Covid-19 Essential Company

To our Valued Customers:
As we all have witnessed, the Covid-19 crisis is constantly changing and so do the preventive tactics of our national, state and local governments. A growing number of states have enacted Executive Orders to instruct their citizens to Shelter In Place (SIP). With each state that joins the SIP action, we are examining what criteria are used to determine the critical sectors of the economy that are allowed to continue to function.

 

Critical Infrastructure
In every case to date, the SIP states are following the standard set by the United States Department of Homeland Security defining sixteen critical sectors. Some states have added
specific industries to this list depending on their regional economy but at minimum recognize the DHS critical sixteen. The chemical industry including specialty chemical is specifically
designated as one of the critical sectors (see below).

Essential

 

Continuity of Operations
We continue to operate all facilities across our four business units: Molding Products, HK Research, North American Composites and Interplastic. We do have a number of operations
that reside within the ten states (and counting) that have enacted SIP. However, all of these are active members of the specialty chemical sector and continue to operate and serve our
customers.

 

All that being said, should conditions impact or threaten our ability to service our business in any single location, we will endeavor to provide supply through our network of nine manufacturing locations and thirty distribution centers across North America.

 

As petrochemical commodities are the major building blocks for our products, our supply chain is following the same exemption for the chemical industry. Specialty materials such as glass fiber and other composite raw materials are also continuing to convert and supply materials. As mentioned in my earlier letter of March 16, the United States leads the world in the degree of infrastructure devoted to the supply of oil and downstream petrochemicals. It has allowed us multiple domestic suppliers of all key raw materials.

 

In certain cases where domestic supply of very special materials is limited, we have established supply lines in more than one geography to ensure supply security and competitive position.

 

Looking Forward
IP Corporation and our business units’ mission continues to rely on servicing the needs of our customers. We are constantly adapting to the twists and turns of Covid-19 and its ultimate
control. As you too adapt and change your business, we ask you keep us informed of your plans so we can better service your needs and expectations. Together we can beat Covid-19
and maintain the momentum of the nation’s economy for a swift recovery.

Best wishes for the health of your employees and your business,
Reagan G Stephens
Chief Operating Officer

Covid-19 Statement

March 16, 2020
To our employees and customers:
The Covid-19 pandemic has brought new risks and considerations to the world at large. IP Corporation and our four businesses (HK Research, North American Composites, Interplastic
and Molding Products) are equally exposed to this new environment. We are proactively taking action to protect our employees and the continuity of our operations as events progress. My message today is to convey our active role in managing these risks and to assure you we will continue to remain vigilant as this situation evolves. My comments today are only relevant at this point in time. IP Corporation will ultimately adapt as government and society does as a whole.

 

Our Employees
All of our enterprises rely on the skilled and experienced employees who carry forward our passion for customer service and satisfaction. Hence our first priority is controlling employee
exposure. We have and continue to put in place three pillars in our defense of Covid-19.

Air travel is currently banned for all employees for the next thirty days. Exceptions must have approval of that company’s president and require a case-by-case assessment of the region of travel and exposure risk. In all cases, we are encouraging alternative means to meet and conduct business remotely. These travel restrictions may very well extend this time frame and we will assess our situation on a weekly basis.

We continue to emphasize personal hygiene in the workplace. Hand washing and use of hand sanitizer is highly promoted and encouraged with supplies in place in every location. Self-discipline in personal protection is the most important step we all can take to stop the spread of any virus. Employees with known symptoms or exposure to those confirmed with Covid-19 are requested to stay home and avoid exposure to their coworkers. In many cases, employees are able to remain productive and continue the majority of their work remotely. Rest and recuperation are essential in fighting virus attack and returning to normal healthy activity.

 

Continuity of Operations
We currently foresee no issues preventing our operations to continue to function normally. The primary petrochemical building blocks for our resins are domestically produced and sourced across multiple suppliers. For the remainder of our materials, we recognize there will be varying degrees of impact to off-shore suppliers or their lines of transportation.

Over the past five years, we have actively pursued goals to diversify our supply base. Risk is now mitigated in terms of multiple options both in terms of global geography and alternative
sources. I am pleased to report we are well prepared for any disruption in the supply chain. We are indeed fortunate to be a North American-based enterprise. North America and
specifically the United States has returned to a preeminent position in oil and petrochemical infrastructure. The increased levels of investment along the entire oil production and refining chains give us world scale supply in terms of breadth and economy, both inherent advantages in times of global uncertainty. Should conditions impact or threaten our ability to service our business in any single location, we will endeavor to provide viable alternatives through our extensive network of 30 distribution centers and 9 manufacturing locations.

 

The Outlook
While we remain wary of what may come next, IP Corporation will continue to actively adapt to the future of Covid-19 and its remediation. We thank our employees for their incredible
dedication and service as well as our loyal customers for their patience and understanding through this uncertain period. As a nation, I am confident we will prevail and come through this stronger and better prepared for whatever the future brings.

Reagan G Stephens
Chief Operating Officer
IP Corporation

Molding Products Announces SMC Price Increase

Troy Wade, Vice President & General Manager of Molding Products LLC, a wholly owned subsidiary of IP Corporation, is announcing a price increase on all Polyester based SMC formulations of $0.04 per pound and all Vinyl Ester based SMC formulations of $0.06 per pound effective on all material shipped on or after April 1, 2017.

 

This increase in price is primarily driven by the rapid increase in cost of styrene monomer due to extended shut downs causing shortages in the North American market which is of a magnitude and extended duration not seen in many years. The rapidly escalating styrene prices are being compounded by continued increases in other key raw materials of our resins in addition to our TiO2 supply which affects our pigments and colored SMC, among others. The continued tight supply and recent force majeure declared in a key resin raw material streams are having an immediate negative impact. All major resin producers have had multiple price increase announcements since January 1, 2017. Unfortunately these costs can no longer be absorbed internally.  Molding Products appreciates your continued support and will do everything possible to keep these cost increases to a minimum.

 


 

Molding Plastics Unveils a New Website

Welcome to our new Molding Products website. The new website provides the latest news and information. The website also offers you up-to-date safety data sheets and product information. It is designed for use on any device, including desktop, tablet or mobile smart phone.

 

 

 

 

 

 

 

 


Molding Products Announces SMC Price Increase

Darrell Young, National Sales Manager of Molding Products, announced today that the price of its sheet molding composite (SMC) products is increasing by $0.02 per pound. The price will go into effect on all shipments on or after April 15, 2014.

 

“The price of crude oil remains volatile due to continued unrest in South America and the Middle East which is driving up the price of petrochemicals and most ingredients used in the production of SMC products,” explained Mr. Young. Young also noted that continued tight supply and recent force majeure declared in several key resin raw materials streams are having an immediate impact.

 

“Molding Products understands the challenging market we face; however, in addition to raw material price increases, truck freight rates continue to increase with the cost of fuel and disruptions in our country’s rail network due to severe weather,” stated Mr. Young. “Molding Products appreciates the understanding and continued support of its customers and will do everything possible to keep these cost increases to a minimum”.