Ecovyst (ECVT) CL King's 22nd Annual Best Ideas Conference 2024 summary

Opening remarks and business overview

• Management highlighted strong market positions in both Eco Services and Advanced Materials & Catalysts segments.

• Emphasis on long-term contracts and stable business in Eco Services.

• Advanced Materials & Catalysts segment supports sustainability and green infrastructure trends.

Market trends and demand outlook

• Regeneration services and alkylate demand remain high due to strong gasoline blending needs.

• Mining sector, a key end market for virgin acid, continues to show robust demand.

• Nylon market is recovering year over year, though not yet at historical norms.

• Polyethylene demand expected to rise in 2024, with some caution for late-year softness, especially in Europe and China.

• Sustainable fuels segment impacted by low RINs values, leading to deferred investments and longer catalyst use cycles.

Catalyst technology and growth prospects

• Zeolyst joint venture with Shell maintains leadership in hydrocracking catalysts, especially for mega refineries.

• Custom catalysts for niche applications and advanced recycling are emerging growth areas.

• Investment in a pilot advanced recycling unit in Conshohocken targets plastics-to-pyoil conversion, with Eurozone as a key market.

• Sustainable aviation fuel (SAF) seen as a major growth opportunity from late 2025, driven by regulatory mandates in Europe.

• Zeolite technology supports both traditional and novel SAF production processes.