Organization

Profile Disclosure and Description

Information Location

2.1
Name of the organization

2009 Sustainability Report Overview > Our Products and Markets, p. 4-5

GRI Disclosure Information:

Our Product Lines
We are the world’s leading supplier of pine-based chemicals as measured by sales. We refine and further upgrade two primary feed stocks, crude tall oil, or CTO, and crude sulfate turpentine, or CST, both of which are wood pulping co-products, into specialty chemicals. We focus our resources on seven markets including: (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 our recognized brands, including SYLVATAC®, SYLVARES®, SYLVAPRINT® and UNI-REZ®, among others. These products include tall oil rosin and its derivatives, tall oil fatty acid and its derivatives, pinene and its derivatives, dimer acid and distilled tall oil, or DTO, which have contributed steady profit margins and stable cash flows. These products are sold into a diverse range of markets, including paints and coatings, lubricants, fuel additives, mining and oilfield, paper chemicals and polymers, among others.
 
While our business is based predominantly on the refining and upgrading of CTO and CST, we also use both hydrocarbon-based raw materials and gum rosins where appropriate and are able to offer tailored solutions for our customers.

As an intermediate product manufacturer, our products are not sold directly to consumers, but to other product manufacturers that use our products as raw materials in their manufacturing processes. Our products are used in a wide range of downstream industries. For a full listing of our products, visit our website at www.arizonachemical.com. 

Arizona Chemical is the world’s largest manufacturer of bio-based pine chemicals.  Arizona Chemical has ten chemical manufacturing plants, in the US, United Kingdom, France, Germany, Sweden and Finland; It also operates a non-genetically modified organism (GMO) phytosterols manufacturing facility in the U.S. for Arboris, LLC, a joint venture between Arizona Chemical and The Härting Group, S.A. Arizona Chemical has research and development capabilities and a network of sales offices throughout the world. The company manufactured almost 800,000 tons of bio-based pine chemical products in 2009.

Arizona Chemical, formerly a wholly-owned subsidiary of International Paper Company, was purchased on Feb. 28, 2007 by Rhône Capital III L.P, a private equity firm with a board of directors. We were founded as a joint venture between International Paper and American Cyanamid in 1930 in Arizona, USA as a salt cake mining operation supplying the paper industry. Today we are a global company with a wide variety of product interests. American Securities, LLC purchased a controlling interest of our company on November 19, 2010.

2.4
Location of organization's headquarters.

Arizona Chemical (www.arizonachemical.com) has principal offices in Jacksonville, Fla. and Almere, The Netherlands.

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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.

Arizona Chemical has ten chemical manufacturing plants located in the US, United Kingdom, France, Germany, Sweden and Finland. See Diagram Below.

2.6
Nature of ownership and legal form.

Arizona Chemical is owned by a private equity firm with a board of directors.

2009 Sustainability Report Overview > Our Products and Markets, p. 4-5

GRI Disclosure Information:

Many of our leading customers are expanding globally and are concerned about the availability of the materials they need in these developing regions. Our commitment to serving customers more globally is evident in our geographic 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; we have entered into a strategic technical and commercial cooperative dialogue to expand our coverage and bring new technologies to market. We have also recently opened a representative office in Shanghai to better support existing customers in Asia-Pacific and to develop new business.

Much information about our company can be easily gained through our website which enables users to access company news bulletins, product brochures, application information, data sheets and safety information. This allows us to keep information up-to-date whilst minimizing the need for printing and mailing.

2009 Sustainability Report Overview > 2009 Highlights, p. 5

GRI Disclosure Information:

• Regional sales breakdown: NA $379.1 million and EU $388.4 million (NA 49%; EU 51%
• Regional Sales Revenue by percent: US/Canada 42%, Europe/Middle East + Africa 49%, Asia 5%, and Latin America 4%
  
• 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
  
• Regional Costs by Percent: US/Canada 38%; Europe, Middle East, and Africa 53%; Asia 5%; and Latin America 4%
  
• Total capitalization (long term debt to paid-in capital equity):  2.44
  
  

2.9
Significant changes during the reporting period regarding size, structure, or ownership.

2.10
Awards received in the reporting period.

See table below