Ingevity Will Closes Its DeRidder Factory

Recently, Ingevity, a global leader in polycaprolactone derivatives, announced further adjustments to its performance chemicals business, including the permanent closure of its factory facility in DeRidder, Louisiana, and company-wide measures including layoffs and more cost-cutting actions.

It is reported that Ingevit will close the DeRidder plant before the end of the first half of 2024, including the permanent closure of the plant's production facility, which mainly produces a series of CTO-based (Crude tall oil ) products for the industrial specialty products business of Ingevit's high-performance chemicals division. These products are widely used downstream in adhesives, synthetic rubber and other industries.

In addition, Ingevit will take the next steps in executing a strategy focused on high-margin, high-growth specialty products, raw material diversification and optimized production networks to reduce reliance on structurally more expensive raw materials.

Ingevit expects the above actions to result in EBITDA stabilization of 15-20% for the Performance Chemicals segment and 25-30% for total EBITDA. Total business and company savings of $65-75 million are expected to be fully realized in 2024.

Ingevity is a leading global specialty chemical manufacturer and one of the 50 largest chemical companies in the United States, dedicated to the manufacturing, technology development and application innovation of functional materials and functional chemistry for industrial specialty products, oil field development, road paving and activated carbon industrial applications.

Ingevity’s mainly three major businesses: ① High-performance chemicals, including specialty chemicals; ② Advanced polymer technology, including biodegradable plastics and polyurethane materials; ③ High-performance materials, including activated carbon.

The company's net sales in the third quarter were US$446 million, a year-on-year decrease of 7%; net profit this quarter was US$25.2 million, a year-on-year decrease of 67%; the reason was mainly due to continued weak industrial demand and high costs.