PARSIPPANY, N.J.--(BUSINESS WIRE)--AdvanSix (NYSE: ASIX), a leading diversified chemistry company, announced today that it has been awarded an approximately $12 million grant from the U.S. Department of Agriculture (USDA) through the Fertilizer Production Expansion Program (FPEP) supporting the expansion of innovative American fertilizer production strengthening domestic supply chains of fertilizers, and creating economic opportunities for American businesses.
“We’re grateful to the USDA for recognizing our potential with this grant and the ability we have to make a difference for farmers across the country,” said Mike Hamilton, Vice President and Business Director of Plant Nutrients at AdvanSix. “This funding will support AdvanSix’s strategy to increase our production capacity of premium grade product and make investments that will have true material impact in helping to nourish the world.”
Through this grant, AdvanSix will further advance its Sustainable U.S. Sulfate to Accelerate Increased Nutrition (SUSTAIN) initiative at its site in Hopewell, VA where ammonium sulfate fertilizer is currently produced. SUSTAIN is a series of projects with multi-year investments from AdvanSix which is targeting no net increase in energy consumption or emissions. These projects are designed to build on the facility’s nearly 100-year history of providing a reliable, domestic supply of essential nitrogen-based fertilizers, while also keeping environmental stewardship at its core.
AdvanSix ammonium sulfate is made in America and directly supports over 800 high paying jobs in central Virginia. Ammonium sulfate is the preferred product for incorporation of sulfur nutrition into dry bulk fertilizer blends, the largest application method in North America. The SUSTAIN initiative is expected to add approximately 200,000 tons per year of granular Ammonium Sulfate to the domestic market predominately through increased granular conversion and improved shipping logistics capability for rail and truck. AdvanSix plans to continue building upon the work supported by the FPEP to support growing market demand for sustainable, high quality sulfur nutrition. The USDA grant funding will be allocated as AdvanSix reaches specific milestones and will supplement AdvanSix’s investment in funds and resources.
Background
USDA began accepting applications for the FPEP in September 2022. President Biden and USDA created FPEP to combat issues facing American farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to a variety of factors. The Administration committed up to $900 million through the Commodity Credit Corporation for FPEP. Funding supports long-term investments that will strengthen supply chains, create new economic opportunities for American businesses, and support climate-smart innovation. FPEP is part of a broader effort to help producers boost production and address global food insecurity. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. To learn more, visit www.usda.gov.
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. Our 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, plant nutrients, and chemical intermediates. More information on AdvanSix can be found at http://www.advansix.com.
Forward Looking Statements
This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements may be identified by words such as "expect," "anticipate," "estimate," “outlook,” "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" and other variations or similar terminology and expressions. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and difficult to predict, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic and financial conditions in the U.S. and globally; the potential effects of inflationary pressures, labor market shortages and supply chain issues; instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of the conflict between Russia and Ukraine, the conflict in Israel and Gaza, and the possible expansion of such conflicts; the effect of the foregoing on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.; our ability to sell and provide our goods and services; the ability of our customers to pay for our products; any closures of our and our customers’ offices and facilities; risks associated with increased phishing, compromised business emails and other cybersecurity attacks, data privacy incidents and disruptions to our technology infrastructure; risks associated with operating with a reduced workforce; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost, or at all, due to economic conditions or otherwise; the impact of scheduled turnarounds and significant unplanned downtime and interruptions of production or logistics operations as a result of mechanical issues or other unanticipated events such as fires, severe weather conditions, natural disasters, pandemics and geopolitical conflicts and related events; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; failure to develop and commercialize new products or technologies; loss of significant customer relationships; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; hazards associated with chemical manufacturing, storage and transportation; litigation associated with chemical manufacturing and our business operations generally; inability to acquire and integrate businesses, assets, products or technologies; protection of our intellectual property and proprietary information; prolonged work stoppages as a result of labor difficulties or otherwise; failure to maintain effective internal controls; our ability to declare and pay quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase our common stock and the amount and timing of any future repurchases; disruptions in supply chain, transportation and logistics; potential for uncertainty regarding qualification for tax treatment of our spin-off; fluctuations in our stock price; and changes in laws or regulations applicable to our business. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our filings with the Securities and Exchange Commission (SEC), including the risk factors in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, as updated in subsequent reports filed with the SEC.
