Ingevity mulls divestment

Ingevity is exploring strategic alternatives for its Performance Chemicals Industrial Specialties product line. This includes all of the pine chemical-based chemistries for the paper chemical, rubber, adhesive, oilfield, lubricants and industrial intermediate markets and the crude tall oil refinery at North Charleston, South Carolina (pictured), but not the Performance Chemicals Road Technologies product line or certain lignin-based products. 

President and CEO Luis Fernandez-Moreno described this as part of a series of initiatives taken over the last 15 months to improve performance, particularly in the Performance Chemicals segment. These have already led to improved results, as shown by the sequential segment EBITDA margin improvement seen in 2H 2024. 

“Exiting most of the Industrial Specialties product line will strengthen the Performance Chemicals segment further and enable us to focus our attention on higher growth and higher margin opportunities within our portfolio while improving the company’s earnings and cash flow profile,” Fernandez-Moreno said.