Chemours(CC) - 2024 Q4 - Annual Report

Thermal & Specialized Solutions - The Thermal & Specialized Solutions segment is a leading global provider of refrigerants and thermal management solutions, with a focus on low GWP and sustainable technologies like Opteon™, which was commercialized in 2016[30] - In 2023, the company announced the initial commercialization of Opteon™ 2P50, targeted for the first half of 2026, to meet increasing demands for cooling capacities driven by advancements in AI and computing[31] - The company plans to expand Opteon™ YF capacity at its Corpus Christi, Texas facility by approximately 40% to meet customer needs transitioning to lower GWP refrigerants, with mechanical completion expected in Q4 2024[31] - The company has a leadership position in fluorine chemistry and materials science, competing against major players like Honeywell and Daikin in the Thermal & Specialized Solutions segment[32] - Chemours aims to achieve a goal of avoiding 325 million tons of carbon dioxide equivalent emissions globally by the end of 2025 through its low GWP products[86] Titanium Technologies - The Titanium Technologies segment has a nameplate capacity of approximately 1.1 million metric tons per year for TiO2 pigment, with production facilities in the U.S. and Mexico[40] - The Titanium Technologies Transformation Plan achieved approximately $190 million in cost savings, with$ 140 million related to 2024 and $50 million related to 2023, following the shutdown of the Kuan Yin facility in Taiwan[45] - The worldwide demand for TiO2 pigment in 2024 was estimated at approximately 7.3 million metric tons, with nameplate capacity at around 9.9 million metric tons[47] - The Titanium Technologies segment's raw materials include titanium-bearing ores, chlorine, and calcined petroleum coke, sourced from multiple suppliers to ensure supply chain flexibility[50] - In 2024, the top 10 customers in the Titanium Technologies segment represented about 41% of net sales, with one customer exceeding 10% of net sales[58] - TiO2 pigment sales volume is typically highest in the second and third quarters due to seasonality influenced by weather and holiday seasons[59] - The Titanium Technologies business focuses on sustainability with the Ti-Pure™ Sustainability product series, enhancing product sustainability designations[90] - Energy costs account for approximately 10% of the production cost in TiO2 pigment manufacturing, with access to low-cost natural gas in U.S. and Mexico facilities[54] Advanced Performance Materials - The Advanced Performance Materials segment serves around 1,000 customers globally, with no single customer accounting for more than 10% of net sales in 2024[71] - The Advanced Performance Materials segment is positioned for growth driven by demand for clean energy and advanced electronics technologies[64] - Chemours launched operations at THE Mobility F.C. Membranes Company in 2023 to enhance fuel cell and humidifier membrane manufacturing capacity[62] Environmental Commitment - Chemours aims for a 60% absolute reduction in greenhouse gas emissions by 2030 and a 25% reduction in Scope 3 emissions per ton of product by 2030[84] - The company has successfully reduced Scope 1 and Scope 2 GHG emissions by 60% and achieved a 99% reduction in air and water process emissions of fluorinated organic chemicals[87] - The company is subject to significant compliance costs related to environmental laws and regulations, which may increase over time[92] - The board of directors established an Environmental, Health, Safety, and Operations Performance committee to oversee environmental and safety risk management[102] Employee and Workforce Management - Chemours has approximately 6,000 employees globally, with 77% located in the Americas, 16% in Europe, and 7% in Asia Pacific[96] - The company reported a voluntary attrition percentage of approximately 8% for the year ended December 31, 2024, indicating effective employee retention strategies[108] - Chemours is committed to transparency in pay practices, having implemented measures to ensure equitable remuneration across its workforce[107] Financial Management and Risk - Chemours utilizes derivative financial instruments to manage risks associated with foreign currency exchange rates and commodity prices[498] - As of December 31, 2024, the company had 11 foreign currency forward contracts with a gross notional U.S. dollar equivalent of$ 196 million, resulting in a fair value of less than $1 million[501] - The company recognized a net gain of$ 5 million in 2024 from non-designated foreign currency forward contracts, compared to a net loss of $7 million in 2023[501] - Under the cash flow hedge program, the company had 173 foreign currency forward contracts with a notional U.S. dollar equivalent of$ 178 million and a fair value of $7 million as of December 31, 2024[502] - The company reported a pre-tax gain of$ 7 million in 2024 from cash flow hedges, compared to a pre-tax loss of $2 million in 2023[502] - The company designated euro-denominated debt as a hedge, recognizing a pre-tax gain of$ 47 million in 2024, following a pre-tax loss of $27 million in 2023[503] - The company entered into a cross-currency swap to convert$ 600 million of senior unsecured notes into €567 million, with a fair value of $5 million as of December 31, 2024[504] - The company had two interest rate swaps with a notional U.S. dollar equivalent of$ 300 million, resulting in a fair value of negative $3 million as of December 31, 2024[506] - A pre-tax gain of$ 9 million was recognized in 2024 from interest rate swaps, compared to a pre-tax loss of $6 million in 2023[506] - As of December 31, 2024, one customer represented approximately 7% of total accounts and notes receivable, indicating a diversified customer base[507] - The company did not have any commodity derivative financial instruments in place as of December 31, 2024 and 2023, indicating a strategy to manage commodity price risks through sales contracts[509]