Chemours Co (NYSE:CC) is seeing the customer roll expanding for its foam blowing agent called Opteon 1100. The company has announced that spray foam products maker Icynene has selected Opteon 1100 for its high-end foam insulation products.
According to Chemours, the kind of spray foams that Icynene makes deliver high performance yet they do not have an adverse impact on the environment. With that, Chemours is finding its way into the environment protection market, which should be a long-tailed demand cycle given how the Paris Climate Agreement has boosted demand for environmentally-friendly products.
As for Icynene, Opteon 1100 is also attractive because it is a non-flammable blowing agent. The fact that the product doesn’t emit greenhouse gasses also means that it has the potential to expand the company’s geographical markets, especially in regions that have recently adopted stringent environmental regulations.
According to Icynene’s VP of Technology, using Opteon 1100 will enhance their ability to develop low-GWP (low global warming potential) spray foam insulation products. He added that the ease that comes with using Chemours’ Opteon 1100 will also help the company to produce spray foam insulation products quickly.
Icynene’s CEO, Howard Deck, added that they and Chemours have had a valuable partnership going back a couple of years and their selection of Opteon 1100 builds on that relationship.
Chemours is hoping to capitalize on the shift toward low-GWP products to increase sales of Opteon 1100. The company has not provided estimates of the amount it hopes to generate from the deal with Icynene, but hinted that the relationship could be a gateway to more sales.
In what hints at an anticipated strong demand, Chemours is in the process of increasing its capacity to produce Opteon 1100. The company said that full-scale production of the product is set to begin next year, a development that will further cements its position as the capacity leader in the product of the low-GWP foam blowing agent.
Chemours also hinted that it would continue to innovate and expand capacity to low-GWP foam blowing agents as demand for the products increases globally.
Chemours posted revenue of $1.30 billion in 1Q2016, which shrank from revenue of more than $1.36 billion in the year-ago quarter and $1.36 in the prior quarter.