© Reuters.
PARSIPPANY, NJ – AdvanSix (NYSE:ASIX), a producer of diversified chemicals, suffered an operational disruption at its Frankford, Pennsylvania plant, resulting in reduced production of phenol and acetone. The accident also affected production at the Hopewell and Chesterfield sites in Virginia. According to the company’s statement, there were no health, safety or environmental issues as a result of this outage.
Erin Kane, president and CEO of AdvanSix, emphasized the company’s commitment to safely restoring full operations and working with customers to minimize the impact of reduced production. The company expects to return to planned utilization rates across its value chain by the end of January and has taken the opportunity to bring forward maintenance work at the Hopewell facility.
Financially, the disruption is expected to have an unfavorable impact on pre-tax profit, estimated at between $18 million and $23 million for the first quarter of 2024. This figure includes the effects of fixed cost absorption, of lost sales and additional costs for purchasing replacement products.
The manufacturing issues did not materially impact the company’s results for the fourth quarter of 2023. AdvanSix will provide additional details on its fourth quarter and full-year 2023 financial results, as well as outlook, during an investor conference call scheduled for on February 16th.
AdvanSix produces essential materials for various end markets, including building and construction, fertilizers and electronics. The company operates five manufacturing facilities in the United States and is guided by core values of safety and integrity.
The information in this article is based on a press release from AdvanSix.
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