Polyols & Derivatives
Polyols are basic feedstocks used in the production of polyurethane (PU) foams and PU systems that have a wide range of applications in a large number of industries. Flexible PU foams are used, among other things, in the manufacture of comfortable mattresses. Rigid PU foams are employed in the refrigeration industry for insulation purposes and in the construction industry as sealing foam. Special prepolymer foams are used, for instance, in the production of polishing pads for the automotive industry, while PU systems are employed e.g. in thermal insulation applications, in block constructions incorporating thermal insulation panels, and as polyurethane adhesives for a variety of applications.
Polyols are basic feedstocks used in the production of polyurethane (PU) foams and PU systems that have a wide range of applications in a large number of industries. Flexible PU foams are used, among other things, in the manufacture of comfortable mattresses. Rigid PU foams are employed in the refrigeration industry for insulation purposes and in the construction industry as sealing foam. Special prepolymer foams are used, for instance, in the production of polishing pads for the automotive industry, while PU systems are employed e.g. in thermal insulation applications, in block constructions incorporating thermal insulation panels, and as polyurethane adhesives for a variety of applications.
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The Polyols & Derivatives segment comprises the Polyols, Polyurethane
Systems and Alkylphenols business units. The PCC Group
has polyols production facilities in Europe and Southeast Asia. We
market our Polyols & Derivatives worldwide with the main sales
occurring in the EU.
In fiscal 2024, this segment generated sales of € 180.8 million, which was € 10.3 million or 5.4 % less than in the previous year (€ 191.1 million). At 18.8 %, the share of Group sales was slightly below the previous year’s level of 19.2 %. Our sales expectations for this segment for 2024 were not met, due to lower demand in Europe and, in particular, increasingly aggressive competition from China and other Asian countries. This competition not only affected sales by European manufacturers within Europe, but also exports, which further intensified competition within Europe. Imports from China and other Asian countries accounted for around 15 – 20 % of European demand in 2024.
From September 2024, there were signs of a modest increase in demand for polyether polyols, but this demand was predominantly for cheaper standard grades with lower margins. PCC was able to maintain its market share in the polyether polyols product category in 2024. Capacity in the polyester polyols product segment was heavily utilized. The silane-modified polyols product category, which has been newly established in recent years and serves as the basis for PU adhesives, posted a record year in terms of sales volumes and revenue. The production units for polyols and PU systems in Southeast Asia were impacted by increasing competition from China. Against this backdrop, our joint venture in Thailand recorded a decline in sales, but margins and results improved thanks to better purchasing conditions at all levels.
Overall, the Polyols & Derivatives segment achieved a significant year-on-year increase in earnings before interest, taxes, depreciation and amortization (EBITDA) of 48.4 % to € 13.5 million. The number of employees in the segment was 346 (previous year: 341).
We further expanded our market share in 2024 in the Polyurethane Systems business unit, in particular roof spray foams for building insulation. With volumes remaining constant, this business unit benefited from lower raw material costs and was able to keep its margins stable – and in the Polish market in particular we were able to get back to the performance levels achieved in fiscal 2022, which was particularly good for this business. Despite the slump in the construction sector, this business unit managed to increase its EBITDA compared to the previous year. In addition, we added further markets to our portfolio in the past fiscal year, and sales in the Baltic states and France contributed to business in 2024. Expansion into further markets is planned for 2025. PCC obtains most of its key feedstock MDI for polyols production from Asia and only small quantities from Europe. Shortages in the European market therefore have no serious impact on our business.
In the Polyurethane Systems business in Germany, we concentrate on specialty foams and polishing pads for vehicle detailing. Here, PCC significantly increased both sales and EBITDA in the past fiscal year. The expansion of our customer portfolio in recent years paid off in the reporting year with increased sales volumes and corresponding improvements in earnings. Thanks to further fixed cost degression, this business unit achieved a turnaround and returned to profitability.
The Thermal Insulation Panels business entity, whose development had been severely delayed by the coronavirus pandemic, was able – after completing qualification phases with customers – to significantly increase sales volumes and revenue in the past fiscal year compared to the previous year. However, start-up losses are still being
recorded here.
The Alkylphenols business unit increased its revenue and EBITDA in 2024. Despite the economic slowdown in the European construction industry, we were able to complete further qualification phases with new customers and thus lay the foundation for further growth in the business unit.
We plan to continuously diversify and expand the Polyols & Derivatives segment’s product portfolio in the future in order to strengthen its resilience in the long term. Among other things, the focus will be on developing products for customer-specific applications, together with geographic expansion. The expansion of our market position in Southeast Asia is planned for the current fiscal year, following the commissioning of our new production facility in Malaysia in 2024. We operate this plant for the production of oxyalkylates (a group of chemicals that includes special non-ionic surfactants and polyether polyols) together with our Malaysian joint venture partner PETRONAS Chemicals Group Berhad (PCG). The plant has a production capacity of 70,000 metric tons and is expected to contribute to further growth in the Polyols & Derivatives and Surfactants & Derivatives segments in the coming years, as well as promoting the geographic diversification of the PCC Group as a whole.
occurring in the EU.
In fiscal 2024, this segment generated sales of € 180.8 million, which was € 10.3 million or 5.4 % less than in the previous year (€ 191.1 million). At 18.8 %, the share of Group sales was slightly below the previous year’s level of 19.2 %. Our sales expectations for this segment for 2024 were not met, due to lower demand in Europe and, in particular, increasingly aggressive competition from China and other Asian countries. This competition not only affected sales by European manufacturers within Europe, but also exports, which further intensified competition within Europe. Imports from China and other Asian countries accounted for around 15 – 20 % of European demand in 2024.
From September 2024, there were signs of a modest increase in demand for polyether polyols, but this demand was predominantly for cheaper standard grades with lower margins. PCC was able to maintain its market share in the polyether polyols product category in 2024. Capacity in the polyester polyols product segment was heavily utilized. The silane-modified polyols product category, which has been newly established in recent years and serves as the basis for PU adhesives, posted a record year in terms of sales volumes and revenue. The production units for polyols and PU systems in Southeast Asia were impacted by increasing competition from China. Against this backdrop, our joint venture in Thailand recorded a decline in sales, but margins and results improved thanks to better purchasing conditions at all levels.
Overall, the Polyols & Derivatives segment achieved a significant year-on-year increase in earnings before interest, taxes, depreciation and amortization (EBITDA) of 48.4 % to € 13.5 million. The number of employees in the segment was 346 (previous year: 341).
We further expanded our market share in 2024 in the Polyurethane Systems business unit, in particular roof spray foams for building insulation. With volumes remaining constant, this business unit benefited from lower raw material costs and was able to keep its margins stable – and in the Polish market in particular we were able to get back to the performance levels achieved in fiscal 2022, which was particularly good for this business. Despite the slump in the construction sector, this business unit managed to increase its EBITDA compared to the previous year. In addition, we added further markets to our portfolio in the past fiscal year, and sales in the Baltic states and France contributed to business in 2024. Expansion into further markets is planned for 2025. PCC obtains most of its key feedstock MDI for polyols production from Asia and only small quantities from Europe. Shortages in the European market therefore have no serious impact on our business.
In the Polyurethane Systems business in Germany, we concentrate on specialty foams and polishing pads for vehicle detailing. Here, PCC significantly increased both sales and EBITDA in the past fiscal year. The expansion of our customer portfolio in recent years paid off in the reporting year with increased sales volumes and corresponding improvements in earnings. Thanks to further fixed cost degression, this business unit achieved a turnaround and returned to profitability.
The Thermal Insulation Panels business entity, whose development had been severely delayed by the coronavirus pandemic, was able – after completing qualification phases with customers – to significantly increase sales volumes and revenue in the past fiscal year compared to the previous year. However, start-up losses are still being
recorded here.
The Alkylphenols business unit increased its revenue and EBITDA in 2024. Despite the economic slowdown in the European construction industry, we were able to complete further qualification phases with new customers and thus lay the foundation for further growth in the business unit.
We plan to continuously diversify and expand the Polyols & Derivatives segment’s product portfolio in the future in order to strengthen its resilience in the long term. Among other things, the focus will be on developing products for customer-specific applications, together with geographic expansion. The expansion of our market position in Southeast Asia is planned for the current fiscal year, following the commissioning of our new production facility in Malaysia in 2024. We operate this plant for the production of oxyalkylates (a group of chemicals that includes special non-ionic surfactants and polyether polyols) together with our Malaysian joint venture partner PETRONAS Chemicals Group Berhad (PCG). The plant has a production capacity of 70,000 metric tons and is expected to contribute to further growth in the Polyols & Derivatives and Surfactants & Derivatives segments in the coming years, as well as promoting the geographic diversification of the PCC Group as a whole.
Key facts and figures for the
Polyols & Derivatives segment 2024
Polyols & Derivatives segment 2024
G_L_04
Surfactants & Derivatives
Surfactants – or surface-active agents – have an extremely wide range of applications. They reduce the surface tension of a liquid or the interfacial tension between, for example, a solid surface and a liquid. The actions they produce include foaming, wetting, emulsifying and cleaning. Surfactants are basic components of laundry and home care detergents, cleaning agents and personal care products. They are also used, for example, in the textile and agrochemicals industries, as well as in the production of lubricants, paints, coatings, adhesives and plastics.
The Surfactants & Derivatives segment comprises the Anionic Surfactants,
Non-ionic Surfactants and Amphoteric Surfactants (Betaines)
business units, as well as downstream business activities in
the consumer goods sector. The latter’s activities focus on household
and industrial cleaners, detergents and personal care products,
which we market both under PCC’s own brand names and as private
label products.
The PCC Group operates production sites in Europe together with one in the USA and one in Malaysia. We generally market the products of this segment locally. The main sales markets are the EU member states, where we sell around 50 % of our volumes.
The Surfactants & Derivatives segment generated sales of € 223.7 million in 2024, an increase of 8.3 % compared to the previous year. The share of total sales of the PCC Group increased by 2.5 percentage points to 23.3 %. The number of employees at the end of the fiscal year amounted to 507 (previous year: 495).
Overall, sales volumes in 2024 were higher than in the previous year, in line with our expectations. Sales of specialty products for industrial applications increased, while sales of personal care products and cosmetics declined slightly. Average selling prices were marginally down in 2024 both in this category and for surfactants used in the manufacture of personal care products and cleaning agents. In addition to the economic doldrums in Europe, one of the main reasons for this was increasing competitive pressure, particularly from China and India.
The segment generated earnings before interest, taxes, depreciation and amortization (EBITDA) of € 23.6 million, a decrease of – 5.8 % compared to the previous year. The business involved in the production and marketing of surfactants suffered price declines due to international competition; in addition, rising raw material costs for the production of ethoxylates and surfactants had a negative impact on the earnings situation. In contrast, surfactants for industrial applications, particularly in Western Europe, achieved increases in sales volumes and a modest rise in gross profit. The Consumer Products business consolidated its very good earnings position from the previous year.
At the end of the second quarter of 2024, PCC commenced the commissioning of a new production plant for ethoxylates with a nominal capacity of 35,000 metric tons per year at its production site in Płock, Poland. This is scheduled for completion by the end of the second quarter of 2025. The plant is now to be further ramped up and utilized to capacity. This additional capacity will not only enable PCC to produce additional quantities, but will also allow further diversification of the product portfolio and corresponding product offerings for new areas of application. In addition, the new plant will increase the sustainability of our surfactant production and thus also the competitiveness of this segment.
In the US market, PCC also recorded slight volume growth in the surfactants segment. Despite strong competition, PCC held its own with its product portfolio there and increased its sales. The earnings situation also improved significantly. A new local management and the replacement of other core positions in the team made initial contributions in the short term. In the wake of the change in policy following the inauguration of the new US President in January 2025, we anticipate further growth in our business in the USA.
In the past fiscal year, the Consumer Products business benefited from the continued increase in demand for private label products. The high proportion of household chemicals in the product portfolio also had a positive effect on earnings, as this market segment is generally much more resilient than the cosmetics market.
As in the Polyols & Derivatives segment, the PCC Group also plans to further diversify its product portfolio in the Surfactants & Derivatives segment and thereby continuously expand the proportion of higher-value specialty products. In the same vain, selling and distribution activities are expected to be increasingly application-oriented across all relevant segments, boosted by the introduction of regional managers. These will be responsible for the territories Western Europe, Central and Eastern Europe, and Southern Europe. We are also continuing to internationalize our business in order to further diversify our sales markets. The focus here is on the Asian market in particular, as well as the MENA region and, in the long term, the USA.
By concluding a long-term offtake agreement for ethylene oxide, the PCC Group had already secured its long-term supply of this essential raw material by the end of 2021. However, this contract also requires an increase in production capacities on the PCC side. This expansion work started in 2024 and is scheduled to continue until 2026. In addition, early preparations are underway for the utilization of these new capacities through the progressive broadening of both our customer and our product portfolios.
label products.
The PCC Group operates production sites in Europe together with one in the USA and one in Malaysia. We generally market the products of this segment locally. The main sales markets are the EU member states, where we sell around 50 % of our volumes.
The Surfactants & Derivatives segment generated sales of € 223.7 million in 2024, an increase of 8.3 % compared to the previous year. The share of total sales of the PCC Group increased by 2.5 percentage points to 23.3 %. The number of employees at the end of the fiscal year amounted to 507 (previous year: 495).
Overall, sales volumes in 2024 were higher than in the previous year, in line with our expectations. Sales of specialty products for industrial applications increased, while sales of personal care products and cosmetics declined slightly. Average selling prices were marginally down in 2024 both in this category and for surfactants used in the manufacture of personal care products and cleaning agents. In addition to the economic doldrums in Europe, one of the main reasons for this was increasing competitive pressure, particularly from China and India.
The segment generated earnings before interest, taxes, depreciation and amortization (EBITDA) of € 23.6 million, a decrease of – 5.8 % compared to the previous year. The business involved in the production and marketing of surfactants suffered price declines due to international competition; in addition, rising raw material costs for the production of ethoxylates and surfactants had a negative impact on the earnings situation. In contrast, surfactants for industrial applications, particularly in Western Europe, achieved increases in sales volumes and a modest rise in gross profit. The Consumer Products business consolidated its very good earnings position from the previous year.
At the end of the second quarter of 2024, PCC commenced the commissioning of a new production plant for ethoxylates with a nominal capacity of 35,000 metric tons per year at its production site in Płock, Poland. This is scheduled for completion by the end of the second quarter of 2025. The plant is now to be further ramped up and utilized to capacity. This additional capacity will not only enable PCC to produce additional quantities, but will also allow further diversification of the product portfolio and corresponding product offerings for new areas of application. In addition, the new plant will increase the sustainability of our surfactant production and thus also the competitiveness of this segment.
In the US market, PCC also recorded slight volume growth in the surfactants segment. Despite strong competition, PCC held its own with its product portfolio there and increased its sales. The earnings situation also improved significantly. A new local management and the replacement of other core positions in the team made initial contributions in the short term. In the wake of the change in policy following the inauguration of the new US President in January 2025, we anticipate further growth in our business in the USA.
In the past fiscal year, the Consumer Products business benefited from the continued increase in demand for private label products. The high proportion of household chemicals in the product portfolio also had a positive effect on earnings, as this market segment is generally much more resilient than the cosmetics market.
As in the Polyols & Derivatives segment, the PCC Group also plans to further diversify its product portfolio in the Surfactants & Derivatives segment and thereby continuously expand the proportion of higher-value specialty products. In the same vain, selling and distribution activities are expected to be increasingly application-oriented across all relevant segments, boosted by the introduction of regional managers. These will be responsible for the territories Western Europe, Central and Eastern Europe, and Southern Europe. We are also continuing to internationalize our business in order to further diversify our sales markets. The focus here is on the Asian market in particular, as well as the MENA region and, in the long term, the USA.
By concluding a long-term offtake agreement for ethylene oxide, the PCC Group had already secured its long-term supply of this essential raw material by the end of 2021. However, this contract also requires an increase in production capacities on the PCC side. This expansion work started in 2024 and is scheduled to continue until 2026. In addition, early preparations are underway for the utilization of these new capacities through the progressive broadening of both our customer and our product portfolios.
Key facts and figures for the
Surfactants & Derivatives segment 2024
Surfactants & Derivatives segment 2024
G_L_05
Chlorine & Derivatives
Chlorine is one of the most important and most-produced raw materials used in the chemical industry. Within the PCC Group, the chemical is used, among other things, for the production of propylene oxide for polyols manufacture, and as a feedstock for the manufacture of monochloroacetic acid (MCAA) and phosphorus derivatives. Chlorine is also employed as a disinfectant and, like various chlorine co- and downstream products, is used in water management and petrochemistry.
The Chlorine & Derivatives segment is divided into four business units: Chlorine, Chlorine Downstream Products, Monochloroacetic Acid (MCAA) and Phosphorus & Naphthalene Derivatives. In fiscal 2024, chlorine and the downstream products were produced exclusively at the site in Brzeg Dolny, Poland, and marketed from there.
Sales revenue in this segment amounted to € 209.7 million in 2024, down 23.9 % on the previous year (€ 275.6 million). The share of Group sales fell by 5.9 percentage points to 21.8 %. The segment employed 431 people at year-end 2024 (previous year: 427).
Despite a decline, the Chlorine & Derivatives segment was the main earnings driver of the PCC Group in 2024. However, the low level of business activity in Europe, increasing competitive pressure from China and also the cost increases of recent years led to a decline in the earnings number. PCC’s internal use of chlorine for the production of propylene oxide (as a raw material for the manufacture of polyols) and of MCAA likewise declined due to reduced production volumes. This also reduced the volume of chlorine co- and by-products manufactured. The average selling prices for these products continued to fall compared to 2023, with a corresponding impact on the earnings performance of the Chlorine Downstream Products business unit. Earnings were boosted by compensation payments from the Polish government for the use of energy-efficient manufacturing facilities and for CO2 offsetting.
The segment generated earnings before interest, taxes, depreciation and amortization (EBITDA) of € 59.0 million. This corresponds to a decline of 40.9 % compared to the previous year.
Fiscal 2024 saw the Phosphorus & Naphthalene Derivatives business unit benefit from the import tariffs imposed by the European Union on Chinese products. This strengthened price stability for phosphorus- based flame retardants and led to higher sales to European customers. The strong asymmetrical competition from China reported in the previous year – with some prices offered below the manufacturing cost in Europe – was thus mitigated and average selling prices rose. Overall, this had a positive impact on the earnings situation in this business unit.
In the Monochloroacetic Acid (MCAA) business unit, the past fiscal year was extensively impacted by the production shutdown that took place in the first quarter due to force majeure. Technical difficulties caused by an unplanned catalyst change extended the shutdown to several weeks. Once the technical problems had been resolved, this business unit was able to gradually ramp up production volumes and capacity utilization again from the second quarter onward, consistently achieving full capacity during the summer months. Fiscal 2024 in this business unit was largely characterized by price competition. Due to the outage periods, we produced significantly lower quantities of MCAA overall than in the previous year. Customers from the crop protection industry reduced their production volumes, particularly in the second quarter, which led to lower sales of MCAA in these applications. However, PCC saw MCAA sales in the USA rise, which had a compensatory effect. Overall, fiscal 2024
proved to be challenging for this business unit, leading to declines
in both sales and earnings.
Reduced consumption by internal customers led to lower capacity utilization in our chlor-alkali electrolysis operations. The historic highs in prices for HCl and NaCl experienced in previous years again remained unmatched in 2024. Although sales and earnings in this segment declined overall, they continued to make a significant contribution to the Group’s financials.
Sales revenue in this segment amounted to € 209.7 million in 2024, down 23.9 % on the previous year (€ 275.6 million). The share of Group sales fell by 5.9 percentage points to 21.8 %. The segment employed 431 people at year-end 2024 (previous year: 427).
Despite a decline, the Chlorine & Derivatives segment was the main earnings driver of the PCC Group in 2024. However, the low level of business activity in Europe, increasing competitive pressure from China and also the cost increases of recent years led to a decline in the earnings number. PCC’s internal use of chlorine for the production of propylene oxide (as a raw material for the manufacture of polyols) and of MCAA likewise declined due to reduced production volumes. This also reduced the volume of chlorine co- and by-products manufactured. The average selling prices for these products continued to fall compared to 2023, with a corresponding impact on the earnings performance of the Chlorine Downstream Products business unit. Earnings were boosted by compensation payments from the Polish government for the use of energy-efficient manufacturing facilities and for CO2 offsetting.
The segment generated earnings before interest, taxes, depreciation and amortization (EBITDA) of € 59.0 million. This corresponds to a decline of 40.9 % compared to the previous year.
Fiscal 2024 saw the Phosphorus & Naphthalene Derivatives business unit benefit from the import tariffs imposed by the European Union on Chinese products. This strengthened price stability for phosphorus- based flame retardants and led to higher sales to European customers. The strong asymmetrical competition from China reported in the previous year – with some prices offered below the manufacturing cost in Europe – was thus mitigated and average selling prices rose. Overall, this had a positive impact on the earnings situation in this business unit.
In the Monochloroacetic Acid (MCAA) business unit, the past fiscal year was extensively impacted by the production shutdown that took place in the first quarter due to force majeure. Technical difficulties caused by an unplanned catalyst change extended the shutdown to several weeks. Once the technical problems had been resolved, this business unit was able to gradually ramp up production volumes and capacity utilization again from the second quarter onward, consistently achieving full capacity during the summer months. Fiscal 2024 in this business unit was largely characterized by price competition. Due to the outage periods, we produced significantly lower quantities of MCAA overall than in the previous year. Customers from the crop protection industry reduced their production volumes, particularly in the second quarter, which led to lower sales of MCAA in these applications. However, PCC saw MCAA sales in the USA rise, which had a compensatory effect. Overall, fiscal 2024
proved to be challenging for this business unit, leading to declines
in both sales and earnings.
Reduced consumption by internal customers led to lower capacity utilization in our chlor-alkali electrolysis operations. The historic highs in prices for HCl and NaCl experienced in previous years again remained unmatched in 2024. Although sales and earnings in this segment declined overall, they continued to make a significant contribution to the Group’s financials.
Key facts and figures for the
Chlorine & Derivatives segment 2024
Chlorine & Derivatives segment 2024
G_L_06
Silicon & Derivatives
Silicon metal is used, among other things, as an aluminum alloying element and in the chemical industry in siloxane and silicone production. In addition, there is a strong long-term demand for silicon metal in applications such as solar modules, semiconductors and batteries. These applications make silicon metal a key building block in effecting the sustainable transformation of industry, through which we are also making a significant contribution to climate protection.
The Silicon & Derivatives segment is divided into the Silicon Metal
and Quartzite business units and thus comprises the silicon metal
production company in Iceland and the quartzite quarry in Poland.
Quartzite is one of the basic raw materials for the production of
silicon metal. This segment also includes a business that organizes
housing for employees in Iceland.
Overall, the Silicon & Derivatives segment generated sales of € 85.0 million in the past fiscal year, 18.1 % more than in the previous year (€ 72.0 million). The share of Group sales rose by 1.7 percentage points to 8.9 %. The number of employees increased to 226 (previous year: 207).
The segment’s main revenue driver is the silicon metal plant in H.sav.k, Iceland, with a nominal annual capacity of 36,000 metric tons. After the plant had only produced at half capacity in the previous year due to the difficult market situation, we increased operations to two furnaces again in fiscal 2024, thus returning to 100 % capacity. Raw material and logistics prices were significantly lower in the reporting year than in the previous year, which led to a reduction in production costs. However, external factors such as electricity shortages in the second and fourth quarters, quality problems with raw materials and interruptions to furnace operations at a production volume of around 100 % of nominal capacity led to losses in the double-digit million euro range. The price-sensitive market environment continues to be determined by cheap imports from China and Brazil. Again in 2024, however, PCC also sold major quantities of silicon metal to German customers in the chemical industry. Due to the lack of harmonization of tariff policies between the European Union and EFTA states such as Iceland and Norway, these markets are unfortunately exposed to tariff-free imports from China, which in some cases leads to prices below manufacturing cost. The PCC Group expects greater political support in this area and has initiated or is supporting various measures with the Icelandic government and the European Commission.
The segment made a loss of € – 33.0 million in terms of earnings before interest, taxes, depreciation and amortization (EBITDA). This corresponds to an improvement in earnings of € 9.7 million or 22.7 % compared to the previous year (€ – 42.7 million). Despite this improvement in earnings, we are not satisfied with the overall development in this business area.
Selling prices in Europe continued to decline over the course of 2024. Due to insufficient water reserves in Iceland, the national electricity supplier reduced the power supply at the end of the fourth quarter to such an extent that we had to cut production capacity again and switch the plant to single-furnace operations. We maintained the reduced production capacity into the first quarter of the 2025 fiscal year. If the economic situation improves, we can ramp up the plant to full capacity at short notice, which is currently planned for May 2025. However, if the situation does not improve or even deteriorates, we are not ruling out a shutdown scenario.
The ongoing economic situation of the silicon metal plant is strained due to the developments mentioned above and also cited in the PCC quarterly reports. Various scenarios for the further development of business operations are being examined. At present, a temporary plant shutdown cannot be ruled out. Together with a team of external and internal experts, we are continuing to work on improving productivity. In addition to measures to reduce costs, this also includes a sustainable and continuous increase in the efficiency of furnace operations. Only if it is ensured that the price situation in Europe is decoupled from that in China – where silicon metal is produced under far lower social and environmental standards – will it be possible to operate our plant successfully in the long term.
The quartzite quarry in Zag.rze, Poland, not only supplies quartzite to Iceland, but also to ferroalloy manufacturers and aluminum smelters in Eastern Europe.
We also continue to sell quartzite as ballast for the construction of roads and railroad lines. The fiscal year was a successful one for the quarry, mainly due to high capacity utilization and increased quantities of quartzite for silicon production in Iceland, as well as rising prices. Sales were around 22 % higher than in the previous year. The site also achieved an improvement in EBITDA compared to the previous year.
Overall, the Silicon & Derivatives segment generated sales of € 85.0 million in the past fiscal year, 18.1 % more than in the previous year (€ 72.0 million). The share of Group sales rose by 1.7 percentage points to 8.9 %. The number of employees increased to 226 (previous year: 207).
The segment’s main revenue driver is the silicon metal plant in H.sav.k, Iceland, with a nominal annual capacity of 36,000 metric tons. After the plant had only produced at half capacity in the previous year due to the difficult market situation, we increased operations to two furnaces again in fiscal 2024, thus returning to 100 % capacity. Raw material and logistics prices were significantly lower in the reporting year than in the previous year, which led to a reduction in production costs. However, external factors such as electricity shortages in the second and fourth quarters, quality problems with raw materials and interruptions to furnace operations at a production volume of around 100 % of nominal capacity led to losses in the double-digit million euro range. The price-sensitive market environment continues to be determined by cheap imports from China and Brazil. Again in 2024, however, PCC also sold major quantities of silicon metal to German customers in the chemical industry. Due to the lack of harmonization of tariff policies between the European Union and EFTA states such as Iceland and Norway, these markets are unfortunately exposed to tariff-free imports from China, which in some cases leads to prices below manufacturing cost. The PCC Group expects greater political support in this area and has initiated or is supporting various measures with the Icelandic government and the European Commission.
The segment made a loss of € – 33.0 million in terms of earnings before interest, taxes, depreciation and amortization (EBITDA). This corresponds to an improvement in earnings of € 9.7 million or 22.7 % compared to the previous year (€ – 42.7 million). Despite this improvement in earnings, we are not satisfied with the overall development in this business area.
Selling prices in Europe continued to decline over the course of 2024. Due to insufficient water reserves in Iceland, the national electricity supplier reduced the power supply at the end of the fourth quarter to such an extent that we had to cut production capacity again and switch the plant to single-furnace operations. We maintained the reduced production capacity into the first quarter of the 2025 fiscal year. If the economic situation improves, we can ramp up the plant to full capacity at short notice, which is currently planned for May 2025. However, if the situation does not improve or even deteriorates, we are not ruling out a shutdown scenario.
The ongoing economic situation of the silicon metal plant is strained due to the developments mentioned above and also cited in the PCC quarterly reports. Various scenarios for the further development of business operations are being examined. At present, a temporary plant shutdown cannot be ruled out. Together with a team of external and internal experts, we are continuing to work on improving productivity. In addition to measures to reduce costs, this also includes a sustainable and continuous increase in the efficiency of furnace operations. Only if it is ensured that the price situation in Europe is decoupled from that in China – where silicon metal is produced under far lower social and environmental standards – will it be possible to operate our plant successfully in the long term.
The quartzite quarry in Zag.rze, Poland, not only supplies quartzite to Iceland, but also to ferroalloy manufacturers and aluminum smelters in Eastern Europe.
We also continue to sell quartzite as ballast for the construction of roads and railroad lines. The fiscal year was a successful one for the quarry, mainly due to high capacity utilization and increased quantities of quartzite for silicon production in Iceland, as well as rising prices. Sales were around 22 % higher than in the previous year. The site also achieved an improvement in EBITDA compared to the previous year.
Key facts and figures for the
Silicon & Derivatives segment 2024
Silicon & Derivatives segment 2024
G_L_07
Trading & Services
The PCC Group can draw on expertise in the trading of petro- and carbon-derived commodities spanning more than three decades. The trading portfolio includes basic chemical feedstocks as well as coking plant by-products, particularly crude benzene. PCC likewise trades to a lesser extent in solid fuels such as coke breeze, small coke and anthracite in small nut sizes. This segment also supports Group companies in the procurement of primary products and raw materials, and includes sales organizations in selected regions. The Conventional Energies business, which primarily supplies the Group’s own plants in Poland with process steam and electricity, is also managed in this segment, as are a large number of other internal services in the areas of information technology, infrastructure, analytics, maintenance and repair, and waste disposal.
The Trading & Services segment comprises the two business units Commodity Trading and Services. It works predominantly out of Germany, Poland and the Czech Republic. The segment also manages sales organizations in Türkiye and Italy.
Overall, the Trading & Services segment generated sales of € 103.8 million in the past fiscal year, down 11.8 % on the previous year (€ 117.6 million). Its share of total consolidated sales decreased by one percentage point to 10.8 %. The segment’s payroll amounted to 1,023 employees on the reporting date (previous year: 1,061). The activities in the Services business unit in particular are very personnel-intensive.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the Trading & Services segment amounted to € 12.1 million, an increase of € 1.7 million or 16.4 % compared to the previous year.
The largest revenue driver in the segment is the commodity trading business operated from Germany. Volume sales and revenue declined here in 2024. However, excluding the impact of exceptional items from the 2023 fiscal year, the German commodity trading business achieved an increase in earnings before interest, taxes, depreciation and amortization (EBITDA), with the absence of the derecognition and impairment of loan and interest receivables in the mid-single-digit million euro range that occurred in the previous year significantly boosting the earnings result. The commodity trading business in the Czech market was at a low level and operated at a slight loss due to the prevailing economic situation. The commodity trading business serving the Turkish market distributes products primarily from PCC’s chemical-producing segments. Although the results from these activities ended the past fiscal year slightly down on the previous year, the trading margins achieved nevertheless yielded a profit. The trading business for the Italian market was not opened until mid-2024 and therefore played no more than a subordinate role this time around.
The business responsible for regional commercial energy supply in Poland, which is also managed in this segment, had a successful fiscal year, benefiting in particular from the advent of new local customers and correspondingly higher sales volumes. This resulted in a 7.5 % increase in sales and significant earnings growth at all levels.
Overall, the Trading & Services segment generated sales of € 103.8 million in the past fiscal year, down 11.8 % on the previous year (€ 117.6 million). Its share of total consolidated sales decreased by one percentage point to 10.8 %. The segment’s payroll amounted to 1,023 employees on the reporting date (previous year: 1,061). The activities in the Services business unit in particular are very personnel-intensive.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the Trading & Services segment amounted to € 12.1 million, an increase of € 1.7 million or 16.4 % compared to the previous year.
The largest revenue driver in the segment is the commodity trading business operated from Germany. Volume sales and revenue declined here in 2024. However, excluding the impact of exceptional items from the 2023 fiscal year, the German commodity trading business achieved an increase in earnings before interest, taxes, depreciation and amortization (EBITDA), with the absence of the derecognition and impairment of loan and interest receivables in the mid-single-digit million euro range that occurred in the previous year significantly boosting the earnings result. The commodity trading business in the Czech market was at a low level and operated at a slight loss due to the prevailing economic situation. The commodity trading business serving the Turkish market distributes products primarily from PCC’s chemical-producing segments. Although the results from these activities ended the past fiscal year slightly down on the previous year, the trading margins achieved nevertheless yielded a profit. The trading business for the Italian market was not opened until mid-2024 and therefore played no more than a subordinate role this time around.
The business responsible for regional commercial energy supply in Poland, which is also managed in this segment, had a successful fiscal year, benefiting in particular from the advent of new local customers and correspondingly higher sales volumes. This resulted in a 7.5 % increase in sales and significant earnings growth at all levels.
Key facts and figures for the
Trading & Services segment 2024
Trading & Services segment 2024
G_L_08
Logistics
The Logistics segment comprises the Intermodal Transport
and Road Haulage business units. PCC is the leading provider
of container transport services in Poland. Based on several
wholly-owned container terminals in Poland and Germany,
PCC’s Logistics network extends from Eastern Europe to the
Benelux countries and via Northern Italy to Greece and Türkiye.
The PCC Group’s tanker fleet specializes in the Europe-wide
road haulage of liquid chemicals.
Sales in the Logistics segment amounted to € 154.6 million in 2024,
up 21.0 % on the previous year (€ 127.7 million). This represents the
largest increase of any segment in the PCC Group. The share of
Group sales rose by 3.2 percentage points to 16.1 %. The number
of employees increased to 652 as of the reporting date (previous
year: 644).
The Logistics segment is dominated by the Intermodal Transport business unit, whose portfolio includes regular combined transport services both within Poland and on international routes with departure points in Rotterdam, Hamburg and Duisburg, among others. Since 2023, we have also been increasingly providing transportation services from the Polish ports to the Ukrainian border and vice versa. We have likewise expanded our offering to include regular container block train services between the PCC terminal in Gliwice, Poland, and Padua, northern Italy. From there, there are various domestic connections within Italy, as well as routes to Greece and Türkiye via Bari. These new routes should contribute to further growth in this business segment.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by € 6.7 million or 35.1 % to € 25.8 million. The main reason for this positive development is the increased operating rate of the train services.
However, the environment for intermodal container transportation remained challenging. The key trading conditions did not improve in 2024, with negative factors including the weakening economy in Europe, high cost pressure, and fierce competition from road transportation. The infrastructure in Poland and Germany, which is in need of modernization, and disproportionately long handling times at seaports and borders, posed additional difficulties. Sometimes chaotic conditions at the Polish-Ukrainian border repeatedly led to delays in the transportation of Ukrainian goods to Polish seaports and also for deliveries in the opposite direction.
Despite these challenges, the Intermodal Transport business unit closed the past fiscal year up on the previous year and thus, for the first time, was able to reap the rewards of the investments made in infrastructure and rolling stock in previous years. In particular, investments in further locomotives and additional platforms for container trailers enabled us to react more flexibly to changes in the market and to plan transportation accordingly, allowing us to mitigate the aforementioned headwinds. Utilization and thus the operating rates of the terminals and train services increased by a double-digit percentage. This business unit thus returned to the earnings level of the record year of 2022. We also took over the market leadership in intermodal transport in Poland in 2024, based on data from the Polish Rail Transport Office. According to these figures, we were the largest Polish provider of combined container transport by rail and road, accounting for 19.6 % of freight revenues and 17.4 % of transported freight weight.
The construction of further terminals should support this development in the long term. We therefore pressed ahead with a corresponding project south of the Polish seaports of Gdynia and Gdańsk in 2024. We are currently planning to obtain further approvals and initial subsidy commitments in the course of the current fiscal year 2025. We are also examining a terminal project on the Ukrainian-Polish border. Additional growth has likewise resulted from the expansion of our intermodal activities in Germany. At the beginning of 2024, PCC received the safety certificate required for the operation of a rail undertaking (RU), which is required under the General Railway Act (AEG) for the operation of such an RU on higher-level networks. On this basis, we can now provide transport services with our own locomotives, which will further strengthen our overall competitiveness. We put the first two locomotives into operation at the
beginning of 2024.
The Road Haulage business unit once again recorded positive business development against the background of unfavorable geopolitical and economic influences. However, competition for qualified drivers, the effects of the Russia-Ukraine war and the weakening economy in Germany pushed sales growth in this business into the low single-digit percentage range. In addition, there was cost pressure, mainly from increased personnel expenses, contractor charges and expenses arising from external service contracts. A slight decrease in fuel costs and improved fuel efficiency were not enough to fully compensate for these factors, meaning that earnings before interest, taxes, depreciation and amortization were slightly lower than in the previous year.
The Logistics segment is dominated by the Intermodal Transport business unit, whose portfolio includes regular combined transport services both within Poland and on international routes with departure points in Rotterdam, Hamburg and Duisburg, among others. Since 2023, we have also been increasingly providing transportation services from the Polish ports to the Ukrainian border and vice versa. We have likewise expanded our offering to include regular container block train services between the PCC terminal in Gliwice, Poland, and Padua, northern Italy. From there, there are various domestic connections within Italy, as well as routes to Greece and Türkiye via Bari. These new routes should contribute to further growth in this business segment.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by € 6.7 million or 35.1 % to € 25.8 million. The main reason for this positive development is the increased operating rate of the train services.
However, the environment for intermodal container transportation remained challenging. The key trading conditions did not improve in 2024, with negative factors including the weakening economy in Europe, high cost pressure, and fierce competition from road transportation. The infrastructure in Poland and Germany, which is in need of modernization, and disproportionately long handling times at seaports and borders, posed additional difficulties. Sometimes chaotic conditions at the Polish-Ukrainian border repeatedly led to delays in the transportation of Ukrainian goods to Polish seaports and also for deliveries in the opposite direction.
Despite these challenges, the Intermodal Transport business unit closed the past fiscal year up on the previous year and thus, for the first time, was able to reap the rewards of the investments made in infrastructure and rolling stock in previous years. In particular, investments in further locomotives and additional platforms for container trailers enabled us to react more flexibly to changes in the market and to plan transportation accordingly, allowing us to mitigate the aforementioned headwinds. Utilization and thus the operating rates of the terminals and train services increased by a double-digit percentage. This business unit thus returned to the earnings level of the record year of 2022. We also took over the market leadership in intermodal transport in Poland in 2024, based on data from the Polish Rail Transport Office. According to these figures, we were the largest Polish provider of combined container transport by rail and road, accounting for 19.6 % of freight revenues and 17.4 % of transported freight weight.
The construction of further terminals should support this development in the long term. We therefore pressed ahead with a corresponding project south of the Polish seaports of Gdynia and Gdańsk in 2024. We are currently planning to obtain further approvals and initial subsidy commitments in the course of the current fiscal year 2025. We are also examining a terminal project on the Ukrainian-Polish border. Additional growth has likewise resulted from the expansion of our intermodal activities in Germany. At the beginning of 2024, PCC received the safety certificate required for the operation of a rail undertaking (RU), which is required under the General Railway Act (AEG) for the operation of such an RU on higher-level networks. On this basis, we can now provide transport services with our own locomotives, which will further strengthen our overall competitiveness. We put the first two locomotives into operation at the
beginning of 2024.
The Road Haulage business unit once again recorded positive business development against the background of unfavorable geopolitical and economic influences. However, competition for qualified drivers, the effects of the Russia-Ukraine war and the weakening economy in Germany pushed sales growth in this business into the low single-digit percentage range. In addition, there was cost pressure, mainly from increased personnel expenses, contractor charges and expenses arising from external service contracts. A slight decrease in fuel costs and improved fuel efficiency were not enough to fully compensate for these factors, meaning that earnings before interest, taxes, depreciation and amortization were slightly lower than in the previous year.
Key facts and figures of the
Logistics segment 2024
Logistics segment 2024
G_L_09
Holding & Projects
The Holding & Projects segment manages projects of the
PCC Group aligned to the future – for example, the construction
of the new oxyalkylates production plant in Malaysia,
which we are operating together with our joint venture partner
PETRONAS Chemicals Group Berhad (PCG); a further oxyalkylates
plant in the USA is in the planning phase. We are also
planning a chlor-alkali plant in the USA in this segment, and
we have established a German start-up for the development
of an innovative composite material made from nano-silicon
powder to improve the performance of lithium-ion batteries.
powder to improve the performance of lithium-ion batteries.
The Holding & Projects segment is divided into the business units
Portfolio Management and Project Development. In addition to the
Group parent company PCC SE, this segment also includes further
intermediate holding and project companies. These operations are
managed from the Group headquarters in Duisburg and in some
cases have their own organizations in markets such as Malaysia and
the USA.
The Holding & Projects segment generated sales of € 2.5 million in the past fiscal year, € 0.6 million less than in the previous year. The share of Group sales remained unchanged from the previous year at 0.3 %.
The segment generated earnings before interest, taxes, depreciation and amortization (EBITDA) of € – 13.0 million (previous year: € – 8.5 million). The number of employees in the segment at the end of the fiscal year rose to 110 (previous year: 90).
The Holding & Projects segment includes two project companies that are accounted for in the consolidated financial statements of the PCC Group using the equity method: the joint venture OOO DME Aerosol, Pervomaysky (Russia), and the joint venture PCG PCC Oxyalkylates Sdn. Bhd., Kuala Lumpur (Malaysia). The latter operates an oxyalkylates plant (special non-ionic surfactants and polyether polyols for a wide range of industrial applications), which commenced commercial production in summer 2024 and whose capacity utilization we have been continuously ramping up ever since. The annual capacity is some 70,000 metric tons. Commissioning was completed on schedule and within budget. The joint venture partner is PCG, one of Southeast Asia’s leading chemical groups. Unfortunately, the general weakness of the global economy and the current decline in demand mean that this plant will not be able to reach full capacity as quickly as originally planned. In addition, there is also competition in Asia, primarily from Chinese exports. In the future, PCG PCC Oxyalkylates Sdn. Bhd. will contribute to further growth in our core segments of Polyols & Derivatives and Surfactants & Derivatives with its oxyalkylates production.
We plan to continue the expansion of the core business units of the PCC Group into high-growth regions across all segments. Similar expansion plans to those in Asia therefore also exist in the highgrowth US market. In the case of our current oxyalkylates project in the USA, we continued our on-site review following the signing of a long-term but terminable lease agreement in 2023.
However, we shifted significant resources to a second project in the USA, the planning of a chlor-alkali plant in Mississippi on the US Gulf Coast. In December 2024, PCC signed a long-term offtake agreement for this project. The plant is designed for a nominal capacity of 340,000 metric tons per year and is expected to create around 85 new jobs at the site. Together with the future customer and local municipal and state representatives, PCC negotiated a substantial package of investment incentives with tax breaks.
Since the sanctions imposed by the European Union, among others, following the outbreak of the Russian war of aggression against Ukraine in 2023 came into force, the joint venture OOO DME Aerosol, which operates a plant for the production of dimethyl ether (DME) in the Russian region of Tula, has only been selling its products to countries in which the purchase and import of DME from Russia are not sanctioned. The joint venture was able to maintain continuous plant operations and generated a positive cash flow. The local company was therefore able to make regular loan repayments to PCC SE throughout fiscal 2024.
Within the Renewable Energies business, which we manage within the Project Development business unit, a total of five small hydropower plants in North Macedonia and one in Bosnia and Herzegovina were in operation in 2024. Permits are still pending for three further sites in Bosnia and Herzegovina and there is still no sign of a conclusion to this lengthy process, even after recent legal rulings in the country. Nevertheless, the six operating affiliates continued to generate relatively stable cash flows in 2024. In view of the general increase in energy demand and the current climate protection initiatives, we expect increasing flexibility in the potential utilization of
these assets in the future.
Fiscal 2024 saw PCC continue its collaboration with the Fraunhofer Institute for Solar Energy Systems ISE and the universities in Freiburg and Duisburg to develop an innovative material made from nanosilicon powder based on our silicon metal from Iceland. Serving as an anode alloy, the material is used to increase the performance of lithium-ion batteries. To further support the project, PCC acquired a further development for full utilization and commercialization in the fourth quarter of 2024. This will enable broader commercialization of the battery solutions. The EU Commission has now classified the battery materials project as a strategic raw materials project in the EU. The benefits associated with this classification include easier access to funding and financing, as well as significantly accelerated approval processes. Assuming successful project implementation, the undertaking could extend the value chain in our Silicon & Derivatives segment and significantly increase its profitability.
A further investment is currently being realized at the Brzeg Dolny site. The PCC Group is building new production facilities for oxyalkylates there, enabling us to further expand our production capacities for specialty polyols and specialty surfactants. Completion of the first construction phase is scheduled for summer 2026.
the USA.
The Holding & Projects segment generated sales of € 2.5 million in the past fiscal year, € 0.6 million less than in the previous year. The share of Group sales remained unchanged from the previous year at 0.3 %.
The segment generated earnings before interest, taxes, depreciation and amortization (EBITDA) of € – 13.0 million (previous year: € – 8.5 million). The number of employees in the segment at the end of the fiscal year rose to 110 (previous year: 90).
The Holding & Projects segment includes two project companies that are accounted for in the consolidated financial statements of the PCC Group using the equity method: the joint venture OOO DME Aerosol, Pervomaysky (Russia), and the joint venture PCG PCC Oxyalkylates Sdn. Bhd., Kuala Lumpur (Malaysia). The latter operates an oxyalkylates plant (special non-ionic surfactants and polyether polyols for a wide range of industrial applications), which commenced commercial production in summer 2024 and whose capacity utilization we have been continuously ramping up ever since. The annual capacity is some 70,000 metric tons. Commissioning was completed on schedule and within budget. The joint venture partner is PCG, one of Southeast Asia’s leading chemical groups. Unfortunately, the general weakness of the global economy and the current decline in demand mean that this plant will not be able to reach full capacity as quickly as originally planned. In addition, there is also competition in Asia, primarily from Chinese exports. In the future, PCG PCC Oxyalkylates Sdn. Bhd. will contribute to further growth in our core segments of Polyols & Derivatives and Surfactants & Derivatives with its oxyalkylates production.
We plan to continue the expansion of the core business units of the PCC Group into high-growth regions across all segments. Similar expansion plans to those in Asia therefore also exist in the highgrowth US market. In the case of our current oxyalkylates project in the USA, we continued our on-site review following the signing of a long-term but terminable lease agreement in 2023.
However, we shifted significant resources to a second project in the USA, the planning of a chlor-alkali plant in Mississippi on the US Gulf Coast. In December 2024, PCC signed a long-term offtake agreement for this project. The plant is designed for a nominal capacity of 340,000 metric tons per year and is expected to create around 85 new jobs at the site. Together with the future customer and local municipal and state representatives, PCC negotiated a substantial package of investment incentives with tax breaks.
Since the sanctions imposed by the European Union, among others, following the outbreak of the Russian war of aggression against Ukraine in 2023 came into force, the joint venture OOO DME Aerosol, which operates a plant for the production of dimethyl ether (DME) in the Russian region of Tula, has only been selling its products to countries in which the purchase and import of DME from Russia are not sanctioned. The joint venture was able to maintain continuous plant operations and generated a positive cash flow. The local company was therefore able to make regular loan repayments to PCC SE throughout fiscal 2024.
Within the Renewable Energies business, which we manage within the Project Development business unit, a total of five small hydropower plants in North Macedonia and one in Bosnia and Herzegovina were in operation in 2024. Permits are still pending for three further sites in Bosnia and Herzegovina and there is still no sign of a conclusion to this lengthy process, even after recent legal rulings in the country. Nevertheless, the six operating affiliates continued to generate relatively stable cash flows in 2024. In view of the general increase in energy demand and the current climate protection initiatives, we expect increasing flexibility in the potential utilization of
these assets in the future.
Fiscal 2024 saw PCC continue its collaboration with the Fraunhofer Institute for Solar Energy Systems ISE and the universities in Freiburg and Duisburg to develop an innovative material made from nanosilicon powder based on our silicon metal from Iceland. Serving as an anode alloy, the material is used to increase the performance of lithium-ion batteries. To further support the project, PCC acquired a further development for full utilization and commercialization in the fourth quarter of 2024. This will enable broader commercialization of the battery solutions. The EU Commission has now classified the battery materials project as a strategic raw materials project in the EU. The benefits associated with this classification include easier access to funding and financing, as well as significantly accelerated approval processes. Assuming successful project implementation, the undertaking could extend the value chain in our Silicon & Derivatives segment and significantly increase its profitability.
A further investment is currently being realized at the Brzeg Dolny site. The PCC Group is building new production facilities for oxyalkylates there, enabling us to further expand our production capacities for specialty polyols and specialty surfactants. Completion of the first construction phase is scheduled for summer 2026.
Key facts and figures for the
Holding & Projects segment 2024
Holding & Projects segment 2024
G_L_10
