Core Viewpoint - BNP Paribas Asset Management Holding has notified Solvay that it has crossed the threshold of 3% in voting rights, specifically a downward crossing to 2.95% as of March 11, 2025 [1][5]. Group 1: Notification Details - The notification indicates that after the transaction, BNP Paribas Asset Management Holding holds 2.95% of voting rights with no equivalent financial instruments [1]. - The threshold was crossed on March 11, 2025, with a total denominator of 105,876,416 [5]. - The notification was dated March 13, 2025, and was made by a parent undertaking or controlling person [5]. Group 2: Company Background - Solvay is a leading chemical company with a history dating back to 1863, focusing on sustainable solutions and employing approximately 9,000 people [6]. - In 2024, Solvay reported net sales of €4.7 billion, highlighting its significant market presence [6]. - The company is committed to achieving a carbon-neutral future by 2050, emphasizing its dedication to sustainability [6].

Investment Thesis - Dow Inc. offers a high dividend yield of 7.8%, significantly higher than the S&P 500's yield of approximately 1.2% [2] - The company has a diversified business model with a market capitalization of $25 billion, operating across major chemical segments [3] Buy Recommendation - The recent announcement of a quarterly dividend of $0.70 per share maintains the same level since the 2019 separation from DowDuPont, appealing to income-focused investors [2] Sell or Avoid Recommendation - Dow Inc. is not suitable for investors seeking a growing income stream, as the company is unlikely to become a dividend growth stock due to the volatile nature of the chemicals industry [4] - The company is undergoing a business model revamp, including asset sales and partnerships, which introduces uncertainty, especially with a dividend payout ratio exceeding 100% [5] - The high yield is partly a result of weak business performance, with a 2% year-over-year sales decline in Q4 2024 and a 4% sequential decline from Q3 2024 [6] Hold Recommendation - Holding Dow Inc. may be justified for investors who believe in the company's efforts to improve its business through asset sales and partnerships, which could lead to better performance [8] - The stock has lost about one-third of its value over the past year, making holding a contrarian position, as most analysts have a negative outlook on the company's future [9] Overall Assessment - Dow Inc. presents a high yield but lacks strong business performance, with management actively seeking ways to reduce debt and enhance performance [10] - The company is not currently viewed as an attractive investment compared to other high-yield stocks [10]

Core Insights - Olin Corporation appointed General Edward Daly as a new director on its Board effective March 5, 2025, and he will serve on the Compensation Committee [1] - General Daly has over 36 years of military experience, with his last role as the 20th Commanding General of the U.S. Army Materiel Command, overseeing a budget exceeding $50 billion [2] - Since retiring, General Daly founded Virtus 9, focusing on U.S. national security, and serves as President of Daly Consulting & Logistics, along with advisory roles in other companies [3] Company Overview - Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a major U.S. manufacturer of ammunition [5] - The chemical products produced by Olin include chlorine, caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid [5] - Winchester, a subsidiary of Olin, manufactures and distributes various types of ammunition, including sporting, law enforcement, and military ammunition [5]

Market Overview - The global market for 2,5-Furandicarboxylic Acid (FDCA) was valued at US$548.9 Million in 2024 and is projected to reach US$794.0 Million by 2030, growing at a CAGR of 6.3% from 2024 to 2030 [2][10]. - The PET Application segment is expected to reach US$473.1 Million by 2030 with a CAGR of 6.7%, while the Polyamides Application segment is set to grow at a CAGR of 6.3% over the analysis period [1]. Regional Analysis - The U.S. market for FDCA is valued at $138.5 Million in 2024, and China is forecasted to grow at an impressive 9.0% CAGR to reach $73.4 Million by 2030 [1]. - Key regions also include Japan, Canada, Germany, and the Asia-Pacific, which are expected to show significant growth trends [1]. Growth Drivers - The growth in the FDCA market is driven by technological advancements, increasing regulatory support for sustainable materials, and growing consumer demand for eco-friendly products [4][5]. - Rising consumer awareness about the environmental impact of plastic waste is boosting demand for sustainable packaging solutions [5]. Production Technologies - FDCA production involves the catalytic conversion of biomass-derived carbohydrates, such as fructose, through various chemical processes [6]. - Enzymatic methods are being explored for their specificity and environmental benefits, alongside integrated biorefinery approaches to enhance economic viability [7]. Trends and Innovations - Current trends in the FDCA sector emphasize sustainability and innovation, with a focus on new feedstocks and catalysts to improve production efficiency [8]. - Collaborations between industry and academia are accelerating the commercialization of FDCA and its derivatives, with a growing interest in recycling and reduced fossil resource dependence [9]. Applications - FDCA is emerging as a key player in sustainable packaging, particularly in the production of polyethylene furanoate (PEF), which can substitute for polyethylene terephthalate (PET) [3]. - The versatility of FDCA allows for high-performance polymers in diverse applications, including packaging, textiles, coatings, and adhesives [5].

Financial Data and Key Metrics Changes - Sales for Q4 2024 were $329 million, a decrease of approximately 14% year-over-year, with sales volume down about 16% due to delayed ramp-up following planned turnarounds [10][11] - Adjusted EBITDA for Q4 2024 was $10 million, down $5 million from the previous year, primarily due to plant turnaround impacts [11] - Adjusted earnings per share increased to $0.09, up $0.19 year-over-year, influenced by $9.7 million in carbon capture tax credits [11] - Free cash flow for Q4 2024 was $30 million, an increase of $8 million compared to the prior year [12] Business Line Data and Key Metrics Changes - The Plant Nutrients business saw strong performance, with ammonium sulfate prices in the Corn Belt up 15% year-over-year, while nitrogen pricing declined by 8% [16][18] - Nylon business faced persistent global oversupply, impacting pricing and spreads, with North American demand remaining stable [20][21] - Chemical intermediates experienced healthy acetone prices, although demand for acetone in MMA markets was soft [22][23] Market Data and Key Metrics Changes - The market for ammonium sulfate is robust, with a strong order book sold out into Q2 2025, supported by rising grain and nitrogen fertilizer prices [18][26] - Anticipated higher raw material prices, particularly for natural gas and sulfur, are expected to impact overall pricing spreads in 2025 [24][25] Company Strategy and Development Direction - The company is focused on strategic growth priorities, including investments in granular ammonium sulfate capacity and maintaining prudent debt levels [6][29] - The company aims to improve through-cycle profitability by optimizing product sales mix and driving productivity [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged operational challenges in 2024 but expressed confidence in the company's ability to deliver improved earnings in 2025, supported by a resilient business model [29][71] - The macroeconomic environment remains largely favorable for the industries served, with expectations of strong sulfur premiums supporting plant nutrients [29] Other Important Information - The company received approximately $39 million in insurance proceeds related to the 2019 PES cumene supplier shutdown, with $5.3 million recognized in Q4 2024 [7] - The company claimed $9.7 million in 45Q carbon capture tax credits in Q4 2024, which significantly reduced the effective tax rate [8][15] Q&A Session Summary Question: On the conversion to granular ammonium sulfate - Management indicated a target conversion of 75% for granular production, aligning with North American domestic demand [32][33] Question: Phenol market conditions and acetone production - Management confirmed that they are running above industry rates for phenol, which supports acetone production amid lower phenol operating rates [34] Question: Future carbon capture estimates - Management suggested a potential run rate of $5 million to $6 million for carbon capture credits in the coming years, with inflation adjustments [36] Question: Capital spending breakdown for 2025 - Management outlined that capital expenditures for 2025 are projected between $140 million and $160 million, with a significant portion directed towards growth projects [46][48] Question: Natural gas costs and their impact on competitiveness - Management acknowledged that energy costs are crucial for nitrogen producers and that they are monitoring how these costs affect global trade dynamics [51][52] Question: Competitive pressures in the nylon market - Management noted that while demand remains stable, increased domestic supply has led to competitive pressures, particularly from imports [60][61] Question: Outlook for agricultural chemicals - Management indicated challenges in the ag chemical space, particularly due to low-price competition from Chinese imports [62]