Dow Information
1. Dow: Evaluate the European polyurethane business and plan to shut down the propylene oxide plant
On Oct. 24, Dow announced that it is conducting a strategic review of its European assets, which it aims to complete by mid-2025, and expects fourth-quarter revenue to be lower than expected.
According to Dow, the move is necessary in Europe because of weak demand recovery and competitive regulatory policies. In 2023, Dow's sales in Europe, the Middle East, Africa and India (EMEAI) region were about $14.5 billion, more than 15% lower than in 2021, of which European asset sales were about $3 billion, accounting for about 20%, mainly concentrated in the polyurethane field.
In addition, Dow also announced plans to close its propylene oxide (PO) plant in Freeport, Texas, USA, in 2025, which has a capacity of 550,000 tons/year, accounting for about 20% of the industry's capacity in North America. However, the company's Plaquemine, Louisiana facility will continue to produce PO. The closure of the above plants is mainly related to capacity optimization. Due to the surge in the global supply of propylene oxide over the past few years, there has been an oversupply and low operating rates. (Source: DT New Materials)
2. Dow's cumulative net profit in the first three fiscal quarters increased by 63.71% year-on-year
DOW (DOW) released Q3 financial results, the cumulative revenue of the first three fiscal quarters of 2024 was 32.559 billion US dollars, the cumulative revenue of the same period last year was 34.01 billion US dollars, a decrease of 4.24%.
The cumulative net profit for the first three fiscal quarters of 2024 was $1.236 billion, compared with $755 million in the same period last year, an increase of 63.71%. Cumulative basic earnings per share for the fiscal year were $1.65, compared to $0.97 in the same period last year. (Source: Flush Finance)
The Henkel Polyurethane production plant in Dusseldorf, Germany is ISCC PLUS certified
Henkel Adhesive Technologies' polyurethane production in Dusseldorf, Germany has recently received the international sustainable carbon certification ISCC PLUS certification. Following Drogenbos in Belgium and Bopfingen in Germany, this is Henkel's third ISCC PLUS certified polyurethane production facility in Europe. Therefore, Henkel is meeting the growing demand of its customers for the use of bio-based raw materials, thus ensuring product traceability, which is an important competitive advantage in the market.
ISCC PLUS is a globally recognized certification system for the sustainability of alternative raw materials. An important criterion for certification is the use of a mass balance model to move from fossil-based feedstocks to biobased, recycled or CO2-based feedstocks. In order for a product or production to be recognized as ISCC compliant, every participant in the supply chain must be certified - from the origin to the retailer and warehouse. Cagri Turkman, Market Strategy Manager for Flexible Packaging adhesives at Henkel Europe, said: "The use of bio-based materials in packaging is an important aspect of sustainable sourcing. A responsible approach in the selection of raw materials ensures that the LOCTITE ® Liofol series significantly reduces its carbon footprint, thereby minimising its environmental impact." (Credit: Henkel)
The United States may impose 600% tariffs on Chinese exports of paper and plastic packaging
On October 8, 2024, the United States initiated an anti-dumping and countervailing investigation into thermoforming molded fiber products originating in China and Vietnam (US Customs Code: 4823.70.0020 and 4823.70.0040).
The products in question include thermoformed molded fiber products, including but not limited to plates, bowls, clam shells, trays, LIDS, food or foodservice contact packaging, and consumer or other product packaging.
As of October 8, 2024, any fiber molding products imported from China and Vietnam may be subject to retroactive anti-dumping or countervailing duties. According to preliminary estimates, China's exports may be as high as 604.4% tariff, and Vietnam's exports may be as high as 328.52% tariff!
Due to the main market of China's pulp molding packaging overseas, especially disposable meal kits, almost all exports to the United States and the European Union. Due to the domestic ban on plastic in recent years, the paper meal kit market has been further eroded by cheaper plastic meal kits. Therefore, the move of the United States may be a fatal blow to China's paper and plastic packaging industry. (Source: Paper-plastic governor)
A new bipartisan bill in the United States: plastic packaging contains at least 30% recycled materials
Recently, the US Congress introduced a bipartisan bill, the Accelerating Plastic Circular Economy and Recycling Innovation Act of 2024, which aims to drive plastic recycling improvements across the United States to increase the use of recycled materials in packaging.
Under the Act, the incineration or burning of plastics is not considered chemical recycling. The bill also proposes to establish a third-party certification system for the quality balance of chemical recycled plastic raw materials.
The bill also requires the content of recycled materials in plastic packaging to reach at least 30% by 2030. This standard will significantly boost the recycling rate of plastic packaging in the United States and incentivise the use of packaging designed for recycling, which is currently only about 13%. The bill is expected to more than double that proportion by 2030, laying a solid foundation for even higher levels of recycling in the coming years. The bill has broad support from the plastics industry.