PARSIPPANY, N.J. — January 17, 2018 — AdvanSix announced today that it has experienced a temporary production issue at its Hopewell, Virginia facility related to the recent severe winter weather. As a result of this unplanned interruption, caprolactam and resin production have been reduced at their respective Hopewell and Chesterfield, Virginia facilities. The Company expects to incur an approximately $30 to $35 million unfavorable impact to pre-tax income in the first quarter of 2018, including the unfavorable impact of fixed cost absorption, lost sales, maintenance expense and incremental raw material costs. AdvanSix has informed its customers of this force majeure event and is actively working to mitigate the impact of the reduced output on its customers’ operations.
“ no quote We have been safely and diligently working to navigate through and address the effects of significant weather volatility,” said president and CEO Erin Kane. “ no quote We are confident in our action plan to resolve this issue and expect the required mechanical work to be completed in approximately two to three weeks.”
The unplanned interruption has no adverse impact on fourth quarter 2017 financial results. In the fourth quarter of 2017, the Company’s operational performance was robust including completion of its planned plant turnaround on time and on budget. AdvanSix will provide an update and announce its fourth quarter and full year 2017 financial results in its earnings release and conference call scheduled for February 23, 2018.
AdvanSix is a manufacturer of Nylon 6, a polymer resin which is a synthetic material used by our customers to produce engineered plastics, fibers, filaments and films that, in turn, are used in such end-products as automotive and electronic components, carpets, sports apparel, fishing nets and food and industrial packaging. As a result of our backward integration and the configuration of our manufacturing facilities, we also sell caprolactam, ammonium sulfate fertilizer, acetone and other intermediate chemicals, all of which are produced as part of our Nylon 6 integrated manufacturing chain.
Posted January 17, 2018