Ingevity has completed the sale of its North Charleston, South Carolina crude tall oil refinery and most of its Performance Chemicals Industrial Specialties product line, the company said Jan. 5. The transaction marks a further step in Ingevity’s move away from crude tall oil operations, which were historically tied to long-term tall oil supply agreements, including a now-ended deal with GP Pine Chemicals.
The sale, agreed earlier in 2025, was aimed at reducing portfolio volatility while improving margins and cash flow. Under the terms, Ingevity received $110 million in cash at closing, with up to $19 million in additional contingent consideration tied to future performance milestones.
Ingevity’s crude tall oil business had been part of its performance chemicals operations, but the company has been reshaping its involvement in the segment for some time. Historically tied to tall oil supply agreements – including a now-ended purchase deal with GP Pine Chemicals – Ingevity has been moving away from traditional CTO feedstock arrangements.
In 2025, the company agreed to sell the North Charleston refinery and the majority of its industrial specialties product line to Mainstream Pine Products. The decision follows earlier industry shifts, including the closure of a crude tall oil fatty acid plant in Louisiana and the end of long-standing pine chemical supply partnerships, reflecting a broader strategic realignment away from CTO-based operations.
Crude tall oil is a byproduct of the kraft pulping process used to make paper. Its resulting fatty acids are used to make ingredients for lubricants and metalworking fluids.