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Mainstream Pine Products buys Ingevity's DeRidder CTO site

Created at 6 Aug · 9:31 AM1 source↑ Market-relevant
IN SHORT

Mainstream Pine Products has acquired Ingevity's crude tall oil (CTO) fractionation plant in DeRidder, Louisiana. The acquisition adds to Mainstream's US CTO refining capacity, which includes a previously acquired unit in North Charleston, South Carolina.

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Key Numbers

300,000treduction in US CTO refining capacity

Who's Involved

Mainstream Pine Products
US-based pine chemicals producer that acquired the CTO plant
Ingevity
Seller of the DeRidder CTO fractionation plant
Rob Helwick
President and chief executive of Mainstream Pine Products

↳ Why This Matters

The acquisition by Mainstream Pine Products and the prior capacity reductions by Ingevity signal shifts in the US crude tall oil refining landscape, potentially impacting supply and demand dynamics for pine chemicals.

Key facts

  • Mainstream Pine Products has purchased Ingevity's crude tall oil (CTO) fractionation plant in DeRidder, Louisiana.
  • The acquisition increases Mainstream's US CTO refining capacity.
  • Ingevity had closed the DeRidder facility in 2024.
  • The closure of DeRidder and conversion of a facility in Arkansas reduced US CTO refining capacity by 300,000t.
  • US domestic CTO supply has been adequate for current refining capacity.

Mainstream Pine Products has acquired Ingevity's crude tall oil (CTO) fractionation plant located in DeRidder, Louisiana. This acquisition expands Mainstream's refining capacity for CTO, a key component in pine chemicals.

Rob Helwick, president and chief executive of Mainstream, stated that the company is evaluating the acquired assets to determine expansion plans, including the utilization of refinery components at the site. Basic operations related to pine chemicals are planned prior to any major expansions.

The purchase adds to Mainstream's existing CTO refining capacity, which includes a unit in North Charleston, South Carolina, also acquired from Ingevity. In recent years, Ingevity had closed two CTO refining facilities: the DeRidder plant in 2024 and converted a facility in Crossett, Arkansas, in 2023 to process non-tall oil fatty acids exclusively.

These actions by Ingevity are estimated to have reduced US CTO refining capacity by approximately 300,000 tonnes. Despite this reduction, US domestic supply of CTO has been sufficient to meet existing refining capacity. However, future plant additions and increased export demand could potentially tighten the balance between supply and demand.

Frequently asked questions

Mainstream Pine Products acquired Ingevity's crude tall oil (CTO) fractionation plant in DeRidder, Louisiana.

Crude tall oil is a raw material used in the production of pine chemicals.

The acquisition adds to Mainstream's capacity, but Ingevity's prior closures and conversions reduced overall US CTO refining capacity by an estimated 300,000t.

What Happens Next

01Mainstream Pine Products will assess the acquired assets for expansion.
02Mainstream plans to utilize refinery assets at the DeRidder site.
03Mainstream will perform basic pine chemical operations at the site.

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Cadence

How It Developed

Mainstream Pine Products acquired Ingevity's CTO fractionation plant in DeRidder, Louisiana.
The acquired plant adds to Mainstream's US CTO refining capacity.
Ingevity had previously shut down the DeRidder facility in 2024.
Ingevity also converted a facility in Crossett, Arkansas, in 2023.
The closures and conversions reduced US CTO refining capacity by an estimated 300,000t.
US domestic CTO supply has been sufficient to meet domestic refining capacity.
Plant additions and increased export demand could tighten supply and demand balances.

Sources

T1
Mainstream buys Ingevity's DeRidder CTO siteArgus Media

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