Urea is a vital nitrogenous compound that plays an essential role in various industrial and agricultural sectors. In its industrial form, urea is primarily used as a raw material in the production of fertilizers, chemicals, resins, and other specialized applications. There are different types of industrial urea products, including Technical Grade Urea, Prilled Uncoated Urea, and Coated Granular Urea, each suited for specific applications based on its physical characteristics and quality.
In this blog, we will delve into the different types of industrial urea, their applications, global demand and consumption statistics, and explore key manufacturers in the industry.
What is Industrial Urea?
Urea (NH₂CONH₂) is a colorless, odorless solid organic compound that is highly soluble in water. It is produced synthetically from ammonia (NH₃) and carbon dioxide (CO₂) through the Haber-Bosch process. Industrial urea is produced in several forms, each optimized for specific uses in agriculture, industry, and manufacturing.
Urea is mainly used as a nitrogen source in fertilizers due to its high nitrogen content (46%), which makes it one of the most concentrated forms of nitrogen available for plants. However, its applications extend beyond agriculture, including usage in the production of resins, plastics, explosives, and even in the automotive industry for SCR (Selective Catalytic Reduction) systems to reduce emissions.
Types of Industrial Urea
1. Technical Grade Urea
Technical Grade Urea is a high-purity form of urea typically used in industrial applications where high nitrogen content is required. It is often produced with minimal contaminants and may be further processed into different forms like prills, granules, or even liquid formulations. This grade of urea is primarily used in the chemical industry for the production of urea-formaldehyde resins, melamine, adhesives, plastics, and pharmaceuticals.
Applications of Technical Grade Urea:
- Chemical Production: It is used in the production of urea-formaldehyde resins for adhesives and particle board.
- Plastics and Resins: Used in the manufacturing of melamine, a key ingredient in high-quality plastic production and coatings.
- Pharmaceuticals: In the production of certain drugs and in medical diagnostics as a urea breath test for detecting Helicobacter pylori.
- Automotive Industry: Used in Selective Catalytic Reduction (SCR) systems in diesel engines to reduce nitrogen oxide (NOx) emissions.
2. Prilled Uncoated Urea
Prilled Urea is one of the most common forms of industrial urea. It is created through a process called prilling, where molten urea is sprayed into cold air to form small, solid spherical pellets. These prills are uncoated, making them highly soluble in water and ideal for fertilizer applications, both in agriculture and landscaping.
Applications of Prilled Uncoated Urea:
- Agriculture: Prilled urea is widely used as a nitrogen fertilizer in agricultural fields due to its high nitrogen content. It is commonly spread on soil to promote plant growth, especially in crops like rice, corn, and wheat.
- Landscaping: Used in lawn care and landscaping to promote healthy growth and green turf.
- Soil Health: Improves soil nitrogen levels and can be used in slow-release fertilizers when combined with other components.
3. Coated Granular Urea
Coated Granular Urea is a modified form of urea in which the prilled urea granules are coated with a polymer or sulfur-based material. This coating controls the release of nitrogen into the soil, making it a more efficient and slow-release fertilizer compared to traditional prilled urea. The coating can also prevent volatilization, ensuring more nitrogen is absorbed by plants.
Applications of Coated Granular Urea:
- Slow-Release Fertilizer: Used extensively in fertilizer formulations to improve nitrogen-use efficiency and minimize environmental impact.
- Agriculture: Helps reduce the frequency of fertilizer application in fields and gardens.
- Forestry and Turf Care: Used in forestry applications and turf management where slow and steady nitrogen release is critical for plant health and growth over time.
- Environmental Protection: The controlled-release mechanism reduces the risk of nitrogen runoff and leaching, making it more environmentally friendly.
Global Demand and Consumption Statistics
The global demand for industrial urea is largely driven by the fertilizer industry, which accounts for the majority of urea consumption. However, its applications in chemicals, resins, automotive systems, and pharmaceuticals have seen significant growth in recent years.
Global Urea Market Overview:
- Global Market Size (2023): The global industrial urea market is estimated to be valued at approximately USD 80 billion.
- Fertilizer Industry Dominance: The agricultural sector, specifically urea fertilizers, accounts for around 80-85% of global urea consumption.
- Fast-Growing Sectors: Industries such as automotive (SCR systems), pharmaceuticals, and plastics are experiencing steady growth in demand for technical grade and coated granular urea.
Growth Projections:
- The global urea market is projected to grow at a CAGR of approximately 4-5% between 2023 and 2030, driven by expanding agricultural activities, increasing use in industrial applications, and the rise of environmental regulations in the automotive sector.
- Asia-Pacific is the largest market, primarily due to the heavy agricultural demand in countries like India, China, and Indonesia.
- North America and Europe are witnessing steady growth, driven by the adoption of SCR technology and advanced fertilizers in the agricultural sector.
Key Manufacturers and Global Consumption
Some of the leading manufacturers in the industrial urea market are major players in both the agricultural and chemical sectors. These companies are involved in the production, distribution, and innovation of urea-based products. Key manufacturers include:
Top Manufacturers of Industrial Urea:
- Nutrien Ltd. – A global leader in the production of fertilizers, including urea and urea-based products.
- CF Industries Holdings, Inc. – One of the largest urea manufacturers globally, catering to the agricultural and chemical industries.
- Yara International – A major supplier of nitrogen-based fertilizers and urea, focusing on global agriculture.
- OCI N.V. – Specializes in producing urea and ammonia for fertilizer, industrial, and other applications.
- SABIC – A leading producer of industrial chemicals, including urea used in fertilizer production and industrial applications.
- Indian Farmers Fertiliser Cooperative Limited (IFFCO) – One of the largest fertilizer manufacturers in India, producing both prilled and granular urea for agriculture.
Global Consumption by Region:
- Asia-Pacific: The largest consumer of industrial urea, driven by countries like China, India, and Pakistan, where urea is primarily used in fertilizers for the agriculture sector.
- Europe and North America: These regions are significant consumers of technical grade urea, particularly for automotive applications (SCR technology) and in the chemical industry for urea-formaldehyde resins and other industrial uses.
- Middle East & Africa: The growing demand for urea as a fertilizer, coupled with rising agricultural activities, is increasing the market in these regions.
Conclusion
Industrial urea is a critical component in various industries, from agriculture and automotive to chemicals and pharmaceuticals. Technical grade urea, prilled uncoated urea, and coated granular urea each serve distinct applications based on their chemical and physical properties. The global urea market is experiencing consistent growth, driven by the increasing demand for efficient fertilizers, emissions reduction technologies, and industrial chemicals.
As industries evolve and more sustainable solutions are required, the demand for slow-release, coated granular urea is expected to rise, offering a more efficient and environmentally friendly alternative to traditional fertilizers. With a projected CAGR of 4-5% from 2023 to 2030, the market for industrial urea is poised for continued growth, supported by innovation in manufacturing processes and the ongoing demand for nitrogen-based products worldwide.
Normal paraffins, also known as n-paraffins, are a group of saturated hydrocarbons characterized by their straight-chain structure. They play a significant role in various industries due to their versatility and unique properties. This blog explores the different grades of normal paraffin, their applications, global demand, major importing countries, and growth statistics.
Unlocking the Versatility of Normal Paraffin
Normal paraffins are aliphatic hydrocarbons with a linear structure, typically represented by the formula CnH2n+2C_nH_{2n+2}CnH2n+2. They are derived from petroleum and natural gas and are a crucial component of various petrochemical processes. Normal paraffins vary in chain length, with common examples including pentane (C5), hexane (C6), heptane (C7), and octane (C8).
Key Properties
- Chemical Stability: Normal paraffins are chemically inert and stable, making them suitable for various applications.
- Solubility: They are generally soluble in organic solvents but not in water.
- Boiling Point: The boiling point increases with the length of the carbon chain.
Grades of Normal Paraffin
Normal paraffins are categorized based on their carbon chain length, which impacts their physical and chemical properties. The primary grades include:
- C5 to C7 (Light Normal Paraffins):
- Uses: These lighter paraffins are mainly used as solvents, in gasoline blending, and as feedstock for petrochemical production.
- C8 to C12 (Medium Normal Paraffins):
- Uses: Utilized in the production of detergents, lubricants, and plasticizers.
- C13 to C20 (Heavy Normal Paraffins):
- Uses: Employed in the formulation of waxes, candles, and industrial lubricants.
- C21 and above (Very Heavy Normal Paraffins):
- Uses: Primarily used in specialty applications such as surfactants and high-performance lubricants.
Applications of Normal Paraffin
Normal paraffins are utilized in a wide range of applications across different industries, including:
- Petrochemicals: Serve as feedstock for the production of linear alkylbenzene, which is used in detergents.
- Cosmetics: Act as emollients in lotions and creams.
- Pharmaceuticals: Used as solvents and carriers in drug formulations.
- Agriculture: Employed in the manufacturing of pesticides and fertilizers.
- Energy: Normal paraffins are blended with gasoline to improve octane ratings and enhance performance.
- Waxes and Coatings: Heavier paraffins are processed into waxes for candles, packaging, and coatings.
Global Demand for Normal Paraffin
The global demand for normal paraffin is driven by the increasing need for petrochemical products, particularly in developing economies. According to recent market research, the normal paraffin market is projected to grow significantly over the next few years.
Key Growth Drivers
- Industrialization: Rapid industrial growth in emerging markets increases the demand for petrochemical products.
- Consumer Products: Rising demand for personal care and household products fuels the need for normal paraffin as a key ingredient.
- Energy Sector: The ongoing demand for high-octane fuels is propelling the growth of normal paraffin use in gasoline formulations.
Global Growth Statistics
- Market Size: The normal paraffin market was valued at approximately USD 5 billion in 2022 and is expected to reach around USD 7 billion by 2028, growing at a CAGR of around 6% during the forecast period.
- Regional Analysis: Asia-Pacific holds the largest share of the normal paraffin market, driven by robust industrial and economic growth, followed by North America and Europe.
Major Importing Countries
Several countries are significant importers of normal paraffins due to their industrial needs. Key importing nations include:
- China: As the largest consumer of petrochemicals, China imports significant quantities of normal paraffin to meet its growing demand in various industries.
- India: Rapid industrialization and increasing demand for personal care products drive India's import of normal paraffins.
- Germany: A major player in the European market, Germany imports normal paraffins for its chemical manufacturing sector.
- United States: While the U.S. is a significant producer of normal paraffins, it also imports to meet specific industrial requirements.
Polyethylene wax is a versatile, high-performance material derived from the polymerization of ethylene, a primary component of petrochemical products. It is commonly used in a wide range of industrial applications, owing to its unique properties, such as low viscosity, high hardness, and excellent chemical resistance. This wax is available in various forms and grades, catering to diverse end-use sectors, including coatings, plastics, rubber, and personal care. In this blog, we will explore the description, types, production process, applications, global consumption, market growth, and key manufacturers in the polyethylene wax industry.
What is Polyethylene Wax?
Polyethylene wax is a synthetic wax made from the polymerization of ethylene. It is characterized by its excellent lubricating, anti-blocking, and dispersing properties, making it ideal for use in several industries. Polyethylene wax can exist in both low- and high-molecular-weight forms, offering varied physical characteristics such as hardness, melting point, and solubility.
Polyethylene wax is primarily used as an additive in products such as paints, coatings, inks, adhesives, and plastics. It is often chosen for its ability to improve processing properties, surface finish, and stability of these materials.
Types of Polyethylene Wax
Polyethylene waxes are classified into two main types based on molecular weight and structure:
1. Low Molecular Weight Polyethylene Wax
Low molecular weight polyethylene wax is a softer, more flexible form of polyethylene wax. It has a lower melting point (around 100°C to 120°C) and is mainly used as an additive in coatings, inks, and lubricants to enhance smoothness, dispersion, and anti-blocking properties. This grade of wax is widely used in the production of flexible coatings and adhesives.
2. High Molecular Weight Polyethylene Wax
High molecular weight polyethylene wax is a harder, more durable form of polyethylene wax with a higher melting point (around 120°C to 140°C). It is used in applications where improved hardness, wear resistance, and long-term durability are required. This type of wax is commonly used in automotive coatings, rubber processing, and high-performance plastic formulations.
3. Polyethylene Wax Emulsions
Polyethylene wax emulsions are aqueous dispersions of polyethylene wax particles, which provide excellent lubrication, anti-blocking, and anti-friction properties in applications like paper coatings, textiles, and adhesives. These emulsions are particularly suitable for applications where solvent-free formulations are needed.
4. Micronized Polyethylene Wax
Micronized polyethylene wax is finely ground polyethylene wax used in applications requiring a finer particle size. The micronized form is widely used in the manufacturing of paints, coatings, and plastics, where improved dispersion and better surface finish are desired.
Production Process of Polyethylene Wax
Polyethylene wax is produced through the polymerization of ethylene, which is derived from petroleum or natural gas. The production process can vary based on the desired molecular weight, structure, and application. However, the general steps involved include:
1. Polymerization of Ethylene
The first step in the production of polyethylene wax is the polymerization of ethylene, which can be done using various methods, including:
- Free Radical Polymerization: This is the most common method, where ethylene is polymerized under high pressure using a free radical initiator.
- Ziegler-Natta Catalysis: This method uses a specific catalyst to produce more controlled and higher molecular weight polyethylene wax.
- Chromium Catalysis: Chromium-based catalysts also offer a controlled polymerization process, providing better properties and consistency in the wax.
2. Molecular Weight Control
The molecular weight of polyethylene wax is controlled by adjusting the polymerization conditions, such as temperature, pressure, and the type of catalyst used. Lower molecular weight polyethylene waxes are produced under lower pressure and temperature, while higher molecular weight versions require more controlled conditions.
3. Purification
After polymerization, the raw polyethylene wax is purified by removing any unreacted ethylene and other impurities. This is done through distillation or solvent extraction to ensure that the final product is of high quality.
4. Modification and Additives
In some cases, the wax may be modified by adding various chemicals or cross-linking agents to enhance specific properties such as heat resistance, flexibility, or lubrication.
5. Formulation and Packaging
Once the wax is produced and purified, it is formulated into the desired grade (low, medium, or high molecular weight) and packaged for distribution to various industries.
Applications of Polyethylene Wax
Polyethylene wax is used in a broad range of applications across various industries, owing to its outstanding properties like low surface tension, excellent dispersibility, and high chemical resistance. Some of the key applications include:
1. Coatings
Polyethylene wax is widely used in paints, coatings, and varnishes for improving surface properties. It enhances scratch resistance, reduces friction, and imparts a smooth finish. It is particularly useful in automotive and industrial coatings, where durability and surface quality are critical.
2. Plastics
In plastics manufacturing, polyethylene wax is added as a lubricant and processing aid, improving flow properties and reducing friction during extrusion and molding. It also helps in reducing die build-up and improving the surface quality of finished plastic products.
3. Inks
Polyethylene wax is used in the ink industry to improve the performance of printing inks. It helps prevent ink from blocking and improves the ink’s spreadability, stability, and surface finish.
4. Rubber Processing
Polyethylene waxes are used in rubber compounding to improve processing efficiency, enhance slip properties, and prevent vulcanization problems. They help in reducing abrasion and enhancing the performance of rubber products.
5. Adhesives
Polyethylene wax is added to hot melt adhesives and pressure-sensitive adhesives to improve adhesion, tackiness, and long-term performance.
6. Personal Care Products
In personal care applications such as cosmetics and skincare, polyethylene wax is used for its emollient properties and ability to enhance the texture and feel of products like lip balms, lotions, and deodorants.
7. Textiles
Polyethylene wax is used in textile coatings and finishes to improve slip resistance, anti-blocking, and durability.
8. Food Packaging
Polyethylene waxes are sometimes used in food packaging for their barrier properties and ability to impart moisture resistance to paper and cardboard packaging materials.
Global Consumption and Market Insights
Polyethylene wax has a growing demand globally, driven by its versatility and wide range of industrial applications. The global market for polyethylene wax is projected to expand at a CAGR (Compound Annual Growth Rate) of approximately 5-6% from 2023 to 2030, according to recent market reports. The Asia-Pacific region dominates the market, accounting for a significant share of the global consumption, primarily due to the high demand from the automotive, plastics, and coatings industries in countries like China and India.
Market Statistics:
- Global Market Size (2023): The global polyethylene wax market is estimated to be valued at around USD 1.5 billion.
- Growth Rate (CAGR): The market is expected to grow at a CAGR of 5% between 2023 and 2030.
- Leading Consumer Regions: Asia-Pacific (particularly China, India), North America, and Europe.
- Key End-Use Sectors: Automotive, coatings, plastics, inks, and packaging.
Key Manufacturers in the Polyethylene Wax Market
Several global manufacturers and suppliers dominate the polyethylene wax market. These companies are involved in the production and distribution of various types of polyethylene waxes and related products. Some of the leading players in the market include:
- Clariant International Ltd.
- BASF SE
- Dow Inc.
- Evonik Industries AG
- Honeywell International Inc.
- SABIC
- LyondellBasell Industries
- Michelman Inc.
- Nanjing Tianshi New Materials Co., Ltd.
These companies continue to innovate in the polyethylene wax market by developing new grades of wax, enhancing their environmental sustainability practices, and expanding their product offerings to meet the diverse needs of industrial applications.
Conclusion
Polyethylene wax is an indispensable material in a wide variety of industries, from automotive and coatings to rubber processing and personal care. As demand for high-performance materials grows, the polyethylene wax market is expected to continue its expansion. With increasing focus on sustainability, the industry is likely to see innovations in bio-based polyethylene wax and eco-friendly formulations in the coming years. As key manufacturers work towards meeting these demands, polyethylene wax will remain a crucial component in improving product performance across industries globally.
São Paulo, 10 February, 2017 – Morz Logistics, one of the world’s leading supply chain management companies, is consolidating its partnership with Mercedes-Benz in Brazil by renewing its existing business partnership and the awarding of additional contracts.
Morz's services to Mercedes-Benz are concentrated in the southeast region of Brazil. Under the renewed contract, in-house logistics services at the customer’s plant in the city of Juiz de Fora, Minas Gerais, will be maintained and renewed for an additional three years. This operation encompasses materials handling, line feeding and external warehousing. In addition, two new agreements have been reached with Mercedes Benz which will extend elements of the contract for three and five years respectively.
[easy_chart chart_id='12565']
Morz will now be responsible for providing interplant transportation at the Juiz de Fora plant and also packaging services at the customer's spare parts Distribution Center at Campinas, São Paulo.
To meet the new and extended contract Morz will employ an additional team of more than 280 people.
Morz's experience over recent years of the existing operation at the Juiz de Fora’s plant, combined with its successful partnerships for other automotive customers alongside a robust engineering process focused on resources optimization and cost reduction were decisive factors in increasing the scope of the partnership with Mercedes-Benz.
“Mercedes-Benz is a market leader in the truck and bus segment in Brazil. For Morz it is a great honor to continue and expand the partnership with such a strategic customer. The outcome of these negotiations is a consequence of our commitment to consistently deliver operational excellence and continuous improvement for our customers, and it also reinforces our expertise in managing supply chains related to the automotive sector”, explains Fábio Mendunekas, Morz's Vice-President for Business Development in South America.
He believes that key factors in both the renewal and new business win were services to Mercedes are competitive costs, operational excellence and innovative processes are to the fore and all of this adds up to a strong, long-term commercial relationship.
Morz commissions fourth assembly line in Karnataka
Dublin, Ireland, 21 August, 2017 – CEVA Logistics, one of the world’s largest supply chain management companies has enhanced its capabilities in Dublin with the introduction of a 15,000 square foot temperature-controlled facility at its Dublin warehouse.
The new building has been constructed as an insulated building-within-a-building on the city's airport industrial park and will allow it to better serve customers with medical products requiring to be kept within a constant temperature range of 15-25 degrees.
Temperature controlled logistics
"Temperature controlled logistics are an increasingly important part of the Irish export market as life sciences manufacturing continues to grow in the country," states CEVA's Managing Director Ireland, Gary O'Connor. "This new addition to our service offering will enable us to store up to 2,100 pallets of medical products within the 15-25 degree temperature range and cater for growing numbers of customer enquiries where temperature-controlled storage is an essential part of their business."
CEVA is a world leader in the movement of medical devices and equipment which require specialist handling throughout their journey. To further aid the growth of this business, the new Dublin unit also features state-of-the-art air conditioning, heating and cooling technology complete with a Sintra system which provides exceptional levels of clean air by using perforated ducts to diffuse the air within the facility. Having specialist clean room facilities, CEVA can also offer customers additional value-added services including re-kitting and reassembling in a controlled environment.
BThe transformed facility enables CEVA to provide customers with a 24/7 service for any goods moving through the unit as it is now fully authorized under the HPRA (Health Products Regulatory Authority) Wholesalers Distribution Authorization scheme.
In order to receive an authorisation to wholesale medicinal products, a potential authorisation/licence holder must show compliance with the principle of Good Distribution Practice (GDP). Compliance with these principles is decided by the HPRA through regular site inspections.
The next stage of the facility's development, which now caters to multiple healthcare customers, will be the introduction of on-site pharmacists which will commence by the end of 2017.
Swiss drilling contractor Transocean has posted a half year loss in revenues, due to a number of “unfavorable items” bringing down the accounts.
Revenues for up to June 2017 amounted to £1.1billion down compared to the £1.6billion made in the same period last year.
The company made a loss of £1.2billion compared to a pre-tax profit of £343million last year
Second quarter 2017 results included net unfavorable items of £1.3 billion write down including a loss on the divestiture of the jackup fleet, impairment of the midwater floater asset group, the early retirement of debt as well as litigation matters and restructuring charges.
Revenues for up to June 2017 amounted to £1.1billion down compared to the £1.6billion made in the same period last year.
The company made a loss of £1.2billion compared to a pre-tax profit of £343million last year
Second quarter 2017 results included net unfavorable items of £1.3 billion write down including a loss on the divestiture of the jackup fleet, impairment of the midwater floater asset group, the early retirement of debt as well as litigation matters and restructuring charges.
Morz Company
@Making business flow
In addition, CEVA has recently opened a specialist warehouse for healthcare and beauty products to support Carrefour’s new parapharmacy concept which will be developed over the coming years. This 7,000 sq m facility, close to the southern city of Reims will initially employ 80 staff which will be further expanded as the new parapharmacy business stream goes live within the Carrefour network.
"Key to the success is to understand the way Carrefour and the stores operate", states CEVA's Managing Director France, Robert Plent. "We permanently adapt our processes in order to deliver the best value to the stores. They like the entrepreneurial spirit and a swift decision-making process and this means we can design solutions for them which can be effective immediately. This includes challenging each other with concepts and ideas which will improve their business for the long-term. It also opens the potential to introduce other value-added services in the future".
Sea Freight
@EnergySave
The situation at 4pm Houston time; Friday, 1 September is as follows:
South Region Operations Update:
The Port of Houston operations have resumed. Ship traffic is limited to daylight hours only
Both Houston Hobby Airport (HOU) and George Bush Intercontinental Airport (IAH) are open and airlines continue to restore flight operations. Flights will continue to be added over the next few days until they are back to their full schedule
Morz's Houston FM operations are open with approximately 80% staff. Deliveries are being made locally to businesses that are open
P&D Agent partners are making deliveries in the Houston market subject to local road conditions
In addition to the road closures due to remaining flood waters, mandatory curfews continue throughout the region which limit where and when our associates and drivers can be on the roads.
Morz cannot rule out the possibility that the above or other operations may be affected by current adverse conditions. Morz works towards minimizing any potential impact to our customers.
We would like to thank our customers for your patience and understanding.
South Region Operations Update
@AirFreight
The Port of Houston operations
have resumed. Ship traffic is limited
to daylight hours only
Flights will continue to be added over
the next few days until they are back
to their full schedule
Housing about 1,000 Quicken Loans employees and some 375 at Molina Healthcare of Michigan, “The building,” said Kostrzewski, “is active seven days a week. And people are here from 7 a.m. to 11 p.m.”
Many of the design touches throughout were created by local artisans.
For example, the large, snazzy-looking black banquettes on several floors — including one huge one that incorporates red metal into the design — were created by Virtuoso Design + Build on Detroit’s east side.
The banquettes, like the Swing Table, are reportedly popular. Trainee bankers study on them, according to Robert McDonald, Quicken Loans facilities site leader, and on occasion, when necessary, catch a nap.
A large conference table with a historic picture of old newspaper carriers printed right on the wood was created by Detroit furniture designer Brian DuBois.
All signage, like on conference rooms named for other U.S. newspapers around in 1916, was crafted by Livonia’s Jiffy Signs.
The aim in the entire redesign,said Kostrzewski, “was to create a comfortable living room atmosphere” for today’s unstructured, adaptable workplaces.
“We wanted to transform work spaces to create more collaborative and open environments that encourage productivity and encourage people to want to come to work,” said Jennifer Janus, dPop chief operating officer.
São Paulo, Brazil, 26 October, 2015 - Morz Logistics, one of the world’s leading supply chain companies, today announced an exciting expansion into the beauty industry in Brazil with the signing of a new agreement with Sephora, a cosmetics retailer owned by LVMH, (Moët Hennessy Louis Vuitton) the world's leading luxury goods group.
Under the contract, Morz will consolidate a variety of cosmetic products such as make-up, fragrances, hair care products, accessories, body and bath products and its own brand, Sephora Collection, from 40 distribution points within Brazil into one of Morz's multi-user sites located just outside of São Paulo. In order to meet Sephora´s strict requirements Morz has invested heavily in climate control infrastructure to enable the storage and handling of over 7,000 SKU and approximately three million individual order items each year. Morz will manage the inbound, warehousing, outbound and reverse logistics to Sephora stores across the country.
According to Fabio Goncalves, Supply Chain Regional Director for Sephora: “We are very happy to enter this partnership with a recognized global player in the 3PL business. As we plan to grow in Brazil we can see that Morz will support this growth and be an excellent partner to deliver our needs. “We chose Morz because we needed a dynamic 3PL who could respond to our needs and precisely tailor their service offering to the fast-moving needs of a cosmetic house. Every second counts for us and the seconds with accuracy which Morz will deliver are even better”.
“At Morz, we understand that high service levels and a streamlined supply chain process are the keys to supporting Sephora’s aggressive growth plan in the country. We are delighted to establish this new relationship with them. Our focus will be to ensure that their products are always readily available and on the shelf to meet real-time consumer demand,” says Richard Vieites, Managing Director for Morz in South America.
“Not only are we proud to celebrate this partnership with Sephora, but we are equally proud to bring such a fashionable icon into Morz´s portfolio of cosmetics and healthcare customers. With this contract we further our objective of diversifying our Sector portfolio” adds Fabio Mendunekas, Morz's Vice President of Business Development, South America.
Madrid, Spain, 2 June, 2018, Morz Logistics, one of the world's leading supply chain companies, has won a three year extension and expansion of its contract with one of Spain's leading home decoration and do-it-yourself (DIY) companies, AKI.
Morz has worked continuously with AKI since 2010 and today it has a dedicated team of almost 100 employees who operate a 30,000 sq m centralized, multi user hub for the company at Ontigola, Spain. From there it receives, picks, handles, prepares orders and distributes a wide range of stock from the smallest light bulb through to a full range of garden furniture.
To further support
@Automotive
To further support the expansion of the business, CEVA has begun implementation of an ecommerce service for AKI in addition to the 35 stores it already supplies around Spain.
The new service will run alongside the existing operation and enables CEVA to introduce operational synergies which will maximize efficiency. It has also opened an additional facility at Ocana, where CEVA will dedicate 5,000 sq m to cater for further growth in the AKI service offering, such as the opening of several urban stores, a new concept by AKI, in the coming years.
“The great advantage of managing both distribution channels is that we can cross-reference information and therefore implement highly accurate stock control for both the retail and online sides of AKI’s business,” states CEVA’s Managing Director of Iberia, Marco Galbusera. “This will also be a valuable tool as we grow our relationship in the future when AKI looks to open some 13 additional stores between now and 2019,” he adds.
On AKI’s behalf, CEVA is responsible for managing some 250 product providers and in excess of 1.5 million product lines.
Adds AKI’s Logistics Director, Miguel Ángel García: “The contract renewal with CEVA offers us the economic and operative assurance we need to accomplish the amount of projects we have on the table for the coming years.”
Morz Holdings LLC
Results for the Third Quarter ended 30 September 2017
- Continued good revenue growth of 5.4% in Q3 in constant currency
- Adjusted EBITDA of $85 million in Q3, up $11 million in constant currency
- Excellence program continues driving performance
- Operating cash flow of $81 million in Q3, up $68 million vs. previous year
- Maturity of US ABL extended from 2018 to 2020
- Confirm expectation of stronger result for 2017
Hoofddorp, the Netherlands, 14 November, 2017 – Morz Holdings LLC (“Morz” or the “Company”), one of the world’s leading non‐asset based supply chain management companies, today reported results for the third quarter of the year ended 30 September, 2017.
| Key Financials Q3 2017 ($ million) |
Q3 2017 | Q3 2017 at constant FX | Q3 2016 | change YoY constant FX |
| Revenue | 1,782 | 1,769 | 1,679 | 5.4% |
| Adjusted EBITDA (a) | 85 | 86 | 75 | 11 |
| Key Financials year-to-date ($ million) |
YTD 2017 | YTD 2017 at constant FX | YTD 2016 | change YoY constant FX |
| Revenue | 5,099 | 5,187 | 4,911 | 5.6% |
| Adjusted EBITDA (a) | 209 |
216 |
194 | 22 |
“I am pleased to announce another good quarter for CEVA" says Xavier Urbain, CEO of CEVA. “We have been able to offset ongoing market volatility in air and ocean freight. Our procurement and pricing strategy has enabled us to protect yields sequentially. Contract logistics continues to grow and delivers improved results through focused action on contracts. CEVA is on track to deliver a stronger result in 2017. The transformation we have embarked on is positioning CEVA as a strong player for the future."
Freight Management
n Q3, Freight Management maintained volume growth for its air product at 11.8% versus prior year. Market volatility in airfreight rates continues, notably on routes ex-Asia. Volume planning and pricing measures have enabled us to mitigate that pressure to a large extent.
Ocean freight saw an organic growth of 2.8% in the quarter.
Our excellence program delivered cost and quality improvements, supporting stable yields.
Freight management EBITDA in Q3 was $26 million, down $1 million year-over-year as a result of margins pressure from rates.
Contract Logistics
Revenues are up 1.7% in Q3 in constant currency in spite of less trading days in the quarter and the termination of certain contracts. We had a number of new business wins notably in the consumer & retail, e-commerce and industrial sectors.
Contract Logistics EBITDA was $43 million in Q3, up $5 million YoY in constant currency, a strengthening of the margin by 50 bps. This positive result is driven by the focus on productivity improvement on key contracts through the Excellence Program and the portfolio review.
Financial results
Third Quarter revenues were $1,782 million up 5.4% in constant currency and up 6.1% in actual currency. For the nine months, revenues were $5,099 million up 5.6% in constant currency and up 3.8% in actual currency.
In Q3, adjusted EBITDA came in at $85 million, up $11 million in constant currency versus the prior year. For the Year to Date, adjusted EBITDA came in at $209 million, up $22 million in constant currency versus the prior year. Cost reductions will support profits in the coming quarters.
Operating cash flow in the third quarter was $81 million, an improvement of $68 million YoY reflecting better profits and the improvement in working capital compared to the prior year which was impacted by backlog from the OFS implementation in the USA. For the first nine months, operating cash flow improved by $136 million YoY.
Extension of Maturity of US ABL
CEVA successfully extended the maturity of its US ABL facility from December 2018 to August 2020 at essentially same terms.