Ascent Industries - formerly Synalloy Corporation - is a partnership of industrial manufacturing companies with operations in Tennessee, South Carolina, North Carolina, and Virginia, producing a variety of products, including specialty chemicals and industrial stainless-steel and specialty alloy pipes and tubes.
Given Ascent Industries' 75-year history and diverse product offering, how has the portfolio evolved going into 2025?
Ascent has always been an acquirer of good businesses waiting to be great. That will never change. Today, we have two segments filled with great people and valuable assets across our portfolio. As I’ve come on board and had the pleasure of meeting our people and seeing the value we create, I’ve also seen a tremendous opportunity to accelerate that ongoing transition by focusing our efforts on the pieces of our business that we know we can add tremendous shareholder value to. With that, we are in the process of reinventing ourselves as a specialty chemicals innovator. We have a tremendous foundation to become a leading manufacturer of critical, enabling ingredients supporting a diverse array of markets underpinned by sustainable megatrends such as energy & electrification, sustainability & circular economy, urbanization and infrastructure growth and health & wellness. At the core of who we are today, the products we produce safeguard and improve our customers' products and processes.
Our unique business models allow Ascent to support our customers in a way that best aligns with their business strategy. Some come to us with product concepts and want our assistance developing, scaling and producing at a commercial scale. Other customers want us to develop products to meet their specific performance objectives, and others want us to design, build and operate dedicated manufacturing plants to support their growth objectives. The demand for tailor-made solutions provides opportunities for deep, collaborative, long-term customer relationships. Over the past year, we have seen strong interest and growth in our bio-based products serving an array of markets such as oil and gas, pulp and paper, water treatment, paints and coatings, adhesives and sealants, personal care, and household industrial and institutional (HI&I).
What are the main factors driving growth in the oil, gas, and coatings markets currently?
With the new administration coming in, it is expected that we will see a very real and material increase in domestic oil and gas production, creating tailwinds for production chemical demand. What's particularly exciting is the growing preference for more sustainable chemistries over traditional petrochemical options. Our bio-based chemistries are well-positioned to meet this shift. Similarly, in coatings, adhesives, and sealants, increased residential, commercial and infrastructure construction drives demand. While we haven’t seen a major uplift in demand yet, the macroeconomic indicators and growth-oriented policy overtures are promising.
We expect growth to materialize more significantly in late 2025 and into 2026, especially as reshoring initiatives are executed. Localizing the production of key raw materials in the US has become a strategic imperative for many across our industry as they work to mitigate the risk of supply chain disruptions and geopolitical challenges, advance sustainability objectives and soon, support an increase in underlying demand in the US. This shift positions domestic manufacturers like Ascent to play a significant role in the domestic manufacturing renaissance.
How is Ascent Industries adapting its portfolio in line with the demand for more sustainable products?
With our product innovation activities, we are seeing a growing interest in our bio-based chemistries. Customers are much more receptive to bio-based solutions compared to a decade ago when cost and performance gaps were barriers. Now, the technology has evolved, making bio-based chemistries cost-competitive and high-performing. A great example is our defoamers, which historically were 100% petro-based but are now up to 81% vegetable-based and renewable-sourced. These advancements mean customers don’t have to sacrifice performance or pay a premium for sustainability, driving adoption across industries.
Our team has developed a portfolio of bio-based drop-in replacement products but stands at the ready to develop customer-specific formulations to meet or exceed their specific requirements. We take great pride in innovating at the speed of our customers. For us, sustainability is integrated into how we operate. It is fundamental to the development and management of our product portfolio, our investment decisions, the talent we attract, develop and retain and how we choose to operate our manufacturing facilities. Beyond classical ESG, it’s about being a predictably reliable partner to our customers, shareholders and communities that we operate in for the betterment of all our stakeholders.
You joined in 2023 and were appointed CEO in 2024. What changes have you implemented to date, and what’s your vision for Ascent Industries over the next 2-5 years?
Over the past year, we have purposefully reinvested in talent and process across the enterprise to accelerate sustainable earnings growth. Our ability to identify, attract, recruit, develop and retain incredible talent is a competitive advantage that we are incredibly proud of. This team has established an incredible foundation to support our growth ambitions. Our multi-site, growth-ready asset base is capable of supporting significant organic growth without material CAPEX reinvestment.
Our shareholders have placed an enormous amount of trust in our employees, and we will reciprocate by rewarding them. Our focus is to create durable shareholder value by renewing, revitalizing and unleashing the fullest growth potential of our products, processes, assets and employees by standardizing, simplifying and optimizing all that we do, together.
Which advancements in technological innovation are you most excited about leveraging and implementing to maintain competitiveness?
Innovation starts with our people—hiring, retaining, and developing the best talent. On the R&D side, our teams work closely with customers to create tailored formulations. In manufacturing, we’re reinvesting in digitization and automation to enhance quality, reliability, and cost efficiency.
We’re also exploring AI, primarily for business development, but we see potential applications in product development and application science. While we’re still determining the best ways to integrate AI, its potential to drive efficiency and innovation is undeniable.
