About Ingevity

Ingevity Corporation (Ingevity) provides products and technologies that purify, protect, and enhance the world. The company develops, manufactures, and brings to market solutions that are largely renewably sourced and help customers solve complex problems while making the world more sustainable. The company's products are used in a variety of demanding applications, including adhesives, agrochemicals, asphalt paving, bioplastics, coatings, elastomers, lubricants, pavement markings, publication inks, oil exploration and production and automotive components. Segments The company operates in three reporting segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies. Performance Materials segment The company engineers, manufactures, and sells hardwood-based, chemically activated carbon products which are produced through a highly technical and specialized process primarily for use in gasoline vapor emission control systems in internal combustion engines and hybrid electric vehicles, including cars, trucks, motorcycles, and boats. To maximize the productivity of the company's manufacturing assets, the company also produces several other activated carbon products for food, water, beverage, and chemical purification applications. The company's automotive activated carbon products primarily take the form of granules, pellets, and honeycomb 'scrubbers,' which are primarily utilized in vehicle-based gasoline vapor emission control systems to capture gasoline vapors that would otherwise be released into the atmosphere as volatile organic compounds. Customers The company sells its automotive technologies products to approximately 60 customers around the globe. In 2023, the company's ten largest customers accounted for approximately 82 percent of sales. The company is the trusted source of these products for many of the world's largest automotive parts manufacturers, including PHINIA Inc. (previously BorgWarner Inc.), A. Kayser Automotive System GmbH, Korea Fuel-Tech Corporation, MAHLE GmbH, and many other large and small component manufacturers throughout the global automotive supply chain. The company's food, water, beverage, and chemical purification products are sold to approximately 50 customers globally. The company sells its products primarily through its own direct sales force in North America, Europe, South America, Asia, and a smaller, focused network of third-party distributors that have established a strong direct sales and marketing presence in North America and China. Competition The company's competitor is Norit, Kuraray Co., Ltd. Performance Chemicals segment The company's Performance Chemicals segment is consisted of two product lines: road technologies (previously named pavement technologies) and industrial specialties. The company's products are utilized in pavement construction, pavement preservation, pavement reconstruction and recycling, road markings, agrochemical dispersants, paper chemicals, and other diverse industrial uses. The company's application expertise is often called upon by the company's customers to provide unique solutions that maximize resource efficiency. The company has a broad and diverse customer base in this segment. In 2023, Ingevity began a transformation of the Performance Chemicals' industrial specialties product line. In the spring of 2023, Ingevity ceased the processing of CTO at the Crossett Arkansas facility and converted the facility to the processing of a variety of plant based feedstocks. In addition, during the fourth quarter of 2023, Ingevity announced the planned closure of the DeRidder, Louisiana CTO refinery and derivatives operations. Once this transformation is complete, Ingevity's participation in the rosin based adhesive and publication printing ink markets along with emulsifiers for drilling into the oilfield markets will be substantially reduced. Raw Materials and Production The company's Performance Chemicals segment serves customers globally from six manufacturing locations in the U.S. Most of the company's industrial specialties and some of its road technologies products are derived from CTO, a co-product produced by softwood kraft pulp processors, such as WestRock Company (WestRock) and Georgia-Pacific LLC ('Georgia-Pacific'). The company also produce products derived from lignin, which is extracted from black liquor, another co-product of softwood kraft pulp processing. The company typically sources its CTO needs primarily through supply contracts. Most of the company's contracted volumes are sourced through two primary parties: WestRock and Georgia-Pacific. During 2023, the company sourced approximately 82 percent of its CTO from WestRock and Georgia-Pacific combined. In 2023, the company took further actions to diversify the company's raw materials stream and began a transformation of the Performance Chemicals' industrial specialties product line. In April 2023, the company converted its Crossett, Arkansas CTO facility to run on non-CTO plant-based natural oils, including soy, canola and palm-based oils. The company sells these products, as well as derivatives into end markets for industrial applications. The company has invested in production capability at its Crossett, Arkansas facility as the company expand the commercialization of its product offerings in existing and new markets, which may include the personal care; home and industrial cleaners, as well as the biofuels market. Additionally, in November 2023, the company announced the planned closure of the DeRidder, Louisiana CTO facility. Markets Served Road Technologies The company's road technologies product line produces a broad line of innovative additives and technologies utilized globally in road construction and pavement preservation, including pavement reconstruction and recycling. With the 2022 acquisition of Ozark Materials, LLC and Ozark Logistics, LLC (collectively, 'Ozark Materials'), the company have added road striping technologies to the portfolio. Road Construction. Evotherm, the company's premier road construction additive, is a warm mix asphalt technology that promotes adhesion by acting as both a liquid antistrip and a warm mix asphalt. Once Evotherm is mixed into the binder utilized for road layer construction, production temperatures can be significantly cooler than conventional hot mix asphalt. Lower production temperatures allow the company's customers to reduce emissions and fuel use during road construction as well as extend their paving seasons into colder months. Pavement Preservation. The company provides an array of pavement preservation products that eliminate many traditional asphalt heating, mixing, and transportation demands - saving the company's customers time, energy, and money. The company's technical team matches the right emulsifier and design to the company's customers' materials and conditions to create high-performing emulsions. The company offers a full range of specialized cationic, anionic, and amphoteric emulsifiers with additional, custom-formulated specialty additives. Pavement Reconstruction and Recycling. The company provides an array of pavement reconstruction and recycling additives that reduce the life cycle cost of pavement by enabling the milling and reuse of existing roadways. The company's cold in-place recycling additives allow its customers to reopen existing roadways faster, while also lowering overall costs and jobsite emissions. Pavement Markings. The company provides alkyd and hydrocarbon premium-based thermoplastic road striping technologies which provide long service life, excellent adhesion, superior color, and retro-reflectivity. Based on the customer and/or governmental agency requirements, the markings can be designed for varying levels of initial and retained performance properties. Customers The company supplies its road technologies products to approximately 850 customers in 60 countries through the company's own direct sales force, primarily in the Americas and Europe, as well as a network of third-party distributors. In 2023, the company's ten largest customers accounted for 30 percent of the product line's sales. The company's largest customers include Ergon, Inc., The Heritage Group, and Idaho Asphalt Supply Inc. Competition The company's primary competitors in road technologies are Nouryon Chemicals B.V., Arkema S.A., Kao Specialties Americas LLC, Sherwin-Williams Company, and PPG Industries Traffic Solutions. Industrial Specialties The company's industrial specialties product line produces and sells chemicals utilized in several industrial applications, including adhesive tackifiers, agrochemical dispersants, lubricant additives, printing ink resins, industrial intermediates, and oilfield. Agricultural Chemicals. The company produce dispersants for crop protection products, as well as other naturally derived products for agrochemicals. Crop protection formulations are highly engineered, specifically formulated, and cover a range of different formulation types, from liquids to solids. The company delivers a wide range of dispersants that are high performing and consistent. In addition, the company's crop protection products are approved for use as inert ingredients in agrochemicals by regulatory agencies throughout the world. Paper Chemicals. The company is a North American supplier of rosin-based sizing agents for the production of packaging related paper. Rubber. The company is a global supplier of tall oil-based products, the company offers a broad range of resins, rosin soaps, mixed acids and fatty acids from renewable resources. The company supplies specialty products to latex manufacturers, compounders and tire producers. Specific to tire producers, the company's resins help improved fuel efficiency, wear and traction. Industrial Intermediates. The company's functional chemistries are sold across a diverse range of industrial markets, including among others, textile dyes, rubber, cleaners, mining, and nutraceuticals. Adhesives, Oilfield, and Lubricants. The company is a North American supplier of tackifier resins, which provide superior adhesion to difficult-to-bond materials, to the adhesives industry. Adhesive applications for the company's products include construction, product assembly, packaging, pressure-sensitive labels and tapes, hygiene products, and road markings. The company supplies oilfield well service additives to improve emulsion stability, and aid in fluid loss control for oil-based drilling muds. Other specialty additives, typically used in deep water applications, include rheology modifiers and wetting agents that improve viscosity properties and aid in the efficiency of the drilling process. The company also supplies specialty additives for corrosion inhibition formulations used to maximize production rates by reducing the downtime for key equipment and pipes due to corrosion. The company supplies lubricant additives and corrosion inhibitors for the metalworking and fuel additives markets. The company's lubricant products are multi-functional additives that contribute to lubricity, wetting, corrosion inhibition, emulsification, and general performance efficiency. Customers The company sells its industrial specialties products to approximately 500 customers around the globe in over 45 countries through the company's own direct sales representatives and third-party sales representatives and distributors. In 2023, the company's ten largest customers accounted for 35 percent of the product line's sales. The company's largest customers include Haliburton, Solenis, Flint Group, H.B. Fuller Co., and ChampionX. Competition The company's competitors, which differ depending on the product, application, and region, include Kraton Corp., Eastman Chemical Co., Borregaard ASA, Repsol S.A., Lamberti S.p.A., Cargill, Vantage, PMC, as well as several others. Advanced Polymer Technologies segment The company's Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers for use in coatings, resins, elastomers, adhesives, bioplastics, and medical devices. Raw Materials and Production The company's hydrogen peroxide is supplied by Solvay Interox Limited, a co-located supplier at the company's Warrington, the United Kingdom facility under a long-term supply agreement. Customers The company sells its Advanced Polymer Technologies products to approximately 300 customers around the globe through the company's own direct sales representatives and third-party sales representatives and distributors. In 2023, the company's ten largest customers accounted for approximately 47 percent of the segment's sales. The company's largest customers include polyurethane, adhesive, coatings, and bioplastics manufacturers. Competition The company's primary caprolactone competitors are Daicel, Corp., Juren, and BASF SE. Seasonality There are a variety of seasonal dynamics, including global climate and weather conditions, that impact the company's businesses, though none have materially affected the company's financial results, except in the case of the road technologies product line, where roughly 70 to 75 percent of revenue is generated between April and September. From a supply perspective, this seasonality is effectively managed through pre-season inventory build and active inventory management throughout the year (year ended December 2023). Governmental Regulations The company's manufacturing operations are subject to regulation by governmental and other regulatory authorities with jurisdiction over the company's operations. These regulations include the discharge of materials into the environment, the handling, storage, transportation, disposal, and clean-up of chemicals and waste materials, and otherwise relating to the protection of the environment, as well as other operational regulations, such as the Occupational Safety and Health Act ('OSHA') and the Toxic Substances Control Act ('TSCA') in the U.S., and the Registration, Evaluation and Authorization of Chemicals ('REACH') directives in the European Union, the United Kingdom, and other countries. Intellectual Property The company's business strategy includes filing patent and trademark applications where appropriate for proprietary developments, as well as protecting the company's trade secrets. The company's Evotherm Warm Mix Asphalt technology is supported by numerous global patents. History Ingevity Corporation was founded in 1964. The company was incorporated in Delaware in 2015.