What changed in this filing

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Item 1. Business

2025-02-19 compared with 2024-02-22 · 96 added, 116 removed, 183 unchanged (54% of the section changed)

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Through a diverse team of talented and experienced people, we develop, manufacture, and bring to market solutions that are largely renewably sourced and help customers solve complex problems while making the world more sustainable.

Our products are used in a variety of demanding applications, including adhesives, agrochemicals, asphalt paving, bioplastics, coatings, elastomers, lubricants, pavement markings, publication inks, oil exploration and production and automotive components.

We operate in three reporting segments:

Our products are used in a variety of demanding applications, including adhesives, agrochemicals, asphalt paving, bioplastics, coatings, elastomers, lubricants, paint for road markings, oil drilling, and automotive components.

We operate in three reportable segments:

Performance Materials, Performance Chemicals and Advanced Polymer Technologies.

During the first quarter of 2023, we realigned our segment reporting structure to increase transparency for our investors and better align with how our chief operating decision maker intends to measure segment operating performance and allocate resources across our operating segments.

We separated our engineered polymers product line from the Performance Chemicals reportable segment into its own reportable segment, Advanced Polymer Technologies.

This reportable segment change also resulted in our Performance Chemicals reporting unit for goodwill being split into two separate reporting units for the purposes of goodwill impairment testing.

In November of 2023, we announced an initiative to reposition our Performance Chemicals segment to enhance profitability and earnings stability as we execute our corporate strategy to focus on higher margin and higher growth specialty products, diversify feedstocks and optimize our manufacturing network.

This initiative will result in the reduction, and in some cases exit, of historical primary end uses of our Industrial Specialties product line such as adhesives, publication inks, and oilfield as well as the closure of our Performance Chemicals' manufacturing facility in DeRidder, Louisiana.

Refer to the section:

Performance Chemicals , within Item 1:

BUSINESS for more information.

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.

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Reports we file with the SEC may also be viewed at www.sec.gov.

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 the fiscal year 2023.

The table below illustrates our product lines and the primary end-use markets for our products by segment, as well as our net sales by segment for the fiscal year 2024.

For more information on our U.S.

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Performance Materials Performance Chemicals Advanced Polymer Technologies

Product Lines Road Technologies (1)

Industrial Specialties

Product Lines Road Technologies Industrial Specialties

End-Use Markets Automotive

Food, Chemicals, and Water Purification Pavement Construction

Purification:

Food, Chemicals, and Water Pavement Construction

Pavement Preservation

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Agricultural Chemicals

Paper Chemicals

Industrial Intermediates

Limited (2) :

Adhesives, Oilfield and Lubricants

Automotive & Transportation

Oilfield Automotive & Transportation

Industrial Equipment

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$609.6 million $608.2 million $188.6 million

_______________

(1) Previously named Pavement Technologies

(2) In November of 2023 we announced an initiative to reposition our Performance Chemicals segment to enhance profitability and earnings stability as we execute our corporate strategy to focus on higher margin and higher growth specialty products, diversify feedstocks and optimize our manufacturing network.

This initiative will result in the reduction, and in some cases exit, of historical end-use markets of our Industrial Specialties product line such as adhesives, publication inks, and oilfield.

Refer to the section:

Performance Chemicals , within Item 1:

BUSINESS for more information.

There are a variety of seasonal dynamics, including global climate and weather conditions, that impact our businesses, though none have currently materially affected our financial results, except in the case of the road technologies product line, where roughly 70 to 75 percent of revenue is generated between April and September.

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We are dependent on natural gas to fuel the processes in our chemical refineries and activated carbon plants.

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.

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.

We enter into certain derivative financial instruments to mitigate expected fluctuations in market prices and the resulting volatility of earnings and cash flow.

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Leveraging Sustainability

Throughout our Performance Materials, Performance Chemicals, and Advanced Polymer Technologies portfolios, we are a leader in adding value to products made from renewable materials and in derivatizing technologies that impart desirable environmental benefits in their use.

To create a majority of our chemistries, we take crude tall oil ("CTO") from pine trees, hardwood sawdust (both co-products of the lumber, paper, and furniture-making industries), and plant based oils and convert them into products that benefit customers, the environment, and society.

For the caprolactone-based products in our Advanced Polymer Technologies segment – although derived from traditional feedstocks – these products provide solutions that enable performance attributes in end-use markets that directly help customers and consumers meet sustainability goals.

Throughout our Performance Materials, Performance Chemicals, and Advanced Polymer Technologies reportable segments, we are a leader in adding value to products made from renewable materials and in derivatizing technologies that impart desirable environmental benefits in their use.

To create a majority of our chemistries, we take CTO from pine trees, hardwood sawdust (both co-products of the lumber, paper, and furniture-making industries), and plant based oils and convert them into products that benefit customers, the environment, and society.

For the caprolactone-based products in our Advanced Polymer Technologies segment – although derived from non-oleo feedstocks – these products provide solutions that enable performance attributes in end-use markets that directly help customers and consumers meet sustainability goals.

Ingevity’s products help customers reduce their ecological impact.

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Our agriculture adjuvants provide enhanced performance in crop protection.

And our alternative-fuel vehicle technology enables the use of renewable natural gas as fuel for pickup trucks and buses.

The superior durability of caprolactone-based polyurethane technologies extends product life and the biodegradable performance of our thermoplastic polycaprolactones offers compostable end of-life solutions.

Our alternative-fuel vehicle technology enables the use of renewable natural gas as fuel for pickup trucks and buses.

Our business is built on our ability to maximize the value and utility of materials over their lifecycle, and we will continue to enhance this value proposition through future acquisitions and new product development.

Strategic Portfolio Review

On October 29, 2024, we announced our intention to comprehensively review Ingevity’s asset and product portfolios.

On January 16, 2025, we announced the exploration of strategic alternatives for our Performance Chemicals industrial specialties product line, including a potential divestiture of portions of the North Charleston site.

This process includes all industrial specialties pine chemicals based chemistries that serve the paper chemical, rubber, adhesive, oilfield, lubricants and industrial intermediate end-use markets, and the North Charleston, South Carolina, CTO refinery.

This process will not include the Performance Chemicals road technologies product line, nor certain lignin-based products that are currently reported in the Performance Chemicals industrial specialties product line.

We will continue to evaluate the rest of our portfolio and remain committed to taking appropriate actions to ensure our cost structure is aligned with our objective of being a specialty chemicals leader.

We cannot assure this strategic review will result in a transaction and will update investors when appropriate.

Human Capital Management

Developed collaboratively by Ingevity employees in 2017, the IngeviWay is the cultural framework that shapes Ingevity’s future and enables our success.

Developed collaboratively by Ingevity employees, the IngeviWay is the cultural framework that shapes Ingevity’s future and enables our success.

It describes who we are, what we want to be, and what’s important to us as we work together to fulfill our purpose to purify, protect and enhance the world around us.

In early 2022, we reinforced our IngeviWay foundation by launching “The IngeviWay in Action,” an initiative that raises the bar on expectations to build, inspire and lead, and better aligns how we work as a team to create the Ingevity of the future.

By focusing on making a positive impact through everyday actions, “The IngeviWay in Action” bolsters the way we live our core values of safety and sustainability, maximize value for our people and our customers, continue our commitment to excellence, integrity and ethical behavior and drive to create innovative solutions.

Reinforcing our IngeviWay foundation we launched “The IngeviWay in Action,” an initiative that raises the bar on expectations to build, inspire and lead, and better aligns how we work as a team to create the Ingevity of the future.

By focusing on making a positive impact through everyday actions, “The IngeviWay in Action” bolsters the way we live our core values of safety and sustainability, maximize value for our people and our customers, commitment to excellence, integrity and ethical behavior, and drive to create innovative solutions.

Our employees are critical to our success, and we strive to provide a safe, rewarding, and respectful workplace where our people have opportunities to pursue career paths based on skills, performance, and potential.

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Labor Relations and Collective Bargaining

We currently employ approximately 1,700 employees (excluding employees at our DeRidder, LA manufacturing facility which will be closed in 2024), of whom approximately 75 percent are employed in the U.S.

We currently employ approximately 1,600 employees, of whom approximately 73 percent are employed in the U.S.

Approximately 51 percent of our production employees are represented by labor unions under various collective bargaining agreements ("CBA").

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We consider our relationships with all salaried, union-hourly, and non-hourly employees to be positive and collaborative.

In 2023, the United Steel, Paper, Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, on behalf of its affiliated Local Union 0775 at our Wickliffe, Kentucky Performance Materials manufacturing facility ratified a four-year CBA, which expires on February 1, 2027.

Also in 2023, the IBEW LOCAL Union No.

1753 at our Charleston, South Carolina Performance Chemicals manufacturing facility ratified a four-year CBA, which expires on June 20, 2026.

The Advanced Polymer Technologies manufacturing facility in Warrington, United Kingdom is in the process of their annual negotiations with the GMB Union.

Further, the CBA at our Crossett, Arkansas Performance Chemicals manufacturing facility with the International Association of Machinists and Aerospace Workers Union ("IAM") expires on March 1, 2024.

These combined CBA impact approximately 40 percent of the workforce at these two locations.

The parties began contract renewal negotiations during the first quarter of 2024 and continue to operate under the same terms and conditions while negotiations are pending.

In 2024, the International Association of Machinists and Aerospace Workers, on behalf of its affiliated Local Union 1362 at our Crossett, Arkansas manufacturing plant ratified a one year extension agreement which expires March 1, 2025.

The parties will begin contract renewal negotiations during the first quarter of 2025.

The Advanced Polymer Technologies manufacturing plant in Warrington, United Kingdom negotiates pay and conditions annually with the GMB Trade Union.

In addition, the CBA at our Covington, Virginia Performance Materials plant with the International Brotherhood of Electrical Workers on behalf of its affiliated Local Union 464 expired January 15, 2025.

The parties began negotiations in the fourth quarter of 2024 and will continue to operate under the same terms and conditions while negotiations are pending.

Also, the CBA at our Covington, Virginia Plant with the Covington Paperworkers Union Local 675, affiliated with the Association of Western Pulp and Paper Workers expires December 1, 2025.

It is anticipated that the parties will begin contract renewal negotiations in the fourth quarter of 2025.

Diversity, Equity, Inclusion and Belonging

Ingevity is guided by our IngeviWay vision for how we work together to engage the diversity, knowledge, energy, talents and expertise of all employees.

This vision reflects our commitment to actively supporting an inclusive environment where all employees are heard, respected and empowered to grow to their fullest potential.

Driving meaningful and sustainable growth as a company includes attracting and retaining top talent with a broad range of skills, experience and ideas, and we are focused on increasing recruitment of diverse talent.

A strategic and intentional focus on diversity, equity, inclusion and belonging enhances the employee experience and satisfaction.

It also supports more effective innovation, enhanced customer experience, and a deeper understanding of the communities Ingevity serves.

Our diversity recruiting strategy is focused on ensuring everyone has an equitable experience by diversifying our talent pipeline through diverse candidate slates and interview teams as well as gender-neutral job descriptions.

Our focus on advancing the diversity makeup of our leadership continues to positively impact our growth and success.

We are committed to fostering Diversity, Equity, Inclusion and Belonging.

Our success is fueled by a vibrant, team-oriented culture where people understand that our individual differences make a greater collective impact in every interaction, from peer-to-peer collaboration across regions to customer engagements.

At the heart of our efforts, we aim to strengthen empathetic and inclusive leadership, cultivate a sense of safety and belonging, and structure our systems, policies and processes to enable employee success.

Working as one team, we are building a diverse, equitable and inclusive workplace where everyone has the opportunity to thrive.

We believe that the diversity of our leadership continues to positively impact our growth and success.

Today, our board of directors is 33 percent women and 22 percent racially and ethnically diverse, and our executive team is 14 percent women-led and 29 percent racially and ethnically diverse.

Performance Management

We assess employee performance comprehensively, taking into account behaviors and direct input from the employee, feedback, and the individual's progress toward goals, as well as their level of business impact.

We assess employee performance comprehensively, taking into account behaviors and direct input from the employee, feedback, the individual's progress toward goals, and their level of business impact.

Achievements that bolster the team, our business, and our clients—internal and external—and our fundamental values are all included in the performance evaluation process.

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It also includes a requirement for all Ingevity employees to ask for feedback from those who are aware of their performance and contributions.

In order to boost productivity, provide positive business outcomes, and raise employee engagement, we encourage managers and their employees to have regular discussions.

We encourage managers and their employees to have regular discussions to boost productivity, provide positive business outcomes, and raise employee engagement.

With our all-encompassing strategy, Ingevity is able to gain a comprehensive understanding of each worker's strengths and identify opportunities for growth and development.

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Personal, process, and public safety are core values at Ingevity.

We work hard to protect employees, contractors, and the communities where we operate from injuries, illnesses and incidents through the design and delivery of safe operations, continuous improvement of personal and process safety performance, management systems, and programs, a strong culture of compliance, and a commitment to zero harm to people and the environment.

In 2024, we continued our efforts to increase reporting of and response to near miss incidents to prevent more serious injuries before they occur.

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Employees were trained on the importance of our Life-Saving Rules, put in place to prevent fatalities and serious injuries through leadership videos, monthly interactive training packages, and upgraded procedures, checklists, work permits, and audits.

Additionally, in North America where the majority of our bulk shipments are executed, we abide by the American Chemistry Council’s Responsible Care practices for transporting our chemicals safely.

Additionally, in North America where the majority of our bulk shipments are

executed, we abide by the American Chemistry Council’s Responsible Care practices for transporting our chemicals safely.

We strategically utilize logistics providers that have committed to these higher standards of safety, security, stewardship, and sustainability.

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I ntellectual Property

Intellectual property, including patents, closely guarded trade secrets, and highly proprietary manufacturing know-how, as well as other proprietary rights, is a critical part of maintaining our technology leadership and competitive edge.

Protection of intellectual property, including patents, closely guarded trade secrets, and highly proprietary manufacturing know-how, as well as other proprietary rights, is critical to maintaining our technology leadership and competitive edge.

Our business strategy includes filing patent and trademark applications where appropriate for proprietary developments, as well as protecting our trade secrets.

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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.

Our Evotherm® Warm Mix Asphalt technology is supported by numerous global patents and trademarks.

Additionally, our caprolactone and related technologies are supported by numerous global patents and trademarks, as well as proprietary manufacturing and technical know-how.

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On May 18, 2023, the court in the Delaware Proceeding entered judgment on the jury’s verdict, which commenced the post-trial briefing stage.

On February 13, 2024, the court in the Delaware Proceeding denied BASF’s motion for pre-judgment interest on its tortious interference claim as well as and our motion seeking judgment as a matter of law, or a new trial in the alternative.

In addition, BASF has indicated it will seek attorneys’ fees and costs in amounts that they will have to support at a future date.

On February 13, 2024, the court in the Delaware Proceeding denied BASF’s motion for pre-judgment interest on its tortious interference claim as well as our motion seeking judgment as a matter of law, or a new trial in the alternative.

In addition, BASF has indicated it will seek attorneys’ fees and costs in amounts that they will allege and have to demonstrate at a future date.

Unless the judgment is set aside, BASF will be entitled to post-judgment interest pursuant to the rate provided under federal law.

We disagree with the verdict, including the court’s application of the law and entry of judgment and intend to appeal.

In addition, we may challenge the U.S.

We disagree with the verdict, including the court’s application of the law and entry of judgment.

Therefore, on March 13, 2024, we appealed the verdict as well as the U.S.

District Court’s November 2020 dismissal of our patent infringement claims against BASF.

Ingevity believes in the strength of its intellectual property and the merits of its position and intends to pursue all legal relief available to challenge these outcomes in the Delaware Proceeding.

Final resolution of these matters could take up to 24 months.

Final resolution of these matters could take up to 15 months from the date of this Annual Report on Form 10-K.

Performance Materials

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Our food, water, beverage, and chemical purification products are sold to approximately 70 customers globally.

We sell our products primarily through our own direct sales force in North America, Europe, South America, Asia, and a smaller, focused network of third-party distributors that have established a strong direct sales and marketing presence in North America and China.

We sell our products primarily through our own direct sales force in North America,

Europe, South America, Asia, and a smaller, focused network of third-party distributors that have established a strong direct sales and marketing presence in North America and China.

Our competitors include Norit, Kuraray Co., Ltd., and several domestic U.S.

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Our Performance Chemicals segment is comprised of two product lines:

road technologies (previously named pavement technologies) and industrial specialties.

Our products are utilized in pavement construction, pavement preservation, pavement reconstruction and recycling, road markings, agrochemical dispersants, paper chemicals, and other diverse industrial uses.

road technologies and industrial specialties.

Our products are utilized in road construction, preservation, reconstruction and recycling, road markings, agrochemical dispersants, lubricants, certain adhesives, rubber, and other diverse industrial uses.

Our application expertise is often called upon by our customers to provide unique solutions that maximize resource efficiency.

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In 2023, Ingevity began a transformation of the Performance Chemicals’ industrial specialties product line.

In the spring of 2023, Ingevity ceased the processing of CTO at the Crossett Arkansas facility and converted the facility to the processing of a variety of plant based feedstocks.

In addition, during the fourth quarter of 2023, Ingevity announced the planned closure of the DeRidder, Louisiana CTO refinery and derivatives operations.

Once this transformation is complete, Ingevity’s participation in the rosin based adhesive and publication printing ink markets along with emulsifiers for drilling into the oilfield markets will be substantially reduced.

During the fourth quarter of 2023, Ingevity announced the planned closure of the DeRidder, Louisiana (the “DeRidder Plant”) CTO refinery and derivatives operations.

All production at the DeRidder Plant ceased in the first quarter of 2024.

Additionally, in July 2024, we announced plans to transition the refining of oleo-based products from our Crossett, Arkansas manufacturing plant (the “Crossett Facility”) to our North Charleston, South Carolina manufacturing plant.

We ceased production at the Crossett Facility in the third quarter of 2024 and materially completed the transition in the fourth quarter of 2024.

With the majority of this transformation complete, Ingevity’s participation in the rosin-based adhesive and publication printing ink markets along with emulsifiers for drilling into the oilfield markets has been significantly reduced.

This process includes all industrial specialties' pine chemicals based chemistries that serve the paper chemical, rubber, adhesive, oilfield, lubricants and industrial intermediate end-use markets, and the North Charleston, South Carolina, crude tall oil refinery.

This process will not include the Performance Chemicals road technologies product line, nor certain lignin-based products that are currently reported in Ingevity’s industrial specialties product line.

Raw Materials and Production

Our Performance Chemicals segment serves customers globally from six manufacturing locations in the U.S.

Most of our industrial specialties and some of our road technologies products are derived from CTO, a co-product produced by softwood kraft pulp processors, such as WestRock and Georgia-Pacific LLC (“Georgia-Pacific”).

We also produce products derived from lignin, which is extracted from black liquor, another co-product of softwood kraft pulp processing.

We typically source our CTO needs primarily through supply contracts.

Most of our contracted volumes are sourced through two primary parties:

WestRock and Georgia-Pacific.

During 2023, we sourced approximately 82 percent of our CTO from WestRock and Georgia-Pacific combined.

CTO accounted for approximately 26 percent of our consolidated cost of sales and 51 percent of our consolidated raw materials purchases in 2023.

Our Performance Chemicals segment serves customers globally from five manufacturing locations in the U.S.

Most of our industrial specialties products and some of our road technologies products are derived from CTO, a co-product produced by softwood kraft pulp processors.

We also produce products derived from kraft lignin, which is extracted from black liquor, another co-product of softwood kraft pulp processing.

Historically, we have sourced the majority of our CTO needs through long-term supply contracts.

However, CTO pricing volatility in recent years has made it difficult to manage long-term pricing mechanisms, and as a result, during 2024 we exited all material long-term contracts.

We now procure our supply of CTO through shorter-duration contracts.

Shorter-term contracts of 12 to 15 months enable more flexibility and transparency on pricing.

On July 1, 2024, we terminated our last material long-term CTO supply contract.

As consideration for the termination, we made cash payments totaling $100.0 million during 2024.

The supply of CTO is generally inelastic and governed by the volume of softwood kraft pulp processing around the world.

Also, there are regulatory pressures that may incentivize suppliers of CTO to sell CTO into alternative fuel markets (i.e., biofuels) rather than to historical end users such as Ingevity.

Also, there are regulatory pressures that may incentivize suppliers of CTO to sell CTO into alternative fuel markets (e.g., biofuels) rather than to historical end users such as Ingevity.

CTO-based biofuel has been deemed to meet the EU’s Renewable Energy Directive, second phase (“RED II”) biofuel sustainability criteria.

As a result of RED II and related government incentives, there has been a significant increase in demand for CTO and its derivatives during 2023.

The increased demand, combined with the rationalization of softwood kraft pulp processing during 2023, has created pressure on CTO pricing and driven the cost of CTO to unprecedented levels, higher by as much as 300 percent in some cases.

As a result of RED II and related government incentives, there has been a significant increase in demand for CTO and its derivatives over the past several years.

The increased demand, combined with the rationalization of softwood kraft pulp processing, has created pressure on CTO pricing and driven the cost of CTO to unprecedented levels, higher by as much as 300 percent in some cases.

During 2024, we sourced approximately 81 percent of our CTO from two primary parties:

Smurfit WestRock and Georgia-Pacific.

CTO accounted for approximately 14 percent of our consolidated cost of sales and 38 percent of our consolidated raw materials purchases in 2024.

In addition to these developments in the EU, various pieces of legislation regarding the use of alternative fuels have been introduced in the U.S.

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and elsewhere may promote the use of CTO or its derivatives as a feedstock for the production of biofuels, further constraining supply.

In 2023, we took further actions to diversify our raw materials stream and began a transformation of the Performance Chemicals’ industrial specialties product line.

In April 2023, we converted our Crossett, Arkansas CTO facility to run on non-CTO plant-based natural oils including soy, canola and palm-based oils.

We currently sell these products as well as derivatives into end markets for industrial applications.

We have invested in production capability at our Crossett, Arkansas facility as we expand the commercialization of our product offerings in existing and new markets, which may include the personal care;

home and industrial cleaners, as well as the biofuels market.

Additionally, in November 2023, we announced the planned closure of the DeRidder, Louisiana CTO facility.

With these combined actions we have CTO supply contracted for volumes that exceed our post-transformation manufacturing capacity.

We are evaluating our requirements and working with our suppliers to adjust our contracted volumes.

However, we expect to procure CTO volumes, under an existing long-term contract, in excess of production needs and will therefore need to balance our working capital requirements and sell, as necessary, excess CTO volumes to the open market.

The other key raw materials used in the Performance Chemicals business are maleic anhydride, ethoxylates, and ethylene amines.

The other key raw materials used in the Performance Chemicals business are maleic anhydride, ethoxylates, amines, and acrylic emulsions.

These are sourced where possible through multiple suppliers to protect against supply disruptions and to maintain competitive pricing.

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Our road 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.

With the 2022 acquisition of Ozark Materials, LLC and Ozark Logistics, LLC (collectively, “Ozark Materials”), we have added road striping technologies to the portfolio.

With the 2022 acquisition of Ozark Materials, LLC (“Ozark Materials”), we added road markings technologies to the portfolio.

Road Construction.

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.

Once Evotherm® is mixed into the binder utilized for road layer construction, production temperatures can be significantly cooler than conventional hot mix asphalt.

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.

Evotherm®, our premier road construction additive, is a warm mix asphalt technology that acts as both a liquid antistrip and a warm mix asphalt.

Once Evotherm® is mixed into the binder utilized for road layer construction, production temperatures can be significantly lowered compared to conventional hot mix asphalt.

Lower production temperatures reduces our customers' emissions and fuel use during road construction as well as making roads last up to 20 percent longer.

Pavement Preservation.

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Pavement Markings.

We provide alkyd and hydrocarbon premium-based thermoplastic road striping technologies which provide long service life, excellent adhesion, superior color, and retro-reflectivity.

We provide thermoplastic and waterborne paint road markings technologies which provide long service life, excellent adhesion, superior color, and higher retro-reflectivity.

Based on the customer and/or governmental agency requirements, the markings can be designed for varying levels of initial and retained performance properties.

We supply our road technologies products to approximately 750 customers in 60 countries through our own direct sales force, primarily in the Americas and Europe, as well as a network of third-party distributors.

In 2023, our ten largest customers accounted for 30 percent of the product line's sales.

Our largest customers include Ergon, Inc., The Heritage Group, and Idaho Asphalt Supply Inc.

In 2024, our ten largest customers accounted for approximately 37 percent of the product line's sales.

Our largest customers include Ergon, Inc., TRP Group, Frontline, The Heritage Group, and Idaho Asphalt Supply Inc.

Our primary competitors in road technologies are Nouryon Chemicals B.V., Arkema S.A., Kao Specialties Americas LLC, Sherwin-Williams Company, and PPG Industries Traffic Solutions.

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Industrial Specialties

Our industrial specia lties product line produces and sells chemicals utilized in several industrial applications, including adhesive tackifiers, agrochemical dispersants, lubricant additives, printing ink resins, industrial intermediates, and oilfield.

Our industrial specia lties product line produces and sells chemicals utilized in several industrial applications, including adhesive tackifiers, agrochemical dispersants, lubricant additives, rubber resins, industrial intermediates, and oilfield.

Agricultural Chemicals.

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In addition, our crop protection products are approved for use as inert ingredients in agrochemicals by regulatory agencies throughout the world.

Paper Chemicals.

We are a North American supplier of rosin-based sizing agents for the production of packaging related paper.

We are a global supplier of tall oil-based products, we offer a broad range of resins, rosin soaps, mixed acids and fatty acids from renewable resources.

We currently supply specialty products to latex manufacturers, compounders and tire producers.

Specific to tire producers, our resins help improved fuel efficiency, wear and traction.

We are a global supplier of tall oil-based products and we offer a broad range of resins, rosin soaps, mixed acids and fatty acids from renewable resources.

We currently supply specialty products to latex manufacturers, compounders and tire producers where our resins help improved fuel efficiency, wear and traction.

Industrial Intermediates.

Our functional chemistries are sold across a diverse range of industrial markets including, among others, textile dyes, rubber, cleaners, mining, and nutraceuticals.

Adhesives, Oilfield, and Lubricants.

Our functional chemistries are sold across a diverse range of industrial markets including, textile dyes, rubber, cleaners, mining, oilfield and nutraceuticals.

Adhesives, and Lubricants.

We are a North American 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.

We supply oilfield well service additives to improve emulsion stability, and aid in fluid loss control for oil-based drilling muds.

Other specialty additives, typically used in deep water applications, include rheology modifiers and wetting agents that improve viscosity properties and aid in the efficiency of the drilling process.

We also supply specialty additives for corrosion inhibition formulations used to maximize production rates by reducing the downtime for key equipment and pipes due to corrosion.

We supply lubricant additives and corrosion inhibitors for the metalworking and fuel additives markets.

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We sell our industrial specialties products to approximately 400 customers around the globe in over 40 countries through our own direct sales representatives and third-party sales representatives and distributors.

In 2023, our ten largest customers accounted for 35 percent of the product line's sales.

Our largest customers include Haliburton, Solenis, Flint Group, H.B.

and ChampionX.

Our competitors, which differ depending on the product, application, and region, include Kraton Corp., Eastman Chemical Co., Borregaard ASA, Repsol S.A., Lamberti S.p.A., Cargill, Vantage, PMC, as well as several others.

In 2024, our ten largest customers accounted for approximately 39 percent of the product line's sales.

Our largest customers include Solenis, Arboris, ChampionX, and Syngenta.

Our competitors, which differ depending on the product, application, and region, include Kraton Corp., Forchem, Eastman Chemical Co., Borregaard ASA, Repsol S.A., Lamberti S.p.A., Cargill, Vantage, and PMC, as well as several others.

Specific to our industrial specialty products, our customers select the product that provides the best balance of performance, consistency, and price.

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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 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 a tackifier.

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 based materials.

In lubricants, we compete against other producers of distilled tall oil and additives.

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.

In oilfield, we compete against other tall oil specialty additives used for oil-based drilling fluids or corrosion inhibition formulations in the drilling, production and downstream applications of oilfield.

Advanced Polymer Technologies

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We maintain multiple suppliers of cyclohexanone to protect against supply disruptions and to maintain competitive pricing.

Our hydrogen peroxide is currently supplied by Solvay Interox Limited, a co-located supplier at our Warrington, United Kingdom facility under a long-term supply agreement.

Our hydrogen peroxide is currently supplied by Solvay Interox Limited under a long-term supply agreement.

We sell our Advanced Polymer Technologies products to approximately 250 customers around the globe through our own direct sales representatives and third-party sales representatives and distributors.

In 2024, our ten largest customers accounted for approximately 46 percent of the segment's sales.

Our largest customers include polyurethane, adhesive, coatings, and bioplastics manufacturers.

Our primary caprolactone competitors are Daicel, Corp., Juren, and BASF SE, but we also face competition from other competing materials.

Our largest customers are active in polyurethane, elastomers, adhesives, coatings, and bioplastics manufacturers.

Our primary caprolactone competitors are Daicel Corporation, Hunan Juren Chemical Hitechnology, and BASF SE, but we also face competition from other competing materials.

Our value proposition is focused on sustainability elements, either through the high durability performance our Capa polyols impart to polyurethane articles or via the biodegradability characteristics of our Capa thermoplastics which now hold certification in multiple environments.

1 unchanged sentence

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

What changed 10-K

Item 1. Business