The Chemours Company (CC) has announced a 20% increase in the production of HFC-152a, underscoring its commitment to providing lower global warming potential (GWP) propellants and foam-blowing agents. This expansion, set to be operational at the Ingleside, Texas manufacturing facility by mid-2024, aims to fulfill the increasing demand for environmentally friendly solutions with reduced volatile organic compounds (VOCs) across various consumer products.
HFC-152a serves as a versatile, low GWP, non-VOC aerosol propellant and foam-blowing agent utilized in sectors such as personal care, household goods, industrial applications, and construction. As the exclusive U.S. supplier of HFC-152a, Chemours’ capacity enhancement reflects its dedication to delivering long-term reliability amid evolving regulatory standards. The product, marketed as FormacelZ-2 in the foam-blowing agent sector and HP 152a in the aerosol propellant market, addresses the needs of aerosol formulators and thermal insulation foam producers.
Chemours emphasized its commitment to helping customers navigate regulatory challenges while minimizing environmental impacts. The investment in HFC-152a, along with other low GWP alternatives, demonstrates the company’s ongoing efforts to align with customer needs and uphold environmental responsibility.
Despite these developments, Chemours has faced a challenging year in the market, with shares declining 19.8%, compared to a 17.5% drop in the broader industry.
In its third-quarter report for 2023, Chemours posted adjusted earnings of 64 cents per share, falling short of the Zacks Consensus Estimate of 77 cents. The company’s net sales for the quarter totaled $1.487 billion, a 16% decrease year-over-year, and below the expected $1.543 billion.
In light of these results, Chemours has revised its 2023 guidance, lowering its projected adjusted EBITDA to between $1.025 billion and $1.075 billion, down from a previous estimate of $1.100 billion to $1.175 billion. The company also anticipates adjusted free cash flow of over $225 million, with capital expenditures expected to be around $400 million.
