What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-02-21 compared with 2024-02-16 · 115 added, 124 removed, 302 unchanged (44% of the section changed)

10 unchanged sentences

AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients and chemical intermediates, guided by our core values of Safety, Integrity, Accountability and Respect.

Our four key product lines are as follows :

Our key product lines are as follows :

• Nylon Solutions

1 unchanged sentence

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.

◦ Caprolactam – Caprolactam is the key monomer used in the production of Nylon 6 resin.

◦ Caprolactam – Caprolactam is the key monomer or building block used in the production of Nylon 6 resin.

We internally polymerize caprolactam into Aegis® Nylon 6 Resins, and we also market and sell the caprolactam that is not consumed internally to customers who use it to manufacture polymer resins to produce fibers, compounds and other nylon products.

Our Hopewell manufacturing facility is one of the world’s largest single-site producers of caprolactam as of December 31, 2024.

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

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

Ammonium sulfate fertilizer is derived from the integrated operations at the Hopewell manufacturing facility.

1 unchanged sentence

We market and sell ammonium sulfate primarily to North American and South American distributors, farm cooperatives and retailers to fertilize crops.

• Chemical Intermediates – We manufacture, market and sell a number of other chemical intermediate products that are derived from the manufacturing processes within our integrated supply chain.

Most significant is acetone which is used by our customers in the production of adhesives, paints, coatings, solvents, herbicides and engineered plastic resins.

Other intermediate chemicals that we manufacture, market and sell include phenol, alpha-methylstyrene ("AMS"), cyclohexanone, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia and carbon dioxide.

With the acquisition of U.S.

Amines Limited ("U.S.

Amines"), we also produce alkyl and specialty amines serving high-value end markets such as agrochemicals and pharmaceuticals.

We also manufacture sulfuric acid, ammonia and carbon dioxide as part of our integrated operations at Hopewell and occasionally sell any excess material not consumed internally to customers externally.

• Chemical Intermediates – We manufacture, market and sell a number of chemical intermediate products that are derived from the manufacturing processes within our integrated supply chain.

Most significant is acetone which is used by our customers in the production of solvents, paints, coatings, adhesives, resins and herbicides.

Other intermediate chemicals that we manufacture, market and sell include phenol, alpha-methylstyrene ("AMS"), cyclohexanone, oximes, cyclohexanol, and alkyl and specialty amines.

Additional end-products for intermediates include automotive components, and water treatment and pharmaceutical intermediates.

Each of these product lines represented the following approximate percentage of total sales:

3 unchanged sentences

Caprolactam 18% 20% 16%

Ammonium Sulfate 29% 33% 24%

Plant Nutrients* 30% 31% 34%

Chemical Intermediates* 29% 26% 25%

100% 100% 100%

* The Company transferred certain products between its Chemical Intermediates product line and its Plant Nutrients product line to align more closely with its current sales structure.

Historical information has been reclassified to reflect these changes for all periods presented in the Consolidated Financial Statements.

Total revenue amounts were not impacted for either period.

The following charts illustrate the distribution of our sales by product line and by region, measured by the destination of each sale, for the year ended December 31, 2024:

5 unchanged sentences

In 2024, approximately 59% of the caprolactam we produced at our facility in Hopewell, Virginia was shipped to our facility in Chesterfield, Virginia where it was polymerized into Aegis® Nylon 6 resins.

During 2022, AdvanSix acquired U.S.

Amines, which has two manufacturing facilities located in Bucks, Alabama and Portsmouth, Virginia.

Manufacturing for our U.S.

Amines portfolio occurs at our two facilities located in Bucks, Alabama and Portsmouth, Virginia.

The below chart shows the end-markets for the Company's products:

Our integrated manufacturing process, our 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.

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

Our logistics infrastructure enables a reliable intra-plant supply chain and consistent and timely delivery to our customers.

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.

In February 2022, we successfully completed our second acquisition with the U.S.

Amines purchase, adding alkly and allyl amine chemistry to our value chains.

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

AdvanSix serves approximately 400 customers annually, primarily in the United States, with global capabilities, spanning a wide variety of industries.

For the years ended December 31, 2024, 2023 and 2022, we had sales of $1,518 million, $1,534 million and $1,946 million with net income of $44 million, $55 million and $172 million, respectively.

9 unchanged sentences

Our scale provides operating and purchasing leverage and the opportunity to achieve stronger business performance than our competitors in several ways.

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.

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.

Third, the location of our manufacturing operations in the United States affords us access to low-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.

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

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

Finally, our long-term customer relationships and contracts enable us to maintain high plant utilization rates, which, along with our size and scale, serves to retain and attract customers who prioritize security of supply.

Finally, our long-term customer relationships and contracts enable us to maintain high plant utilization rates through the cycle, which, along with our size and scale, serves to retain and attract customers who prioritize security of supply.

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

2 unchanged sentences

For many 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 initiated a program to educate growers and retailers on the yield benefit of ammonium sulfate fertilizer on soybeans and to generate on-farm research results that support this crop management practice.

We have been executing a program to educate growers and retailers on the yield benefit of ammonium sulfate fertilizer on soybeans and have generated on-farm research results that support this crop management practice.

Traditionally grown as a less resource intensive alternative to corn, we see soybeans as a potential growth area for nitrogen and sulfur fertilizers as researchers continue to better understand the yield increases that growers can realize by fertilizing soybean crops with these two nutrients.

3 unchanged sentences

Sales of acetone in 2024 were approximately $254 million and represented 17% of our total sales.

For AdvanSix, acetone is a key product line with a perform and optimize strategy to meet customer needs while driving favorable sales and profitability mix.

In addition to ammonium sulfate and acetone, other products from our manufacturing process include high-purity phenol, AMS, cyclohexanone, oximes, cyclohexanol, sulfuric acid, ammonia and carbon dioxide.

1 unchanged sentence

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.

In addition, our acquisition of U.S.

Amines in 2022 enables further diversification into agrochemical intermediates, water treatment and pharmaceuticals.

Global Reach.

Our cost position, business model, and sales and marketing capabilities enable us to compete globally where nylon resin, caprolactam, ammonium sulfate and chemical intermediates are consumed.

In 2023, approximately 18% of our sales were outside the United States.

In addition, our U.S.

Amines portfolio enables further diversification into agrochemical intermediates, water treatment and pharmaceuticals.

Value Chain Providing Consistency and Reliability for Domestic Customer Base.

With all of our manufacturing located in the U.S., 86% of our sales in the U.S., and primarily procuring our key raw materials domestically, our integrated value chain provides consistency and reliability for our predominantly domestic customer base.

Our cost position, business model, and sales and marketing capabilities, however, enable us to compete globally where nylon resin, caprolactam, ammonium sulfate and chemical intermediates are consumed.

Our freight and logistics capabilities and terminal locations position us well to serve global markets, including the dock and loading facility at our Hopewell facility which serves ocean-going dry-bulk freight vessels.

1 unchanged sentence

Technical Know-How, Customer Intimacy and Application Development Capabilities.

Intimate knowledge of our customers and end-market applications, combined with our technical know-how, enables us to develop differentiated products that are often valued higher by customers compared to commodity products.

Our Research and Development ("R&D") talent consists of scientists and engineers with degrees in polymer and chemical synthesis, catalysis and chemical engineering, who work not only on developing new products for nylon resins but also driving unique offerings for our chemical intermediates and ammonium sulfate customers.

Our R&D team has expanded our capabilities to test and scale production of copolymer Nylon 6/66 resin, which is used in food packaging films and other applications.

Intimate knowledge of our customers and end market applications, combined with our technical know-how, enables us to develop differentiated, higher quality products that are often valued higher by customers compared to commodity products.

Our technology talent consists of scientists and engineers with degrees in polymer and chemical synthesis, catalysis and chemical engineering, who work on driving unique offerings and developing new products across our diverse portfolio.

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.

We also have a strategic focus around placing our various chemistry platforms into high-value applications.

This diversification of end market exposure supports our sales and margin performance in spaces such as electronics, alkyd-based paints and pharmaceutical and other industrial applications.

Business Strategies

1 unchanged sentence

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.

While our global low-cost position supports our ability to operate at disproportionately higher utilization rates relative to our industries and to meet demand where it exists through a cycle, our goal of generating higher lows and higher highs requires us to drive productivity, optimize our regional and product sales mix, and continue to promote the value proposition of our differentiated offerings.

Operational excellence is a key enabler to our overall performance, and we take all the learnings for sustained continuous improvement with rigor and discipline.

There is a meaningful annual opportunity of sustainably running at our targeted production rates.

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

7 unchanged sentences

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

Supplementing our exposure to diverse end-use applications, we have enhanced our sales mix through our differentiated product portfolio, which earn gross margins that are roughly double our average base business margin.

Supplementing our exposure to diverse end-use applications, we have enhanced our sales mix through our differentiated product portfolio.

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.

1 unchanged sentence

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

We leverage our R&D investments, customer intimacy and knowledge of product applications to develop new resin products to better serve our customers and increase the value of our resin products portfolio.

We are focused on working with customers to solve their needs with respect to sustainability and have commercialized our 100% Post-Industrial Recycled resins and films.

Our R&D team works with existing and potential customers to understand end-use applications, build application development capabilities and protect the value proposition of our new products.

In addition, as a result of recent efforts and enhancements in crystallizer technology and operations, we are now producing a high-quality granular grade ammonium sulfate at greater conversion levels to meet the growing demand of our customers.

These efforts are being supplemented by our multi-year SUSTAIN (Sustainable U.S.

Sulfate To Accelerate Increased Nutrition) program's planned expansion in granular ammonium sulfate production.

We are focused on working with customers to solve their needs with respect to sustainability and have commercialized our 100% Post-Industrial and Post-Consumer Recycled nylon.

Our technology team works with existing and potential customers to understand end-use applications, build application development capabilities and protect the value proposition of our new products.

Strong Capital Stewardship.

We have developed and are executing against a disciplined framework for capital deployment that balances return of cash to shareholders with long-term investment to improve the through-cycle profitability of the business.

We have developed and are executing against a disciplined framework for capital deployment that balances long-term investment to improve the through-cycle profitability of the business with return of cash to shareholders.

We are focused on improving our return on invested capital and remain committed to delivering strong and sustainable total shareholder return over the long-term.

Our target base capital expenditures are approximately $75 million per year on average between maintenance and health, safety and environmental capital to sustain the business.

Our approach to deploying cash is disciplined with a two-pronged framework of critical funding and discretionary choices to create value.

From a critical funding perspective, we have our ongoing base maintenance and health, safety and environmental capital expenditures including our enterprise programs to support long-term operational excellence and risk mitigation.

We have and will continue to flex this level of spend, as needed or required, to address critical enterprise risk mitigation, regulatory compliance and sustainability programs.

We will continue to evaluate and execute high-return growth and cost savings capital projects.

These efforts target improvement in production rate, cost, quality and yield.

We believe that our dividend, which has grown since its initiation in 2021, serves as a dependable return of cash to our shareholders and fits very well within this framework supported by annual operating cash flow.

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

All further capital allocation is discretionary where we fund growth and cost saving programs at robust returns, inorganic opportunities and share repurchases.

Our high-return growth and cost savings capital project pipeline target improvement in production rate, cost, quality and yield.

As an example, we are accelerating profitable growth through our multi-year SUSTAIN (Sustainable U.S.

1 unchanged sentence

We continue to pursue a highly-selective acquisition and alliance strategy to supplement our organic sales by broadening our customer base, developing our technology and product portfolios, and enhancing our cash flow profile and margin stability.

On an ongoing basis we evaluate options to return cash to shareholders including significant remaining capacity under our current share repurchase authorization.

We initiated our competitive quarterly dividend in 2021 and increased it by 16% in 2022 and another 10% in 2023.

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

On an ongoing basis we evaluate options to return cash to shareholders and maintain sufficient capacity under our current share repurchase authorization.

Industry Overview

1 unchanged sentence

Nylon is sold globally as a polymer resin that is drawn into fiber for textiles and carpet and into filament for industrial applications:

compounded for engineering plastics largely for automotive end-use;

and extruded into film for food and

industrial packaging applications.

During 2023, approximately seven million metric tons of Nylon 6 resin were produced and consumed globally, with China containing approximately 60% of total global Nylon 6 production capacity and Western Europe and North America combined for approximately 15%.

Overall utilization of global production capacity was approximately 55% to 65%.

The market growth typically tracks global GDP growth over the long-term but varies by end-use.

compounded for engineering plastics, including for automotive end-use;

and extruded into film for food and industrial packaging applications.

During 2024, approximately seven million metric tons of Nylon 6 resin were produced and consumed globally, with China and the rest of Asia containing approximately 67% of total global Nylon 6 production capacity and Western Europe and North America combined for approximately 14%.

Overall utilization of global production capacity was approximately 58%.

Market growth typically tracks global GDP growth over the long-term but varies by end-use.

Generally, prices for Nylon 6 resin and caprolactam reflect supply and demand trends in the marketplace as well as the value of the basic raw materials used in the production of caprolactam, consisting primarily of benzene and, depending on the manufacturing process utilized, natural gas and sulfur.

4 unchanged sentences

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

Carpet is the largest end-use for Nylon 6 in North America and has seen stable to declining demand growth for a number of years reflecting shifts in consumer preferences to hard flooring versus soft and the previous substitution to lower-cost polyester.

The housing sector had seen an improving trend in recent years, however, residential construction markets have slowed through 2023 reflecting the rise in interest rates.

While Nylon 6 has a stronger presence in commercial carpet applications, including hospitality and office, where the material is preferred for its durability and performance characteristics, growth in both residential and commercial markets are challenged.

Carpet is the largest end-use for Nylon 6 in North America and has seen stable to declining demand growth for a number of

years reflecting shifts in consumer preferences to hard flooring versus soft and the previous substitution to lower-cost polyester.

The housing sector had seen an improving trend in recent years, however, residential construction markets have slowed through 2024 reflecting higher interest rates.

A lower interest rate environment, in time, is expected to favorably impact building and construction, and we anticipate seeing a more meaningful impact translate across the fiber and filament chain in 2025.

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

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

Following a peak in 2011 through the first half of 2016, nylon and caprolactam prices experienced a cyclical period of downturn as Chinese manufacturers entered the market and increased global supply at a time when demand growth remained relatively stable.

As a result of the increased capacity and competitive intensity, industry margins for Nylon 6 resin and caprolactam compressed over this period to a low point in mid-2016.

In the second half of 2016, capacity reductions by our competitors occurred in North America and Europe improved supply/demand fundamentals in North America while conditions globally remained dynamic.

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.

Nylon end-uses are sensitive to consumer demand, which was softer overall through 2023, particularly in consumer durables and residential end markets.

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

Varying regional dynamics, including competitive intensity and trade flows continue to impact regional pricing.

Despite long supply and demand fundamentals, estimated operating rates out of China remain at multi-year highs resulting in continued nylon exports to other regions, namely southeast Asia.

In North America, where we primarily participate, demand has been stable albeit on a lower base, with continued softness in building and construction offset by resilience in packaging and engineering plastics applications.

Plant Nutrients.

Ammonium sulfate fertilizer products are primarily sold in North and South America.

Ammonium sulfate is used as a fertilizer providing the key nutrients of sulfur and nitrogen for major agricultural crops globally such as corn, wheat, coffee, sugar, cotton and rice.

Ammonium sulfate fertilizer products are primarily sold in North and South America.

As of December 31, 2024, ammonium sulfate fertilizer accounts for approximately 6% of the global market for nitrogen fertilizer and over 40% of the global market for sulfur fertilizer.

1 unchanged sentence

Other global factors driving ammonium sulfate fertilizer demand are general agriculture trends, including the price of crops.

Evidence continues to demonstrate that farmers understand the investment trade off in driving better yield while managing their cost structure and profitability.

Strong underlying agriculture fundamentals coupled with elevated global energy input costs and tighter nitrogen fertilizer supply and demand dynamics drove significantly higher nutrient values through most of 2021 and 2022.

Nitrogen fertilizer pricing declined through 2023 amid lower energy costs and increases in global supply availability, however, remain favorable relative to historical levels.

Nitrogen fertilizer pricing declined through 2023 amid lower energy costs and increases in global supply availability, but remained favorable relative to historical levels.

Pricing and spreads strengthened in 2024, which we believe is reflective of an increasingly recognized sulfur value proposition and observed growth in demand.

Our ammonium sulfate product is positioned with the added value proposition of sulfur nutrition to increase yields of key crops.

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.

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 as compared to other fertilizers.

We produce a high-quality granular grade of ammonium sulfate to meet the growing demand of our customers.

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

We expect sulfur nutrition demand to grow 3%-4% per year with potential upside driven by increased adoption of ammonium sulfate on soybeans.

In addition, there are significant anti-dumping duties in place in the U.S.

against Chinese ammonium sulfate, which are subject to customary sunset review in 2028.

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

Chemical Intermediates.

Chemical intermediates are used as key inputs for a variety of end-market products including construction materials, paints and coatings, packaging and consumer applications.

The primary products are acetone, phenol, AMS and cyclohexanone.

With the acquisition of U.S.

Amines in the first quarter of 2022, we have expanded our end markets to include agrochemical, water treatment and pharmaceutical applications with the addition of a range of alkyl and specialty amines.

Chemical intermediates are used as key inputs for a variety of end market products including construction materials, paints and coatings, packaging agrochemical, water treatment, pharmaceutical and consumer applications.

The primary products are acetone, phenol, AMS, cyclohexanone and a range of alkyl and specialty amines.

Acetone and phenol represent approximately 58% and 10%, respectively, of our chemical intermediates sales.

Acetone global demand totals approximately six million metric tons with the U.S.

Acetone global demand totals approximately eight million metric tons with the U.S.

representing approximately 18% of the global market.

1 unchanged sentence

Polycarbonate and epoxy resins are the largest global end-use for phenol, followed by phenolic resins which are used in construction products, such as wood resins.

Industry operating rates for phenol and acetone production have fallen in 2022 and 2023 as global demand drivers have been reduced and are estimated to be less than 70% both globally and in the U.S.

consumer demand.

Industry operating rates for phenol and acetone production have fallen in recent years and are estimated to be approximately 70% globally and low to mid 60% in the U.S.

with reduced consumer demand and significant additional capacity additions in Asia, particularly China.

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.

1 unchanged sentence

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.

Generally, industry operating rates in 2022 and 2023 declined further with a reduction in global downstream demand.

During 2022 and 2023, supply and demand of acetone was balanced in the U.S.

with lower imports along with falling input propylene raw material costs, supporting favorable acetone industry margins.

We also saw strong demand for AMS as a result of lower global production output.

Supply and demand conditions for the remaining intermediates began to soften in the latter part of 2022 and have continued to remain weak through 2023 to be in line with overall weaker demand and reduced industry output.

declined in recent years, creating more favorable supply and demand conditions for the product and improved pricing.

Industry-realized acetone prices over refinery grade propylene costs generally remain healthy and continued balanced to tight global supply and demand as lower global phenol operating rates continue to persist.

Looking forward, a lower interest rate environment in 2025 would likely support phenol demand in building and construction applications for both renovation and new builds.

Demand across the rest of the Chemical Intermediates portfolio is mixed overall though these products do represent platforms serving high-value applications in support of longer-term growth and profitability.

Competition across our product offerings is based on a variety of factors including price, reliability of supply, quality, product innovation, breadth of product line, R&D efforts and technical and managerial capability.

While the competitive position of our individual products varies, we believe we are a significant competitor in each major product class.

Generally, we compete in global, fragmented markets against competitors with both global operations as well as those operating only within specific geographic regions.

AdvanSix competes with integrated manufacturers, such as Highsun Group Holdings Ltd., BASF Corporation, Sinopec Limited, DOMO Chemicals GmbH, Envalior and UBE Corporation.

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 Phenol and Altivia.

Amines business, the key alkyl amines U.S.-based competitor is Eastman Chemical Company.

For Nylon Solutions, we compete with integrated manufacturers such as BASF Corporation, UBE Corporation, DOMO Chemicals GmbH, Envalior, Highsun Group Holdings Ltd., and Sinopec Limited.

For Plant Nutrients, we compete with manufacturers such as Pasadena Commodities International

and Nutrien Ltd.

For Chemical Intermediates, we compete with stand-alone phenol and acetone producers, such as INEOS Phenol and Altivia, and, with respect to our amines product line, our key alkyl amines U.S.-based competitor is Eastman Chemical Company.

Product Overview

4 unchanged sentences

In 2024, 2023 and 2022, Nylon sales were 23%, 23% and 25% of our total sales, respectively.

We produce caprolactam, the key monomer used in the production of Nylon 6 resin, at our Hopewell plant using phenol produced at our Frankford plant and sulfur and natural gas obtained from third-party suppliers.

We produce caprolactam, the key monomer or building block used in the production of Nylon 6 resin, at our Hopewell plant using phenol produced at our Frankford plant and sulfur and natural gas obtained from third-party suppliers.

In 2024, caprolactam generated $276 million of sales.

In 2024, 2023 and 2022, caprolactam sales were 18%, 20% and 16% of our total sales, respectively.

Ammonium Sulfate

Plant Nutrients

Ammonium sulfate fertilizer is produced simultaneously with caprolactam as part of our integrated manufacturing process at our Hopewell plant.

1 unchanged sentence

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

We currently target conversion of approximately 65% of the ammonium sulfate we produce into higher-value granular form and anticipate ongoing increases as we implement our SUSTAIN (Sustainable U.S.

We currently target converting approximately 70% of the ammonium sulfate we produce into higher-value granular form and anticipate ongoing increases as we implement our SUSTAIN (Sustainable U.S.

Sulfate to Accelerate Increased Nutrition) program.

We sell ammonium sulfate under the brand name Sulf-N®, and in 2023, our ammonium sulfate products generated $441 million of sales.

In 2023, 2022 and 2021, ammonium sulfate sales were 29%, 33% and 24% of our total sales, respectively.

We sell ammonium sulfate under the brand name Sulf-N®, and in 2024, our Plant Nutrients products generated $458 million of sales.

In 2024, 2023 and 2022, Plant Nutrient sales were 30%, 31% and 34% of our total sales, respectively.

Chemical Intermediates

4 unchanged sentences

The majority of the phenol we produce is used in production of caprolactam and other chemical intermediates at Hopewell.

Any remaining phenol is sold to customers for use in their product applications such as phenolic resins, epoxies and Bisphenol A.

Any remaining phenol is sold to customers for use in their product applications such as phenolic resins, alkyl phenols and Bisphenol A used for epoxy resins and polycarbonate.

All our acetone is sold to customers for use in products such as methyl methacrylate, polycarbonate, epoxy resins, ketones and solvents used widely in automotive and construction, as well as agrochemicals.

2 unchanged sentences

The majority of cyclohexanone we produce is used in our caprolactam manufacturing process with the remainder sold to customers.

As a result of the U.S.

Amines acquisition during the first quarter of 2022, we also produce and sell alkyl and specialty amines which are used in agrochemical intermediates, water treatment and pharmaceutical applications.

Through our U.S.

Amines sites, we also produce and sell alkyl and specialty amines which are used in agrochemical intermediates, water treatment and pharmaceutical applications.

Raw Materials

5 unchanged sentences

Global supply and demand can significantly impact the price of our key raw materials, and historically prices have been cyclical.

We mitigate our exposure to commodity price risk primarily through the use of medium- and long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers which structurally pass through increases or decreases in raw material costs.

We mitigate our exposure to commodity price risk primarily through the use of medium- and

long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers which structurally pass through increases or decreases in raw material costs.

Sales, Marketing and Distribution

2 unchanged sentences

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 approximately 50 countries.

AdvanSix serves around 400 customers annually, primarily in the United States, with global capabilities, spanning a wide variety of industries.

In 2024, the Company's 10 largest customers accounted for approximately 38% of total sales.

13 unchanged sentences

We believe success in our industry is driven not only by operational excellence and cost position but also through technological strength and innovation.

Our R&D activities are regularly prioritized and funded with a stage gate approach with a primary emphasis on improving our chemical manufacturing processes to increase efficiency, capacity and productivity, lower production and operating costs, and innovating and developing new product applications.

Our R&D activities are regularly prioritized and funded with a stage gate approach with a primary emphasis on improving our chemical manufacturing processes to increase efficiency, capacity and productivity, lowering production and operating costs, and innovating and developing new product applications.

We benefit from numerous patents and trademarks that we own.

2 unchanged sentences

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 overall 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.

28 unchanged sentences

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, 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, employee development, employee benefits and employee engagement and inclusion.

As of December 31, 2024, the Company employed approximately 1,450 people.

20 unchanged sentences

Our TCIR was 1.09 in 2024, 0.97 in 2023 and 1.15 in 2022.

Equity, Diversity and Inclusion

Engagement 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 directors, 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.

We strive to represent the communities in which we operate, celebrate our differences, inspire belonging, and are 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 and inclusive work climate.

We believe it is important that each employee feels a sense of belonging and is 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 in 2019, which centers around three main commitments:

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

We supported this pledge through 2023 as we engaged in honest and transparent conversations with our employees.

During 2023, we progressed 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 continued our program of 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 created a program in 2022 for inclusive leadership, ensuring our leaders understand

and have the tools to create an inclusive environment where all can thrive.

Our second inclusive leadership cohort kicked off a full year of experiential learning in 2023.

We held our third annual Days of Understanding at two of our largest manufacturing facilities throughout the summer months to encourage active engagement by leadership with all employees to listen to their experiences and gather feedback for improvement.

During 2024, we progressed a number of key actions to advance engagement and inclusion within the organization including focus group discussions, review of our talent pipeline and overall development programs.

We created a program in 2022 for inclusive leadership, ensuring our leaders understand and have the tools to create an inclusive environment where all can thrive.

Our third inclusive leadership cohort kicked off a full year of experiential learning in 2024.

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.

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.

Supporting Women in Manufacturing (SWiM), an AdvanSix Employee Resource Group, was formed in 2019 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.

AdvanSix is committed to pay equity for its employees and regularly performs reviews of its compensation practices to evaluate and maintain pay equity in several respects, including by gender, ethnicity and race.

At a national level, AdvanSix participates as a patron level supporter of the American Institute of Chemical Engineers’ ("AIChE") “Doing a World of Good” initiative that actively supports five high priority pillars within the chemical engineering field that align closely with sustainability and ESG principles including equity, diversity and inclusion.

At a national level, AdvanSix continues its participation as a patron level supporter of the American Institute of Chemical Engineers’ ("AIChE") “Doing a World of Good” initiative that actively supports five high priority pillars within the chemical engineering field that align closely with sustainability and environmental, social and governance ("ESG") focus including engagement and inclusion.

In addition, AdvanSix supports 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 ("HBCUs") and connections to internships, leadership development and mentoring opportunities.

During 2023, we welcomed our third class of FOSSI scholars all of whom are in attendance at HBCUs, increasing our total number of scholars to thirteen.

Our senior leadership team was comprised of approximately 50% women in 2023, including our Chief Executive Officer, Chief Human Resources Officer, Chief Information Officer, Vice President Chemical Intermediates, Emerging Chemistries and Vice President, Nylon Solutions Business Director.

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

Employee Development

24 unchanged sentences

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

Preston and Mr.

Gramm were each first appointed as an executive officer in 2016, and Ms.

Gramm were each first appointed as an executive officer in 2016, Ms.

Slieter and Mr.

Kintiroglou were each appointed as executive officers in 2020.

Kintiroglou were each appointed as executive officers in 2020, and Mr.

Manjeshwar was appointed as an executive officer in 2024.

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

12 unchanged sentences

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, 52

Siddharth Manjeshwar, 48

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

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

Preston began his career with Honeywell in September of 2001 as manager of investor relations.

Preston also held several finance leadership roles within Honeywell, including chief financial officer of the Fluorine Products business, director of financial planning & analysis for the Performance Materials and Technologies segment, and director of business analysis & planning for Honeywell corporate.

From 2012 to 2013, Mr.

Preston was vice president of business analysis & planning.

Preston served as vice president and chief financial officer for Honeywell’s UOP division from 2013 to 2016.

Prior to joining Honeywell, he spent seven years in investor relations consulting.

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

Manjeshwar served as Vice President, Corporate Treasurer and Investor Relations at Air Products.

Prior to that, Mr.

Manjeshwar served as Chief Financial Officer at FirstLight Power from 2018 through 2021, as Vice President, Corporate Finance and M&A, and Treasurer at Dynegy Inc.

from 2012 through 2018, and in investment banking roles at Deutsche Bank Securities, Inc.

and Barclays Capital/Lehman Brothers from 2005 through 2012.

Kintiroglou, 46

25 unchanged sentences

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 (the "SEC").

In addition, in this Form 10-K, the Company incorporates by reference certain information from parts of its Proxy Statement for the 2024 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 2025 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.

5 unchanged sentences

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