Dr. Markus Steilemann, CEO of ����AV, began his speech to the Annual General Meeting with a review of fiscal year 2024, which had been characterized by continuing market weakness, intense competition and geopolitical uncertainties. “Despite the challenging conditions in the chemical industry, we leveraged our strong foundation and unswervingly implemented the transformation of our company to the circular economy. In the past year, we systematically tapped potential and made important progress on our path to becoming an innovative and sustainable chemical company. We’ll stick to this course rigorously in the current fiscal year and concentrate on our strengths in four strategic focus areas.”

To build the chemical company of the future, ����AV has refined its strategy and adapted it to current market needs. At the same time, the company is rigorously scrutinizing its structures. “We are literally leaving no stone unturned in order to identify and implement any as yet unutilized efficiency potential and growth opportunities. We are now even more agile, leaner and more targeted in our approach. Our ways of working and our processes are being comprehensively rethought,” says Markus Steilemann.

By 2028, ����AV aims to cut costs by 400 million euros a year by enhancing its performance and improving its structures. ����AV is focusing its strategy on four key action areas: the ongoing transformation, sustainable growth, digitalization and innovation, and the systematic implementation of ambitious sustainability targets. A vital component of the transformation is the targeted management of global production capacities. By investing in innovative and sustainable materials and expanding key sites, ����AV is strengthening its competitiveness in cutting-edge markets. At the same time, the company is pressing ahead with its transition to the circular economy and reducing its ecological footprint by increasing its use of renewable energies and developing innovative recycling technologies. An additional focus is on digitalization along the entire value chain in order to make processes more efficient and tap new growth opportunities.

Steilemann also emphasized the importance of the partnership with XRG, which is seen as a strong and long-term partner for ����AV: “This is the right step at the right time.” The transaction is expected to be closed in the second half of 2025.

Reelection of members of the Supervisory Board

Effective the end of the Annual General Meeting on April 17, 2025, the regular term of office of five members of the Supervisory Board of ����AV who had been elected by the Annual General Meeting terminated. The shareholders confirmed the reelection of Dr. Christine Maria Bortenlänger, Lise Kingo, Dr. Richard Pott, Regine Stachelhaus and Patrick W. Thomas for a further two-year term of office. The candidates have extensive expertise in the fields of capital markets, sustainability, corporate governance and industry. Dr. Richard Pott was reelected as Chair of the Supervisory Board.

No dividend distribution due to net loss

Christian Baier, CFO of ����AV, presented the key financial figures, emphasizing the impact of the actions to increase efficiency and improve plant availability. “We sold greater production volumes worldwide thanks to targeted measures. Nevertheless, falling selling prices led to a 1.4 percent decline in sales to 14.2 billion euros and, as a consequence, to a drop in the Group result. EBITDA remained stable, while higher impairments on property, plant, and equipment reduced the Group’s net income.”

In accordance with the Group’s dividend policy, which since 2020 has linked the dividend more closely to the financial situation of the company, a decision was made not to distribute any dividend for the fiscal year 2024.

Markus Steilemann ended his speech with a look ahead, summing up ����AV’s strategic alignment for the shareholders: “We face major challenges, but under our strategy we’re driving our transformation with a clear plan. ����AV is committed to cost leadership, efficiency and innovation in order to actively shape a sustainable future. As a pioneer in the circular economy, we are well-positioned to successfully master the transformation in the industry.”

Further information and documents 

• You can find a recording of the 2025 Annual General Meeting, the manuscripts of the presentations and press photos at Media Kit | Annual General Meeting | ����AV. 
• The detailed voting results on the agenda items at the Annual General Meeting are available at Annual General Meeting I ����AV | ����AV. 
   

Here you can rewatch the 2025 virtual Annual General Meeting from Thursday, April 17, 2025. 

Speeches:

You can download the speech of CEO Dr. Markus Steilemann, CFO Christian Baier and Chairman of the Supervisory Board Dr. Richard Pott here.

Photos:

Further documents for the Annual General Meeting 2025:

Further documents for the Annual General Meeting, the agenda as well as the voting results can be found here.

Annual Report 2024:

The results of our fiscal year 2024, snackable stories behind the numbers and further information about ����AV can be found

����AV at a Glance:

Are you looking for more information? Here you could find further facts about ����AV.

"This new line of polycarbonate represents a significant step in supporting the automotive industry's transformation towards a circular future," said Lily Wang, Global Head of the Engineering Plastics Business Entity at ����AV. "By offering high-quality PCR materials derived from end-of-life headlamps, we're enabling our customers to meet increasingly stringent regulatory requirements while contributing to closed-loop recycling of automotive plastics."

Under this initiative, ����AV has been collaborating with partners, including Chinese recycler Ausell and leading automakers, to establish closed-loop pathways for high-value plastics from end-of-life vehicles (ELVs). This program focuses on strengthening recycling processes and establishing reliable supply chains for high-quality recycled materials from automotive waste streams. Through this partnership, ����AV and its value chain allies have developed practical solutions for collecting and mechanically processing end-of-life headlamps into high-quality PCR grades suitable for a range of automotive applications.

"This partnership underscores the importance of cross-sector collaboration in driving the circular economy forward," said Martin Hansen, Regional Director of GIZ in East Asia. "By bringing together key industry players, we are not only creating viable solutions for recycling high-value plastics from end-of-life vehicles but also fostering innovation that supports a sustainable, closed-loop material flow in the automotive industry."

The introduction of these new PCR grades comes at a critical time as the automotive industry, one of the most resource-intensive sectors, faces increasing environmental challenges and regulatory pressures. The EU's End-of-Life Vehicle Directive, which sets recycling targets, along with China's Extended Producer Responsibility (EPR) program and growing sustainability requirements in key global markets, are pushing automotive manufacturers worldwide to seek innovative and sustainable material solutions that comply with evolving regulations.

����AV’s new PCR grades meet the high-performance standards required for demanding automotive applications, offering excellent surface quality for superior aesthetics and adhering to strict Vehicle Interior Air Quality (VIAQ) requirements. This combination of sustainable content and premium performance empowers automotive manufacturers to meet both regulatory demands and environmental goals without compromising on product quality.

As part of its broader commitment to sustainability and the circular economy, ����AV continues to expand its portfolio of recycled-content materials. In recent years, the company has introduced PCR polycarbonates with up to 90 percent recycled content, and opened its first dedicated mechanical recycling compounding line for polycarbonates in Shanghai. Last year, it introduced a new range of polycarbonates based on chemically recycled, attributed material from post-consumer waste via mass balance for the first time.

Coffee is one of Ethiopia’s most important trade commodities and provides a livelihood for many smallholder farmers. However, changing climate conditions—such as rising temperatures and irregular rainfall—are significantly impacting coffee cultivation. Yields are decreasing, and plants are becoming more susceptible to diseases. This is where the ����AV and GIZ project comes in, working to make coffee production more efficient and resilient.

To achieve this, ����AV has supported to develop solar dryers—parabolic structures that function like greenhouses but offer better control over temperature and humidity. Instead of glass, lightweight, transparent, and insulating polycarbonate multiwall sheets are used, which also provide UV protection. This technology enables fast and hygienic drying of coffee while protecting the harvest from rain, pests, and mold.

GIZ supports the project as part of the German development program develoPPP, which promotes sustainable initiatives in developing and emerging countries. The goal is to combine private sector engagement with development policy objectives to achieve long-term economic and social benefits. "The solar-powered greenhouse dryers have significantly reduced drying times for both washed and naturally processed coffees. This allows farmers to process their coffee more efficiently and bring it to market faster. Additionally, the sealed environment of the dryers protects the beans from contamination, improving quality and minimizing waste. Local cooperatives have embraced this innovation as a valuable asset for their coffee production," explains Dr. Helene Widmer, Project Manager at GIZ. "Our collaboration with ����AV demonstrates how innovative material technologies can contribute to stabilizing agriculture."

Pejman Norastehfar, Head of Inclusive Business EMEA at ����AV, adds: "The successful implementation of solar dryers impressively demonstrates the positive impact that innovative and sustainable technologies can have on the coffee industry. We are proud to work with GIZ and local cooperatives to provide a solution that not only increases efficiency but also enhances the quality and shelf life of coffee. With our solutions, we can help address the challenges of climate change right here on the ground."

So far, six solar dryers have been installed in Ethiopia, and the project continues to gain momentum. One of Ethiopia’s largest coffee roaster has taken notice of the solar dryers and has already purchased four additional units for its own production, which are installed at the moment.

"With our automated laboratory, we can work together with our customers on the future of coatings and adhesives. Because it operates almost completely autonomously and learns from our existing knowledge and data lake as well as newly generated data, it makes the process of optimizing and developing formulations many times more efficient and precise. This allows us to optimize existing formulations faster or even develop completely new formulations for and together with our customers. We can say: We are reaching a new level of modern research," says Thomas Büsgen, head of the laboratory.

Testing Formulations with ����AV Binders and Crosslinkers 

Specifically, the new laboratory will test formulations with ����AV binders and crosslinkers for coatings and adhesives. Their clever selection ensures properties such as hardness, adhesion, opacity, gloss, or durability. Such formulations typically consist of seven to 15 components, whose combination determines the properties of the final product. The resulting high number of possible combinations means that standard formulations are usually used. The new laboratory now enables more extensive test series, also thanks to the computer-aided design of test series and the use of automation.

"Our new automated laboratory gives us more possibilities for testing formulations. It relieves our specialized laboratories of their standard tasks and can analyze samples more systematically. This allows us to focus our expertise and experience even more on customer-specific topics or try approaches we couldn't have implemented otherwise," says Martin Merkens, Head of Sales & Market Development EMLA in ����AV's Coatings and Adhesives business entity. “This will particularly help us in the area of circular economy: Alternative raw materials, for example bio-based or recycled materials, can be tested faster and evaluated for their properties in the final product.”

Facility to Run Tens of Thousands of Tests Annually 

The new facility can operate 24 hours a day, 7 days a week. The goal is to run tens of thousands of tests annually. This sets a new standard in terms of number, variety, precision, and testing speed. Another advantage: The automated laboratory generates a large amount of structured data. The knowledge about formulation possibilities and influencing factors thus will grow rapidly. The collected data, combined with measurement data from existing studies, is evaluated using special machine learning algorithms to further improve formulations. Artificial intelligence is also used to predict new experiments based on property goals and simultaneously verify them in the automated laboratory – creating a self-learning system.

In addition to formulating water- and solvent-based 1K and 2K systems, the automated laboratory also performs numerous material tests on the raw materials themselves, their formulations, and applied films. Application can even take place in different climates in the lab to simulate product use under application conditions. The progressing laboratory digitalization across ����AV also enables easy forwarding of generated samples to more specialized testing laboratories. This makes it possible to supplement the datasets with market-specific test results and identify relevant dependencies more quickly.

����AV at European Coatings Show 2025 in Nuremberg 

At the European Coatings Show from March 25-27 in Nuremberg, experts from application development and segments such as automotive, printing & packaging, or construction & architecture will be present to discuss new, joint approaches made possible by the laboratory with customers. Visit the company's booth in Hall 4A, Stand 438. There you can learn more about the laboratory and other innovative material solutions and technical developments for the coatings and adhesives industry.

Follow further updates on this topic . 

The energy efficiency target contributes to ����AV's ambitious plan to achieve climate-neutral production by 2035. It is to be achieved primarily thanks to more efficient processes and innovative technologies. For example, ����AV has now commissioned a modern reactor at its Dormagen site that uses waste heat from production processes to generate steam for further manufacturing steps. CO₂ emissions can thus be reduced by up to 22,000 tons per year.

The event to announce the energy efficiency target and the commissioning of the reactor was attended by guests from politics, business and the energy sector, including Oliver Krischer, Minister for the Environment, Nature Conservation and Transport of the State of North Rhine-Westphalia and Dr. Julia Metz, Director of Agora Industrie.

Energy efficiency is an important pillar of ����AV's corporate strategy: "Climate-neutral production can only be achieved if we significantly reduce our energy requirements for the manufacture of our products. This is because there is currently not enough renewable energy available at affordable prices to even begin to cover demand," says Dr. Thorsten Dreier, Chief Technology Officer of ����AV. "In addition, as a supplier of standard products, we must always keep our manufacturing costs as low as possible in order to be competitive in the global market." In view of persistently high energy costs, especially in Germany and Europe, energy reduction is therefore a decisive factor for business success.

At the announcement of the energy efficiency target and the inauguration of the energy-saving reactor in Dormagen, Oliver Krischer also emphasized in the panel talk with Dr. Julia Metz and Dr. Thorsten Dreier how important energy saving is for a sustainable future of the state - and what role the modernization of industrial production plays in this.

In parallel to its energy efficiency management, ����AV relies on renewable energy sources to achieve its climate neutrality goals. In 2024, for example, the company signed a contract with bp for electricity from solar power for the site in Tarragona, Spain, bringing the share of electricity from renewable energy sources at the site to 30 percent. Thanks to a PPA with RWE, the Antwerp site will be supplied with 60 percent renewable electricity from 2026. And four ����AV sites in the U.S. have been powered entirely by renewable electricity since the beginning of 2025. "We are on the right track and I am confident that we will achieve our sustainability goals," says Thorsten Dreier. "The energy efficiency measures will make an important contribution to this."

Here, you can see the paneltalk (German only): 

The Panelists

Further press release:

• ����AV Successfully Completes Modernization of its Dormagen TDI Plant ›

“While the decision to shut down the PO11-unit is difficult, we must ensure all assets within our portfolio are a long-term strategic fit,” said Aaron Ledet, executive vice-president I&D and Supply Chain at LYB. “We are prioritizing our core assets which play a key role in our technology differentiation and circularity strategy or provide attractive returns over the cost of capital. We take our obligations towards our employees, European employee reps, councils, and unions seriously. We have engaged with them in line with these obligations and will continue to do so. We would like to thank them for the constructive dialogue. We are also in communication with customers, suppliers and other parties across the value chain and will continue to do business as usual. There is no change to our working relationship, and we continue to focus on providing an exceptional customer and supplier experience.”

"As part of our Sustainable Future corporate strategy, we’re continuously working to optimally position ����AV to be a reliable partner for our customers and to operate competitively in a challenging market environment," said Hermann-Josef Dörholt, Head of the Performance Materials Business Entity at ����AV. "Due to global overcapacities, persistently weak demand, and high costs in Europe, we have jointly decided with LYB to close the PO11 plant. We will support LYB in implementing this change as socially responsibly as possible. At the same time, we remain committed to the European market and will continue to supply customers with our renowned polyether polyols portfolio.”

The Maasvlakte site, a joint venture between LYB and ����AV, has been operational in the Rotterdam region since 2003. Between now and the end of 2026, LYB will carry out a process to safely shutdown and prepare the demolition of the asset.

In 2024, LYB announced a strategic review of European assets of its Olefins & Polyolefins (O&P) and Intermediates & Derivatives (I&D) business units. LYB has taken the next step in evaluating the option to seek alternative ownership for the O&P sites in the strategic assessment. At this time no decisions have been made and various outcomes remain possible.

Special focus is placed on technologies that increase productivity while promoting circular economy. These include an automated laboratory for formulation development, material screening, and polymer analytics; an innovative Direct Coating process for the automotive industry, and a TÜV-certified, cloud-based solution for product-specific lifecycle analyses (LCA).

"Our customers' and partners' challenges are becoming increasingly complex. Be it accelerated development cycles, ever-higher product requirements, or circularity and recyclability. We offer innovative solutions that not only convince technologically but also make an important contribution to greater sustainability," explains Martin Merkens, Head of Sales & Market Development EMLA in ����AV's Coatings and Adhesives business entity. "At ECS 2025, we demonstrate how we make customers and partners successful and can accompany them every step of the way. We look forward to personal meetings and discussions!"

Automated Laboratory Revolutionizes Application Development

At ECS, the company will announce an automated laboratory for optimizing formulations with ����AV's binders and crosslinkers for coatings and adhesives. With this, ����AV sets new standards in the productivity of its application development. The new facility can operate 24 hours a day, 7 days a week. The goal is to conduct tens of thousands of tests annually. This sets a new benchmark in terms of quantity, variety, precision, and testing speed. Another advantage: The automated laboratory generates a large amount of structured data. The knowledge about formulation possibilities and influencing factors thus will grow rapidly. The collected data, combined with measurement data from existing trials, is evaluated using special machine learning algorithms to further improve formulations. Application development experts and specialists from segments such as automotive, printing & packaging, or construction & architecture will be present at ECS to discuss new collaborative approaches now made possible by the laboratory.

Digitalized Lifecycle Analyses for Greater Transparency

As a pioneer in the digital transformation of the chemical industry, ����AV announced in January the use of a new cloud-based solution for product-specific lifecycle analyses (LCA). The TÜV Rheinland-certified software solution not only enables significantly faster and more precise calculation of a products' environmental footprint but also identifies concrete approaches to reducing the CO₂ footprint, thus supporting ����AV's customers in their sustainable transformation.

Direct Coating: Solutions for the Automotive Industry

With the innovative Direct Coating technology, ����AV presents a pioneering solution for the automotive industry that fundamentally simplifies the coating process while making it more sustainable. This technology enables direct coating of plastic components in the injection molding machine without pretreatment or separate painting and drying. At ECS, ����AV will display products that were manufactured using this process.

Focus on Sustainability

����AV aims to fully align itself with the circular economy. This includes using alternative raw materials, transitioning to green energy, and developing recycling technologies and recyclable products. To make sustainable products more easily identifiable, the company has introduced the "CQ" label, which stands for "Circular Intelligence." Products labeled this way contain at least 25% alternative raw materials. Several examples used in coatings and adhesives will be exhibited at ECS. For example, food packaging coated with fully recyclable, partially bio-based resins, or water-based polyurethane dispersions for textile printing.

Additional information on ����AV’s presence at the ECS can be found at: or on the .

"The new production facilities are equipped with state-of-the technology to enable an efficient production and thereby reduce our CO₂ emissions," says Thorsten Dreier, Chief Technology Officer of ����AV. “With the expanded capacity, we can meet our customers' growing demand for innovative specialty films, especially in medical technology, in the region Asia-Pacific and strengthen our Solutions & Specialties segment."

����AV has been operating a production facility for Specialty Films in Thailand since 2007. The range comprises polycarbonate films from the Makrofol^® range and Bayfol^® products made from polycarbonate blends. These high-performance specialty films are used in many applications across multiple industries, such as healthcare, mobility and Identification Documents.

“The new production facilities are important to us because it enables faster time to market and at the same time expands our market access in Asia-Pacific.” says Aukje Doornbos, Global Head of the Specialty Films business entity. “With market-focused innovations and a stronger customer orientation we want to drive growth for ����AV.”

Since 2022, the Map Ta Phut site is ISCC PLUS certified, enabling it to manufacture and supply mass-balanced products. With the mass balance approach, bio-based or recycled raw materials are fed in at an early stage of raw material extraction and mathematically allocated to the finished products. This saves fossil raw materials and reduces CO₂ emissions, while the quality of the mass-balanced products remains identical to that of purely fossil-based products. With this drop-in solution, manufacturers can continue to use their proven formulations, equipment, and processes.

ISCC is an internationally recognized sustainability certification for biomass and bioenergy. The standard covers all stages of the value chain and is used worldwide. Customers can use these products in their established processes and apply them to meet their sustainability goals. In addition, ����AV already offers a range of films made partly with plant-based raw materials or partly from recycled plastics.

“We steadfastly adhered to our strategy in 2024 and forged full speed ahead with our transformation – despite the challenges the entire chemical industry once again faced,” says Dr. Markus Steilemann, CEO of ����AV. “In particular, the improvement in our plant availability enabled us to significantly increase our volumes sold. We are continuing resolutely along this path creating the basis for long-term growth with targeted investments in our competitiveness and sustainable future technologies.”&�Բ�����;

Investments in production, the circular economy, and efficiency 

A key component of ����AV’s transformation is to strengthen production capacities. In 2024, the company optimized existing plans in Baytown (United States), Shanghai (China) and Tarragona (Spain), among others. Further investments to increase energy efficiency and thus competitiveness in production were also made at the TDI plant in Dormagen (Germany). ����AV also recently announced to expand its site in Hebron, Ohio (USA) with a low triple-digit million euro investment. The company aims to increase the production capacities of differentiated polycarbonates in the Solutions & Specialties segment. Construction is scheduled to begin in 2025, with operations starting by the end of 2026. 

Alongside that, ����AV is continuing to transition to a circular economy in a targeted manner. In 2024, the company secured access to renewable energy from a solar farm in Spain under a long-term power purchase agreement (PPA) with bp. This will increase the share of renewables in ����AV’s electricity consumption in Spain from 10% to 30% and reduce CO₂ emissions by around 16,000 metric tons per year. Moreover, ����AV is investing EUR 100 million worldwide in innovation centers for research and development. Besides these targeted growth initiatives, ����AV is also committed to systematically optimizing internal processes. As part of its “STRONG” transformation program, ����AV thus aims to save EUR 400 million worldwide each year by 2028 by means of digitalization and structural adjustments. 

“We cannot influence external market conditions – but we can control how we respond to them,” says Christian Baier, CFO of ����AV. “That is why we used 2024 to make our processes more efficient and to enhance our resilience.” Digitalization and artificial intelligence play a key role in that. We will continue to optimize our structures in 2025 to make ����AV fit for the future.”&�Բ�����;

Due to the negative net income and in accordance with ����AV’s dividend policy, no dividend will be distributed for fiscal year 2024, as was also the case in the previous year. 

Takeover offer of the ADNOC Group successful 

Following concrete negotiations, ����AV signed an Investment Agreement on October 1, 2024, with companies of the ADNOC Group, including ADNOC International Germany Holding AG (“Bidder”), a wholly-owned indirect subsidiary of XRG P.J.S.C. (formerly ADNOC International Limited, together with the Bidder and other companies of the ADNOC Group “XRG”). On October 25, 2024, the bidder made a voluntary public takeover offer (“takeover offer”) of EUR 62 per ����AV share to all shareholders of ����AV. Following the end of the additional acceptance period on December 16, 2024, XRG announced on December 19, 2024, that the takeover offer had been accepted for a total of 154,541,806 ����AV shares. Together with the shares previously acquired by XRG, this corresponds to a stake of 91.3% of ����AV’s existing capital stock as of the above-mentioned reporting date. As a result of further subsequent purchases of ����AV shares, XRG’s stake in ����AV’s capital stock at the end of 2024 is 91.58%. 

XRG sees ����AV as a key component in its performance materials and special chemicals business and shares its strategic vision of becoming fully circular. The takeover is an important step in XRG’s strategy of becoming one of the world’s top five chemical companies. 

The takeover offer is subject to the usual conditions of completion with regard to antitrust and foreign trade clearance and clearance under EU law on foreign subsidies. Completion of the transaction is not expected before the second half of 2025. 

Outlook for 2025: EBITDA between EUR 1.0 billion and EUR 1.6 billion anticipated 

����AV expects economic conditions to remain challenging in 2025, too. Against this backdrop, the Group anticipates EBITDA of between EUR 1.0 billion and EUR 1.6 billion for the current fiscal year. ����AV expects FOCF of between EUR 0 and EUR 300 million and ROCE above WACC of between –6 percentage points and –2 percentage points. The Group anticipates that Scope 1 and Scope 2 greenhouse gas (GHG) emissions, measured in terms of CO₂ equivalents, at ����AV’s environmentally relevant* sites will be between 4.2 million metric tons and 4.8 million metric tons. The Group expects EBITDA for the first quarter of 2025 of between EUR 50 million and EUR 150 million. 
 

Increase in sales at Performance Materials; Solutions & Specialties impacted by declining prices 

Sales in the Performance Materials segment rose to EUR 7.0 billion (previous year: EUR 6.9 billion). While a successful pickup in volumes of 12% drove up sales, a weak market situation with excess supply weighed on selling prices and margins. EBITDA fell by 1.2% to EUR 569 million (previous year: EUR 576 million), while FOCF decreased to EUR 78 million (previous year: EUR 162 million). 

The Solutions & Specialties segment posted a 3.6% fall in sales to EUR 7.0 billion (previous year: EUR 7.3 billion) due to lower average selling prices coupled with lower raw material prices. EBITDA fell by 9.4% to EUR 740 million (previous year: EUR 817 million). In addition to a drop in margins, the reason for this was that, unlike in the previous year, there was no non-recurring positive effect resulting from the sale of the additive manufacturing business in 2023. In addition, expenses due to implementation of the STRONG transformation program reduced earnings. The segment’s FOCF decreased by 24.3% to EUR 417 million (previous year: EUR 551 million). 

Fourth quarter of 2024 with positive EBITDA and cash flow

����AV’s sales rose in the fourth quarter of 2024 by 0.9% year over year to around EUR 3.4 billion (previous year: EUR 3.3 billion). EBITDA increased by 44.7% compared to the prior-year quarter to EUR 191 million (previous year: EUR 132 million). FOCF amounted to EUR 253 million and was therefore 246.6% higher than in the prior-year period (previous year: EUR 73 million). 

• Find the recording of ����AV's Annual Press Conference 2025 .
• Find the presentation of the ����AV Annual Press Conference 2025. 

Images and key financial figures

Annual Report 2024

The results of our fiscal year 2024, stories behind the numbers and further information about ����AV can be found .

����AV at a Glance

Are you looking for more information? Here you could find further facts about ����AV.

In response to the growing demand for sustainable solutions in currency printing, ����AV is introducing Autentium^®, an innovative polymeric printing substrate. Designed exclusively for currency printing applications like banknotes, Autentium^® combines cutting-edge anti-counterfeiting technology with a recyclable mono-material design.

"The launch of Autentium^® represents a significant breakthrough in currency printing, offering an innovative, recyclable polymeric substrate that excels in printability, durability and is more sustainable," says Daniel Hentschel, Global Segment Manager for ID & Security Printing at ����AV.

Key Features of Autentium^® include:

• Exceptional printability: It supports secure printing techniques such as intaglio and offset, enabling embossed structures and therefore tactile security features that differ from traditional paper and existing polymer substrates.
• No coatings or primers needed: Its secondary properties as a hot-melt adhesive contribute to superior ink adhesion without requiring additional primers or coatings, streamlining the printing process and improving durability.
• Water & Stain Resistance: The polymer absorbs only minimal moisture, which contributes to a low static charge, while at the same time being resistant to contamination.
• Advanced laser engraveability: It allows precise micro-engravings, providing advanced anti-counterfeiting measures and enhancing currency security.
   

As a single-polymer solution, Autentium^® is recyclable, addressing the demand for sustainable materials in banknote production. Its high tear propagation resistance and excellent ink adhesion contribute to extend the lifespan of printed currency and can help reducing the environmental impact and conserving resources.

Furthermore, its durable composition can translate into long-term costs savings by minimizing replacements, making it an ideal choice for governments and the public sector that prioritize security and environmental responsibility.

Meet ����AV at Intergraf Currency + Identity 2025 

����AV will showcase Autentium^® and other advanced polymeric solutions at the Intergraf Currency + Identity 2025 trade show. Join us from March 5-7, 2025, at the Allianz MiCo, Milano, Italy. Visit us at booth 16 to discover how Autentium^® can redefine your security printing requirements and drive innovation in currency production.

The ����AV U.S. sites Channelview, Texas, South Deerfield, Massachusetts, New Martinsville, West Virginia and Pittsburgh, Pennsylvania, have achieved net-zero Scope 2 emissions for electricity. The sites in South Deerfield, New Martinsville, and Pittsburgh have now even achieved complete net-zero Scope 2 emissions. The remaining certificates have been applied to ����AV's Baytown, Texas facility.

"Even in a persistently challenging market environment, we are working towards our goal of climate-neutral production by 2035 and are consistently implementing our strategy of fully aligning ourselves with the circular economy," said Thorsten Dreier, CTO of ����AV. "By leveraging renewable energy, we're not just reducing our carbon footprint – we're actively shaping a brighter future for our industry."

The agreement with Ørsted, which provides ����AV with 90 MW of renewable energy capacity, will reduce approximately 90,000 tons of CO₂ emissions annually. This represents a significant step towards ����AV's goal of climate neutral production by 2035.

"Our partnership with Ørsted is a prime example of how collaboration and innovation can drive meaningful change in our industry," says Samir Hifri, chairman and president of ����AV LLC. "We're proud to be at the forefront of sustainable practices in the chemical sector and look forward to continuing to execute our strategy to grow sustainably in the U.S."

This announcement follows ����AV's recent low triple digit million Euro investments across multiple U.S. sites, further solidifying the company's commitment to growth and sustainability in the North American market.

Sucheta Govil, Chief Commercial Officer of ����AV, celebrated the anniversary at the birthplace of Vulkollan^® in the Leverkusen production site: "Vulkollan^® exemplifies ����AV's commitment to innovation in our solutions and specialty segment. As the inventor of polyurethanes, we continue to develop cutting-edge solutions that drive value for our customers. We are also guiding Vulkollan^® and its outstanding performance on a journey towards circularity, ensuring it not only meets industry demands but also becomes an integral part of a more sustainable future."

Made for the sustainable future

Generations of passionate chemists and engineers have driven this success and remain committed to taking Vulkollan^® to new heights. The dedication to innovation is matched by continuous investments in global production assets for Vulkollan^® raw materials. Recent examples include expansions in Map Ta Phut, Thailand, and Barcelona, Spain.

In 2024, ����AV took a significant step towards sustainability by announcing an investment in a pilot-plant for the chemical recycling of end-of-life Vulkollan^® parts located in Leverkusen. This initiative opens the door to a more sustainable future, reinforcing the company’s commitment to environmental responsibility while maintaining the material's exceptional performance.

Enabler of extreme performance in logistics and production

Over the years, ����AV has continuously expanded Vulkollan^®'s applications to meet evolving customer needs. Today, this versatile material excels in a wide range of critical uses like heavy-duty wheels and rollers for material handling equipment including automated guided vehicles (AGVs), advanced technical components for industrial machinery, shock-absorbing bumper elements and automotive noise and vibration control systems.

The widespread adoption of Vulkollan^® in these demanding applications stands as a testament to its superior properties. Even under extreme stress, Vulkollan^® consistently delivers optimal performance, enabling our customers to push the boundaries of what's possible in their respective fields.

Customer Partnerships: The Foundation of Success

"At ����AV, global supply security of quality raw materials for Vulkollan^® has top priority to allow our customers to grow with the Vulkollan^® technology," says Thomas Braig, Head of the Business Entity Elastomers at ����AV. "This goes hand in hand with developing the performance further and innovating jointly with our customers worldwide."

Customer cooperation is as integral to Vulkollan^®'s history as its exceptional performance. Strong and lasting partnerships have shaped Vulkollan^® into what it is today. Many of the customers celebrate 40, 50, or even more years of collaboration with ����AV through licensed cooperation, a testament to the trust and success ����AV and them have built together. Vulkollan^® has become the industry standard not just through innovation, but also through these deep-rooted relationships.

History of performance and versatility

The story of Vulkollan^® began in February 1950, with the publication of a groundbreaking article in a German leading chemical magazine “Angewandte Chemie”. Co-authored by Otto Bayer, the inventor of polyurethanes, this publication marked the birth of a material that would redefine performance in demanding applications across various industries.

Vulkollan^® quickly established itself as the premier material for industries demanding exceptional durability and performance, thanks to its outstanding properties such as high tensile strength, excellent tear resistance, low abrasion, and exceptional dynamic load-bearing capacity.

Innovation has always been at the heart of Vulkollan^®'s success. A major breakthrough came with the introduction of Vulkollan^® prepolymers, representing a significant process advancement for the customers. This innovation simplified the molding of Vulkollan^® parts, enhancing efficiency and reducing investment requirements for the partners working with this unique material.

The jubilee of Vulkollan^® is celebrated in all productions sites around the globe and can be followed on social media.

The climate impact of ����AV in the manufacture of its products can be assessed using the product carbon footprint from cradle to gate, which can now be calculated automatically for about 50,000 finished products. The methodology for the automated calculation of life cycle assessment (LCA) of ����AV including the product carbon footprint (PCF) is certified by TÜV Rheinland. It complies with relevant ISO standards and Together for Sustainability (TfS).

“Digitalization enables us to gather and process larger data sets automated, while reflecting timely changes at our production sites. No more manual Excel lists and manual calculations. This increases efficiency and makes annual data updates easier. Only through digitalization we can access and analyze real data efficiently enough,” says Dr. Torsten Heinemann, Global Head of Group Innovation and Sustainability. Digitalization is also the basis for data sharing along the value chain. For example, the data from ����AV tool may be integrated into exchange platforms like or to enable a harmonized data exchange with partners up- and downstream.

����AV calculated LCA data for products

����AV determines the specific product carbon footprint and further environmental impact categories for its products. ����AV will provide its customers with LCA data on the products in sale, thereby contributing to emissions assessments and potential subsequent emissions reductions on the customers’ side.

With this milestone achieved, ����AV demonstrates its willingness to walk towards full circularity and climate neutrality by improving data accuracy. Raw material impact data are collected directly from suppliers or are taken from external databases, while other input data, such as energy consumption and waste, are sourced from company Enterprise Resource Planning systems, such as SAP. In addition to the carbon footprint, ����AV offers five other environmental impact categories that the company considers to be key, amongst others the acidification- or photochemical ozone creation potential.

“We announced in Summer 2023 that we started the process. Within this year, we will have data for the around 50,000 products, based on our present product portfolio. They will be updated annually from now on. This means we are going beyond the current market standard and demonstrating our leadership in driving this topic forward” says Heinemann.

Partnership essential to boost Circular Economy

Across the entire value chain, collaboration and partnerships are crucial to achieve meaningful progress, especially in the exchange of vital data. ����AV relies on its suppliers to provide detailed information on the environmental impact of their products, while customers depend on ����AV to deliver accurate data for their own LCA calculations. Beyond individual exchanges, partnerships with industry initiatives such as TfS are essential to establish standardized methods in chemical industry, enabling this data becomes more comparable across companies.

����AV is sharing data to drive the entire value chain towards a circular economy. By calculating LCAs and increasing transparency, all stakeholders can collaborate more effectively to identify opportunities for reducing environmental impact—especially greenhouse gas emissions—and advancing sustainability goals. Transparency is key to fostering these partnerships. A seamless exchange along the value chain enables access to more detailed and reliable data, supporting informed decision-making and sustainable progress.

The competition, which will be contested by university undergraduates from the UK and Ireland, is asking students to design a product, made primarily from plastics, which will promote or monitor either physical or mental health.

Chairman of DIP, Martin Sixsmith, said that with increased focus on the self-care agenda, the 2025 theme offers an exciting opportunity for creating a product which can seamlessly integrate into daily life and which can help all age groups.

“This is a subject which resonates with many people and it therefore offers a huge amount of scope for students to showcase their creative talents for the benefit of others,“ he said. “We are very much looking forward to seeing their end product!“

Students will need to submit their entries by March 14, when DIP’s panel of industry judges will whittle the submissions down to a final six. Final judging will take place in London on May 9, with the award ceremony on June 20.

Design Innovation in Plastics is the longest running plastics competition of its kind in Europe, having been established in 1985. It is supported by the Institute of Materials, Minerals and Mining, the Worshipful ����AV of Horners and sponsored by leading design and plastics organisations, including ����AV.

Notes to editors 

1. Established in 1985, Design Innovation in Plastics is the longest running student plastics design award in Europe. For more information visit .

2. The Institute of Materials, Minerals and Mining (IOM3) is a major UK engineering institution and is the professional body for the advancement of materials, minerals and mining to governments, industry, academia, the public and the professions. For more information visit .

3. The Worshipful ����AV of Horners is one of the oldest livery companies in the City of London, formed to regulate the horn-working trade. In 1943 it adopted its modern equivalent, the plastics industry. For more information visit .

4. Headline industry sponsor – ����AV

"This investment in our U.S. compounding plant is an important component of our 'Sustainable Growth' strategy. With this expansion, we can meet our customers' growing demand for specialized polycarbonate materials, grow together with our customers, and strengthen our position as a leading provider of polycarbonate materials in North America," says CTO Thorsten Dreier. "The move also aligns with our strategy to produce in the region for the region, to manufacture close to our customers and ensure reliable supply."

The capacity expansion is an important step to meet the growing demand for high-quality materials for the automotive, electronics, and healthcare industries in North America. "To be successful in these markets, you need the right portfolio, consistent quality, and supply reliability, as well as solution-oriented technical expertise,” says Lily Wang, head of the Engineering Plastics Business Entity. "The expanded production capacity for differentiated polycarbonates enables us to better serve our customers' complex needs for high-quality, high-tech materials with individualized properties.”

����AV already has an established R&D center in Pittsburgh and is now doubling down on its U.S.-based compounding capability. In the future, both facilities will work even more closely together to drive the technology transfer from lab to industrial production to support major transformation processes, such as the electrification and automation of mobility, sustainable developments and digitalization.

“This investment, which follows our recent announcement of an almost 40 million Euro investment in our R&D capabilities in Pittsburgh, underscores how critical our U.S. sites and the U.S. market are to ����AV’s global strategy,” says Samir Hifri, chairman and president of ����AV LLC. “The expanded capacity of our polycarbonate compounding capabilities in Ohio will both help us better supply our customers as well as represent a commitment to our employees at the site, the Hebron, Ohio community, and the U.S. market as a whole.”

Construction of the new production lines is scheduled to begin in 2025, with operations starting by the end of 2026.

Hanno Bruemmer, Head of Supply Chain and Logistics EMLA at ����AV, stated: “The entire value chain must be involved to achieve our joint goal of climate neutrality by 2050. Reliable, efficient and sustainable logistics for our ever more sustainable products are integral to this effort. We collaborate with our customers and transport companies to optimize the supply chain. This includes improving load capacity, selecting the best transport modes and routes, and introducing using sustainable and future-oriented energy sources like green electricity or HVO to replace fossil fuels.”

As part of the collaboration, DB Cargo BTT provides ����AV with an end-to-end transport solution that combines several sustainable approaches: First, the chemicals are transported in tank containers from the production sites of ����AV in Germany to a nearby railway terminal using bio-fuel (HVO 100)-driven trucks. The tank containers are then transported to a distribution center in Poland via rail, keeping trucks off the road and saving respective emissions. From there, bio-fuel (HVO 100)-driven trucks are again deployed to distribute the chemicals to end customers in Poland to ensure on-time delivery. This particular bio-fuel is one of the most sustainable alternatives to fossil diesel. Altogether, the combination of these modes of transport saves at least 70% of CO₂ emissions compared to conventional road transport methods.

Torsten Lüders, Managing Director of DB Cargo BTT GmbH, points out: “At DB Cargo BTT, we also rely on working with external partners across all modes of transport in order to arrange traction or first and last mile services as efficiently as possible for our customers. For ����AV, we have recently transported essential chemical products to Poland and we’re now happy to combine our rail expertise with bio-fuel-driven trucks for the first and last mile. This collaboration exemplifies our commitment to enabling more sustainable supply chains and supporting the transformation of the chemical industry. Projects like these demonstrate how we, as part of the DB Cargo group, offer our customers a significant degree of added value and are an essential part of European supply chains.”

The collaboration is designed to be flexibly scaled in the future to accommodate growing business needs. It also sends an important signal to customers of ����AV, such as the Polish Selena Group, a global manufacturer of construction chemicals and materials, who benefit from the delivery of MDI with a lower carbon footprint, as it helps to reduce their Scope 3 emissions.

Bernd Hennig, Head of Trading Cluster MDI at ����AV remarked: “Together with Selena Group, we are committed to advancing sustainable solutions across the entire value chain, offering our valued customers not only more sustainable materials but also sustainable transportation solutions.” Michal Specjalski, Member of the Management Board of Product and Innovation at Selena Group added: “Today, sustainable business no longer means having to compromise between efficiency and quality. In Selena Group we are constantly increasing our commitment to the development of sustainable construction. We carefully follow trends and changes in the world around us. We are constantly working on minimizing our environmental impact and rational resource management. That’s why we are delighted to have ����AV and DB Cargo BTT at our side as strong partners who share our commitment to reducing emissions and achieving climate neutrality targets in Europe and worldwide.”

Selena Group and ����AV are already collaborating in multiple ways to advance the circular economy. For instance, they are developing polyurethane (PU) foams for improved thermal insulation in buildings which are based on MDI of the Desmodur^® CQ product range. It is ISCC Plus-certified, using plant-based raw materials through mass balancing. As a result, these products have a lower carbon footprint compared to those derived from fossil raw materials—and now, thanks to the transport solution, they will also be delivered to Selena in a more sustainable way.

¹ _{The reduction in CO₂ emissions is based on a comparison between the use of HVO100 renewable diesel and conventional fossil diesel}

����AV is one of eight companies, including partners from the fields of AI, information technology for low-altitude aviation and carbon fiber composite materials, to sign a Memorandum of Understanding (MOU) with GOVY, a newly established subsidiary of GAC dedicated to the development of eVTOL aircraft. As a key partner in this ambitious project, ����AV brings its unique expertise in high-performance materials and sustainable solutions for the advancement of next-generation flying cars.

“Our collaboration with GAC represents a significant step forward in transforming urban air mobility. By leveraging ����AV’s expertise in sustainable and innovative materials, and GAC’s visionary leadership in flying car development, we are poised to create solutions that redefine the possibilities of urban transport,” said Lily Wang, President of the Engineering Plastics Business Entity at ����AV.

“We are committed to pushing the boundaries of innovation and bringing the future of mobility closer to reality,” said Su Qingpeng, General Manager of GOVY. “Partnering with ����AV and other industry leaders allows us to accelerate the development of our flying cars, creating safe, more sustainable, and groundbreaking transportation solutions for urban environments.”

China is making significant strides in the development of eVTOL aircraft, leveraging its advancements in battery technology to integrate these innovations into urban transportation systems. This strategic focus is driven by the potential of eVTOL vehicles to alleviate urban congestion, reduce pollution, and enhance connectivity, aligning with consumer desires for efficient transportation and the government’s goals for technological innovation and sustainable urban development. These vehicles are designed for short-distance urban travel, with current models offering ranges suitable for inter-city commutes.

Under the agreement, ����AV and GOVY will collaborate on several priority areas. Key initiatives will include developing innovative polycarbonate glazing solutions to reduce vehicle weight while maintaining high performance and safety standards, and exploring materials for smart and efficient lighting systems tailored to the unique requirements of eVTOL aircraft. The collaboration will also address high-performance materials that enable seamless integration of smart systems and components. A strong emphasis will be placed on low-carbon solutions, utilizing materials with attributed bio-circular content and recycled feedstocks to reduce emissions across the vehicles’ lifecycle.

At the signing ceremony, a demo flying car was unveiled, featuring an impressive range of 200 kilometers in just 40 minutes. This prototype showcases a hybrid design that integrates both fixed-wing and rotary-wing capabilities, combining the efficiency of conventional airplane-like forward flight with the vertical takeoff and landing versatility of helicopters. Pre-order of such models will begin in 2025, heralding a new era in personal and urban transportation.

“We are very pleased that so many of our shareholders have followed our recommendation and accepted the offer. This is very good news for ����AV, our employees and all other stakeholders. The strategic partnership with ADNOC is exactly the right step for ����AV at the right time,” says Dr. Markus Steilemann, CEO of ����AV. "With ADNOC respectively XRG as strong and long-term-oriented partner, we will be able to execute on our ‘Sustainable Future’ strategy even more consistently. As part of the XRG Group and following the closing of the transaction, we will be in a position to further accelerate our ongoing transformation.”&�Բ�����;

XRG sees ����AV as the foundational platform of its Performance Materials and Specialty Chemicals business and is convinced of ����AV's strategic perspective and its vision to become fully circular. The takeover of ����AV marks a significant milestone in XRG’s strategy to become a top five global chemicals player. 

The offer will be subject to customary closing conditions in relation to merger control, foreign investment control, EU foreign subsidies clearances. Closing is not expected before the second half of 2025.

These new displays overcome the performance, size and geometric limitations of traditional HUD systems, enabling the practical and scalable implementation of multiple displays in one windshield and elsewhere in side-light glazing. Proof of concepts (PoCs) developed with OEMs will be showcased at CES 2025 in Las Vegas from January 7–10.

The MOU builds on years of collaboration, leveraging each company’s technologies to manufacture holographic-enabled transparent HUDs for the automotive market. It enables to look into the steps needed to setup and establish the required facilities and manufacturing capacity, ensuring an efficient, market-ready supply chain to meet the planned production timelines of OEMs wishing to adopt the technology for new driver and passenger experiences. The partnership aims to accelerate the commercialization of the HUD solution, with Eastman leveraging its relationships with automotive OEMs and Tier One suppliers.

A proven solution

In 2024, Ceres and Eastman demonstrated the latest holographic transparent display HUDs to OEMs in Europe, the USA, and China. These HUDs featured multiple transparent displays within a single, fully laminated windshield, each measuring up to 400mm by 300mm. Custom-designed holographic optical elements (HOEs) were incorporated into a single sheet of Bayfol HX^® film, laminated with Eastman’s new developed interlayer stack, achieving the industry's largest field of view.

This achievement was enabled by combining ����AV’s expertise in photopolymer films, Ceres’ digital mastering and HoloFlekt^® roll-to-roll replication system, which produces finished films up to 1400mm wide, and Eastman’s solutions to encapsulate functional films into automotive approved laminates.

“This agreement solidifies our collaboration and moves us closer to delivering a full-stack solution for innovative display implementations,” said Hemant Dandekar, Eastman's global commercial director of automotive for advanced materials, interlayers. “With the building blocks and relationships in place, we’re excited to define a path to viable holographic transparent displays globally.”

“Our Bayfol^® HX enables next-generation truly transparent projection displays for windshields while meeting the high automotive safety requirements.” said Günther Walze, Head of Holographic Lightguiding at ����AV. “With the necessary establishment of hologram mastering and scalable mass-production replication equipment by Ceres, combined with Eastman’s windshield lamination technology, this innovation is ready for deployment to end customers.”

“We have been working closely with global OEMs for years and are now at a tipping point for adoption and scaling of this display technology,” said Andy Travers, CEO of Ceres Holographics. “This is being driven by a combination of a desire for more safety-oriented and intuitive information display features, pressure from safety regulators to reduce driver distractions, and the accelerated pace of innovation and associated need for differentiation among a new generation of car makers.”

This agreement joins the material expertise of ����AV, Eastman’s interlayer solutions and encapsulation know-how, as well as Ceres capabilities in mastering and high-volume manufacturing technology for the successful commercialization and industrialization of holography in transparent displays for windshields.

A fully functional transparent display windshield demonstrator laminate will be showcased at CES 2025 in both the Eastman/Ceres Holographics demonstration suite at The Venetian Hotel - Murano suite, #3201A, and ����AV’s booth in the North Hall, location #8311.

As the Chief Commercial Officer, Buch will be responsible for the segment of Solutions & Specialties. With this, she will be leading six business entities including the supply chain centers in the three major regions.

Dr. Richard Pott, Chairman of the Supervisory Board of ����AV said: “Monique Buch is an experienced B2B commercial executive with a strong international footprint. With her background in building sustainable, market-leading businesses she will be an ideal successor to Sucheta Govil in the Board of Management and will continue to shape the future of ����AV. Already now, we want to express our deep gratitude to Sucheta Govil who has laid the solid foundation for a successful development in commercial excellence and innovation. With her strong background in commercial operations, sales, marketing, and innovation, she has been and will be steering the transformation journey of ����AV.”

“I am very much looking forward to join the transformation journey by driving profitable growth, along with the whole ����AV team and my new colleagues on the Managing Board,” said Monique Buch.

Dedicated to sustainable growth

Monique Buch was born in the Netherlands and studied industrial engineering and management. In her last position, Buch was Executive Vice President Nonwoven at Lenzing AG. Before, she held various executive positions in international B2B companies, among them Freudenberg Performance Materials and Owens Corning.

This technological development to recycle Vulkollan^® marks an important step towards more sustainability in the elastomers industry. The technology enables to not only recycle a mass fraction of more than 90% of the end-of-life material like forklift tires, but also to reduce the carbon footprint by up to two thirds compared to virgin material.

“The pilot plant and with it our commitment to proving the feasibility of recycling for elastomers demonstrates our clear commitment for circular solutions and marks an important milestone for our elastomer products”, states Dr. Thomas Braig, Head of the Elastomers business entity. “With the successful scale-up of this new recycling process we address the demand of our customers for end-of-life solutions and carbon footprint reduction while assuring the high quality of our elastomer products. At the same time, this pilot plant is an invitation for players along the value chain to cooperate on developing a circular setup and the reverse value chain for end-of-life materials.”

Pioneering Chemical Recycling for Elastomers

����AV customers use Vulkollan^® systems to mold parts for many applications with a high demand for durability and performance. Typical applications for parts made of Vulkollan^® are wheels for forklifts, bumper elements in railways and vibration control elements and jounce bumpers in cars. The excellent quality of Vulkollan^® allows more sustainable and cost-efficient operation of the target application through longer lifetime, longer maintenance intervals and less unplanned shutdowns. Due to the high yield of the recycling process, end-of-life Vulkollan^® materials can be re-introduced into new automotive jounce bumpers and forklift tires via a mass balancing approach.

The new chemical recycling process is a game-changer for the elastomers industry. Unlike mechanical recycling methods, this approach breaks down elastomeric end-of-life material into its chemical building blocks, to obtain purified monomers that can be re-used for these materials with known and proven quality.

Driving Sustainability and Industry Collaboration

"The new chemical recycling process addresses the unique challenges of elastomer materials, which are trusted to be very resistant and long lasting. Downcycling is not an option for this high-performance application,” explains Markus Dugal, Head of Process Technology at ����AV. “This technology allows us to recycle a high mass fraction of the end-of-life material and, in this way, to reduce the environmental impact of our elastomer production. It is a testament to ����AV's innovative spirit."

The pilot plant will play a crucial role in refining the recycling process beyond lab scale, testing the process with various waste streams and with various end-of-life materials. It will also serve as a platform for ����AV to engage with potential project partners and customers, paving the way for the development of a larger commercial recycling plant in the future.

����AV's investment in elastomers recycling aligns with its broader strategic goals of reducing environmental impact, promoting circular economy principles, and maintaining its position as an innovation leader in the polymer industry. The company invites potential partners and customers interested in circular elastomer solutions to engage in discussions about future collaborations and applications and prove the environmental benefit of the solution along the value chain.

For the highly competitive construction sector, the product sold by Selena offers clear advantages: It can be used with various types of blocks (ceramic, silicate, ACC) with high accuracy and allows for a higher yield compared to traditional cement mortars. The product also improves construction efficiency by curing twice as fast as traditional cement mortars. Additionally, it can be used in a wide range of operating temperatures from -5 degrees Celsius to +30 degrees Celsius, which helps reduce temperature-induced work stoppages.

“Materials play a decisive role for an ever more climate neutral and circular economy”, said Bernd Hennig, Head of Trading Cluster MDI EMEA at ����AV. “If materials providers early in the value chain join forces for climate neutrality, the impact on end products will be significant. In this spirit, we are therefore very happy to deepen our collaboration with our like-minded partner Selena to help the construction sector bring down emissions and meet its climate neutrality targets in Europe and worldwide.”

Buildings are responsible for over one third of greenhouse gas emissions in the EU alone. As about 75% of the buildings in Europe do not meet energy efficiency requirements, the building sector faces a wave of renovations over the coming years. In fact, the EU has just recently updated the Energy Performance of Buildings Directive (EPBD). It states that by 2050, all buildings in the EU should be net-zero emission buildings².

More sustainable adhesive instead of cement

“With existing and upcoming climate neutrality regulations for the construction sector, we expect a steeply rising demand for sustainable building materials”, said Miroslaw Truchan, Senior Category Development Manager, Selena Group. “With a great partner like ����AV, we jointly drive innovation in the construction materials industry. We both believe that innovative products can play a vital role in achieving climate neutrality targets and put us ahead of the curve.”

The Tytan Professional^® Adhesive for Bricklaying uses Desmodur^® CQ MB of ����AV, a bio-based MDI (methylene diphenyl diisocyanate), of which the plant-based feedstock is mathematically attributed to the final product via the mass balance approach certified by the ISCC Plus standard.

Tytan Professional^® Adhesive for Bricklaying is the third product launched from the collaboration between Selena and ����AV. The partnership was deepened in 2023, aimed at collaborating to craft a more sustainable range of polyurethane (PU) foams for enhancing thermal insulation of buildings. Bio-attributed methylene diphenyl diisocyanate (MDI) of the Desmodur^® CQ MB-series of ����AV is already being used in an enhanced version of Selena’s Ultra Fast 70 one-component foam, primarily applied in the . Also, this product is ISSC Plus certified to include plant-based feedstocks through mass balancing and allows for an up to 45% reduced carbon footprint compared to fossil-based products.

_{¹Comparison of 1 can of Tytan Adhesive for Bricklaying (750ml) with the data for generic cement mortar for 1,5 x 25 kg bags.
²}

����AV’s CERTEVO^® revolutionizes security printing with several key features: It supports excellent printability via intaglio and offset processes, enabling embossing structures—surpassing traditional paper and enhancing security elements. Its hotmelt nature eliminates the need for coatings and primers, ensuring superior ink adhesion that simplifies printing and boosts durability. Additionally, advanced laser engravability allows precise micro-engravings, making counterfeiting efforts more challenging.

As a single-polymer composition, CERTEVO^® is recyclable, meeting the demand for sustainable security printing materials. Its high tear resistance and ink adhesion extend the lifecycle of printed items while conserving resources. CERTEVO® thereby addresses environmental concerns and meets evolving sustainability requirements in document production.

Furthermore, its durable composition lowers long-term costs by minimizing replacements, making it an ideal choice for governments and the public sector that prioritize security and environmental responsibility. 

Meet ����AV at TRUSTECH 2024

����AV’s team will be present at the trade show, held at the Paris Expo Porte de Versailles - Pavilion 5.2, from December 3-5, 2024. We invite industry professionals and stakeholders to discuss with us at meeting room 8 and discover how CERTEVO^® and other advanced polymer materials can transform their security printing needs.

The project pursued two main objectives. Firstly, to develop a scalable framework for market entry and commercialization of more sustainable, circular products and solutions. Secondly, to create added value in partnership. This includes, for example, developing solutions with customers so that they in turn can create added value for their customers with more sustainable solutions. These are, for example, working out end customer-relevant purchasing arguments or jointly implementing increasing sustainability standards. ����AV's projects from various business entities formed the basis for developing a model.

A joint project team consisting of employees from various ����AV business entities and a mixed team from Deloitte led by chemicals expert Kai Göbel and Dr. Amadeus Petzke, Head of Pricing & Monetization, initially collected concrete projects on circular solutions across the Group. Three selected pilot projects formed the basis for the development of a marketing and business development approach that serves both as a blueprint for monetizing ����AV's circular products and for new business development at Deloitte.

“Circular solutions must be profitable to be implemented. Economic incentives that motivate or demotivate stakeholders must be clearly identified and addressed. For this, we need circular thinking, deep market understanding, and the creativity of our employees. We need a robust framework that our colleagues can use as a guide to drive business development in the circular economy. We are continuously developing this framework,” says Sucheta Govil, Chief Commercial Officer at ����AV.

WirtschaftsWoche 2024 has now honored this approach with the Best of Consulting Award in the Chemicals, Pharma & Healthcare sector.

Value creation cycle as the key

A decisive factor in monetization is the integration of the entire value chain, away from individual value creation steps and towards thinking in terms of a circular economy. “It's not just about selling circular products, but about creating sustainable added value along the value chain together with partners and customers. Designing a framework based on specific ����AV industrial projects from start to finish was an exciting project. Winning the award is a great accolade and shows that we have succeeded,” says Bozidar Radner, Deloitte's global key account manager for ����AV and Sector Head Chemicals. The management consultancy Deloitte was able to draw on extensive customer experience and requests from previous projects and learnings.

Development of the framework

Over one hundred ����AV employees identified key requirements for the monetization of circular solutions. In a structured approach consisting of four lab phases with coaching and review meetings in between, the teams successfully drove the pilot projects forward; at the same time, the insights gained led to the further development of the framework. Methodologies, case studies and their importance, as well as the correct sequencing of a project's progression, were explored and refined over the course of the project, with real circular economy pilots forming the basis. An overarching project team from ����AV and Deloitte developed an internal platform for ����AV that provides resources, best practices, and tools such as ideas for customer outreach and legal guidelines for all ����AV business entities.

The result: a structured approach to accelerate the commercialization of circular solutions. This also includes raising awareness among the workforce. An accompanying webinar series, for example, promotes global exchange with internal circular economy (CE) experts and drives the further development of the market entry and commercialization strategy. In concrete terms, implementing the monetization approach in the operational business also means incorporating the circular economy mindset into the initial customer exchange and jointly identifying added value and developing solutions in partnership-based customer discussions. For example, there are “Monetize CE Pioneers”, a group of employees at ����AV who are available to colleagues around the world and who exchange information on their specialist areas and contribute their knowledge of various industries.

The vision of the circular economy and successful monetization are thus continuously developed.

Since 2020, ����AV has been partnering with Ausell to recycle 1 million 19-liter polycarbonate water barrels annually, converting them into high-performance post-consumer recycled (PCR) polycarbonates for various industries such as electronics, home appliances and automotive. With this strengthened collaboration, Ausell will supply recycled polycarbonates derived from discarded automotive headlamps, which ����AV will then process into high-quality PCR materials for automotive engineering applications. This partnership marks a further step to effectively closing the plastics recycling loop within the automotive sector, reducing waste and carbon emissions while enhancing resource efficiency.

Lily Wang, Global Head of the Engineering Plastics Business Entity at ����AV, said: “We are excited to deepen our partnership with Ausell as we work closely with our value chain partners to accelerate the circular transformation of the automotive industry. Together, we are committed to pioneering sustainable solutions that will lead the way toward a circular and climate-neutral future.”

Xia Wenjun, CEO of Ausell, added: “Our enhanced collaboration with ����AV represents a significant step toward achieving our shared vision of a circular economy. By turning end-of-life automotive components into valuable resources, we are not only reducing waste but also contributing to the development of sustainable materials for future vehicle production.”

The automotive industry, facing increasing regulatory pressures for sustainability, as well as following their own roadmap to “close the loop” of materials, is looking for robust and adapted solutions to their challenges.

This collaboration positions ����AV and Ausell at the forefront of efforts to develop compliant, high-performance materials while addressing the challenges of plastic waste management and resource utilization in the automotive industry. The recycled polycarbonates will not only enhance the sustainability of automotive components but also demonstrate the potential for high-value recycling solutions.

Key aspects of the offer document 

����AV and ADNOC International have agreed on a long-term strategic partnership. The basis for this partnership is the Investment Agreement signed on October 1, 2024, which runs until the end of 2028. In the Investment Agreement, both companies have agreed on the main cornerstones of the partnership. In particular, the agreement contains several commitments on the part of ADNOC International to maintain ����AV's existing business activities, corporate governance and organizational business structure. 

The Investment Agreement expresses ADNOC International's utmost trust and confidence in ����AV's management team. On this basis, ����AV's Board of Management in its current composition will continue to be responsible for the operational management and strategic direction of the ����AV. 

Additionally, ADNOC International has assured ����AV in the offer document of its full support for the further execution of its “Sustainable Future” strategy. To this end, ADNOC International shall subscribe to new ����AV shares issued in connection with an increase of the ����AV’s share capital by 10 percent under simplified exclusion of subscription rights upon the completion of the transaction at the offer price, resulting in an amount of €1.17 billion proceeds at an offer price of €62.00. This will enable ����AV to consistently foster the further implementation of its growth strategy. 

In the Investment Agreement, ADNOC International also commits to recognizing the German governance regulations and to retaining the co-determined Supervisory Board. An important component is also the commitment that two members of the Supervisory Board on the shareholder representatives' side will remain independent of ADNOC Group after the takeover offer has been completed. The Investment Agreement also contains ADNOC International's explicit recognition of the existing general works agreements, collective bargaining agreements and the rights of the works councils in Germany. The same applies to speaker committee agreements and the rights of speaker committees. 

As part of the transaction, there are no plans to sell, close or significantly reduce ����AV's business activities and ADNOC International has undertaken in the Investment Agreement not to initiate any such actions. The Investment Agreement also contains a commitment to protect ����AV's technology and intellectual property. 

Furthermore, ADNOC International has also undertaken in the Investment Agreement that ����AV will continue to be managed as a stock corporation and that no domination and/or profit and loss transfer agreement will be concluded with ����AV. 

Evaluation of adequacy of the offer price 

The Board of Management and the Supervisory Board of ����AV, together with their respective advisors, have also thoroughly reviewed ADNOC International’s offer with regard to the adequacy of the offer price of €62.00 per share. 

The offer price offered by ADNOC International implies an equity value for ����AV of approximately €11.7 billion and represents a premium of approximately 54 percent to the unaffected closing price on June 19, 2023 (the day prior to any media coverage of a potential transaction), as well as a premium of 61 percent on the unaffected, volume-weighted three-month average share price on Jun 19, 2023. 

In their assessment, the Board of Management and Supervisory Board, as further explained in the joint reasoned statement, have considered the results of a range of valuation approaches. 

In addition, the Board of Management and the Supervisory Board have given consideration to the results of the fairness opinions of the respective investment banks engaged by them. In these opinions, the respective banks have confirmed their assessment that the offer price is fair from a financial perspective. 

The offer made by ADNOC International therefore provides shareholders with an attractive opportunity to realize significant value already upon completion of the transaction. 

Against this background, the Board of Management and the Supervisory Board of ����AV consider the offer price to be adequate and jointly recommend to ����AV’s shareholders to accept the offer. 

Acceptance period runs until November 27, 2024 

Following the approval by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht), ADNOC International published the offer document on the website on October 25, 2024. The offer period will run from October 25, 2024, until 24:00 hrs (Frankfurt am Main local time) or 18:00 hrs (New York local time) on November 27, 2024. The potential additional offer period of two weeks is expected to commence on December 3, 2024, and will run until 24:00 hrs (Frankfurt am Main local time) or 18:00 hrs (New York local time) on December 16, 2024. 

The offer will be subject to a minimum acceptance level of 50 percent plus one share and customary closing conditions, including merger control, foreign investment control, EU foreign subsidies clearances. Currently, closing is not expected before the second half of 2025.

“Healthcare manufacturers are increasingly adopting sustainable materials to reduce their carbon footprint, and it is our goal to help customers reach their sustainability ambitions,” said Sam Shodi, Head of Specialty Films North America, ����AV.

According to Shodi, the Makrofol^® polycarbonate film provides the transparency, toughness and sterilization suitability needed for many medical applications an example of which is medical implant packaging. “This advancement meets the demands of our healthcare customers, where sustainable materials are crucial for reducing environmental impact while maintaining high quality and safety standards,” he concluded.

With the mass balance approach, bio-based or recycled raw materials are fed in at an early stage of raw material extraction and mathematically allocated to the finished products. This saves fossil raw materials and reduces CO₂ emissions, while the quality of the mass-balanced products remains identical to that of purely fossil-based products. With this drop-in solution, manufacturers can continue to use their proven formulations, equipment and processes.

ISCC is an internationally recognized sustainability certification for biomass and bioenergy. The standard covers all stages of the value chain and is used worldwide. ����AV has major sites across all regions that are ISCC PLUS certified. Among them are world-scale sites like Baytown, Texas; Leverkusen, Dormagen and Krefeld-Uerdingen, Germany; Shanghai, China; Map Ta Phut, Thailand; and Antwerp, Belgium.

Customers can discover more about ����AV’s mass balance films and other premium material solutions, including how they support sustainability goals and drive advancements in medical devices, at the upcoming and trade fairs, November 11-14 in Düsseldorf, Germany.

Guidance for 2024 further narrowed within given ranges

In light of the continued challenging economic environment, ����AV has narrowed its guidance for the 2024 fiscal year regarding expectations for EBITDA and ROCE above WACC. 

The Group now anticipates EBITDA between EUR 1.0 billion and EUR 1.25 billion (previously: between EUR 1.0 billion and EUR 1.4 billion). For ROCE above WACC, ����AV now expects a range between –7.0 and –5.0 percentage points (previously: between –7.0 and –4.0 percentage points) for the financial year 2024. Regarding GHG emissions (measured as CO₂ equivalents), ����AV continues to expect a figure between 4.4 and 5.0 million metric tons. ����AV also continues to expect a Free Operating Cash Flow between EUR –100 and EUR 100 million. 

“Overall, global demand is intact but remains at a low level. We continue to face challenges in various industries and regions,” says Christian Baier, CFO of ����AV. “Nonetheless, we were able to slightly increase our EBITDA, indicating that our measures for efficiency and plant reliability are working. However, the economic environment remains challenging, and we have therefore narrowed our guidance for the full year accordingly.”&�Բ�����;

Investment Agreement with ADNOC supports execution of “Sustainable Future” strategy 

As announced in an ad-hoc release on October 1, 2024, ����AV has on that day signed an Investment Agreement with entities of the ADNOC Group, including ADNOC International Limited (“ADNOC International”) and its indirect subsidiary ADNOC International Germany Holding AG (“Bidder”). The agreement stipulates, among other items, that the Bidder will make a public takeover offer for all outstanding shares of ����AV at a price of €62.00 per share. In addition, ADNOC International is committing itself to fully supporting the ����AV's "Sustainable Future" strategy and intends to fully support ����AV in further executing on this strategy. To this end, the Bidder shall subscribe to new ����AV shares at the offer price via an increase of the ����AV’s share capital by 10% under simplified exclusion of subscription upon the completion of the transaction. This will result in an amount of €1.17 billion proceeds at an offer price of €62.00 which ����AV will use to foster the further implementation of its growth strategy. 

On October 25, 2024, the Bidder, following approval by BaFin, has published the corresponding offer document in relation to all outstanding ����AV shares at an offer price EUR 62.00 per ����AV share. The Board of Management and the Supervisory Board of ����AV will now carefully review the offer document and issue a reasoned statement pursuant to Section 27 WpÜG in due course. Subject to the review of the offer document, the Board of Management and the Supervisory Board assume that they will recommend the acceptance of the offer to the ����AV’s shareholders.

Further milestones on the road to climate neutrality achieved 

In the third quarter of 2024, ����AV further increased the share of renewable energies in its energy mix, thereby achieving another important milestone on the road to operational climate neutrality by 2035. In July 2024, ����AV signed a long-term power purchase agreement (PPA) with bp to supply its sites in Spain with solar energy. The contract has a term of ten years and increases the share of renewable energy from less than ten percent to around 30 percent. As a result, a significant share of the electricity consumption of ����AV's main production site in Tarragona, Spain, is now also covered by renewable sources. 

EBITDA in the Performance Materials segment significantly increased

 In the Performance Materials segment, ����AV increased its sales by 4.1 percent to EUR 1.78 billion (previous year: EUR 1.71 billion) in the third quarter of 2024. This was primarily driven by higher volumes, especially in the EMLA region. These higher volumes contributed to a significant increase in EBITDA of 47.1 percent to EUR 125 million (previous year: EUR 85 million). Free Operating Cash Flow amounted to EUR 111 million (previous year: EUR 317 million) due to a significantly lower release of funds from working capital compared to the same quarter of the previous year. 

In the Solutions & Specialties segment, sales in the third quarter of 2024 decreased by 2.0 percent to EUR 1.77 billion (previous year: EUR 1.81 billion). This was primarily due to a demand-related decline in average selling prices, which higher volumes were unable to offset fully. As a result, the segment's EBITDA fell 15.4 percent to EUR 208 million (previous year: EUR 246 million). Free Operating Cash Flow was EUR 101 million (previous year: EUR 185 million), primarily due to cash being tied up in working capital, as opposed to a release of funds in the same quarter last year, and lower EBITDA. 

Challenging environment weighs on results in the first nine months of 2024 

In the first nine months of 2024, ����AV's sales remained largely stable at EUR 10.8 billion compared to the same period of the previous year (previous year: EUR 11.0 billion). The increase in volumes across the Group did not offset the demand-related decline in average selling prices in the first nine months. That is also reflected in the EBITDA for the first nine months of 2024, which fell by 7.2 percent to EUR 880 million (previous year: EUR 948 million). Net income fell to –€74 million (previous year: –€11 million). Free Operating Cash Flow for the nine-month period amounted to –€164 million (previous year: €159 million). 

Sucheta Govil, CCO at ����AV: “Our investments in R&D are integral to our strategy of creating value for our customers. They are enabling us to expand and maintain our innovation pipeline at a high level. By this, we are the go-to partner for more sustainable solutions which help to meet the climate-neutrality targets of our customers. Thanks to this global innovation booster, we come even closer to our joint goal to become fully circular.”

Digitalization leads the way to the laboratory of the future

One of the key examples of the R&D investments and cooperation across different business segments is the globally available expertise for In-Mold-Coating (i.e., Direct Coating), with the facilities in Leverkusen and other main R&D sites that were enhanced recently. To support further developments in process technology, end-to-end digitalization was implemented to record all process-relevant data. In the highly competitive automotive industry, innovation in In-Mold-Coating technologies enables high quality surfaces for a modern design of cars. This directly feeds the demand for a more efficient automotive production.

Another important investment milestone: High-performance computers (HPCII) mark the next expansion stage of technological evolution in Leverkusen towards an innovation incubator for the circular economy. By enabling simulation of chemical processes, the high-performance computers enable faster and more sustainable research processes. Amongst others they are used for example in foam processing simulations for refrigerators and enable energy efficiency and improved cool chains in end products.

“Simulations of chemical processes are a key element in the development of recycling technologies and research on new molecule classifications,” said Torsten Heinemann, Head of Group Innovation & Sustainability at ����AV. “Moreover, laboratory digitalization enables test data to be recorded in higher quality and to a greater extent than is usual in analogue ways. Both help us to find the most possible and more sustainable solutions for our customers more quickly. Many developments in the field of recycling would be like looking for a needle in a haystack without digital R&D and simulations. “

Chemical recycling is a promising approach especially for plastics that cannot be mechanically recycled or can only be recycled with considerable effort. With chemical recycling, large quantities of the original material can be recovered. One example is the Evocycle^® CQ mattress project: Together with partners, ����AV has developed an innovative technology for the chemolysis of flexible polyurethane foams from used mattresses, in which the main components –polyol and the precursor to the isocyanate TDI – can be recovered. In this way, used mattress foams are directly converted back into renewed polyurethane building blocks.

Infrastructure and global sites benefit from ongoing investment

A functioning infrastructure is the basis for innovative research. ����AV’s investments therefore include modernization measures in its laboratories in Leverkusen. These laboratories drive among others application technology for coatings and adhesives in core industries like automotive and construction, but also special areas such as light guiding applications as well as medical applications.

Also in the U.S., ����AV is investing in a series of modernization and technical upgrades across its Pittsburgh campus. ����AV views the U.S. market as innovative and high potential. By improving the R&D facilities it signals strong commitment to the customers.

In the innovation center in Shanghai, China, distinct investments into infrastructure and digitalization over the past months echoed the leading solutions developments for automotive and electronics industries.

“Our products touch everyday life in thousands of applications, from cars to electronics to footwear. To accelerate circularity and sustainability we need to work closely with our customers and partners along the value chain on adopting alternative raw materials, renewable energy sources and recycling technologies”, says Dr. Guido Naberfeld, Senior Vice President, Head of Sales and Market Development Mobility at ����AV. “We are excited to show some of our latest developments and projects and are eager to engage in discussions about them at this year’s Fakuma.”

The Fakuma in Friedrichshafen, Germany, is a leading annual international trade fair for plastics processing. Visitors of the ����AV booth will discover a set of exhibits ranging from Polycarbonates to Specialty Films to Thermoplastic Polyurethanes, demonstrating how sustainability and performance can go hand in hand across industries.

Key exhibits include an innovative automotive frontend design that combines looks and functionality while also incorporating electronics. The materials used in the concept are Makrolon® and Makrofol®. The same materials can be used to create nearly monomaterial electronic displays, ideal for integration into smart surfaces in kitchens, vehicles and consumer electronics. One demonstrator, featuring in-mold printed elecontric circuits, will be exhibited.

����AV's recently announced partnership with Neste and Borealis will also have a spot at the booth. It showcases the closed-loop recycling of old tires into highly transparent polycarbonates that can be used in automotive components, such as car headlamps. This innovation exemplifies circularity in the automotive industry through the Makrolon® RP product range, which uses chemically recycled raw materials, attributed via the mass balance approach.

����AV in general aims to become increasingly circular and climate-neutral, with the goal of operational climate neutrality (Scopes 1 and 2) by 2035, and full climate neutrality by 2050. To make products that are advancing toward these goals easily identifiable, ����AV, besides RE or RP, also uses the “CQ” label. CQ stands for “Circular Intelligence”. CQ ecompasses, for example, products that contain at least 25% alternative, non-fossil raw materials, either as components or through the mass balance methodology. This helps to reduce their carbon footprint while contributing to circularity. Some of the abovementioned and more products can be seen at Fakuma.

Key transaction details 

The Bidder intends to make a cash offer to ����AV shareholders of €62.00 per share. This price implies an equity value for ����AV of approximately €11.7 billion and represents a premium of approximately 54 percent to the unaffected closing price on June 19, 2023, the day prior to any media coverage of a potential transaction, and a premium of 21 percent to the closing price on June 23, 2024, the last share price prior to ����AV announcing the beginning of the confirmatory due diligence and the start of concrete negotiations. 

The offer will be subject to a minimum acceptance level of 50 percent plus one share and customary closing conditions, including merger control, foreign investment control, EU foreign subsidies clearances. 

In compliance with the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz, WpÜG), the offer document, which is expected to be available within six weeks, and other information pertaining to the Bidder’s public takeover offer will be made available on the following website after approval by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht): . 

After thorough consideration, the Supervisory Board and the Board of Management of ����AV welcome and support the Bidder’s announced takeover offer. Both boards will carefully review the offer document after its publication and will issue their reasoned statements pursuant to Section 27 WpÜG shortly after. Subject to the review of the offer document, the Board of Management and the Supervisory Board assume that they will recommend the acceptance of the offer to the ����AV’s shareholders. 
 

Partnership enables expansion of ����AV's excellent position in attractive growth markets 

����AV has a clear growth strategy and is already making significant progress in its strategic transformation that will further expand its excellent position in attractive growth markets. ADNOC International sees ����AV as the foundational platform of its Performance Materials and Specialty Chemicals business and is convinced of ����AV's strategic perspective and its vision to become fully circular. 

In the joint Investment Agreement, which runs until the end of 2028, ����AV and certain entities of the ADNOC Group, including ADNOC International, have agreed on the main cornerstones of the partnership. In particular, the agreement contains several obligations on the part of ADNOC International to maintain ����AV's existing business activities, corporate governance and organizational business structure. 

ADNOC International has assured ����AV of its full support for ����AV's “Sustainable Future” strategy and intends to fully support ����AV in further executing on this strategy. To this end, the Bidder shall subscribe to new ����AV shares at the offer price via an increase of the ����AV’s share capital by 10% under simplified exclusion of subscription upon the completion of the transaction, this will result in an amount of €1.17 billion proceeds at an offer price of €62.00 which ����AV will use to foster the further implementation of its growth strategy. 

In the agreement, ADNOC International commits, among other items, to recognizing the German governance regulations and to retaining the co-determined Supervisory Board. An important component is also the commitment that two members of the Supervisory Board on the shareholder representatives' side will remain independent of ADNOC Group after the takeover offer has been completed. 

The Investment Agreement also contains ADNOC International's explicit recognition of the existing general works agreements, collective bargaining agreements and the rights of the works councils in Germany. In addition, there are no plans to sell, close or significantly reduce ����AV's business activities as part of the transaction and ADNOC International undertakes in the Investment Agreement not to initiate any of the above. The Investment Agreement also contains a commitment to protect ����AV's technology and intellectual property. 

Furthermore, ADNOC International undertakes in the Investment Agreement that ����AV will continue to be managed as a stock corporation and that no domination and/or profit and loss transfer agreement will be concluded with ����AV. 

The Investment Agreement and ADNOC International's commitments therein express ADNOC International's utmost trust and confidence in ����AV's management team. ����AV's Board of Management in its current composition will, therefore, continue to be responsible for the operational management and strategic direction of the ����AV. 

����AV’s Board of Management has agreed, subject to its fiduciary duties, to support a delisting offer and/or squeeze-out if ADNOC International intends to execute either. However, the Investment Agreement stipulates that even after a potential delisting and/or a squeeze-out, ����AV will continue to be managed as a stock corporation under German law with the same governance as before, a co-determined Supervisory Board with two Supervisory Board members who are independent of ADNOC International and its registered headquarters in Leverkusen. 

In connection with the conclusion of the Investment Agreement, the Board of Management, with the support of the Supervisory Board, has also decided to not propose a dividend payment until the transaction has been completed or until the expiration of the period for regulatory approvals or a termination of the Investment Agreement. 

Goldman Sachs and Perella Weinberg are acting as financial advisors to ����AV’s Board of Management on the transaction, with Linklaters acting as legal advisor. For ����AV’s Supervisory Board, Rothschild & Co and Macquarie Capital are acting as financial advisors, and SZA Schilling, Zutt & Anschütz as legal advisors. 

Founded in Aachen in 2007, the CAT Catalytic Centre has extensive expertise in the fields of catalysis, reaction technology, polymer chemistry and chemical recycling. All research projects are focused on contributing to climate targets and lead to a reduction of Scope 3 emissions along the value chain. The development of innovative polymers with a lower carbon footprint, recycling solutions for ����AV materials, and the use of alternative raw materials such as biomass further benefit climate action. An example is the EU-funded Circular Foam research project, where ����AV and RWTH Aachen University cooperated with the CAT Catalytic Centre and 22 other partners to close the material cycle for rigid polyurethane (PU) foams.

As an example of a successful partnership between industry and academia, the CAT Catalytic Centre contributes to a comprehensive EU strategy to promote the circular economy and the development of sustainable materials, such as bio-based plastics, recyclable composites and greener chemicals. In its latest Science, Research, and Innovation Performance¹ (SRIP, June 2024) report, the European Commission once again emphasised the essential role of these areas in the European industrial agenda. Corresponding investments and the transfer of research results into marketable innovations by companies play a decisive role in this regard.

“Industry and the chemical sector in particular are increasingly being called upon to develop alternative sources of raw materials and reduce the use of fossil fuels. Together with RWTH Aachen University, we are continuing to lead the way as pioneers in this area, even in an economically challenging environment,” says ����AV CEO Markus Steilemann. “Long-standing partnerships like our cooperation with RWTH Aachen University help to conserve resources and realise the circular economy. However, the framework conditions in Germany and Europe are also crucial for reaching this goal. Cutting-edge research needs a good climate for innovation so that science and industry can work together even more closely.”

Reducing CO₂: Bio-based aniline developed from sustainable sources

Several projects involving the CAT Catalytic Centre have already taken major steps towards market maturity. One example is bio-based aniline, which can be produced entirely from sustainable sources instead of crude oil using an innovative process. The world's first pilot plant for bio-based aniline was inaugurated in Leverkusen at the beginning of the year. The raw material is used in the plastics industry, in particular for the production of MDI for rigid polyurethane foam. The use of bio-based aniline can help to promote the circular economy in the future and to reduce the CO₂ footprint in buildings through energy-efficient insulating foam.

“A technology transfer between research and industry is a decisive factor for progress in catalysis and an important step in chemical process development towards sustainable chemistry. The collaboration with ����AV enables us to further intensify our expertise in the fundamental field of catalysis,” says Prof. Dr Ulrich Rüdiger, Rector of RWTH Aachen University.

At the joint research centre in Aachen, headed by Professor Jürgen Klankermayer from the Chair of Translational Molecular Catalysis, scientists work after completing their doctorates. Projects benefit from the latest innovations of scientific research coupled with findings from industry and modern laboratories with an adjoining technical centre on the university campus.

¹ _{https://research-and-innovation.ec.europa.eu/knowledge-publications-tools-and-data/publications/all-publications/science-research-and-innovation-performance-eu-2024-report_en}

Construction is set to begin in late 2024, with the facility expected to become operational in 2025. The center will be outfitted with advanced equipment to address complex market demands and leverage local resources and networks to streamline talent and administrative management.

“Establishing this new application development center in Guangzhou is a strategically important move for us to jointly with our customers leverage on the vibrant Asia-Pacific and especially the Chinese market. The center will also contribute to developing more sustainable TPU solutions, underscoring our dedication to innovation that benefits our esteemed customers and partners,” said Dr. Andrea Maier-Richter, EVP and Global Head of TPU at ����AV. “Together with the ongoing investment in our largest global TPU production site in Zhuhai, we will soon run two powerful engines in two major cities. This highlights our company’s ongoing commitment to growth and its commitment to the innovative capabilities of TPU in particular.”

With the existing regional R&D center in Changhua, the ongoing construction of the largest global TPU production site in Zhuhai and the upcoming APAC application development center in Guangzhou, the collaborative and complementary strengths from the three sites are expected to drive even more powerful regional synergies.

“The new application development center in Guangzhou will play an instrumental role in engaging with major TPU industry clusters across China and APAC, particularly in consumer electronics and specialty extrusion applications,” said Kevin Ho, Head of Sales & Market Development for TPU in APAC at ����AV. “We are not only close to these industry clusters, we are also at the forefront of listening to our customers, partners and the industry value chain. By bolstering our AD capacities, we ever better can sense and meet the nuances and changes and navigate our solutions and services with velocity, agility and customer centricity.“

����AV is committed to offering sustainable and circular solutions that align with its long-term goals. The Desmopan^® CQ TPU portfolio is a great example, utilizing alternative raw materials such as feedstocks from waste or biomass, attributed via mass balancing. The company as a whole furthermore aims to become fully circular and aims at becoming operationally climate neutrality by 2035, striving to utilize only renewable energy for its operations by then. This lowers the carbon footprint of products like TPU even further. This dedication of the company is also reflected in the investments in its new TPU properties, where such developments shall be driven further.

Beyond Leather’s approach captures the value of apple waste – of which around 4 million tons is produced every year – by upcycling it into a high-performance and more sustainable alternative to conventional leather made with animal skin. With a high content of short fibers and polymers, apple waste (including cores, seeds, and stems) can be activated to give a strength and suppleness to the final material, recreating the functional and aesthetic properties that make leather so desirable. To produce LEAP^®, the apple-waste blend is applied to a TENCEL^TM textile backing and finished with the protective coating containing INSQIN^® PU.

Inspirational leather-look products; aspirational performance

For brand customers and end consumers looking for leather alternatives, the launch of LEAP^® stands as a testament to the power of innovation and collaboration.

“With around 25% of an apple discarded after pressing, we wanted to capture this waste’s value in premium applications. We believe that looking into waste streams and using upcycling is crucial to reduce emissions. It is our mission to show how much value there is in waste and, ultimately, make waste beautiful,” says Mikael Eydt, Co-Founder & CEO, Beyond Leather Materials.

“����AV is delighted to have contributed to the development of this leather alternative made with apple waste, which has significant potential to improve textile sustainability in a wide range of industries,” says Dr. Torsten Pohl, Head of Global Textile Coatings ����AV. “Our low-VOC, low-emission, waterborne, and partly-bio-based INSQIN^® coating technology is the perfect fit for LEAP^®, enabling the premium durability, flexibility and perceptual quality needed in today’s market while offering a more sustainable solution for partners like Beyond Leather. We look forward to continuing our collaboration in applications spanning everything from small goods typically made of leather such as wallets, purses, and key cases, to automotive interiors.”

“We are excited to partner with Li Auto and support their pursuit of intelligence and electrification in automobiles,” said Guido Naberfeld, Senior Vice President, Head of Sales and Market Development Mobility at ����AV, during the MOU signing event at ����AV’s integrated production site in Shanghai. “By leveraging our expertise in engineering plastics and circular solutions, we aim to enable innovative future-oriented mobility solutions and reshape automotive material cycles, driving the industry towards a smarter and more circular economy.”

Under the MOU, ����AV and Li Auto will establish a “Joint Innovation Platform” to drive the development and application of more sustainable engineering plastics with alternative feedstocks, such as bio-waste and recycled sources, across various automotive components. Key initiatives will involve integrating materials attributed with bio-circular content through mass balancing into automotive lighting, functional interior and exterior parts, and smart system components. The two sides also agreed to explore innovative processes and business models for using recycled lighting materials in new automotive parts together with value chain partners.

Under the joint platform, the two sides also seek to deepen their collaboration in developing lighting, smart systems, and thermal management solutions. This will include high-performance optical-grade materials, smart surface technologies and thermally conductive solutions.

“Li Auto is dedicated to implementing the ‘Smart + Electric’ strategy with innovative materials and designs, aiming to offer users a safer, more comfortable, convenient and refined travel experience,” said Liao Mengjun, Vice President of R&D Operations at Li Auto. “Our partnership with ����AV will expedite our exploration in advanced materials, supporting the ongoing enhancement of user product demands.”

During the event, the two parties also unveiled two jointly-developed, industry-leading materials: innovative light-diffusing and infrared-transparent Makrolon® polycarbonates. The light-diffusing polycarbonate allows for a more refined and evenly-distributed illumination effect for smart headlights. Meanwhile, the new infrared-transparent polycarbonate achieves a high transmittance of over 85 percent in the near-infrared spectrum. Compared to conventional black polycarbonate, which absorbs solar energy across the entire spectrum, this new material significantly enhances the light aging resistance of components, contributing to greater durability for the smart headlights of Li Auto.

����AV will supply Carlisle with methylene diphenyl diisocyanate (MDI) that is based on ISCC PLUS certified mass balanced bio-circular raw materials and features up to a 99%¹ lower product carbon footprint than fossil-based MDI. It specifically has a CO₂ reduction potential of 2.4 KG per KG of MDI produced.² This will enable Carlisle to produce its high-performance polyiso insulation boards with lower embodied carbon.

The collaboration between ����AV and Carlisle extends a legacy of joint innovation in the construction industry that spans decades. As sustainability targets for the built environment stand to increase, the two companies are prepared to develop and introduce the next generation of insulation materials.

“����AV’s vision to become fully circular requires R&D advancements that directly support the scope 3 goals of our customers, like Carlisle,” said Hermann-Josef Doerholt, global head of the segment Performance Materials at ����AV. “����AV has some of the most aggressive sustainability and climate targets in the chemical industry, and the further we progress in developing solutions to achieve them, the more the effects resonate along the supply chain.”

����AV will supply its Mondur^® CQ 489 MS isocyanate to Carlisle. The CQ, or “Circular Intelligence” designation represents a broad family of ����AV’s circular products with an attribution of at least 25 percent alternative raw materials derived from biomass or recycled plastics.

Carlisle Construction Materials, a global leader in building envelope solutions, aims to be net zero by 2050. Carlisle will produce its bio-based rigid foam insulation, which contains 5% bio-circular content, for the SynTec, Versico, Hunter Panels and WeatherBond brands. This state-of-the-art bio-based insulation is the latest addition to Carlisle Construction Materials' portfolio of sustainable building products.

"Carlisle Construction Materials has always been at the forefront of developing high-performance construction products that lead the way in sustainability," said Steve Schwar, President of Carlisle Construction Materials. "With our new bio-based rigid foam insulation, we are demonstrating our unwavering commitment to environmental responsibility while ensuring that our customers have access to the most advanced building materials available. Our partners play a pivotal role in the realization of our bio-based isolation," added Steve. "Together, we're not only pushing the boundaries of material science, but also supporting the construction industry's transition to a more sustainable future."

“At ����AV, we have long understood the unparalleled performance attributes of polyurethane insulation,” said Julia Rubino, head of sales for Performance Materials at ����AV North America. “The ability to provide an innovative, bio-circular raw material solution to a long-time partner and a leader in the construction industry, like Carlisle, shows that future-focused sustainable solutions are available today.”

����AV has ISCC PLUS certified facilities in every major global market, including its manufacturing facility in Baytown, Texas. In support of its vision to be fully circular, ����AV aims to be operationally climate neutral (scope 1 and scope 2) by 2035 and climate neutral for scope 3 by 2050. The company currently has hundreds of circular CQ products and is continuously expanding its product portfolio.

_{¹ Exact percentage depends on the amount of allocated raw material. 
² Bio-circular attributed MDI contains ~60% ISCC PLUS certified feedstock. The calculation is based on ����AV-specific production and supply chain data, replacing fossil raw material with ISCC PLUS certified renewable feedstock via the mass balance approach.}

“The market environment remains very challenging,” says Dr. Markus Steilemann, CEO of ����AV. “Our sharp rise in volumes sold shows that we’re prepared for the market recovery. In addition, our transformation program STRONG is creating the necessary conditions for us to further expand our leading position in the global market and secure our competitiveness.”&�Բ�����;

In view of a rapidly changing market environment, ����AV launched the global transformation program STRONG in June 2024. The Group is therefore making itself even more effective and efficient and is systematically driving its digitalization. As part of STRONG, ����AV is planning to realize global annual savings in material and personnel costs of EUR 400 million by 2028, of which EUR 190 million will be in Germany. 

Full-year 2024: Earnings guidance narrowed 

����AV continues to expect challenging economic conditions in the remainder of the year. ����AV has therefore narrowed its guidance for EBITDA and ROCE above WACC and adjusted its forecast for the free operating cash flow for fiscal 2024. The company now anticipates EBITDA between EUR 1 billion and EUR 1.4 billion (previously: between EUR 1 billion and EUR 1.6 billion). ����AV now expects a free operating cash flow of between EUR –100 million and EUR 100 million (previously: between EUR 0 million and EUR 300 million). For ROCE above WACC, ����AV now anticipates a range between –7.0 percentage points and –4.0 percentage points (previously: between –7.0 percentage points and –2.0 percentage points). ����AV projects that GHG emissions measured as CO₂ equivalents will still be between 4.4 million metric tons and 5.0 million metric tons. The Group anticipates EBITDA for the third quarter of 2024 will be EUR 250 million to EUR 350 million. 

“We were able to keep our sales stable in the second quarter and reached the middle of our EBITDA guidance. That’s positive news and proof of our resilience,” says Christian Baier, CFO of ����AV. “In view of the continuing challenging economic environment, we have narrowed our earnings guidance for the year as a whole accordingly." 

Confirmatory due diligence with ADNOC has started 

Based on the open-ended talks held up to then with the Abu Dhabi National Oil ����AV (ADNOC), the Board of Management of ����AV resolved in June 2024 to enter into concrete negotiations about a possible transaction and the possible conclusion of an investment agreement and to enable an adequate exchange of corporate information to confirm assumptions (confirmatory due diligence). The starting point for the negotiations is a potential offer price of EUR 62 per ����AV share indicated to ����AV by ADNOC, which is subject to, among other things, the results of the confirmatory due diligence as well as agreement on the content of an investment agreement.  

����AV systematically advances its aim to become fully circular 

In May 2024, ����AV announced its authorization as a waste trader at IFAT, the world’s leading trade fair for the waste and disposal industry. The Group has created the legal conditions to become a purchaser and recycler of plastic waste itself, thereby securing independent access to the valuable resource of waste. ����AV has secured further access to recycled materials through a partnership announced in June 2024 with Neste and Borealis to enable the recycling of discarded tires into high-quality plastics for automotive applications. 

With the aim of continuously enhancing chemical recycling, ����AV also invested a mid single-digit million euro amount in the Dutch company BioBTX in June 2024. With this partnership, ����AV is enabling construction of the world’s first demonstration plant for an innovative technology that makes it possible to produce valuable chemicals such as benzene, toluene and xylene from organic and mixed plastic waste and then use them in plastics production. 

Increase in volumes sold in both segments 

In the Performance Materials segment, ����AV significantly increased volumes sold despite the difficult market situation in the second quarter of 2024, in particular in the EMLA and APAC regions. Sales thus have increased year on year by 2.5 percent to EUR 1.83 billion (previous year: EUR 1.79 billion). At the same time, lower raw material prices only partially offset the demand-related decline in selling prices, with the result that EBITDA fell by 35.1 percent year on year to EUR 196 million (previous year: EUR 302 million). The free operating cash flow was EUR –89 million (previous year: EUR –77 million). 

����AV has also increased volumes sold in the Solutions & Specialties segment in the second quarter of 2024, especially in the APAC region. Again, this increase only partially offset the lower selling prices, meaning that sales declined by 3.3 percent year on year to EUR 1.81 billion (previous year: EUR 1.88 billion). EBITDA fell by 21.3 percent to EUR 174 million (previous year: EUR 221 million). This decline is attributable in particular to a non-recurring positive effect from the sale of the additive manufacturing business in the second quarter of 2023, which had increased earnings by EUR 35 million. In addition, expenses in connection with implementation of the transformation program STRONG had a negative impact in the low double-digit million euro range in the second quarter of 2024. The free operating cash flow in the past quarter was EUR 36 million (previous year: EUR 150 million), with the fall being the consequence of higher funds tied up in working capital and a decline in EBITDA. 

First half of the year impacted overall by low sales prices 

Group sales in the first half of the current fiscal year 2024 declined by 3.5 percent to EUR 7.2 billion (previous year: EUR 7.5 billion). The Group’s EBITDA fell by 11.6 percent to EUR 593 million in the first half of the year compared to the first six months of 2023 (previous year: EUR 671 million). The free operating cash flow in the first half of the year was at EUR –276 million (previous year: EUR –149 million), while net loss fell to EUR 107 million (previous year: net income of EUR 20 million). 

Although less associated with the chemical industry or the circular economy, design plays a key role in enabling circularity through various means. It offers a huge opportunity for providers of sustainable and high-performance materials like ����AV to bring in their expertise.

“The design phase determines a large part of a product’s environmental impact: From the choice of materials to repairability, from a long and useful product life to recyclability. We therefore can’t understate the topic of design when we want to become fully circular,” explains Dr. Christopher Stillings, Head of Color & Design at the Business Entity Engineering Plastics within ����AV. “As materials experts early in the value chain, we at ����AV sit in the sweet spot to consult our customers and partners on how to use circular design principles when conceiving a product. We want to systematically collaborate with designers to make use of that.“

Gaining momentum

And while product design is not new, a shift is indeed happening - also due to regulators placing increasing emphasis on the topic. For example, the EU is tightening its requirements for , and to make products sold in the EU more reusable, repairable, upgradeable and recyclable. There is also a proposal for a DIN “Method to achieve circular design of products” on its way. In the USA, the Department of Energy is pursuing its “”, which also includes the factor of “Recyclability by design”. Other regulatory bodies are discussing similar initiatives.

To use that momentum, ����AV offers solutions in several main areas:

• Dematerialization, e.g. by digitalizing sampling processes. ����AV recently announced its new digital sampling tool for that purpose.
• Design for longevity. This is bread and butter for a high-performance materials manufacturer that provides materials e.g. for products for cars, buildings or the cold chain that have a lifetime of several decades.
• Modular design makes it easier to disassemble products and recycle the parts.
• The use of circular raw materials with a low emission footprint make products made of such material more circular to begin with.

The push for circular design is getting stronger and ����AV is addressing the topic on various fronts. In fact, it has been addressing the topic for decades already and can build on that expertise. The K67, a car entirely made of plastics made for the K-fair back in 1967, is just one example.

Andrea Firenze, General Manager at ����AV Spain, said: "Commitment to sustainability is a non-negotiable part of everything we do, and this agreement allows us to take a further step in our mission to make energy use as efficient and sustainable as possible throughout our value chain. In the same way, through this alliance with bp, we will continue to promote the strategic positioning of our Tarragona site through a more stable, more predictable and, above all, more sustainable long-term energy supply." 

Jason Tate, head of European power trading and origination at bp, said: “This agreement highlights not just bp’s commitment to Spain. It’s an example of how bp is continuing to invest in developing our expertise and capability to support European commercial and industrial customers to help meet their decarbonization goals.”&�Բ�����;

Under the terms of the power purchase agreement, bp has agreed to supply ����AV with a high double-digit GWh volume of renewable electricity for a period of 10 years, backed by an equivalent volume of Guarantees of Origin (GoO). The current plan is to source the renewable power from an already operational solar photovoltaic (PV) farm, in Teruel, in the Aragon region of eastern Spain, with which bp has an offtake agreement in place. 

����AV aims to convert its production to 100 percent renewable energy as part of its climate goals until the end of 2035. At the end of 2023, ����AV fulfilled approximately 16 percent of its global electricity needs from renewable sources. 

bp has been active in the Spanish natural gas market for more than 20 years, through management of their LNG portfolio, and supply to C&I customers. In the power and renewables space, bp manages a portfolio of solar offtake and also supplies renewable power, a key growth area for the bp trading business in Europe. 

*Estimate based on a calculation of Scope 2 market-based CO₂ emissions user may have had to report if buying the same amount of grey electricity from their current local supplier.

The Breakthrough Energy Catalyst foundation set up by Bill Gates and the European Investment Bank (EIB) are supporting this installation of the Rondo RHB100 heat battery, which is scheduled to begin operation at ����AV’s Brunsbüttel site at the end of 2026. The project will then produce ten percent of the steam required at the site, saving up to 13,000 tons of CO₂ emissions per year.

Rondo Heat Batteries combine century-old materials and cutting-edge automation to capture electricity and deliver high-temperature heat and power. Electrical energy is stored as heat, using bricks that have been used for heat storage at steel mills for centuries. The heat powers an ordinary boiler to deliver zero-emission steam. Renewable electricity can be intermittently stored when there is an excess available and a constant amount of steam can still be generated continuously.

"As an innovation company, we are always excited when we can further develop and test promising ideas that can bring us closer to our goals of a circular economy and climate-neutral production," says Dr. Thorsten Dreier, CTO of ����AV. “The heat battery is such an idea: a new technology that allows us to go one step further on our way to a sustainable future.”

“Rondo Heat Batteries deliver deep decarbonization by changing the fuel, not the factory,” said Eric Trusiewicz, CEO of Rondo Energy. “We’re honored to be working with ����AV to prove our safety, reliability, and efficiency under real conditions on a large scale over a long period of time. And we’re excited to be deploying in Brunsbüttel, where large flexible electricity loads are particularly valuable to the electricity grid.”

For ����AV, steam generation is an important part of the production process and accounts for a large proportion of energy consumption. The learnings from this first heat battery installation will provide experience and insights for ����AV to be able to assess whether larger-scale deployments are possible.

Under this partnership, one of ����AV’s key roles is to provide more sustainable plastic solutions along with their carbon footprint data. Alibaba Cloud’s Energy Expert, an AI-driven sustainability platform, plays a crucial role in realizing the whole life cycle emission accounting from recycled materials to final consumer products leveraging digital technology such as blockchain. It also provides an end-to-end solution for industrial companies to measure and optimize their carbon footprint across their production lifecycle.

“As a materials manufacturer with a high focus on sustainable material innovation, ����AV is committed to driving circularity and climate neutrality. Our collaboration with Alibaba Cloud marks a significant milestone in our journey towards a circular and climate-neutral future,” says Lily Wang, Global Head of the Engineering Plastics Business Entity, at ����AV. “With our joint solutions, we are supporting our customers to improve their supply chain transparency while building trust among environmentally conscious consumers, thereby driving industries towards a greener future.”

“We are proud to partner with ����AV in pioneering sustainable solutions that drive positive environmental impact,” says William Xiong, Vice President of Alibaba Cloud Intelligence. “By leveraging our advanced cloud infrastructure and expertise in sustainability technology, we are enabling value chain partners to trace materials with enhanced transparency and efficiency as well as to optimize their carbon footprint to achieve their sustainability target. This partnership exemplifies the transformative power of technology in creating a more sustainable future.”

The joint solutions offered by the two parties have already been implemented in the consumer goods sector. For example, ����AV collaborated with China’s leading beverage maker Nongfu Spring to recycle its 19-litre water barrels into post-consumer recycled polycarbonate. The material was then used by KACO, a niche stationary brand in China, to produce gel pens. Through Alibaba Cloud Energy Expert’s carbon emission accounting and digital tools, consumers can scan a QR code on the packaging of the pens to trace the origin of the material, see a detailed breakdown of the carbon footprint at each stage in the production chain and the number of carbon emission slashed compared to the virgin materials.

The automotive supplier Webasto has developed the prototype of a Roof Sensor Module (RSM) in an elegant design. It is equipped with a polycarbonate panel for aesthetic and seamless integration of sensors for automated and autonomous driving. For the module’s bezel, ����AV supported with its injection molding expertise at the technical center at its Headquarters in Leverkusen.

The bezel is produced on ����AV's 2300-ton injection molding machine. The first shot is made of the transparent polycarbonate Makrolon^® AG, which is highly permeable to various sensor signals. For the second shot, the black, mineral-reinforced PC-ABS Bayblend^® T95 MF is used. Thanks to the combination of both materials, the roof module meets high mechanical requirements while offering an attractive design with glass-like surfaces and transparent sensor windows.

Integration of components and coating

In addition, the combination of these materials provides the necessary design freedom for the integration of all relevant electronic and mechanical components. Many of such parts are furthermore attached by elements that are formed in the second shot. Suitable potential coating systems for the RSM are polysiloxane coatings, which are sprayed via a high-speed rotary bell to ensure homogeneous layer thicknesses over the entire component surface.

In use, radar and lidar sensors, as well as cameras, measure the distance and speed of objects in front of and next to the vehicle and also reliably detect traffic lights, traffic signs and road markings. In order to function optimally, the temperature of the electronics must be regulated. This is ensured by an integrated thermal management system. The high heat deflection resistance of polycarbonate ensures that the roof module remains in shape even at high outside temperatures and strong sunlight and that the functionality of the sensors is not impaired.

The Makrofol^® ST polycarbonate film, which is introduced in specific sections and is characterized by a defined transmission spectrum in the visible and infrared range, enables a seamless design with high transparency for LiDAR signals. In addition, the film serves as a carrier for Canatu's transparent heating system. This de-icing function as well as the specially developed cleaning system ensure flawless operation even under adverse weather conditions.

All in all, this development offers not only a portfolio of engineering solutions, but also concepts for developers of advanced driver assistance systems (ADAS) who need reliable and cost-effective bezels for their 3D imaging systems.

At the international VDI Congress PIAE on June 19 and 20, 2024 in Mannheim, Germany, ����AV expert Christoph Klinkenberg and Head of Research and Development Magnus Sviberg from Webasto Roof & Components SE will give a presentation on this development on June 19 from 12:15 p.m. The co-author is Rainer Hagen from ����AV. The company will also be exhibiting at the accompanying exhibition.

“Circularity requires cooperation, and this cooperation with our partners Neste and Borealis is testament to the possibilities at our disposal,” says Guido Naberfeld, Senior Vice President, Head of Sales and Market Development Mobility at ����AV. “We are creating options to turn old tires into new car parts again. With that, we are supporting our automotive customers and addressing an increasingly prominent question discussed across the value chain: How to match high-performance materials with recycled content? Projects like this can be the answer.”

As part of the collaboration, Neste turns liquefied discarded tires into a high-quality raw material for polymers and chemicals manufacturing and supplies it to Borealis. Borealis will then process the Neste-produced raw material into base chemicals phenol and acetone, which are supplied to ����AV. ����AV can use these materials to make polycarbonates. The share of recycled content is attributed via the mass balancing approach all the way to the final products using ISCC Plus certification.

The first products based on the collaboration are already available as each party has manufactured the first batch of their respective contribution to the project. Aside from polycarbonates, the project partners may also consider polyurethanes as a possible end product, which could also find its way into parts of the interior of a car. The companies emphasize that the potential to scale-up these types of developments should be considered when setting ambitious targets for future EU regulations, such as the End of Life Vehicles Regulation.

“We are demonstrating the importance of value chain cooperation to give new value to waste,” says Thomas Van De Velde, Senior Vice President Base Chemicals at Borealis. “We are proud that Borealis, in collaboration with Neste, is able to play a role in this project, providing more sustainable solutions for polymer applications for ����AV and its customers.”

“This project can serve as a blueprint when it comes to establishing circularity in the field of plastics in cars,” says Jeroen Verhoeven, Vice President Value Chain Development for polymers and chemicals at Neste. “It shows how low-quality waste materials can be turned into very high-quality plastics. This is good news for the polymers and automotive industries as well as for the environment.”

The collaboration will be presented during the PIAE in Mannheim on June 19-20, 2024.

����AV is investing a mid-single-digit million Euro amount in the scale-up from the Netherlands. In addition to ����AV, the financial investors Invest-NL and Infinity Recycling are also involved in the project. Once operational, the demonstration plant will convert 20 kilotons of mixed plastic waste per year. Following successful upscaling of the technology over the past years, the demonstration plant is a crucial intermediate step for the technology to be implemented on an industrial scale.

"Our vision is to fully align with the circular economy and climate neutrality, and we are pursuing all innovative solutions that bring us closer to this goal," says Thorsten Dreier, CTO of ����AV. "Chemical recycling can make a significant contribution to closing the loop and the BioBTX ICCP technology is a promising way of using waste to recover raw materials that we use in production." Unlike other recycling technologies, this technology also makes mixed waste from different source materials suitable for the process.

The investment in BioBTX is part of ����AV's venture capital program, in which the company invests in young start-ups and scale-ups with innovative products, solutions or business models and thus promotes entrepreneurial activities in and alongside its core business. The partnership with BioBTX also includes two joint development agreements. In the development projects, ����AV is researching further possibilities for recycling its own products and contributing know-how in the field of digitalization to improve plant performance.

����AV has been cooperating with BioBTX for more than four years and, together with the company, has launched the EU-funded Circular Foam project, which is working on the recycling of rigid polyurethane foam using pyrolysis.

"We are pleased that we can contribute our expertise in the areas of application development, digital research and development and chemical recycling to the project and thus provide impetus for a new, Europe-wide circular ecosystem for plastic waste," explains Torsten Heinemann, Head of Group Innovation and Sustainability at ����AV.

"With its participation in BioBTX and the construction of the demonstration plant, ����AV is enabling an important step towards a sustainable chemical industry," says Ton Vries, CEO of BioBTX. "The production of renewable aromatics from plastic waste and biomass is a prerequisite for circular chemistry."

The demonstration plant is scheduled to go into operation by early 2027. Further information on the project can be found .

The aim of the partners is to recycle the sorted polyurethane foams as efficiently as possible by combining mechanical and chemical technologies after careful sorting by foam type in the mattress cutting plants.

Collaborations leveraging own expertises with like-minded partners are key: In addition to Ecomaison and ����AV, the French dismantling company Secondly and Federal Eco Foam, a Belgian specialist in the mechanical recycling of flexible foams, are involved as partners in the project, which is planned to run for a maximum of 24 months. The project is called Foam Recycling Ecosystem Evolution (FREE) and coordinated by ����AV and half-funded by Ecomaison.

For the FREE consortium, the motivation lies in the added value of the material that can be recovered from the used foams and the opportunity to enter a more sustainable circular economy. The partners want to explore all possibilities in a future-oriented foam recycling ecosystem and are convinced that chemical and mechanical recycling will complement each other in a meaningful way. As dismantler and sorting actor, Secondly is interested in empowering its sorting processes to be able to supply to recyclers a specified quality of foam.

At the same time, the project will provide a good picture of how the foam recycling market in the coming years may look like. The partners truly believe that chemical and mechanical recycling can be complementary given different specifications of inlet materials being sorted already at dismantlers. To provide added value to the PU foam material, the consortium will investigate all possibilities in a future oriented eco-system of foam recycling.

The research and development project includes the foam sorting at the dismantling step, as well as a comparative feasibility study for two recycling processes for the sorted foams covering economic and ecologic value co-creation.

A few years ago, ����AV and its partners developed a chemical recycling process that is the only one of its kind capable of ultimately recovering both main raw materials of flexible PU foams in high purity. The company also operates a pilot plant at the Leverkusen site for this purpose. Together with the waste management industry, the company wants to drive the process forward to industrial use.

To make its vision of a fully circular economy a reality, ����AV is making the development of innovative recycling technologies a priority and calls the evolution of recycling . The chemolysis of PU mattress foam is the first initiative of ����AV of its kind and is called Evocycle^® CQ Mattress.

The award is presented by the "German Design Council." Candidates submit projects that have been launched on the market no longer than five years ago, but they can also be nominated by the council. The evaluation is carried out by an independent, interdisciplinary expert jury. The award ceremony took place on May 14 in front of around 300 invited guests at the Futurium in Berlin.

"We are very pleased that the German Design Council has honored us with this award," said Joan Miquel García Martínez, Senior Project Manager Arfinio^® at ����AV. "Arfinio^® is a real breakthrough for design, surfaces, and sustainability. This award shows the relevance of combining design, manufacturing technology, and materials for the development of new products and confirms that we are on the right track."

The Arfinio^® technology, which ����AV has developed together with its partner Arcesso, a manufacturer of custom polyurethane parts, combines liquid high-performance polymers and unique minerals with the RIM process (reaction injection molding). This combination enables seamless shapes and surfaces – and was long considered impossible. The resulting products are durable, repairable, and lightweight, can be produced quickly, and allow for free designs. The material also contributes to sustainability as it can be produced with partially bio-based raw materials, can be mechanically recycled at the end of its life cycle, and reused for the production of new products.