Profile Disclosure and Description |
Information Location |
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2.1
Name of the organization
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The new name of the holding company, after American Securities acquired a controlling interest on November 19, 2010, is AZC Holding Company LLC. |
2.2
Primary brands, products, and/or services. |
Arizona Chemical is the world’s largest manufacturer of pine-based chemicals as measured by sales. Our products are sold to other manufacturers that use them as raw materials to produce thousands of goods used in everyday life.
As an intermediate product, business-to-business manufacturing company, end-users and individual consumers typically are not aware of our bio-based pine chemicals. Yet our products add value in areas including adhesives, roads and construction, tires and rubber, renewable energy and a range of consumer products.
Our core business involves refining and further upgrading two primary feed stocks - crude tall oil, or CTO, and crude sulfate turpentine, or CST – into specialty chemicals. Both CTO and CST are co-products of the Kraft wood pulping process. In addition to using CTO and CST as primary feed stocks, we use limonene, hydrocarbon-based raw materials, and gum rosins where appropriate to offer tailored solutions for our customers. Our product mix also includes tall oil rosin and its derivatives, tall oil fatty acid and its derivatives, pinene and its derivatives, dimer acid and distilled tall oil (DTO).
Our primary product portfolio, ranked by revenues, serves seven markets:
(1) chemical intermediates,
(2) adhesives,
(3) inks,
(4) renewable energy,
(5) tires and rubber,
(6) roads and construction and
(7) consumer products.
Our leading position in these markets is supported by highly recognized brands among our target customers. For a full listing of our products, visit our website at http://www.arizonachemical.com/en/Products/. |
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. |
The operational structure of the company, now primarily owned by American Securities, has not changed from the 2009 report.
Arizona Chemical is the world’s largest manufacturer of bio-based pine chemicals. We operate ten chemical manufacturing plants located in the United States, United Kingdom, France, Germany, Sweden and Finland. We operate a non-genetically modified organism (non-GMO) phytosterols manufacturing facility in the U.S. for Arboris, LLC, a joint venture between Arizona Chemical and The Härting Group, S.A. |
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2.4
Location of organization's headquarters.
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Arizona Chemical (www.arizonachemical.com ) has principal offices in Jacksonville, Florida, U.S. and Almere, The Netherlands. Arizona Chemical Company, LLC is organized in Delaware and has a primary business address of 4600 Touchton Road East, Suite 1200, Jacksonville, Florida 32246. Arizona Chemical B.V. is incorporated in The Netherlands at 1322 CE, Almere, The Netherlands, Transistorstraat 16. |
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2.5
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.
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Arizona Chemical has ten chemical manufacturing plants located in the U.S., UK, France, Germany, Sweden and Finland. We have representative offices in Mexico, Russia, China and Singapore.
[Click to enlarge image] |
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2.6
Nature of ownership and legal form.
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Arizona Chemical is majority owned by a private equity firm, American Securities, LLC, which acquired a controlling interest in Arizona Chemical from Rhône Capital in November 2010. The 75% ownership includes other current investors and the management team. Rhône Capital retained 25% of the company’s ownership. |
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). |
To better serve our customers as they expand their geographic scope, we are developing a comprehensive globalization strategy that now drives our business. We have undertaken initiatives to expand our business in Asia-Pacific, Russia and South America. For example, in Brazil, we have teamed up with Socer, a leading pine chemical manufacturer serving the Latin American market, and expanded our representative office in Shanghai to better support existing customers in Asia-Pacific and to develop new business.
The main business sectors we serve are listed in 2.2.
As a bio-refiner of raw materials including Crude Tall Oil and Crude Sulfate Turpentine, we serve a range of customers as depicted in the chart.
[Click to enlarge image] |
2.8
Scale of the reporting organization. |
- 1118 employees worldwide
- Primary operations in 6 countries
- Net Sales: $931.8 million
- Total capitalization (long term debt to paid-in capital equity): There was a significant increase from the previous year due to the November 19, 2010 transaction described in 2.1. As a private, non-listed company, we chose not to fully disclose this particular financial information.
- Quantity of products: 674,638 metric tons. Arizona Chemical is the world’s largest producer of tall oil fatty acid, tall oil resin, dimer, distilled tall oil, sterols, terpene resins, adhesive rosin esters and hot melt polyamides.
- Total assets: $655.2 million
- Regional sales breakdown: NA $390.4 million and EU $456.2 million (NA 42%; EU 49%)
- Regional sales revenue by percent: US/Canada 41.9%, Europe/Middle East + Africa 49.0%, Asia 5.5%, and Latin America 3.6%
- Regional costs by percent: US/Canada 44.6%; Europe, Middle East, and Africa 55.1%; Asia 0.2%; and Latin America 0.1%
- Regional/country breakdown of employees – see LA1
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2.9
Significant changes during the reporting period regarding size, structure, or ownership.
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On November 19, 2010, private equity firm American Securities, LLC acquired a controlling interest in the company. The new name of the holding company is AZC Holding Company LLC. The operational structure has not changed from the 2009 report. Beneficial ownership includes 25% ownership by AZ Chem Investments Partners LP (Rhône Capital III) and 75% by AS-AZC Holding Company, LLC (American Securities and management investors).
Our highest governing body is the Board of Directors. See Governance, 4.1, for more detail.
Arizona Chemical has undergone organizational changes as part of our long-term strategy of geographic expansion. We implemented our Global Business Process approach and established departments and cross-functional teams that operate at the global rather than regional level. We added and filled the position of Chief Technology Officer who became a member of our Global Lead Team. As part of our strategic plan and commitment to customer value, we expanded capacity in our Savannah, Georgia, U.S. plant. |
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2.10
Awards received in the reporting period.
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2010 Awards
Business & Environmental
- Ruban d’Honneur, European Business Awards – selected in round two for demonstrating exceptional performance in our sector; now competing as a finalist within the Environmental Awareness Award, with potential to win the ultimate European Business Award
- Chemical Safety Excellence Award – CSX Transportation, for chemical transportation safety
- Pinnacle Award – Union Pacific Railroad, for chemical transportation safety
Community
- Summit Award – United Way of Northeast Florida
- Circle of Honor Platinum Award – United Way of Northeast Florida
- Silver Award – United Way of the Coastal Empire
- Letter of Appreciation – Megagenesis V, an organization providing information and opportunities for college attendance, completion, and entry into a profession requiring a college degree
- Letter of Appreciation – Summer Bonanza Christmas Gift Drive
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