−Removed: Ingevity’s business originated as part of the operations of its initial parent company, Westvaco Corporation, a paper and packaging company, using co-products of the kraft pulping process, primarily crude tall oil ("CTO"), and lignin, as well as hardwood sawdust from lumber manufacturing.
−Removed: Ingevity operated as a division of Westvaco Corporation and its corporate successors, including MeadWestvaco Corporation ("MeadWestvaco") and WestRock Company ("WestRock"), since 1964.
−Removed: Ingevity Corporation was incorporated in Delaware on March 27, 2015.
−Removed: On May 15, 2016, we completed the separation of Ingevity from WestRock (herein referred to as the "Separation").
−Removed: The Separation was completed by way of a distribution of all of the then outstanding shares of common stock of Ingevity through a dividend in kind of Ingevity's common stock (par value $0.01) to holders of record of WestRock common stock (par value $0.01) as of the close of business on May 4, 2016.
−Removed: Ingevity's common stock began "regular-way" trading on the New York Stock Exchange ("NYSE") on May 16, 2016 under the symbol "NGVT."
−Removed: The address of Ingevity’s principal executive offices is 5255 Virginia Avenue, North Charleston, South Carolina 29406.
−Removed: Ingevity maintains a website at www.ingevity.com.
−Removed: Ingevity’s website and the information contained in or connected to the website will not be deemed to be incorporated in this document.
+Added: Ingevity provides products and technologies that purify, protect, and enhance the world around us.
+Added: Through a diverse team of talented and experienced people, we develop, manufacture, and bring to market solutions that are both largely renewably sourced and help customers solve complex problems, while making the world more sustainable.
+Added: We operate in two reporting segments:
+Added: Performance Materials and Performance Chemicals.
+Added: Our products are used in a variety of demanding applications, including automotive components that reduce gasoline vapor emissions, asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks, coatings, elastomers, and bioplastics.
Throughout this Annual Report on Form 10-K, except where otherwise stated or indicated by the context, "Ingevity", the "Company", "we", "us", or "our" means Ingevity Corporation and its consolidated subsidiaries and their predecessors.
−Removed: Copies of the annual, quarterly, and current reports we file with the Securities and Exchange Commission ("SEC"), and any amendments to those reports, are available on our website at www.ingevity.com as soon as practicable after we furnish such materials to the SEC.
−Removed: Apart from SEC filings, we also use our website to publish information, which may be important to investors, such as presentations to analysts.
−Removed: Reports filed with the SEC may be viewed at www.sec.gov.
−Removed: Ingevity is a leading global manufacturer of specialty chemicals and high performance activated carbon materials.
−Removed: We provide innovative solutions to meet our customers’ unique and demanding requirements through proprietary formulated products.
−Removed: We report in two business segments, Performance Materials and Performance Chemicals.
−Removed: Our Performance Materials segment consists of our automotive technologies and process purifications product lines.
−Removed: Performance Materials manufactures products in the form of powder, granules, extruded pellets, extruded honeycombs, and activated carbon sheets.
−Removed: Automotive technologies products are sold into gasoline vapor emission control applications within the automotive industry, while process purification products are sold into the food, water, beverage, and chemical purification industries.
−Removed: Our Performance Chemicals segment consists of our pavement technologies, oilfield technologies, industrial specialties, and engineered polymers product lines.
−Removed: Performance Chemicals manufactures products derived from CTO and lignin extracted from the kraft paper making process as well as caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide.
−Removed: Performance Chemicals products serve as critical inputs used in a variety of high performance applications, including pavement preservation, pavement adhesion promotion, and warm mix paving (pavement technologies product line), oil well service additives, oil production, and downstream application chemicals (oilfield technologies product line), printing inks, adhesives, agrochemicals, lubricants, and industrial intermediates (industrial specialties product line), coatings, resins, elastomers, adhesives, and bio-plastics (engineered polymers product line).
−Removed: Our global engineering, technical, sales, and application support teams closely collaborate with our customers, and, importantly, with their customers.
−Removed: With our deep technical expertise and experience in our customers’ applications and end markets, we have the capacity and flexibility to anticipate and respond to changing market conditions and customer demands and to develop proactive solutions that provide our customers, and therefore us, with a distinct competitive advantage.
−Removed: Additionally, the quality and diversity of our product portfolio, and the flexibility of our manufacturing assets, gives us the capability to direct our resources towards their most profitable and attractive uses and geographies in response to changing market conditions.
−Removed: The charts below illustrate our revenue by segment, product line and geography in 2019 for all product lines.
+Added: Our business originated as part of the operations of our former parent company, Westvaco Corporation, in 1964, and we operated as a division of Westvaco Corporation and its corporate successors, including MeadWestvaco Corporation and WestRock Company (“WestRock”) until our separation from WestRock in May 2016 (the “Separation”).
+Added: Our common stock began "regular-way" trading on the New York Stock Exchange in May 2016 under the symbol "NGVT." Since the Separation, we acquired substantially all of the assets used in Georgia-Pacific Chemicals LLC’s pine chemical business (the “Pine Chemical Business”) in March 2018 and acquired Perstorp Holding AB’s entire caprolactone business (the “Caprolactone Business”) in February 2019.
+Added: For additional information on these acquisitions, see Note 17 to the consolidated financial statements included within Part II.
+Added: Item 8 of this Form 10-K.
+Added: Our principal executive offices are located at 4920 O'Hear Avenue, Suite 400, North Charleston, South Carolina 29405.
+Added: Ingevity maintains a website at www.ingevity.com.
+Added: We make available, free of charge through our website, our filings with the Securities and Exchange Commission (the “SEC”), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, as soon as reasonably practicable after such items are filed with, or furnished to, the SEC.
+Added: We also use our website to publish additional information that may be important to investors, such as presentations to analysts.
+Added: Information contained in or connected to our website is not incorporated by reference into this Annual Report on Form 10-K.
+Added: Reports we file with the SEC may also be viewed at www.sec.gov.
+Added: The table below illustrates our product lines and the primary end uses for our products by segment, as well as our revenue by segment for fiscal year 2020.
For more information on our U.S.
4 unchanged sentences
Primary End Uses Gasoline vapor emissions control
−Removed: Purification of food, water, beverages and chemicals Pavement preservation
−Removed: Adhesion promotion
−Removed: Warm mix asphalt technology Well service additives
−Removed: Production and downstream application chemicals Printing inks
+Added: Purification of food, water, beverages and chemicals Warm mix asphalt
+Added: Pavement preservation
+Added: Pavement reconstruction and recycling
+Added: Well service additives
+Added: Production and downstream applications Adhesives
Agrochemicals
+Added: Printing inks
Industrial intermediates Coatings
+Added: Medical devices
2020 Revenue $510.0 million $706.1 million
−Removed: Sales are assigned to geographic areas based on location to which product was shipped to a third-party.
−Removed: Our Core Strengths
−Removed: Ingevity is committed to continued value creation by focusing on its core strengths:
−Removed: Leading Global Market Positions
−Removed: We are a leader in the global pine chemicals industry, further distinguished by our focus on target markets that offer the potential for profitable growth, supported by long-term secular growth trends such as infrastructure preservation and development, innovation in unconventional oil drilling and production, and increasing global food production demands.
−Removed: Our products serve as critical inputs used in a variety of high performance applications, including pavement preservation, pavement adhesion promotion, warm mix asphalt, oil well service additives, oil production, downstream applications chemicals, printing inks, adhesives, agrochemicals, and lubricants.
−Removed: The quality and diversity of our product portfolio, and the flexibility of our manufacturing assets, gives us the capability to direct our differentiated products towards their most profitable and attractive uses and geographies.
−Removed: We are the global leader in caprolactone technologies, as shown by our invested capital base that represents approximately 60 percent of the global manufacturing capacity.
−Removed: Caprolactone is a critical input to many high-growth end-use applications such as thermoplastic additives for biodegradables and polyols in coatings, as well as other coatings, resins, elastomers, adhesives, and bioplastics.
−Removed: Our manufacturing footprint allows us to produce caprolactone monomer, and further derivatize it into the more profitable and faster growing market segments and geographies.
−Removed: We are the leading global manufacturer of activated carbon used in gasoline vapor emission control systems in cars, trucks, motorcycles, and boats.
−Removed: Our activated carbon business is expected to benefit from increasingly stringent vehicle emission standards worldwide that our products are designed and qualified to meet.
−Removed: The annual global sales of light duty vehicles (i.e., passenger and light commercial vehicles) that are powered with gasoline are forecasted to grow from approximately 77 million to approximately 83 million vehicles, an increase of eight percent, from 2018 to 2028.
−Removed: Most of this growth is expected to occur outside of the U.S., Canada, and China in countries and regions where gasoline vapor emission standards significantly lag the new modern, highly effective standards that are currently being implemented in the U.S., Canada, and China.
−Removed: This provides significant upside potential in addition to the already favorable macroeconomic growth trends of the global automotive industry.
−Removed: Flexible Manufacturing Capabilities Optimize Asset Utilization
−Removed: The quality and diversity of our product portfolio, and the flexibility of our manufacturing assets, gives us the capability to direct our resources to their most profitable uses and geographies.
−Removed: Our Performance Chemicals assets include multipurpose chemical reactors that are capable of manufacturing products of varying chemistries that can serve multiple markets.
−Removed: For example, our North Charleston, South Carolina facility is capable of producing products for pavement, oilfield, and adhesives applications, while our DeRidder, Louisiana facility can be redirected with relative ease among various applications including printing inks, adhesives, oilfield, and asphalt.
−Removed: In our Warrington, U.K.
−Removed: facility, we have reactors for thermoplastic and polyol applications.
−Removed: These Warrington, U.K.
−Removed: reactors can produce products for a variety of applications:
−Removed: adhesives, bioplastics, and medical devices in thermoplastics and adhesives, coatings, and elastomers in polyols.
−Removed: Our Performance Materials facilities, which primarily produce automotive grade carbon, are also capable of producing a number of other activated carbon products for food, water, beverage, and chemical purification applications, maximizing the productivity of these assets.
−Removed: Deep Technical Expertise and Product Innovation Capability and Experience
−Removed: We have deep technical expertise and market knowledge and insights, derived from customer relationships and research and development capabilities, that drive our ability to innovate.
−Removed: Innovation efforts are led and supported by our teams of technical experts and industry veterans, many of whom are considered the foremost experts in their fields, spread throughout our organization in key positions from product development to manufacturing to sales.
−Removed: Each of our business units has its own development and application laboratories that work in partnership with our customers to refine existing products and develop new innovative products that will drive value for Ingevity and our customers.
−Removed: With our technical expertise and product innovation capability and experience, and by working closely with our customers, our technical experts offer application solutions that address our customers’ most difficult challenges.
−Removed: For example, when our pavement contractor customers vary the aggregate and/or asphalt to be used in a particular job mix, they call on our
−Removed: expertise to quickly reformulate the Ingevity additive chemistry needed for the revised mix, enabling them to meet the original job specifications on time, regardless of the change.
−Removed: Also, we aid our automotive customers in designing and testing gasoline evaporative emissions canisters.
−Removed: Not only do we advise our direct customers (typically tier 1 and 2 automotive suppliers), we advise the automobile Original Equipment Manufacturers, or “OEMs”, as well.
−Removed: We have complex testing equipment in both the United States and China to help our customers address their challenges in meeting mandated evaporative emissions thresholds.
−Removed: In engineered polymers, we work with our customers to educate them about the unique performance characteristics of our caprolactone and caprolactone derivatives.
−Removed: One of the unique product characteristics of caprolactone is its biodegradability.
−Removed: We recently achieved a home compostability certification for our caprolactone based thermoplastics.
−Removed: We believe this certification will help to accelerate adoption of our thermoplastics for use in biodegradable plastics.
−Removed: Our ability to swiftly understand and address our customers’ performance needs allows Ingevity to maintain and grow its partnerships with its customer base.
−Removed: Unique Decades-Long Track Record of Automotive Carbon Products Meeting Emission Compliance Standards
−Removed: Federal, California, and Canadian regulatory standards and the China 6 national standard, promulgated in December 2016, require that gasoline vapor control devices remain effective for the entire life of the vehicles on which they are installed.
−Removed: Ingevity has a substantial, decades-long track record of providing life-of-vehicle product performance in a properly designed gasoline vapor control system.
−Removed: Our capability to engineer very specific mesoporous carbons on a large commercial scale allows the system designers to minimize the system’s size based on our carbon’s ability to remain highly effective over a vehicle’s lifetime.
−Removed: Given the imperative for automotive manufacturers to produce vehicles capable of meeting these long-term requirements, or potentially face expensive recalls and unfavorable publicity, our proven history provides our customers with assurance that Ingevity's activated carbon will provide life-of-vehicle product performance.
−Removed: Global Supply Chain Reach
−Removed: We have a global reach that allows us to effectively service multinational customers through a combination of our manufacturing facilities located in the U.S., China, and the United Kingdom as well as local talent strategically placed around the globe.
−Removed: In addition, our technology centers located in the U.S., China, the United Kingdom, Europe, and India give us the ability to service our customers throughout these regions, and provide us with market insights that allow us to develop customized solutions for local and regional markets.
−Removed: Our global engineering, technical, sales, and application support teams serve customers in approximately 75 countries.
−Removed: This capability also allows us to take advantage of future market trends.
−Removed: Collaborative Customer and End User Relationships Drive Profitable Growth Opportunities
−Removed: We take a partnership approach with our customers, investing resources to deeply understand their customers’ needs so that we can provide technologically advanced, tailored solutions that allow our customers to maintain a competitive advantage in the markets they serve.
−Removed: Our knowledge of our customers’ end markets provides us with insights that enable us to develop solutions that address opportunities or challenges and create value for our customers.
−Removed: For example, through our relationships with several automobile OEMs (often, our customers’ customer), we learned that certain vehicles were having trouble passing emissions certification tests based on a small amount of volatile organic compounds ("VOCs") migrating from the engine via the vehicles’ air intake systems.
−Removed: To address this issue, we developed several generations of activated carbon-based solutions, including activated carbon extruded honeycombs and engineered activated carbon sheets, that manage these emissions while minimizing pressure drop in the air intake system-a key performance advantage to the OEMs.
−Removed: This drove demand for our product by addressing the needs of our customers’ customer.
−Removed: We believe this approach-driven demand for our products by developing solutions for our customers’ end markets has been, and will continue to be, a significant driver of profitable growth.
−Removed: Education of Government and Regulatory Bodies on Scientifically Based Policies and Specifications
−Removed: Many of our customers are subject to increasing regulatory standards and mandates.
−Removed: With our technical expertise and experience, our teams are a valued resource and work directly with government and regulatory bodies, in support of our customers, as experts in their field to educate regulators about existing and innovative technologies that support their objectives or solve specific challenges.
−Removed: As the trend continues both in mature and emerging markets towards more advanced solutions, we believe the ability to leverage our expertise to educate, advocate, and promote sensible regulatory solutions will benefit our customers while driving incremental value within those markets.
−Removed: For example, Ingevity has globally recognized expertise in the highly specialized field of automotive gasoline vapor emissions.
−Removed: While tailpipe emissions on vehicles are well recognized,
−Removed: understood and regulated, gasoline vapor emissions from vehicles have been lightly regulated in many countries outside the U.S., Canada, Brazil, and China.
−Removed: Our experts have educated authorities in other countries to help them understand and quantify the magnitude of these emissions and evaluate the highly effective solutions currently being adopted in the U.S., Canada, Brazil and China that can significantly reduce these gasoline vapor emissions at a relatively low cost per vehicle.
−Removed: Our engagement with regulators allows us to then work with our customers in order to help them respond and adapt to evolving and varying regulatory standards.
−Removed: For example, because of the stringent and differing regulatory compliance standards applicable to the global oilfield industry, our oilfield customers often turn to us instead of smaller, less sophisticated suppliers in order to help them manage the complexities of compliance risk in chemical distribution and use throughout the world.
−Removed: Highly Engaged, Performance and Safety-Driven Culture
−Removed: We have assembled a highly talented, collaborative, committed, and creative team which drives the success of our business.
−Removed: Our collective ambition is keenly focused on creating value for today and tomorrow.
−Removed: Further, we are committed to protecting human health and the environment while using resources in a responsible and sustainable manner.
−Removed: As a long-standing member of the American Chemistry Council ("ACC"), we subscribe to the Guiding Principles of the Responsible Care program-a global chemical industry performance initiative that is implemented in the U.S.
−Removed: through the ACC.
−Removed: Our ISO 9001, IATF 16949 and Responsible Care Certifications are internationally recognized measures of consistent superior performance and responsibility to health, safety, security, and the environment.
−Removed: Long-term Secured Raw Material Supply
−Removed: We have a long-term supply agreement with WestRock pursuant to which we purchase all of the CTO output from WestRock’s kraft mills, subject to certain exceptions.
−Removed: In 2018, we entered into a 20-year supply agreement with Georgia-Pacific LLC (“Georgia-Pacific”), pursuant to which we purchase the lesser of 125,000 tons of CTO and the aggregate output of CTO produced and originating at certain of Georgia-Pacific’s paper mills.
−Removed: These relationships with WestRock and Georgia-Pacific are strategically important to our Performance Chemicals business due to the limited supply of CTO globally, of which we believe a significant portion is already under long-term supply agreements with other consumers of CTO.
−Removed: Under these agreements, we currently expect to source approximately 60 to 70 percent of our CTO requirements through 2025 based on the maximum operating rates of our three Performance Chemicals' pine chemicals facilities.
−Removed: We believe the supply from Georgia-Pacific, WestRock, and with our other contracted sources of CTO, will allow us to serve expected customer demand.
−Removed: Solvay Interox Limited (“Solvay”) is the primary provider of hydrogen peroxide to our Warrington, U.K.
−Removed: facility pursuant to a long-term supply agreement.
−Removed: Hydrogen peroxide is also widely available and we believe that the supply from Solvay will allow us to serve our expected demand.
−Removed: Our Plans for Additional Growth
−Removed: We have a demonstrated history of profitable growth.
−Removed: Looking ahead, we believe we will continue to deliver profitable growth by taking the following steps:
−Removed: Expanding Sales to Existing Customers and into New Geographies
−Removed: We believe we are well positioned to organically expand our sales through a combination of continued global market growth, leveraging our significant application knowledge to apply our existing products to new applications and capitalizing on the investments we have made in our global manufacturing, sales, technical centers, and distribution network.
−Removed: Our global reach allows us to effectively compete in new geographies by efficiently delivering proven innovative solutions where opportunities to apply our technologies exist.
−Removed: We continue to leverage our significant application knowledge and intimate customer relationships to target opportunities where we know our products perform well and to create demand for our products by driving value for our customers.
−Removed: We intend to continue to strengthen our position in emerging markets where there are significant opportunities for growth.
−Removed: Opportunities include the expansion of sales of our pavement products into areas increasingly in need of newly paved
−Removed: roads and increased sales of activated carbon solutions driven by anticipated regulatory changes in global automotive gasoline emissions control standards.
−Removed: Increasing Our Offering of Specialized, Higher Margin Products
−Removed: We employ a world-class team of engineering, technical, sales, and application specialists, along with experienced industry professionals, which provide us with deep technical knowledge and the ability to be a leading provider of specialty products in the markets we serve.
−Removed: We have the experience and capability to further develop and expand upon the products we currently produce, further differentiating them into higher value, increasingly specialized products, or developing new applications and end uses.
−Removed: We have a history of success in product development and differentiation.
−Removed: For example, our oilfield technologies product line focuses on development and marketing of specialized tall oil based emulsifiers and corrosion inhibitors as well as marketing base tall oil fatty acid ("TOFA") refinery products.
−Removed: We believe that there is significant upside in further developing and expanding upon products produced from TOFA, displacing some of our lower margin business where we sell TOFA directly to certain customers.
−Removed: This will have the added benefit of improved insulation from the cyclical nature of the direct natural fats and oils market of which TOFA is a part.
−Removed: Our goal is to increase the portion of our sales of specialized, higher value products derived from TOFA, including addressing new markets or opportunities to upgrade TOFA into product categories where we might not participate today.
−Removed: Additionally, we search to supply the right chemistry for the applications within our market segments regardless of the raw materials required.
−Removed: Applying our unique insights into the end use applications of our products, our team searches to find novel solutions, outside of our current CTO-based materials, to problems and our team also works to create the supply chain needed to provide those products to our customers.
−Removed: As an example, we develop, manufacture, and sell product solutions in our pavement technologies product line that are TOFA and hydrocarbon based.
−Removed: We also believe that there is significant upside in further developing and expanding caprolactone-based products and derivatives.
−Removed: The end-markets in which we are expanding have favorable trends that we believe will support growth rates higher than global gross domestic product ("GDP").
−Removed: For example, caprolactone’s performance properties give it superior performance in biodegradable plastics, medical devices, and aerospace coatings, among other applications.
−Removed: Innovating to Enable Our Customers to Adapt to Increasingly Stringent Regulatory Standards
−Removed: We are a valued resource to government and regulatory agencies around the world, from California to China, including national, regional, and local environmental regulatory bodies.
−Removed: We work directly with such bodies, in support of our customers, to help them develop sensible standards based on the availability of technological solutions that make such standards commercially achievable.
−Removed: As standards are adopted and become increasingly demanding, the products that can be used to achieve compliance with such standards become increasingly technologically complex to design and manufacture on a commercial level.
−Removed: Our ability to meet these complexities provides Ingevity with a distinctive commercial edge-as our customers in many applications depend on us to help them meet their compliance standards.
−Removed: We also work closely with automotive companies and their suppliers to ensure that they understand and can meet increasingly stringent vehicle emission standards.
−Removed: Investing Organically and Selectively Pursue Acquisitions that Further Strengthen Our Product Portfolio
−Removed: We plan to continue to invest capital organically in attractive cost reduction projects and in capacity expansions as necessary to meet demand growth.
−Removed: For example, in 2016, to meet the growing demand for our activated extruded honeycomb products that help meet the U.S.
−Removed: and Canadian Low Emission Vehicle, or LEV III, and Tier 3 regulations, we began a multi-year capital expansion at our Waynesboro, Georgia facility that will effectively quadruple the capacity output of that facility by the end of 2020.
−Removed: Also, in 2020, we will complete a brownfield expansion and infrastructure upgrades at our Covington, Virginia facility in order to meet the growing activated carbon demand for the China 6 regulation.
−Removed: We will also complete growth expansion work at our Warrington, U.K.
−Removed: facility that includes streamlining and replacing monomer production equipment with equipment that is more modern and efficient.
−Removed: As demand for our products grows, we will continue to evaluate additional capacity expansion as needed.
−Removed: In addition, we intend to pursue value-creating acquisitions, such as the acquisition (the "Caprolactone Acquisition") of Perstorp Holding AB’s caprolactone division (the "Caprolactone Business"), the acquisition (the "Pine Chemical Acquisition") of Georgia-Pacific's Pine Chemical business ("Pine Chemical Business"), and the acquisition of the remaining 30
−Removed: percent ownership interest of our Purification Cellutions, LLC joint venture (now known as Ingevity Georgia, LLC), all of which represented attractive opportunities in our target markets as well as in high-value niche applications that complemented our product portfolio and capabilities.
−Removed: We continue to seek to add product lines and portfolios which we believe serve end-markets with growth rates significantly greater than global GDP, as well as having the potential to be a platform for additional bolt-on acquisitions.
−Removed: We will also continue marketing and manufacturing alliances that will play an important role in strengthening our leadership positions.
−Removed: We are evaluating acquisitions both domestically and globally.
Performance Materials
−Removed: We engineer, manufacture, and sell hardwood-based, chemically activated carbon products, produced through a highly technical and specialized process primarily for use in gasoline vapor emission control systems in cars, trucks, motorcycles, and boats.
−Removed: We are a global leader in this automotive application.
−Removed: We also produce a number of other activated carbon products for food, water, beverage, and chemical purification applications, to maximize the productivity of our manufacturing assets.
−Removed: Our automotive carbon products capture gasoline vapor emissions that would otherwise be released into the atmosphere as VOCs, which contain hazardous air pollutants and can photochemically react to form ozone and secondary organic aerosols.
−Removed: These gasoline vapor emissions (which are distinct from tailpipe emissions) are released primarily (i) during refueling, (ii) when a vehicle is parked during the daytime, as a result of evaporation and expansion of vapors in the fuel tank in warmer daytime temperatures and (iii) as “running loss,” as a result of evaporation and expansion of vapors in the fuel tank from increased temperatures as a result of operation of the vehicle.
−Removed: Our automotive carbon products are typically part of vehicle-based gasoline vapor emissions control systems which can range from systems equipped with an approximately one liter carbon canister that captures one day of diurnal parking emissions, to more sophisticated Onboard Refueling Vapor Recovery (“ORVR”), running loss and multi-day diurnal parking systems with a two to three-liter carbon canister that is over 98 percent efficient.
−Removed: The captured gasoline vapors are largely purged from the carbon and directed to the engine where they are used as supplemental power for the vehicle.
−Removed: In this way, our automotive carbon products are part of a system that provides for both environmental control and energy recovery.
−Removed: We estimated, based upon 2016 data, that our products collectively prevented over 20,000 metric tons of VOC emissions each day from being lost to the atmosphere and returned the equivalent of 8 million gallons of gasoline each day to power vehicles.
−Removed: Environmental standards drive the implementation of gasoline vapor emission control systems by automotive manufacturers.
−Removed: While tailpipe emissions on vehicles are well recognized, understood, and regulated, gasoline vapor emissions from vehicles have been lightly regulated in many countries outside the U.S., Canada, Brazil, and China.
−Removed: For those countries that have not significantly regulated gasoline vapor emissions, enacting more stringent regulations represents a low-cost, high-return opportunity to address their air quality issues.
−Removed: The annual global sales of light duty vehicles (i.e., passenger and light commercial vehicles) that are powered with gasoline are forecast to grow from approximately from approximately 77 million to approximately 83 million vehicles, an increase of eight percent from 2018 to 2028.
−Removed: Most of this growth is expected to occur outside of the U.S., Canada, and China in countries and regions where gasoline vapor emission standards significantly lag the new modern, highly effective standards that are currently being implemented in the U.S., Canada, and China.
−Removed: Adoption of modern gasoline vapor emission standards in these regions would have significant, positive environmental and energy efficiency impacts and provide significant upside growth potential for our automotive carbon business.
−Removed: and Canada have led the world in recognizing and addressing the harm to air quality caused by gasoline vapor emissions, and in early 2014 enacted regulatory standards that will further reduce these emissions to “near zero” levels by phasing in Tier 3 and LEV III evaporative emission standards through 2022, which will result in significant increases in the use of our “canister bleed emissions” system patent over that same period.
−Removed: The Tier 3 and LEV III phase in schedule requires compliance with the standard as follows:
−Removed: 40 percent of model year 2017’s vehicles, 60 percent of model year 2018’s vehicles, 80 percent of model year 2020’s vehicles and 100 percent of model year 2022’s vehicles.
−Removed: The most commonly applied embodiment of the patent uses our activated carbon in the main part of the canister and our activated carbon extruded honeycomb(s) as a “scrubber” on the outlet side of the canister to reduce the canister’s emissions to “near zero.” One of our significant “canister bleed emissions” patents expires in March 2022.
−Removed: The extruded honeycombs are manufactured through an activated carbon ceramic extrusion process at our Waynesboro, Georgia facility.
−Removed: We have a 100 percent controlling ownership
−Removed: and operating responsibility at this facility, after having purchased the remaining 30 percent ownership interest in the Purification Cellutions, LLC joint venture (now known as Ingevity Georgia, LLC) from our partner in August of 2018.
−Removed: Most countries outside the U.S., Canada, China, and Brazil have significantly lagged in the adoption of regulatory standards that would reduce these gasoline vapor emissions, focusing instead on regulating the more “visible” tailpipe emissions.
−Removed: These countries are using a gasoline vapor emission standard that is functionally equivalent to a 1981 U.S.
−Removed: regulatory standard.
−Removed: As a result, in Europe, Asia, Africa, and Latin America, gasoline vapor emissions are the primary source of automotive VOC emissions.
−Removed: China has begun implementation of a new national standard, China 6, that is functionally equivalent to the 2009 alignment of U.S.
−Removed: Tier 2 with California LEV II.
−Removed: This new national standard, containing ORVR and multi-day diurnal parking emission controls, is scheduled to be fully phased in by July 2020 with the announced early implementation in several large, provincial, and municipal regions that began in 2019.
−Removed: As recognized experts in the field of gasoline vapor emission control, Ingevity has been working with regulatory bodies and relevant third parties in Brazil, China, Japan, Mexico, and the European Union to help them understand and move towards more effective regulatory standards similar to those in place in the U.S.
−Removed: Regulatory indications of adoption and implementation of more stringent vapor emissions standards outside of the U.S.
−Removed: and Canada include the following:
−Removed: • The European Commission has adopted more stringent gasoline vapor emission regulations with its Euro 6d standard, which requires full implementation by September 2019.
−Removed: This new standard is more stringent than the current standards and includes a 2-day diurnal parking emission test that will generally result in a 30 - 70 percent increase in canister capacities and a shift in some volumes to pellets and higher activity carbon.
−Removed: • In its November 2007 session, the World Forum for Harmonization of Vehicles Regulations (WP 29) established an Informal Working Group (IWG) under the Working Party on Pollution and Energy (GRPE) to prepare a road map for Worldwide Harmonized Light Vehicle Test Procedures (WLTP), including those for evaporative emissions as part of Phase 2 of the effort.
−Removed: Global Technical Regulation (GTR) No.
−Removed: 19 established a 48-hour test procedure, based upon the European 48-hour procedure, that can be adopted by contracting parties (i.e.
−Removed: participating countries) across the globe.
−Removed: • On December 23, 2016, the China Ministry of Environmental Protection and the China State Administration of Quality Supervision, Inspection, and Quarantine released its China 6 National Standard on the Limits and Measurement Methods for Emissions from Light-Duty Vehicles (GB 18352 6-2016).
−Removed: In the new standard, diurnal control is increased to 48 hours, running loss conditions are simulated, and ORVR is added.
−Removed: Emissions limits are also reduced and will be similar to those in U.S.
−Removed: As a result, canister volumes are expected to increase by 2 to 3 times and the majority of the canisters are expected to shift to high activity carbons and pellets.
−Removed: This new standard fully implements nationally on July 1, 2020.
−Removed: • South Korea is currently phasing in some U.S.
−Removed: Tier 2 diurnal parking emission standards, which generally require activated carbon canister volumes greater than 1.3 liters and an increased use of pelletized carbon.
−Removed: In 2018, South Korea began phasing in portions of the U.S.
−Removed: Tier 3 “near zero” full vehicle diurnal parking emission standards that will favor the use of low emission and air induction system diurnal parking emission activated carbon technologies.
−Removed: • In November 2018, Brazil’s National Council for the Environment ("CONAMA") plenary finalized the Program for the Control of Air Pollution by Motor Vehicles ("PROCONVE") L7 regulations that included a hot-soak and 48-hour diurnal requirement - with an emission limit similar to US Tier 2 - that must be fully implemented by January 2022.
−Removed: An ORVR requirement was also passed that will be implemented in stages in 2023 (20 percent of new vehicles), 2024 (60 percent of new vehicles), and 2025 (100 percent of new vehicles).
−Removed: See also “Risk Factors-Risks Related to Ingevity’s Business-Adverse conditions in the automotive market may adversely affect demand for our automotive carbon products” and “Risk Factors-Risks Related to Ingevity’s Business-If increasingly more stringent air quality standards worldwide are not adopted, our growth could be impacted.”
−Removed: Current regulatory standards in the U.S.
−Removed: and Canada require that gasoline vapor control devices remain effective for the entire life of the vehicles on which installed.
−Removed: The end of lifetime requirements for most vehicles is 10 years or 120,000 miles, but increased to 15 years or 150,000 miles for a large segment of these vehicles with the implementation of the Tier 3
−Removed: China 6 standards also include a lifetime requirement of 12 years or 160,000 kilometers (which changes to 200,000 kilometers beginning in July 2023).
−Removed: Ingevity has a substantial, decades long track record of providing life-of-vehicle product performance based on our unique capability to engineer a very specific mesoporous carbon on a large commercial scale.
−Removed: Given the imperative for automotive manufacturers to produce vehicles capable of meeting these long term requirements, or potentially face expensive recalls and unfavorable publicity, there is an increased risk to using other producers who do not have a comparable, proven history, particularly given the significant costs associated with non-compliance should an offering fail to maintain effectiveness over vehicle lifetimes.
−Removed: Additionally, because these gasoline vapor control systems are certified as “environmental devices” for models currently in production, it is time consuming and costly to replace our products within the vehicle’s control system with a competitive product during the vehicle’s model platform production life due to the high cost of recertification.
−Removed: As a result of decades of innovation and production, Ingevity is able to produce products that are effective in smaller amounts than competitors’ offerings, meaning less product is required-which results in savings through the use of a smaller and less costly canister in the overall emissions control system.
−Removed: Continued innovation and manufacturing know-how may allow this advantage to continue even as competitors improve their product offerings.
−Removed: Ingevity is further uniquely positioned to capitalize on the opportunity afforded by the adoption of these modern vapor emission regulatory standards, which will, as a practical matter (given current technology), require manufacturers of light duty vehicles in countries adopting these standards to incrementally install advanced gasoline vapor control technology with carbon capable of meeting the new regulatory standards.
−Removed: Based on the regulatory trends and growth in vehicle sales, the revenue for Ingevity's automotive emissions products has doubled since 2015.
−Removed: Ingevity, through its proprietary technology, trade secrets and confidential manufacturing know-how, has unparalleled capability and expertise to manufacture the high performance activated carbon products required to meet these regulatory standards, as well as more stringent standards likely to be imposed in the years to come.
−Removed: These same capabilities and expertise will help Ingevity to maintain its position in the U.S.
−Removed: and Canada automotive markets as they implement the adoption of “near zero” gasoline vapor emission levels.
−Removed: Additionally, as automotive engine technology continues to evolve and engines become more efficient, the amount of engine airflow available to purge the gasoline vapors from the activated carbon products is expected to decline (“low-purge”).
−Removed: We believe that the pore structure characteristics of our activated carbon products additionally advantages us versus competitors’ offerings in low purge conditions.
−Removed: Ingevity is actively investing in product and process development, and has received patents designed to deal with low-purge engines.
−Removed: We also produce a number of other activated carbon products for food, water, beverage, and chemical purification applications to maximize the productivity of our manufacturing assets.
+Added: Our automotive technologies product line engineers, manufactures, and sells hardwood-based, chemically activated carbon products, produced through a highly technical and specialized process primarily for use in gasoline vapor emission control systems in cars, trucks, motorcycles, and boats.
+Added: To maximize the productivity of our manufacturing assets, we also produce a number of other activated carbon products for food, water, beverage, and chemical purification applications, which are sold through our process purification product line.
+Added: Our automotive activated carbon products primarily take the form of granular, pellets and honeycomb "scrubber", which are primarily utilized in vehicle-based gasoline vapor emission control systems that capture gasoline vapor emissions that would otherwise be released into the atmosphere as volatile organic compounds.
+Added: The captured gasoline vapors are largely purged from the activated carbon and directed to the engine where they are used as supplemental power for the vehicle.
+Added: In this way, our automotive activated carbon products are part of a system that provides for both environmental control and energy recovery.
+Added: Performance Materials' net sales for 2020, 2019, and 2018 were $510.0 million, $490.6 million, and $400.4 million, respectively;
+Added: the chart below allocates our 2020 Performance Materials' net sales by geography.
+Added: Sales are assigned to geographic areas based on the location of the third party to which product was shipped.
+Added: We sell our automotive technologies products to over 60 customers around the globe.
+Added: In 2020, our ten largest customers accounted for approximately 90 percent of the product line's sales.
+Added: We are the trusted source of these products for many of the world’s largest automotive parts manufacturers, including BorgWarner Inc.
+Added: (previously Delphi Technologies PLC), A.
+Added: Kayser Automotive System GmbH, Korea Fuel-Tech Corporation, MAHLE GmbH, and many other large and small component manufacturers throughout the global automotive supply chain.
+Added: Our process purification products are sold to approximately 70 customers globally.
+Added: We sell our automotive technologies and process purification products primarily through our own direct sales force in North America, Europe, South America and Asia and also have a smaller, focused network of third-party distributors that have established a strong direct sales and marketing presence in North America and China.
+Added: Our automotive technologies competitors include Cabot Corp., Kuraray Co., Ltd., and several Chinese manufacturers.
+Added: Ingevity has a decades-long track record of providing activated carbon that achieves life-of-vehicle emission standards.
+Added: Given the imperative for automotive manufacturers to produce vehicles for the U.S., Canadian, and Chinese markets capable of meeting life-of-vehicle emission standards, or potentially face expensive recalls and unfavorable publicity, our automotive activated carbon products provide our customers the low-risk choice for this high performance application.
+Added: Competitors in our process purification product line include Cabot Corp., Kuraray Co., Ltd., Osaka Gas Chemicals Co., Ltd., and several domestic U.S.
+Added: manufacturers and distributors of imported products.
Raw Materials and Production
+Added: Our Performance Materials segment serves customers globally from three manufacturing locations in the U.S.
+Added: and two in China.
The primary raw material (by volume) used in the manufacture of our activated carbon is hardwood sawdust.
3 unchanged sentences
The market price of phosphoric acid is affected by the global agriculture market as the majority of global phosphate rock production is used for fertilizer production and only a portion of that production is used to manufacture purified phosphoric acid.
−Removed: In the recent past, there has been price volatility in phosphoric acid due to increased phosphate rock demands in global agriculture, which has in turn negatively affected our business.
−Removed: Activated carbon is an amorphous form of carbon characterized by a high volume of nanoscale pores.
−Removed: “Activation” refers to the process of developing these pores.
−Removed: The size, shape, and volume of the pore structure and the surface chemistry of the pore are critical for driving performance in various applications.
−Removed: Activated carbons are typically produced from either a thermal or chemical process utilizing a wide variety of carbonaceous raw materials.
−Removed: The thermal process, the most widely used activation process, uses rotary kilns or multi-hearth furnaces to carbonize and activate the raw material.
−Removed: This process operates at a much higher temperature and at a lower yield than the chemical activation process.
−Removed: Typical raw materials include bituminous coal, lignite, and coconut husks.
−Removed: Thermally activated carbons are usually used for “catch and dispose” applications, whereby the carbon is used to capture certain compounds and the carbon product is then disposed of or thermally regenerated.
−Removed: Ingevity employs a more specialized activation process, whereby chemical catalyst - phosphoric acid - and various heating methods are used to facilitate the development of porosity.
−Removed: This process operates at a lower temperature and typically has higher yields than a thermal process.
−Removed: Carbons produced by this method typically have larger pores than thermally activated carbons and can be used in both “catch and dispose” applications and “catch and release” applications, whereby the carbon is used to capture and temporarily hold on to certain compounds which are then released in a controlled manner under specific operating conditions.
−Removed: We use hardwood sawdust to produce chemically activated carbon, which, because of its larger pore volume, pore structure and high surface area, is well-matched for a variety of applications and ideally suited for the “catch and release” automotive application of capturing and reusing gasoline vapor emissions.
−Removed: We further process activated carbon after it is activated into different forms using a variety of extrusion processes.
−Removed: One of our extrusion processes is to use activated carbon and various binders to make a formed pellet.
−Removed: Pelleted carbon is typically used in gasoline emission control canister applications where a low pressure drop system is required such as ORVR.
−Removed: Another extrusion process we employ is with our honeycomb “scrubber.” We utilize an activated carbon infused ceramic extrusion process.
−Removed: These extruded honeycomb “scrubbers” are a component of the our patented system to reduce the canister’s emissions to “near zero” and are manufactured at our Waynesboro, Georgia facility.
−Removed: We sell our automotive products to over 60 customers around the globe.
−Removed: In 2019, our ten largest customers accounted for approximately 80 percent of segment sales.
−Removed: We are the trusted source of these products for many of the world’s largest automotive parts manufacturers, including Aisan Industry, Delphi Technologies, MAHLE, and many other large and small component manufacturers throughout the global automotive supply chain.
−Removed: Our relationship with many of our customers and their customers-the vehicle manufacturers themselves-have been in place for most of our history in this application.
−Removed: Ingevity also produces activated carbon products for food, water, beverage and chemical purification applications, which are sold to approximately 80 customers throughout the world.
−Removed: We operate primarily through a direct sales force in North America and our other major markets and also have a smaller, focused network of agents and distributors that have established a strong direct sales and marketing presence in Europe and Asia.
−Removed: In automotive carbon, Ingevity has a unique decades-long track record of providing life-of-vehicle performance.
−Removed: Given the imperative for automotive manufacturers to produce vehicles for the U.S., Canadian, and Chinese markets capable of meeting life-of-vehicle emission standards, or potentially face expensive recalls and unfavorable publicity, our automotive carbon products provide our customers the low-risk choice in this high performance application.
−Removed: Our competitors in automotive carbon include Cabot Corp., Kuraray, and several Chinese manufacturers.
−Removed: Our process purification business competes mainly in the U.S.
−Removed: in the food, beverage, chemical, and water purification applications.
−Removed: Competitors in our process purification product line include Cabot Corp., Kuraray, Jacobi Carbons, and several domestic U.S.
−Removed: manufacturers and distributors of imported products.
−Removed: Refer to Item 1A - "Risk Factors- We face competition from producers of substitute products and new technologies, and new or emerging competitors." and "Risk Factors-We face competition from infringing intellectual property activity.”
Performance Chemicals
−Removed: Ingevity’s Performance Chemicals segment, which is comprised of four product lines (pavement technologies, oilfield technologies, industrial specialties, and engineered polymers), develops, manufactures, and sells a wide range of specialty chemicals.
−Removed: Our products are utilized in pavement preservation, pavement adhesion promotion, warm mix asphalt, oil well service additives, oil production, and downstream, printing inks, adhesives, agrochemical dispersants, lubricants, coatings, resins, elastomers, bioplastics, and other diverse industrial uses.
−Removed: Our application expertise is often called upon to provide unique solutions to our customers that maximize resource efficiency.
+Added: Ingevity’s Performance Chemicals segment is comprised of four product lines:
+Added: pavement technologies, oilfield technologies, industrial specialties, and engineered polymers.
+Added: Our products are utilized in warm mix paving, pavement preservation, pavement reconstruction and recycling, oil well service additives, oil production and downstream applications, adhesives, agrochemical dispersants, lubricants, printing inks, coatings, resins, elastomers, bioplastics, medical devices, and other diverse industrial uses.
+Added: Our application expertise is often called upon by our customers to provide unique solutions that maximize resource efficiency.
We have a broad and diverse customer base in this segment.
−Removed: In 2019, our top ten customers accounted for approximately 26 percent of our segment revenue;
−Removed: the next 100 customers made up approximately 45 percent of our segment revenue.
−Removed: Raw Materials and Production
−Removed: Our Performance Chemicals business serves customers globally from three manufacturing locations in the U.S.
−Removed: and one in the United Kingdom.
−Removed: Most of our pavement technologies, oilfield technologies, and industrial specialties products are derived from CTO, a co-product of the kraft pulping process, where pine is used as the source of the pulp.
−Removed: CTO is produced by acidulating black liquor soap skimmings ("BLSS"), which are recovered during the kraft pulping process.
−Removed: Consumers of CTO can purchase BLSS from pulping mills that do not have acidulation capacity (in which case the BLSS will need to be acidulated into CTO), and purchase CTO from pulping mills that do have acidulation capacity.
−Removed: The CTO is further separated by distillation into tall oil rosin ("TOR"), TOFA and other biofractions.
−Removed: As such products are further refined or chemically modified, higher value derivative products are created, making their way into a wide variety of industrial and consumer goods.
−Removed: We also produce products derived from lignin, extracted from black liquor, a co-product of the kraft pulping process.
−Removed: Our engineered polymers' products are caprolactone based, which is derived from cyclohexanone, a benzene derivative, and hydrogen peroxide, both of which are readily available in the market.
−Removed: Lignin, TOR, TOFA and caprolactone are sold directly to customers in some instances, or are further refined or chemically modified into higher value derivative products or performance chemicals.
−Removed: The availability of CTO is directly linked to the production output of kraft mills using pine as their source of pulp, which is the predominant fiber source for packaging grades of paper as well as fluff pulp for personal care products.
−Removed: As a result, there is a finite global supply of CTO, with global demand for softwood kraft pulp driving the global supply of CTO, rather than demand for CTO itself.
−Removed: Most of the CTO made available for sale by its producers is covered by supply agreements, further constraining availability.
−Removed: We have a long-term supply agreement with WestRock pursuant to which we purchase all of the BLSS and CTO output from WestRock’s kraft mills, subject to certain exceptions.
−Removed: Beginning in 2025, either party may provide a notice to the other party terminating the agreement five years from the date of such notice.
−Removed: Beginning one year after such notice, the quantity of products provided by WestRock under the agreement will be gradually reduced over a four-year period based on the schedule set forth in the agreement.
−Removed: In addition, from 2022 until 2025, either party may provide one-year notice to remove a kraft mill as a supply source.
−Removed: The two largest kraft mills under the agreement currently are expected to supply approximately 17 to 19 percent and 15 to 17 percent, respectively, of the total amount of products expected to be supplied under our agreement with WestRock.
−Removed: In the event that WestRock exercises its right to terminate our supply agreement with them or remove a kraft mill as a supply source, we may be able to obtain substitute supplies of BLSS or CTO from other suppliers, spot purchases or a new contract with WestRock.
−Removed: The agreement with WestRock includes pricing terms based on market prices.
−Removed: Based on WestRock’s current output, we currently expect to source approximately 30 to 40 percent of our CTO requirements from WestRock under this agreement through 2025 based on the maximum operating rates of our three U.S.
−Removed: Performance Chemicals' facilities.
−Removed: In 2018, we entered into a 20-year supply agreement with Georgia-Pacific pursuant to which we will purchase the lesser of 125,000 tons or 100 percent of the CTO production from select Georgia-Pacific kraft mills during each contract year, subject to certain exceptions.
−Removed: The agreement with Georgia-Pacific includes a market pricing formula which is subject to quarterly adjustments.
−Removed: Under this agreement, we currently expect to source approximately 30 percent of our CTO requirements through 2025 based on the maximum operating rates of our three U.S.
−Removed: Performance Chemicals' facilities.
−Removed: We have agreements with other suppliers to satisfy substantially all of the balance of our expected requirements of CTO through 2020.
−Removed: We believe that we are well positioned to have sufficient CTO required to meet demand for our operations.
−Removed: However, if any of our suppliers (including WestRock or Georgia-Pacific) fail to meet their respective obligations under our supply
−Removed: agreements or we are otherwise unable to procure an adequate supply of CTO, we would be unable to maintain our current levels of production.
−Removed: In addition, if WestRock exercises its rights to terminate the agreement or remove a kraft mill as a supply source, and we are unable to arrange a substitute supply of CTO, we would be unable to maintain our current levels of production.
−Removed: Additionally, there are other pressures on the availability of CTO.
−Removed: Some kraft pulp mills may choose to consume their production of CTO to meet their energy needs or reduce their carbon footprint rather than sell the CTO to third parties.
−Removed: Furthermore, weather conditions have in the past and may in the future affect the availability and quality of pine trees used in the kraft pulping process and therefore the availability of CTO meeting our quality standards.
−Removed: See “Risk Factors-Risks Related to Ingevity’s Business-Our Performance Chemicals segment is highly dependent on CTO, which is limited in supply;
−Removed: lack of access to sufficient CTO would impact our ability to produce CTO-based products.”
−Removed: Also, regulatory mandates in Europe for the use of biofuel have placed additional pressure on CTO availability.
−Removed: See “Risk Factors-Risks Related to Ingevity’s Business- The European Union’s Directive 2009/28 on the promotion of the use of energy from renewable resources (“Renewable Energy Directive” or “RED”), which will be repealed on July 1, 2021 (the “RED”), and the new Directive replacing Directive 2009/28, which has to be implemented by Member States by June 30, 2021 (the “RED II”)) and similar legislation in the U.S.
−Removed: and elsewhere may incentivize the use of CTO as a feedstock for production of alternative fuels."
−Removed: Finally, CTO as a raw material may be subject to significant pricing pressures.
−Removed: See “Risk Factors- Risks Related to Ingevity’s Business-Pricing for CTO is subject to particular pricing pressures by reason of limited supply and competing demands for end use, and we may be limited in our ability to pass on increased costs to our customers” and “Risk Factors-Risks Related to Ingevity’s Business-The Company’s oilfield technologies business is significantly affected by trends in oil and natural gas prices that affect the level of exploration, development and production activity.”
−Removed: The key raw materials in our Performance Chemicals caprolactone manufacturing are cyclohexanone and hydrogen peroxide.
−Removed: Cyclohexanone is derived from benzene and is widely available.
−Removed: We maintain multiple suppliers to protect against supply disruptions and to maintain competitive pricing.
−Removed: Hydrogen peroxide is also widely available and is currently supplied by a co-located supplier under a long-term supply agreement.
−Removed: However, Brexit may pose some risk to the supply chain for our Warrington, UK facility.
−Removed: See “Risk Factors- General Business and Economic Risk- Our engineered polymers product line may be adversely affected by the United Kingdom's withdrawal from the European Union.”
−Removed: The other key raw materials used in the Performance Chemicals business are nonylphenol, pentaerythritol, and ethylene amines.
−Removed: These are sourced where possible through multiple suppliers to protect against supply disruptions and to maintain competitive pricing.
+Added: In 2020, our top ten customers accounted for approximately 20 percent of our segment revenue, with the next 100 customers making up approximately 45 percent of our segment revenue.
+Added: Performance Chemicals' net sales for 2020, 2019 and 2018 were $706.1 million, $802.3 million, and $733.2 million, respectively;
+Added: the chart below allocates our 2020 Performance Chemicals' net sales by geography.
+Added: Sales are assigned to geographic areas based on the location of the third party to which product was shipped.
Markets Served
Pavement Technologies
−Removed: Our pavement technologies group supplies a broad line of innovative additives, systems and technologies for road construction, resurfacing, preservation, maintenance, and recycling globally.
−Removed: As a specialty asphalt additive supplier, we have a long history of work with transportation agencies, university research consortiums, paving contractors, and asphalt refiners around the world to design, develop, and implement innovative additives and novel paving systems that protect existing roadways and enhance the performance of new road construction.
−Removed: Our pavement technologies team combines broad downstream technical, application, and construction experience with a strong direct sales and marketing presence.
−Removed: Our combined expertise in the disciplines of chemistry and civil engineering provides a comprehensive understanding of the relationship between molecular structure of our chemistries and their impact on the performance of pavement systems.
−Removed: This allows us to develop products customized to local markets and consistently deliver cost-effective solutions for our clients.
−Removed: We also introduce and commercialize new technologies globally through consulting relationships with ministries and departments of transportation to stimulate customer demand for our products.
−Removed: We supply asphalt additives and technologies to approximately 500 customers through the use of Ingevity sales representatives and distributors.
+Added: Our pavement technologies product line produces a broad line of innovative additives and technologies utilized globally in road construction and pavement preservation, including pavement reconstruction and recycling.
+Added: Warm Mix Asphalt.
+Added: Evotherm®, our premier road construction additive, is a warm mix asphalt technology that promotes adhesion by acting as both a liquid antistrip and a warm mix asphalt.
+Added: Once Evotherm is mixed into the binder utilized for road layer construction, production temperatures can be significantly cooler than conventional hot mix asphalt.
+Added: Lower production temperatures allow our customers to reduce emissions and fuel use during road construction as well as extend their paving seasons into colder months.
+Added: Pavement Preservation.
+Added: We provide an array of pavement preservation products that eliminate many traditional asphalt heating, mixing and transportation demands – saving our customers time, energy and money.
+Added: Our technical team matches the right emulsifier and design to our customers’ materials and conditions to create high-performing emulsions.
+Added: We offer a full range of specialized cationic, anionic and amphoteric emulsifiers with additional, custom-formulated specialty additives.
+Added: Pavement Reconstruction and Recycling.
+Added: We provide an array of pavement reconstruction and recycling additives that reduce the life cycle cost of pavement by enabling the milling and reuse of existing roadways.
+Added: Our cold in-place recycling additives allow our customers to reopen existing roadways faster, while also lowering overall costs and jobsite emissions.
+Added: We supply our pavement technologies products to approximately 500 customers in 60 countries through our own direct sales force, primarily in North America and Asia, as well as a network of third-party distributors.
In 2020, our ten largest customers accounted for 40 percent of the product line's sales.
−Removed: Technology centers located in the U.S., China, Europe, and India create market insights for product development customized to local and regional markets.
−Removed: We compete on the basis of deep knowledge of our customers’ business and extensive insights into road building technologies and trends globally.
+Added: Our largest customers include:
+Added: Colas SA, Ergon, Inc., Associated Asphalt Inc., and Idaho Asphalt Supply Inc.
+Added: Our primary competitors in pavement technologies are Nouryon Chemicals B.V., Arkema S.A., and Kao Specialties Americas LLC.
+Added: We compete based on deep knowledge of our customers’ businesses and extensive insights into road building technologies and trends globally.
We use these strengths to develop consulting relationships with government departments of transportation, facilitating new technology introduction into key markets around the world.
−Removed: Our combined expertise in the disciplines of chemistry and civil engineering provides a comprehensive understanding of the relationship between molecular structure of our chemistries and their impact on the performance of pavement systems.
+Added: Our combined expertise in the disciplines of chemistry and civil engineering provides us with a comprehensive understanding of the relationship between the molecular structure of our products and their impact on the performance of pavement systems.
This allows us to develop products customized to local markets and to consistently deliver cost-effective solutions for our customers.
−Removed: Our primary competitors in pavement technologies are Nouryon and Arkema.
Oilfield Technologies
−Removed: Our oilfield technologies group produces and sells a wide range of innovative specialty chemical products for the global oilfield industry, including well service additives and chemical solutions for production and downstream applications.
+Added: Our oilfield technologies product line produces and sells a wide range of innovative specialty chemical products for the global oilfield industry, including well service additives and chemical solutions for production and downstream applications.
Well Service Additives .
2 unchanged sentences
This family of products aids in accessing difficult to reach oil and gas reserves, both on and offshore around the globe.
−Removed: Production and Downstream .
+Added: Production and Downstream Applications .
Our production and downstream products serve as corrosion inhibitors or their components.
−Removed: Crude oil and natural gas production is characterized by variable production rates and unpredictable changes due to the nature of the produced fluids including but not limited to water and salt content.
−Removed: Our corrosion inhibitors maximize production rates by reducing equipment downtime from corrosion of key equipment and pipe.
−Removed: We sell our oilfield technologies to approximately 70 customers around the globe through the use of Ingevity sales representatives and distributors.
+Added: Crude oil and natural gas production are characterized by variable production rates and unpredictable changes due to the nature of the produced fluids including but not limited to water and salt content.
+Added: Our corrosion inhibitors maximize production rates by reducing the downtime for key equipment and pipes due to corrosion.
+Added: We sell our oilfield technologies products to approximately 70 customers around the globe using our own sales representatives and third-party distributors.
In 2020, our ten largest customers accounted for 70 percent of the product line's sales.
−Removed: We compete on the basis of our ability to understand our customers’ applications and deliver solutions that aid in their improvement of the exploration and production of oil and gas for the end users.
−Removed: Additionally, this application expertise coupled with our strong understanding of CTO-based chemistry allows for rapid development of solutions to challenges in the field.
−Removed: Our scale and flexibility of manufacturing are the final piece that helps deliver the creativity, expedience, and confidence the customers in oilfield technologies require from their best suppliers.
−Removed: Our competitors in this field include Lamberti, Kraton, and several others.
+Added: Our largest customers include Ecolab, Inc., Halliburton Co., Schlumberger Ltd., and Newpark Resources, Inc.
+Added: Our primary oilfield technologies competitors include Lamberti S.p.A., Mobile Rosin Oil Company, Inc., and First Source Technologies, Inc.
+Added: We compete based on our ability to understand our customers’ applications and deliver solutions that aid in their improvement of the exploration and production of oil and gas for end users.
+Added: Our scale and manufacturing flexibility help us deliver the creativity, expedience, and confidence that customers in oilfield technologies require.
Industrial Specialties
−Removed: Our industrial specialties group manufactures specialty chemicals including:
−Removed: adhesive tackifiers, agrochemical dispersants, lubricant additives, printing ink resins, and industrial intermediates.
−Removed: Our technical expertise and formulation capabilities allow us to develop innovative products to meet our customers’ various needs.
−Removed: We are a leading global supplier of tackifier resins, which provide superior adhesion to difficult-to-bond materials, to the adhesives industry.
+Added: Our industrial specialties product line produces and sells chemicals utilized in several industrial applications, including adhesive tackifiers, agrochemical dispersants, lubricant additives, printing ink resins, and industrial intermediates.
+Added: We are a global supplier of tackifier resins, which provide superior adhesion to difficult-to-bond materials, to the adhesives industry.
Adhesive applications for our products include construction, product assembly, packaging, pressure sensitive labels and tapes, hygiene products, and road markings.
5 unchanged sentences
We supply lubricant additives and corrosion inhibitors for the metalworking and fuel additives markets.
−Removed: Our lubricant products are multi-functional additives that contribute to lubricity, wetting, corrosion inhibition, emulsification, and general performance improvement.
+Added: Our lubricant products are multi-functional additives that contribute to lubricity, wetting, corrosion inhibition, emulsification, and general performance efficiency.
Our products are valued because of their ease in handling, robust performance, and improved formulation stability.
5 unchanged sentences
Our functional chemistries are sold across a diverse range of industrial markets including, among others, paper chemicals, textile dyes, rubber, cleaners, mining, and nutraceuticals.
−Removed: We sell our industrial specialty chemicals to approximately 500 customers around the globe through the use of Ingevity sales representatives and distributors.
−Removed: We have an over twenty-year relationship with many of our significant customers in this business.
+Added: We sell our industrial specialties products to approximately 500 customers around the globe in over 45 countries through our own direct sales representatives and third-party sales representatives and distributors.
In 2020, our ten largest customers accounted for 40 percent of the product line's sales.
−Removed: In industrial specialties, our customers select the product that provides the best balance of performance, consistency, and price.
−Removed: Reputation and commitment to our customer’s industry are also valued by our customers and allow us to win business when other factors are equal.
−Removed: In our adhesives business, our products compete against other tackifiers, including other TOR-based tackifiers as well as tackifiers produced from gum rosin and hydrocarbon starting materials.
+Added: Our largest customers include Ennis-Flint, Inc., H.B.
+Added: Fuller Co., Syngenta Crop Protection AG, and Flint Group.
+Added: Our competitors, which differ depending on the product, application, and region, include Kraton Corp., Eastman Chemical Co., ExxonMobil Corp., Borregaard ASA, Lawter, Inc., Respol S.A., Firmenich SA, as well as several others.
+Added: Specific to our industrial specialty products, our customers select the product that provides the best balance of performance, consistency, and price.
+Added: Reputation and loyalty are also valued by our customers and allow us to win business when other factors are equal.
+Added: In adhesives, our products compete against other tackifiers, including other tall oil resin ("TOR") based tackifiers as well as tackifiers produced from gum rosin and hydrocarbon starting materials.
In addition, the choice of polymer used in an adhesive formulation drives the selection of tackifier.
−Removed: In agrochemicals, the selection of a dispersant is made early in the product development cycle and the formulator has a choice among Ingevity’s sulfonated lignin products, lower quality lignosulfonates and other surfactants such as naphthalene sulfonates.
+Added: In agrochemicals, the selection of a dispersant is made early in the product development cycle and the formulator has a choice among our sulfonated lignin products, lower quality lignosulfonates and other surfactants such as naphthalene sulfonates.
In lubricants, we compete against other producers of distilled tall oil and additives.
In printing inks, our products compete against other resins that can be derived from TOR, gum rosin and, to a lesser extent, hydrocarbon sources.
−Removed: In our industrial intermediates business, our TOFA competes against widely available fats and oils derived from tallow, soy, rapeseed, palm, and cotton sources.
−Removed: Competitors differ depending on the product, application, and region and include Kraton, Eastman Chemical, ExxonMobil, Borregaard, Lawter, Respol/Forchem, DRT, as well as several others.
−Removed: Engineered Polymers
−Removed: Our engineered polymers group produces caprolactone and caprolactone based specialty chemicals for use in coatings, resins, elastomers, adhesives, and bioplastics.
−Removed: Our technical expertise and formulation capabilities allow us to develop innovative products to meet our customers’ various needs.
+Added: In our industrial intermediates business, our tall oil fatty acid ("TOFA") competes against widely available fats and oils derived from tallow, soy, rapeseed, palm, and cotton sources.
+Added: E ngineered Polymers
+Added: Our engineered polymers product line includes caprolactone and caprolactone based specialty chemicals for use in coatings, resins, elastomers, adhesives, bioplastics, and medical devices.
We supply coating products that are used in automobile refinishing, sports floors, and marine applications.
−Removed: Our products enhance end product performance by providing abrasion resistance, long durability, high quality finish, and enhanced performance in resin modification.
−Removed: Our products are often preferred when they provide a combination of traits which allow customers to displace several combinations of other products.
+Added: Our products enhance product performance by providing abrasion resistance, long durability, high quality finish, and enhanced performance in resin modification.
+Added: Our products are often preferred because they provide a combination of traits that allows customers to displace several combinations of other products.
We supply resin products that are used in acrylic resins, polyurethane, and inks.
−Removed: Our products enhance end product performance due to their protective properties, all weather performance and reduction or elimination of the need for solvents in formulations.
−Removed: Our products tend to be preferred where superior or particular performance levels are required by our customers.
+Added: Our products enhance product performance due to their protective properties, all weather performance and reduction or elimination of the need for solvents in formulations.
+Added: Our products tend to be preferred where superior or particular performance levels are required.
We supply products that are used in wheel seals, mining screens, and polyurethane films.
−Removed: Our products enhance end product performance due to their resistance to wear and tear, the ability to maintain form and function under pressure and temperature and provide excellent UV resistance.
−Removed: Our products are often used in highly demanding applications where competitive products do not reach required performance levels.
+Added: Our products enhance product performance due to their resistance to wear and tear, ability to maintain form and function under pressure and temperature and excellent UV resistance.
+Added: Our products are often used in highly demanding applications where competing products do not reach required performance levels.
We supply products that are used in hot-melts, fabric lamination, and miscellaneous footwear components.
−Removed: Our products enhance end product performance through their durability and substrate compatibility.
−Removed: Our products tend to be preferred because they are found to be easier to process and apply compared to competitive offerings.
+Added: Our products enhance product performance through their durability and substrate compatibility.
+Added: Our products are often preferred because they are found to be easier to process and apply compared to competitive offerings.
We supply products that are used in films, paper coatings, disposable cups, utensils, and packaging.
−Removed: Our products enhance end product performance due to the combination of their biodegradability and stability, strength properties, and food friendliness (some products EU food contact approved).
−Removed: Our products tend to improve processing of existing bioplastic solutions.
−Removed: We supply additives that are used in medical devices, 3-D printing, and miscellaneous footwear components.
−Removed: Our additives enhance end product performance due to their low melting point and ability to be thermoformed.
−Removed: Our products improve process conditions and improve the surface finish of the end product compared to competitive offerings.
−Removed: We sell our engineered polymers chemicals to over 300 customers around the globe through the use of Ingevity sales representatives and distributors.
−Removed: We have a 40-year history in the business long-term relationships with some of our customers of more than ten years.
+Added: Our products enhance product performance due to the combination of their biodegradability, improved mechanical properties, and wide processability when used in combination with other bioplastic solutions.
+Added: Special grades are also available to help comply with food contact legislation in various regions and applications.
+Added: Medical Devices .
+Added: We also supply products that are used in medical devices.
+Added: Our products enhance end product performance due to their low melting point and ability to be thermoformed.
+Added: Our products improve process conditions and provide patient comfort compared to competitive thermoplastic offerings.
+Added: We sell our engineered polymers chemicals to over 300 customers around the globe through our own direct sales representatives and third-party sales representatives and distributors.
In 2020, our ten largest customers accounted for 40 percent of the product line's sales.
−Removed: In engineered polymers, we face competition from not only other producers of caprolactone, but other competing technologies.
−Removed: We compete on the basis of performance as compared to the other materials.
−Removed: In coatings, we compete against PTMEG, polycarbonates, and polyols.
−Removed: In resins, we also compete against hydroxy monomers, oxitanes, allyl ethers and hydroxy acrylates.
−Removed: In elastomers, we compete against PTMEG, HDO adipates, polycarbonates and polyesters.
−Removed: In adhesives, we compete against TPU, surlyn, polyesters, EVA, and polyamids.
−Removed: In bioplastics, we compete against PBAT, PBS, polylactide, and starch-based polymers.
−Removed: The primary caprolactone competitors are Daicel and BASF.
−Removed: Our engineered polymers' commercial and manufacturing teams have been proactively planning for various contingencies related to the United Kingdom's ("U.K.") withdrawal from the European Union ("EU"), an event generally referred to as "Brexit".
−Removed: Such planning includes positioning additional raw materials in the U.K., as well as storing additional inventories of products in the EU, in order to minimize the impact of any short term Brexit related supply chain disruptions and potential liquidity impacts.
+Added: Our largest customers include polyurethane, adhesive, coatings, and bioplastics manufacturers.
+Added: Our primary caprolactone competitors are Daicel, Corp.
+Added: and BASF SE, but we also face competition from other competing materials.
+Added: We compete based on performance as compared to the other competitive materials.
+Added: We also compete by strengthening our technology-focused relationships with our customers.
+Added: Raw Materials and Production
+Added: Our Performance Chemicals segment serves customers globally from three manufacturing locations in the U.S.
+Added: and one in the UK.
+Added: Most of our pavement technologies, oilfield technologies, and industrial specialties products are derived from CTO, a co-product of the kraft pulping process, where pine is used as the source of the pulp.
+Added: We also produce products derived from lignin, which is extracted from black liquor, another co-product of the kraft pulping process.
+Added: In 2016, we entered into a long-term supply agreement with WestRock pursuant to which we purchase all of the CTO and CTO equivalent tons of black liquor soap skimming ("BLSS"), the precursor to CTO, from WestRock's kraft mills as of such date, subject to certain exceptions.
+Added: In 2018, we entered into a 20-year supply agreement with Georgia-Pacific LLC (“Georgia-Pacific”), pursuant to which we purchase the lesser of 125,000 tons of CTO and the aggregate output of CTO produced and originating at certain of Georgia-Pacific’s paper mills.
+Added: These relationships with WestRock and Georgia-Pacific are strategically important to our Performance Chemicals business due to the limited supply of CTO globally, of which we believe a significant portion is already under long-term supply agreements with other consumers of CTO.
+Added: Under these agreements, we currently expect to source approximately 60 to 70 percent of our CTO requirements through 2025 based on the maximum operating rates of our three Performance Chemicals' pine chemicals facilities.
+Added: The remainder of our CTO needs are sourced through short-term contracts in the open market.
+Added: We believe the supply from Georgia-Pacific, WestRock, and our other contracted sources of CTO will allow us to serve expected customer demand through 2021.
+Added: Our engineered polymers' products are caprolactone based, which is derived from cyclohexanone, a benzene derivative, and hydrogen peroxide, both of which are readily available in the market.
+Added: We maintain multiple suppliers of
+Added: cyclohexanone to protect against supply disruptions and to maintain competitive pricing.
+Added: Our hydrogen peroxide is currently supplied by Solvay Interox Limited, a co-located supplier at our Warrington, UK facility under a long-term supply agreement.
+Added: The other key raw materials used in the Performance Chemicals business are nonylphenol, pentaerythritol, and ethylene amines.
+Added: These are sourced where possible through multiple suppliers to protect against supply disruptions and to maintain competitive pricing.
Our manufacturing processes require a significant amount of energy.
1 unchanged sentence
Although we believe that we currently have a stable natural gas supply and infrastructure for our operations, we are subject to volatility in the market price of natural gas.
+Added: We enter into certain derivative financial instruments in order to mitigate expected fluctuations in market prices and the volatility to earnings and cash flow resulting from changes to pricing of natural gas purchases.
All of our manufacturing processes also consume a significant amount of electricity.
−Removed: All of our facilities are located in regulated service areas that have stable rate structures with reliable electricity supply.
−Removed: Our operations are subject to extensive regulation by federal, state, and local authorities, as well as regulatory authorities with jurisdiction over the foreign operations of Ingevity, including relating to the discharge of materials into the environment and the handling, disposal, and clean-up of waste materials, and otherwise relating to the protection of the environment.
−Removed: It is not possible to quantify with certainty the material effects that compliance with these regulations may have upon the capital expenditures, earnings or competitive position of Ingevity, but it is anticipated that such compliance will not have a material adverse effect on any of the foregoing.
−Removed: For a further discussion, see “Risk Factors-Risks Related to Ingevity’s Business-Our business involves hazards associated with chemical manufacturing, storage, transportation and disposal” and “Risk Factors-Risks Related to Ingevity’s Business-The Company’s operations are subject to a wide range of general and industry specific environmental laws and regulations.” Environmental regulation and legal proceedings have the potential to involve significant costs and liability for Ingevity.
−Removed: In general, we do not manufacture our products against a backlog of orders and do not consider backlog to be a significant indicator of the level of future sales activity.
−Removed: Production and inventory levels are based on the level of incoming orders as well as projections of future demand.
−Removed: Therefore, we believe that backlog information is not material to understanding our overall business and should not be considered a reliable indicator of our ability to achieve any particular level of revenue or financial performance.
+Added: Each of these facilities are located in regulated service areas that have stable rate structures with reliable electricity supply.
+Added: Governmental Regulations
+Added: Our manufacturing operations are subject to regulation by governmental and other regulatory authorities with jurisdiction over our operations.
+Added: These regulations include regulations concerning the discharge of materials into the environment, the handling, storage, transportation, disposal, and clean-up of chemicals and waste materials, and otherwise relating to the protection of the environment, as well as other operational regulations, such as the Occupational Safety and Health Act and the Toxic Substances Control Act in the U.S.
+Added: and the Registration, Evaluation and Authorization of Chemicals, or REACH, directive in Europe, the UK, and other countries.
+Added: It is not possible to quantify with certainty the material effects that compliance with these regulations may have upon the capital expenditures, earnings or competitive position of Ingevity, but we currently anticipate that such compliance will not have a material adverse effect on any of the foregoing.
+Added: Environmental and other regulations and related legal proceedings have the potential to involve significant costs and liability for Ingevity.
I ntellectual Property
2 unchanged sentences
We actively create, protect, and enforce our intellectual property rights.
−Removed: The protection afforded by our patents and trademarks varies based on country, scope, and coverage, as well as the availability of legal remedies.
−Removed: Although our intellectual property taken as a whole is material to the business, other than our “canister bleed emissions” patent, which is part of our automotive business and expires in March 2022, there is no individual patent or trademark the loss of which could have a material adverse effect on the business.
−Removed: The most commonly applied embodiment of the “canister bleed emissions” patent uses our activated carbon in the main part of the canister and our activated carbon extruded honeycomb(s) as a “scrubber” on the outlet side of the canister to reduce the canister’s emissions to “near zero.” We are filing for and being granted patents for product and process developments for our Performance Materials business that we believe are both novel and consistent with trends in the technological development of engines.
+Added: We are filing for and being granted patents for product and process developments for our Performance Materials business that we believe are both novel and consistent with trends in the technological development of engines.
Our Evotherm Warm Mix Asphalt technology is supported by numerous global patents.
Additionally, our Caprolactone Business and related technologies are supported by numerous global patents and trademarks, as well as proprietary manufacturing and technical know-how.
−Removed: See “Risk Factors-Risks Related to Ingevity’s Business- From time to time we are called upon to protect our intellectual property rights and proprietary information though litigation and other means;
−Removed: if we are unable to successfully protect our rights we may be negatively impacted from a financial as well as competitive advantage standpoint ,” “Risk Factors-Risks Related to Ingevity’s Business- As we rely on information technologies to conduct our business, security breaches and other disruptions could compromise our information and expose us to liability, which could cause our business and reputation to suffer.
−Removed: ”, and "Risk Factors-We face competition from infringing intellectual property activity."
+Added: The protection afforded by our patents and trademarks varies based on country, scope, and coverage, as well as the availability of legal remedies.
+Added: Although our intellectual property taken as a whole is material to the business, there is no individual patent or trademark the loss of which could have a material adverse effect on the business.
+Added: In November 2020, we received an adverse decision finding some, but not all, of the claims in our “canister bleed emissions” patent invalid in our infringement action against BASF Corp in the U.S.
+Added: District Court for the District of Delaware.
+Added: We intend to challenge the decision, however in the meantime we anticipate the decision having limited impact on our commercial operations or financial results through the patent's expiration in March 2022.
There are a variety of seasonal dynamics, including global climate and weather conditions, that impact our businesses, though none materially affect financial results, except in the case of the pavement technologies product line, where roughly 70 to 75 percent of revenue is generated between April and September.
−Removed: From a supply perspective, this seasonality is effectively managed through pre-season inventory build then active inventory management throughout the year.
+Added: From a supply perspective, this seasonality is effectively managed through pre-season inventory build and active inventory management throughout the year.
+Added: Human Capital Management
+Added: Our employees are critical to our success and we strive to provide a safe, rewarding and respectful workplace where our people are provided with opportunities to pursue career paths based on skills, performance and potential.
+Added: dependent upon our talented production workers who are key to ensuring safe and successful operations, as well as upon engineering, technical, sales and application specialists, together with experienced industry professionals, who are integral to our success.
+Added: Additionally, we rely on senior management in order to establish and execute our business strategies.
+Added: Our success depends, in part, on our ability to attract, retain and motivate these key performers.
+Added: Our failure to attract and retain those making significant contributions could adversely affect our financial condition and results of operations.
We currently employ approximately 1,750 employees, of whom approximately 76 percent are employed in the U.S.
−Removed: Approximately 20 percent are represented by domestic (i.e.
+Added: Approximately 20 percent of our employees are represented by domestic (i.e.
U.S.) labor unions under various collective bargaining agreements ("CBA").
1 unchanged sentence
We consider our relationships with all salaried, union hourly and non-hourly employees to be positive and collaborative.
−Removed: The Company did not have any collective bargaining agreements expire in 2019.
−Removed: However, the Company ratified an agreement with the International Brotherhood of Electrical Workers ("IBEW") at our North Charleston, South Carolina facility in January 2019.
−Removed: The Company has two collective bargaining agreements that are set to expire in early 2020.
−Removed: At our Crossett, AR facility, the CBA with the International Association of Machinists and Aerospace Workers expired on January 15, 2020.
−Removed: At our Wickliffe, Kentucky facility, the CBA with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC expired on February 1, 2020.
−Removed: We have begun to negotiate with the unions at both facilities.
−Removed: See “Risk Factors-Risks Related to Ingevity’s Business- Work stoppages and other labor relations matters may have an adverse effect on our financial condition and results of operations."
−Removed: For further information on measures of profitability used by managers of the business and its segments, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
+Added: During the first quarter of 2020, at our Wickliffe, Kentucky Performance Materials' manufacturing facility, the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC ratified a three-year collective bargaining agreement ("CBA"), which expires February 1, 2023.
+Added: Additionally, at our Crossett, Arkansas Performance Chemicals' manufacturing facility, the International Association of Machinists and Aerospace Workers Union ("IAM") agreed to extend the existing CBA by one year until January 15, 2021, in exchange for economic considerations.
+Added: The Company and IAM resumed negotiations in Crossett in the first quarter of 2021, and the parties continue to operate under the expired CBA.
+Added: In addition, at our Covington, Virginia Performance Materials' manufacturing facility, the CBA with Covington Local Union 464 of the International Brotherhood of Electrical Workers ("IBEW") agreement expired on January 15, 2021 and the CBA with Covington Local 675 affiliated with The Association of Western Pulp and Paper Workers ("AWPPW") will expire on December 1, 2021.
+Added: The Company and Covington IBEW began negotiations in the first quarter of 2021, and the parties continue to operate under the expired CBA.
+Added: Negotiations with the Covington AWPPW will begin in the fourth quarter of 2021.
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.