we’ve heard. What is the process from here? We’re still evaluating the lawsuit to better understand the next steps for our case. Hearing dates had not yet been set, but we expect these to proceed in the next few months.
What is the probability of success? We believe we have a very strong case based on the facts and law. How do you think about your litigation strategy? We’ll try the case in court, not in the public. So I’ll have to pass on all strategy-related questions and the array of what-if scenarios. Good news is, we expect the process to be relatively short to get to judgment. There are numerous questions about competitors’ financial viability with or without this transaction. All I can say is, we have no comment on competitors’ financial conditions.
What court and judge is assigned to the case? The case has been filed in the United States Southern District Court of Texas and assigned to Judge Charles Eskridge. What is plan B for the company if there’s no transaction with Mattress Firm? As we’ve said in the past, the company is deleveraging. And without the transaction, the company will have a low leverage ratio. Without this transaction, we expect to follow our historic process for allocating capital to maximize risk-adjusted returns, which I would expect would result in a material fair repurchase. This will be determined by Tempur Sealy’s Board of Directors.
That concludes our remarks at this time. Thank you for your interest in this transaction and support for the team and our Board of Directors. Operator, that ends the call today.
Operator
Thank you. This does conclude today’s Tempur Sealy International Business Update Call. Thank you for your participation. You may disconnect at any time.
Everchem Updates Archive 
Sign Up for Email Updates