Ingevity To Boost Carbon Activation Capacity In Covington
Zacks Investment Research | May 31, 2018 10:05PM ET
Ingevity Corporation (NYSE:NGVT) will expand its carbon activation capacity at its facility in Covington, VA. The move is aimed at meeting the growing global demand for pelletized carbon products that are mainly used in gasoline vapor emission control systems in trucks, cars, boats and motorcycles.
The expansion will include new processing, purification, activation and finishing equipment. The total activation capacity of the facility after expansion is likely to increase roughly 20%. Per the company, the project is expected to be operational by the fall of 2019 and is likely to represent an investment of $35-$40 million.
Ingevity continues to invest in its Performance Materials segment’s technical and production capabilities to address customer requirements. Moreover, investment in automotive applications continues to be the company’s highest capital allocation priority due to organic growth opportunities in the space.
Notably, the company is also constructing an activated carbon extrusion facility in Changshu, China. The project is expected to be operational by this fall. Moreover, it has an activation facility in Wickliffe, KY, a “honeycomb” scrubber joint venture plant in Waynesboro, GA, in addition to the two carbon activation plants in Covington and China.
Ingevity expects a considerable increase in global demand for its activated carbon products and technologies on the back of more stringent regulations for automotive gasoline vapor emissions control in Europe, China and other countries. Stringent emission standards require more advanced technology that increases the content of activated carbon products per vehicle.
Ingevity’s shares moved up 28.5% over the past year, significantly outperforming the Zacks Investment Research
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