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KMG Blog – Most Recent Entries

KMG Supports AWPA Guidelines for Creosote Retention in Wood Railroad Crossties

According to the Railway Tie Association (RTA), “Wood crossties have been supporting North American railroads for more than 160 years. No other material even comes close to wood’s track record.” That is indeed true: Even with major technological advances in locomotives, railcars and track construction, creosote-treated wood crossties continue to account for over 90% of the current installed rail tie base in North America. Creosote-treated wood ties work exceedingly well, with the wood providing additional flexibility under load gradients and the creosote extending structural integrity by providing lubricity between the tie and the metal plate on which the rail track rests. In addition, creosote-treated ties can last for decades, resisting insect infestation, fungi and weather decay.

Expanding Semiconductor Foundry Business in U.S. Offers Growth Opportunity

The semiconductor foundry business is often associated with major pure-play manufacturers based in Asia, like Taiwan Semiconductor Manufacturing Corp. (TSMC), United Microelectronics Corp. (UMC) and Semiconductor Manufacturing International Corp. (SMIC). Collectively, these three foundries -- which are solely dedicated to manufacturing semiconductor components for other semiconductor companies – last year generated 57% of all sales made by the world’s semiconductor foundries, according to data published by IC Insights. Impressively, TSMC alone represented 44% of total global foundry sales in 2012.

Could the Decline in Railcar Coal Freight Impact Rail Tie Replacement Demand?

As one of the largest suppliers of creosote in North America, we’re keenly interested in trends that may impact (positively or negatively) the demand for this important wood preservative. In today’s blog post, we look at whether the decline in coal shipped by railcar may affect long-term replacement demand for the millions of creosote-treated wooden railroad ties that support our nation’s massive rail infrastructure.

Tax Extension Will Benefit Rail Tie Production

Earlier this month, the U.S. Congress and President Obama hammered out the so-called “fiscal cliff” agreement, which averted a significant tax increase on most taxpayers. Unless you’re a member of the American Short Line and Regional Railroad Association (ASLRRA), you probably weren’t aware that the deal contained an important tax provision – known as the 45G Infrastructure Tax Credit – that will not only benefit short line railroads but also wood treaters and companies like KMG which supply creosote to them.

Global Semiconductor Market Poised for Growth in 2013

Following a challenging year in 2012, the global semiconductor industry is poised for a recovery in 2013, according to several published forecasts. Industry analysts peg 2013 global semiconductor revenue growth in the 4%-6% range, representing a marked improvement from the flat-to-minus 3% year/year decline estimated for 2012.

Welcome to the official KMG Blog!

Today we’re pleased to announce the launch of our official KMG Chemicals blog. Here we’ll be discussing and commenting on notable news and industry developments related to our two main businesses: Electronic Chemicals and Wood Treating Chemicals. We hope our commentary will provide some additional color on events, news and trends that influence our businesses and the industries in which we participate.