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Ingevity (NGVT) Wraps Up Expansion of Polyols Production

Ingevity Corporation NGVT has launched new Capa polyols production and produced the first commercial quantities of its high performance caprolactone polyols in the United States.

The completion of the expansion at Ingevity’s plant in DeRidder, LA, increases its global capacity for producing polyols by 40%. It also positions the company to better meet rising demand for the Capa portfolio and more effectively serve its customers by lowering global lead times.

The DeRidder facility includes production of emulsifiers, rosin and tall oil fatty acid used in a broad range of applications such as adhesives, asphalt additives, publication inks, metalworking fluids, drilling fluid additives, oilfield production chemicals, paints and coatings. The company also operates a polycaprolactone production plant in Warrington, United Kingdom.

Ingevity, which is a prominent player in the specialty chemicals space along with Element Solutions Inc ESI, Ashland Inc. ASH and Axalta Coating Systems Ltd. AXTA, said that the completion of the Capa expansion is a significant achievement for its teams in DeRidder and Warrington, which strengthens capabilities for Engineered Polymers as well as its Performance Chemicals segment.

The investment in DeRidder includes installation of monomer storage capacity to facilitate the production of polyol derivatives as well as streamline and enable bulk monomer shipments to customers in the United States.

Ingevity, in its second-quarter call, reaffirmed its sales guidance for 2022 in the band of $1.525-$1.65 billion and adjusted EBITDA outlook in the range of $430-$470 million.

Ingevity is benefiting from a recovery in demand for its products from the pandemic-induced slowdown, which is leading to higher volumes and prices. The company’s Performance Chemicals segment is riding on solid demand as well as higher selling prices in engineered polymers and industrial specialties. The company is also benefiting from increased demand for process purification products in the Performance Materials unit.

The company is also taking a number of actions to drive long-term growth. It remains committed to invest organically. The company also remains focused on optimizing its operations and inventory to provide outstanding service to customers. It is also taking price hike actions to mitigate cost inflation. Ingevity is also committed to capturing the maximum value for its products.

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