Ingevity to Close Crossett Chemical Plant

(Ingevity)

Specialty chemical maker Ingevity Corp. (NYSE: NGVT) of North Charleston, South Carolina, announced that it’s closing its facility in Crossett this month as it consolidates operations.

Production at the Crossett plant will move to Ingevity’s facility in North Charleston, a move that the publicly traded company says will result in $25 million to $50 million in annual savings beginning in 2025.

About 72 people worked at the Crossett plant as of 2020, according to an Ingevity fact sheet. The facility produces emulsifiers, adhesive tackifiers, rosin and tall oil fatty acid for end-use applications in adhesives, soaps and detergents, drilling fluid additives, paints and other products.

Crosett Mayor Crystal Marshall did not immediately respond to an email seeking comment Thursday.

In a news release, Ingevity said its larger North Charleston facility has the capability to deliver oleo-based and crude tall oil-based chemistries needed to meet customer demand, as well as supply new business expected over the next several years. The site also has the ability to expand capacity at a small cost to meet additional market growth.

“These actions are necessary to better position Ingevity for future success and return the Performance Chemicals segment to profitable, sustained growth,” Ingevity President and CEO John Fortson said in a statement. “This was a difficult decision given the impact on our employees and the surrounding community, and I want to thank all employees for their service and commitment to Ingevity.”

Ingevity reported a $283.7 million loss in the second quarter, which it attributed to a goodwill impairment charge of $349.1 million in its performance chemicals segment.

Sales in the segment fell 35% in the quarter to $185.5 million.

Ingevity acquired the Crossett facility from Georgia-Pacific LLC of Atlanta in 2017.

Crossett has a population of about 4,600.