What changed in this filing

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Item 1. Business

2022-02-18 compared with 2021-02-19 · 85 added, 71 removed, 331 unchanged (32% of the section changed)

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Description of Business

AdvanSix plays a critical role in global supply chains, innovating and delivering essential products for our customers in a wide variety of end markets and applications that touch people’s lives, such as building and construction, fertilizers, plastics, solvents, packaging, paints, coatings, adhesives and electronics.

AdvanSix Inc.

plays a critical role in global supply chains, innovating and delivering essential products for our customers in a wide variety of end markets and applications that touch people’s lives, such as building and construction, fertilizers, plastics, solvents, packaging, paints, coatings, adhesives and electronics.

Our reliable and sustainable supply of quality products emerges from the vertically integrated value chain of our three U.S.-based manufacturing facilities.

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• Nylon – We sell our Nylon 6 resin globally, primarily under the Aegis® brand name.

Nylon 6, is a polymer resin which is a synthetic material used by our customers to produce fibers, filaments, engineered plastics and films that, in turn, are used in such end-products as carpets, automotive and electric components, sports apparel, food packaging and other industrial applications.

Nylon 6 is a polymer resin, which is a synthetic material used by our customers to produce fibers, filaments, engineered plastics and films that, in turn, are used in such end-products as carpets, automotive and electric components, packaging, including food packaging, and other industrial applications.

In addition, our Nylon 6 resin is used to produce nylon films which we sell to our customers primarily under the Capran® brand name.

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Other intermediate chemicals that we manufacture, market and sell include phenol, alpha-methylstyrene (“AMS”), cyclohexanone, oximes (methyl ethyl ketoxime, acetaldehyde oxime and 2-pentanone oxime), cyclohexanol, sulfuric acid, ammonia and carbon dioxide.

• Ammonium Sulfate – Our ammonium sulfate is used by customers as a fertilizer containing nitrogen and sulfur, two key plant nutrients.

• Ammonium Sulfate – Our ammonium sulfate is used by customers as a fertilizer containing nitrogen and sulfur, two key plant nutrients, as an herbicide adjuvant for crop protection, and in several industrial applications.

Ammonium sulfate fertilizer is derived from the caprolactam manufacturing process.

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Revenue” to our Consolidated Financial Statements included in this Form 10-K, which is incorporated herein by reference.

Our manufacturing process is backward integrated.

Our manufacturing process is vertically integrated.

We use cumene, a chemical compound produced from benzene and propylene, to manufacture phenol, acetone and AMS at our Frankford, Pennsylvania plant.

The majority of the phenol we manufacture is further processed at our Hopewell facility through an integrated series of unit operations, which also consume natural gas and sulfur, to produce caprolactam and ammonium sulfate.

In recent years, approximately 55% of the caprolactam we have produced at our facility in Hopewell, Virginia has been shipped to our facility in Chesterfield, Virginia where it has been polymerized into Aegis® Nylon 6 resins.

Our integrated manufacturing process, scale and the quantity and range of our products make us one of the most efficient manufacturers in our industry.

In 2021, approximately 56% of the caprolactam we have produced at our facility in Hopewell, Virginia has been shipped to our facility in Chesterfield, Virginia where it has been polymerized into Aegis® Nylon 6 resins.

Our integrated manufacturing process, scale and the quantity and range of our products make us one of the most reliable and efficient manufacturers in our industry.

We consistently focus on and invest in improving production yields from our various manufacturing processes to build on our leading cost position.

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In addition, we strive to understand the product applications and end-markets into which our products are sold, which helps us upgrade the quality, chemical properties and packaging of our products in ways which enable us to attract price premiums and greater demand.

We serve approximately 400 customers globally located in more than 50 countries.

We serve approximately 400 customers globally located in approximately 50 countries.

For the years ended December 31, 2021, 2020 and 2019, we had sales of $1,685 million, $1,158 million and $1,297 million with net income of $140 million, $46 million and $41 million, respectively.

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Low Cost Position Driven by Integrated Manufacturing Footprint, Large Scale, Favorable Geographical Location, and High Utilization Rates .

Our backward integrated manufacturing facilities, scale, access to lower cost raw materials, and high plant utilization rates help us maintain our position as the world’s lowest cost producer of caprolactam.

First, we are backward integrated into several key feedstock materials necessary to produce caprolactam, particularly phenol, ammonia and oleum/sulfuric acid, which we believe is a unique advantage in our industry.

Backward integration contributes to higher operating margins by lowering raw material transportation, handling and storage costs.

Our vertically integrated manufacturing facilities, scale, access to lower cost raw materials, and high plant utilization rates help us maintain our position as the world’s lowest cost producer of caprolactam.

First, we are vertically integrated into several key feedstock materials necessary to produce caprolactam, particularly phenol, ammonia and oleum/sulfuric acid, which we believe is a unique advantage in our industry.

Our integration contributes to higher operating margins by lowering raw material transportation, handling and storage costs.

It also allows us to remain flexible, while optimizing sales from our diverse portfolio of products.

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Most fundamentally, it enables us to spread fixed and overhead costs across more pounds of production, thereby enabling us to produce caprolactam at a lower per pound cost than our competitors, as well as benefiting our procurement activities for raw materials and services.

We believe that our reputation as one of the world’s largest producers of caprolactam, Nylon 6 resin, ammonium sulfate, and associated chemical intermediates attracts potential new customers who seek greater stability with respect to their supply requirements.

Third, the location of our manufacturing operations in the United States affords us access to the world’s lowest cost natural gas, which is a key raw material needed to manufacture the ammonia used in the production of caprolactam as well as the source of energy for our manufacturing operations.

By contrast, a significant number of our competitors are in geographic locations where energy prices are substantially higher.

In addition, we believe that our size and scale serves to retain and attract customers who prioritize security of supply.

Third, the location of our manufacturing operations in the United States affords us access to the world’s lowest cost natural gas, which is a key raw material needed to manufacture the ammonia used in the production of caprolactam and ammonium sulfate as well as the source of energy for our manufacturing operations.

By contrast, a significant number of our competitors are in geographic locations where energy prices are currently substantially higher.

Our footprint also provides access to a number of higher value end markets across our product lines.

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Diverse Revenue Sources from the Sale of Fertilizer, Acetone and Other Chemical Intermediates.

Due to our specific chemical manufacturing processes, backward integration and scale, we produce ammonium sulfate fertilizer, acetone and a wide range of other chemical intermediates that enable us to diversify our revenue sources.

Due to our specific chemical manufacturing processes, vertical integration and scale, we produce ammonium sulfate fertilizer, acetone and a wide range of other chemical intermediates that enable us to diversify our revenue sources.

Most significantly, for every pound of caprolactam produced, we produce approximately four pounds of ammonium sulfate, a fertilizer used by farmers around the world.

For the past two decades, we have employed agronomists to educate growers and retailers in the Americas on the yield value of using ammonium sulfate fertilizer on key crops including corn, wheat, coffee, sugar, cotton and rice.

We have also diversified and optimized our ammonium sulfate-based offerings to include spray-grade adjuvant to support crop protection, as well as other specialty fertilizers and products for industrial use.

Sales of ammonium sulfate in 2021 were $401 million and represented 24% of our total sales.

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The diversity of our sales portfolio helps to mitigate, to some extent, the cyclicality in our end-markets.

Currently, we not only have leading positions across these diverse product lines, but are also aligned to several favorable macro trends that are supporting growth across the portfolio including urbanization and aging infrastructure, digital transformation, global food production and resource scarcity, and a shift to green and performance chemicals.

Global Reach.

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Our agronomists provide the latest scientific information on the importance of sulfur nutrition for crops and how to optimize the benefits of ammonium sulfate fertilizer to our global customers through a variety of channels including webinars, technical training sessions for retailers and direct grower meetings.

Further, members of our technical marketing team, representing each of our major product lines, present at various industry events and conferences to demonstrate our breadth of product offerings and capabilities.

Further, members of our technical

marketing team, representing each of our major product lines, present at various industry events and conferences to demonstrate our breadth of product offerings and capabilities.

Business Strategies

Operational Excellence and Improving Through-Cycle Profitability .

Through our backward integration, size, access to low-cost raw materials, and high utilization rates, we seek to build on our low-cost leadership position and expand operating margins by reducing our Nylon 6 resin, caprolactam, ammonium sulfate and other chemical intermediate production costs.

Through our vertical integration, size, access to low-cost raw materials, and high utilization rates, we seek to build on our low-cost leadership position and expand operating margins by reducing our Nylon 6 resin, caprolactam, ammonium sulfate and other chemical intermediate production costs.

Our focus on operational excellence and ongoing productivity improvements concentrate on the following:

• Increasing production volume through asset reliability, flexibility and capacity;

• Executing planned plant turnarounds and prioritizing replacement maintenance capital investments to mitigate risk and support safe, stable and sustainable operations;

• Investing in intermediate chemical buffer storage capacity to mitigate the unfavorable impact of routine maintenance and unplanned interruptions;

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Our diverse portfolio serves us well particularly during times of uncertainty.

Over the past several years, we have invested in capabilities to increase the value of our product portfolio and meet customer specifications in certain high value industries including high-purity applications, high-value intermediates and differentiated nylon.

Although many of these products are still in early stages of development, we have had successes across the portfolio including our oximes-based EZ-Blox™ anti-skinning agent used in paints and strong growth momentum for our Nadone® cyclohexanone product line, which is a solvent used in various high-value applications.

Over the past several years, we have invested in capabilities to strengthen our innovation, increase the value of our product portfolio and meet customer specifications in certain high value industries including high-purity applications, high-value intermediates and differentiated nylon.

We have had successes across the portfolio including our oximes-based EZ-Blox® anti-skinning agent used in paints and coatings, and our Nadone® cyclohexanone product line, which is a solvent used in various high-value applications.

Growing off a small base, we have also seen commercial success with our Nylon-based wire and cable offerings.

Supporting our differentiated nylon portfolio, we installed a production line at our Chesterfield facility that is capable of producing multiple grades of higher value Nylon 6 resin as well as copolymer Nylon 6/66 resin, which are used in engineered plastics for the automotive industry, films for food packaging, as well as other higher value applications.

Supporting our differentiated nylon portfolio, our Chesterfield facility is capable of producing multiple grades of higher value Nylon 6 resin as well as copolymer Nylon 6/66 resin, which are used in engineered plastics for the automotive industry, films for food packaging, as well as other higher value applications.

Our customers typically buy nylon resin and caprolactam for compounding or extruding with additives and other materials, to increase strength or flexibility or to add color to make the resin more suitable for use in their end products such as textiles, packaging and industrial materials.

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We work with our customers serving this market to develop resin products specifically tailored for these product applications.

We are focused on working with customers to solve their needs with respect to sustainability and have received commercial orders for our recently launched 100% Post-Industrial Recycled resins and films.

Another focus of our R&D initiatives includes nylon resin processing technologies that can produce existing high value resins at lower costs.

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On an ongoing basis we evaluate options to return cash to shareholders while also pursuing a highly-selective acquisition and alliance strategy to supplement our organic sales by broadening our customer base, developing our technology and product portfolios, expanding our geographic reach and enhancing our cash flow profile and margin stability.

In 2021, we completed our first acquisition of certain assets of Commonwealth Industrial Services, Inc.

and we initiated a structural return of cash in the form of a quarterly dividend reflecting confidence in our cash flow generation.

The timing, declaration, amount and payment of dividends to stockholders, if any, will fall within the sole discretion of our Board of Directors (the "Board").

Industry Overview

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Generally, Nylon 6 resin prices track the cyclicality of caprolactam prices, although prices set above the spread are achievable when nylon resin manufacturers, like AdvanSix, formulate and produce differentiated nylon resin products.

Our differentiated Nylon 6 products are typically valued at a higher level than commodity resin products.

Our differentiated Nylon 6 products are

typically valued at a higher level than commodity resin products.

We believe that Nylon 6 end-market growth will continue to generally track global GDP over the long-term.

Applications such as engineered plastics and packaging have potential to grow at faster rates given certain macrotrends.

Additionally, one of our strategies is to continue developing higher-value, differentiated Nylon 6 products, such as our wire and cable and co-polymer offerings, in current and new customer applications.

Additionally, one of our strategies is to continue developing higher-value, differentiated Nylon 6 products, such as our wire and cable, Post-Industrial Recycled resins and films and co-polymer offerings, in current and new customer applications.

The global market for Nylon 6 resin and caprolactam has undergone significant change over the past decade.

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Industry spreads had fluctuated near marginal producer cost since 2016, but, slowing global growth and soft end-market demand, combined with capacity increases and an uncertain macro environment, pressured pricing and spreads during the second half of 2019 and throughout 2020.

In 2021, strong end use demand, combined with industry operational upsets and supply chain disruptions, created an environment for robust performance in Nylon 6.

Additionally, buyers have explored using Nylon 6 as a substitution for other resins where applications allow, based on the need for reliable, secure long-term supply and performance needs.

Chemical Intermediates.

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Acetone and phenol represent approximately 55% and 15%, respectively, of our chemical intermediates sales.

In the United States, where we primarily sell our acetone, there were elevated levels of acetone imports during 2018 and 2019 given high industry operating rates globally, which pressured regional pricing and spreads.

Prices for acetone are influenced by its own supply and demand dynamics but can also be influenced by the underlying move in propylene input costs.

As a result of the anti-dumping filing and final ruling, acetone imports into the U.S.

declined beginning mid-2019 and continued at lower levels through 2020, creating more favorable supply / demand conditions for the product.

In the U.S., where we primarily sell our acetone, there were elevated levels of acetone imports during 2018 and 2019 given high industry operating rates globally, which pressured regional pricing and spreads.

As a result of strong global acetone demand driven by favorable COVID-related acetone derivative drivers (hand sanitizers and acrylic screens) in addition to the implementation of acetone anti-dumping duties, acetone imports into the U.S.

declined through 2020 and 2021, creating more favorable supply and demand conditions for the product and improved pricing.

Industry operating rates improved in the second half of 2021 supporting a balancing of supply and demand and moderation in acetone industry spreads relative to recent highs.

Supply and demand conditions for the remaining intermediates we sell are generally balanced or favorable.

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In addition, due to its nutrient density, the typical ammonium sulfate product delivers pound for pound the most readily available sulfur and nitrogen to crops than other fertilizers.

We recently expanded our offering to directly supply packaged ammonium sulfate to customers, primarily in North and South America, and diversified and optimized our offerings to include spray-grade adjuvant to support crop protection, as well as other specialty fertilizers and products for industrial use.

We produce ammonium sulfate fertilizer continuously throughout the year as part of our manufacturing process, but quarterly sales experience seasonality based on the timing and length of the growing seasons in North and South America.

North America ammonium sulfate prices are typically strongest during second quarter fertilizer application and then typically decline seasonally with new season fill in the third quarter.

Due to the ammonium sulfate fertilizer sales cycle, we occasionally build up higher inventory balances because our production is continuous and not tied to seasonal demand for fertilizers.

Sales of most of our other products have generally been subject to minimal, or no, seasonality.

During 2020, we expanded our offering to directly supply packaged ammonium sulfate to customers, primarily in North and South America, and diversified and optimized our offerings to include spray-grade adjuvant to support crop protection, as well as other specialty fertilizers and products for industrial use.

Competition across our product offerings is based on a variety of factors including price, reliability of supply, product innovation, and quality.

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AdvanSix competes with integrated manufacturers, such as Highsun Group Holdings Ltd., BASF Corporation, Sinopec Limited, DOMO Chemicals GmbH, LANXESS AG and Ube Industries, Ltd.

We also compete with manufacturers such as Li Peng Enterprise Co.

and Zig Sheng Industrial Co., Ltd.

that produce only polymer resin;

synthetic manufacturers of ammonium sulfate, such as Pasadena Commodities International and Nutrien Ltd.;

and stand-alone phenol producers, such as Ineos and Altivia.

We also compete with synthetic manufacturers of ammonium sulfate, such as Pasadena Commodities International and Nutrien Ltd.;

and stand-alone phenol and acetone producers, such as Ineos and Altivia.

A number of our products are sold in markets with many competitors, some of whom have substantial financial resources and significant technological capabilities.

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We sell our Nylon 6 resin globally, primarily under the Aegis® brand name.

In addition, we sell our Nylon 6 resin to a nylon film producer from whom we purchase films to sell to our customers under the Capran® brand name.

In addition, we sell our Nylon 6 resin to a nylon film producer from whom we purchase films to sell to our customers under the

Capran® brand name.

In 2021, our Nylon products generated $423 million of sales.

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Acetone is typically used by our customers as a key raw material in the production of a variety of other chemicals which are then used in the applications listed above.

We also produce and sell AMS, cyclohexanone, oximes and cyclohexanol.

We also produce and sell cyclohexanone, AMS, oximes and cyclohexanol.

We use some of these products in our manufacturing process and sell some to customers for use in end-products such as resins, inks, paints, coatings and agricultural chemical intermediates and electronic components.

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Our competitors typically produce approximately two pounds or less of ammonium sulfate for each pound of caprolactam.

We are targeting conversion of approximately 65% of the ammonium sulfate we produce in higher-value granular form, an increase of approximately 5% compared to historical targets.

We are targeting conversion of approximately 65% of the ammonium sulfate we produce in higher-value granular form.

We sell ammonium sulfate under the brand name Sulf-N®, and in 2021, our ammonium sulfate products generated $401 million of sales.

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Our products are supported by our global logistics capability that we employ to ensure reliable and timely delivery to our customers while maximizing distribution resources and efficiency.

Globally, we serve approximately 400 customers in a wide variety of industries located in more than 50 countries.

Globally, we serve approximately 400 customers in a wide variety of industries located in approximately 50 countries.

In 2021, the Company's 10 largest customers accounted for approximately 40% of total sales.

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("Shaw"), one of the world's largest consumers of caprolactam and Nylon 6 resin.

We sell Nylon 6 resin and caprolactam to Shaw under a long-term agreement.

Sales to Shaw were 14% of our total sales for the year ended December 31, 2020 and 22% of our total

sales for each of the years ended December 31, 2019 and 2018.

We sell caprolactam and Nylon 6 resin to Shaw under a long-term agreement.

Sales to Shaw were 12% of our total sales for the year ended December 31, 2021, 14% for the year ended December 31, 2020 and 22% for the year ended December 31, 2019.

We typically sell to our other customers under master services agreements, with primarily one-year terms, or by purchase orders.

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We also benefit from technology covered by trade secrets, including know-how and other proprietary information relating to many of our products, processes and technologies.

We do not consider any individual patent, trademark or licensing or distribution rights related to a specific process or product to be of material importance in relation to our total business.

We do not consider any individual patent, trademark or licensing or distribution rights related to a specific process or product to be of material importance in relation to our overall business.

In our judgment, our intellectual property rights are adequate for the conduct of our business.

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the Resource Conservation and Recovery Act and similar state, foreign and global laws for management and remediation of hazardous materials;

the Clean Air Act (“CAA”) and the Clean Water Act, for protection of air and water resources;

the Clean Air Act and the Clean Water Act, for protection of air and water resources;

the Toxic Substance Control Act (“TSCA”), for regulation of chemicals in commerce and reporting of potential known adverse effects.

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Summary of Significant Accounting Policies” to the audited Consolidated Financial Statements included in this Form 10-K.

We continuously seek to improve our health, safety and environmental performance.

We continuously seek to improve our health, safety and

environmental performance.

We have expended funds to comply with environmental laws and regulations and expect to continue to do so.

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Our core values of Safety, Integrity, Accountability and Respect guide our day-to-day activities and inform our broader business strategy as we drive safe, stable and sustainable operations through an ownership mentality aligned to shareholder value creation.

Our Board of Directors (“Board”), along with management and cross-functional teams, work closely to evaluate and proactively address human capital management topics such as safety, inclusion and diversity, employee development, employee benefits and employee engagement.

Our Board, along with management and cross-functional teams, work closely to evaluate and proactively address human capital management topics such as safety, inclusion and diversity, employee development, employee benefits and employee engagement.

As of December 31, 2021, the Company employed approximately 1,375 people.

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As an organization, we maintain a relentless focus on continuous improvement and our expectation is zero injuries for employees and contractors.

Toward the end of 2019, we launched a new program, CARE — Courage to Act, Respond and Engage — as the next step in our safety journey and to inspire us to Live Safety in all we do.

We use the industry standard Total Case Incident Rate ("TCIR") to

measure our ongoing safety performance and compare with benchmarks.

Our CARE program — Courage to Act, Respond and Engage — was launched in 2019 and inspires us to Live Safety in

We use the industry standard Total Case Incident Rate ("TCIR") to measure our ongoing safety performance and compare with benchmarks.

TCIR is defined as the number of occupational injuries and illnesses per 100 employees.

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In the first quarter of 2020, the Company began executing its business continuity plans with dedicated teams chartered to proactively implement measures to mitigate COVID-19 impacts while continuing to operate all of its manufacturing facilities to meet customer demand.

In response to COVID-19, the Company took many actions during 2020 to protect its employees, customers, suppliers, shareholders and surrounding communities including, but not limited to:

In response to COVID-19, the Company took many actions to protect its employees, customers, suppliers, shareholders and surrounding communities including, but not limited to:

(i) 100% thermal screening process at all facilities and restrictions on non-essential visitors;

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The Company continued its execution of these measures at all sites through the end of 2021 and intends to continue to do so through the duration of the pandemic.

Inclusion and Diversity

Equity, Diversity and Inclusion

At AdvanSix, we strive for an inclusive work environment that fosters respect for all our coworkers, customers, suppliers and business partners.

We value the diversity reflected in the various backgrounds, experiences, and ideas of our employees, contractors, and other stakeholders.

Our Equity, Diversity and Inclusion purpose statement reflects our journey to be our customers' trusted partner for Advantaged Chemistries by caring, innovating and advancing together.

To achieve that togetherness, we strive to represent the communities in which we operate, celebrate our differences, inspire belonging, and be tenacious in our pursuit of bringing out the best in people both individually and collectively.

Our Code of Conduct outlines our commitment to provide employees a workplace that is free from discrimination or harassment (specifically related to gender, race, disability, ethnicity, nationality, religion and sexual orientation) or personal behavior not conducive to a productive work climate.

We believe it is important that each employee feels a sense of belonging and valued as part of the organizational culture we are cultivating, and we feel it is important that each employee sees diverse representation across our AdvanSix team.

AdvanSix joined hundreds of companies in signing the CEO Action for Diversity and Inclusion pledge, which centers around three main commitments:

AdvanSix joined hundreds of companies in signing the CEO Action for Diversity and Inclusion pledge in 2019, which centers around three main commitments:

to have complex discussions about diversity and inclusion, implement and expand upon unconscious bias education and share diversity and inclusion practices.

We supported this commitment through 2021 as we engaged in honest and transparent conversations with our employees.

AdvanSix also seeks to improve gender equality in the manufacturing industry, starting with supporting science, technology, engineering and math (STEM) education and work in related fields.

In 2019, a group of employees formed Supporting Women in Manufacturing (SWiM), an AdvanSix Employee Resource Group, to promote women in manufacturing, female leadership and growth in STEM-related fields.

A group of employees formed Supporting Women in Manufacturing (SWiM), an AdvanSix Employee Resource Group, with the goal of promoting women in manufacturing, female leadership and growth in STEM-related fields.

SWiM seeks to raise awareness on these matters through programs, events and discussions, including networking, professional development, outreach, volunteering and internal programs highlighting leadership and career paths in multiple disciplines.

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In addition, AdvanSix has supported and participated in the Future of STEM Scholars Initiative ("FOSSI"), a national, industry-wide program which provides scholarships to students pursuing STEM degrees at Historically Black Colleges and Universities ("HBCU") and connections to internships, leadership development and mentoring opportunities.

During 2020, we introduced a number of key actions to progress inclusion and diversity within the organization including focus group discussions, review of our talent pipeline and overall development programs.

Notably, we enhanced our recruiting processes by implementing a program mandating a diverse candidate slate with the goal to increase our organization’s workforce diversity and improve outreach in the local communities where we operate.

In addition, we introduced unconscious bias training at leadership and managerial levels enterprise-wide to enhance our recruitment efforts and the evaluation process of candidates.

Our senior leadership team was comprised of over 50% women in 2020, including our Chief Executive Officer, Chief Human Resource Officer, Chief Technology Officer, Chief Information Officer, Vice President, Nylon Solutions and Vice President, Business Development.

Two of our eight-member Board of Directors are women.

During 2021, we welcomed our first class of FOSSI scholars all of whom are in attendance at HBCUs.

During 2021, we introduced a number of key actions to advance equity, diversity and inclusion within the organization including focus group discussions, review of our talent pipeline and overall development programs.

Notably, we further enhanced our recruiting processes by implementing a program mandating a diverse candidate slate with the goal to increase our organization’s workforce diversity and improve outreach in the local communities where we operate.

In addition, we continued unconscious bias training at leadership and managerial levels enterprise-wide to enhance our recruitment efforts and the evaluation process of candidates.

We conducted Days of Understanding at our largest manufacturing facility throughout the month of June to encourage active engagement by leadership with all employees to listen to their experiences and gather feedback for improvement.

Our senior leadership team was comprised of over 50% women in 2021, including our Chief Executive Officer, Chief Human Resources Officer, Chief Information Officer, Vice President, Nylon Solutions and Vice President, Business Development.

Four directors of our ten-member Board are women, and two directors of our ten-member Board are ethnically diverse.

Employee Development

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Early career development and continual learning is part of our employee engagement strategy.

To support the advancement of our employees, we promote development through training that broadens work-related skills and

believe that the most effective model combines an “experience, exposure, and education” approach.

To support the advancement of our employees, we promote development through training that broadens work-related skills and believe that the most effective model combines an “experience, exposure, and education” approach.

We acknowledge that learning is a career-long endeavor and place the greatest emphasis on learning by doing, supported by feedback, training, and self-reflection.

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On an annual basis, senior leadership recognizes the FLS who demonstrates excellence with this initiative with an FLS of the Year Award.

We also hold an annual Technical Career Progression event in order to recognize those employees who have displayed technical capability and regularly deliver in three key areas — results, behaviors and capability.

During 2021, we held a Technical Career Progression event in order to recognize those employees who have displayed technical capability and regularly deliver in three key areas — results, behaviors and capability.

A highly trained and engaged workforce is essential for AdvanSix to be our customers’ trusted partner, and those partnerships are built by delivering best-in-class experiences that result in satisfied customers and support shareholder return.

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Information about our Executive Officers

The executive officers of AdvanSix, listed as follows, are appointed annually by the Board of Directors (the "Board").

The executive officers of AdvanSix, listed as follows, are appointed annually by the Board.

Preston and Mr.

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Kintiroglou were each appointed as executive officers in 2020.

There are no family relationships among them.

There are no family relationships among them or our Board members.

Name, Age Position Business Experience

Kane, 43 Chief Executive Officer and Director Prior to joining the Company, Ms.

Chief Executive Officer and Director Prior to joining the Company, Ms.

Kane served as vice president and general manager of Honeywell Resins and Chemicals since October 2014.

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Kane held Six Sigma and process engineering positions at Elementis Specialties and Kvaerner Process.

Kane serves on the Boards of Directors of AdvanSix Inc., the Chemours Company, the American Chemistry Council, and the AIChE.

Kane serves on the Boards of Directors of AdvanSix Inc., the Chemours Company, and the American Chemistry Council.

She served on the Board of Directors of the AIChE from 2019 through 2021.

Kane brings to the Board her extensive leadership experience as well as knowledge of AdvanSix’s business, industry, health, safety and environmental processes, and operations.

Michael Preston, 49 Senior Vice President and Chief Financial Officer Prior to joining the Company, Mr.

Michael Preston, 50

Senior Vice President and Chief Financial Officer Prior to joining the Company, Mr.

Preston held various finance roles with Honeywell for over 15 years.

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Preston is a Chartered Financial Analyst (CFA) Charterholder and is a member of the CFA Institute and CFA Society New York.

Kintiroglou, 42 Senior Vice President, General Counsel and Corporate Secretary Prior to being named to his current role, Mr.

Kintiroglou, 43

Senior Vice President, General Counsel and Corporate Secretary Prior to being named to his current role, Mr.

Kintiroglou was the deputy general counsel of AdvanSix since the spin-off in 2016.

Before joining AdvanSix, he was a corporate and securities partner at Day Pitney LLP and a corporate and finance associate at Pillsbury Winthrop Shaw Pittman LLP and Pitney Hardin LLP.

Slieter, 46 Senior Vice President and Chief Human Resources Officer Prior to joining the Company, Ms.

Senior Vice President and Chief Human Resources Officer Prior to joining the Company, Ms.

Slieter served as vice president of human resources of Honeywell International Inc.

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From 2015 through 2018, she served as vice president, human resources of the Honeywell UOP business.

Christopher Gramm, 51 Vice President, Controller Prior to joining the Company, Mr.

Christopher Gramm, 52

Vice President, Controller Prior to joining the Company, Mr.

Gramm served as vice president and controller of the aerospace and corporate government compliance divisions at Honeywell.

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Gramm was a manager at Corning Life Sciences.

Blindenbach, 52 Senior Vice President, Integrated Supply Chain Prior to joining the Company, Mr.

Blindenbach, 53

Senior Vice President, Integrated Supply Chain Prior to joining the Company, Mr.

Blindenbach served as Vice President of Mobil International Company Operations Manager, EMEA since 2018.

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Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports are available free of charge on our website (www.AdvanSix.com) under the heading Investors (see SEC Filings) immediately after they are filed with, or furnished to, the Securities and Exchange Commission ("SEC").

In addition, in this Form 10-K, the Company incorporates by reference certain information from parts of its Proxy Statement for the 2021 Annual Meeting of

Stockholders, which will also be available free of charge on our website.

In addition, in this Form 10-K, the Company incorporates by reference certain information from parts of its Proxy Statement for the 2022 Annual Meeting of Stockholders, which will also be available free of charge on our website.

Information contained on, or that may be accessed through, our website does not and will not constitute part of this Form 10-K.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business