AdvanSix planned expand granular ammonium sulfate production

AdvanSix Announces First Quarter 2023 Financial Results

Sales of $401 million in the quarter decreased by approximately 16% versus the prior year. Sales volume decreased approximately 9%, driven by cautious buying behaviour for ammonium sulfate ahead of the start of the domestic planting season as a result of significant pricing declines year-over-year, and soft-end market demand. Market-based pricing was unfavourable by 6% compared to the prior year primarily reflecting lower ammonium sulfate pricing.

While down from last year’s peak levels, Ammonium Sulfate value pricing remains robust and we continue to be well-positioned to serve our key plant nutrients customers as the season progresses.

SUSTAIN Project to Increase Granular Ammonium Sulfate Production by ~20%

The Company is announcing today intention to invest in expanding our granular ammonium sulfate production by approximately 200,000 tons per year. We believe that this investment will have a meaningful impact in helping to nourish the world and is a win-win for our customers and our growth and sustainability initiatives.”

It has kicked off its SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) project. SUSTAIN will include a multi-year series of capital investments focused on the planned expansion of granular ammonium sulfate production by approximately 200,000 tons per year at its Hopewell, Virginia site. The expansion is expected to increase granular ammonium sulfate production, predominantly through increased conversion, by nearly 20% and improve customer logistics. Further, the project is targeting no net increase in energy consumption or emissions, an anticipated reduction of total water usage at the site by approximately 10%, and a reduction of nutrient discharges. AdvanSix’s SUSTAIN project will ensure that the premium granular product variety required by the U.S. market can be produced domestically, increasing resiliency in the local fertilizer market.

Outlook

Expect strong underlying agriculture and fertilizer industry fundamentals to continue through the domestic planting season; Anticipate improvement in 2Q23 ammonium sulfate domestic sales volume in a lower nitrogen and raw material pricing environment.

About AdvanSix

AdvanSix is a diversified chemistry company that produces essential materials for our customers in a wide variety of end markets and applications that touch people’s lives. The integrated value chain of our five U.S.-based manufacturing facilities plays a critical role in global supply chains and enables us to innovate and deliver essential products for our customers across building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives, electronics and other end markets. Guided by our core values of Safety, Integrity, Accountability and Respect, AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, chemical intermediates, and plant nutrients.