Ladies and Gentlemen,
The year 2024 once again posed significant challenges for the global economy, especially for European industries such as the chemical sector. The ongoing war in Ukraine, persistently high labor, energy, and raw material costs, extensive regulatory burdens, and strained economic conditions in our markets all impacted our business activities. In addition, we are – without sufficient protection – facing increasingly unfair and, in some cases, ruinous competition from imports originating from countries like China – imports produced under far lower standards for in respect of social responsibility, occupational health and safety, human rights, environmental protection, and climate policy. Europe cannot continue to allow such imbalances to continue unchecked. It is essential to counter these practices without compromising our own values and standards. The European industry, which in many respects operates as a model of responsible conduct, must be protected through well-crafted regulations – and PCC is actively advocating for such measures at key decision-making levels.
Because progress on this front takes time, the PCC Group continued to grapple with difficult external influences in 2024. Reflecting broader industrial and market trends, the PCC Group posted revenues in the fiscal year under review of 960.0 million euros – slightly below the prior-year figure – and EBITDA of 88.0 million euros.
These external pressures prompted us to take further steps to sustainably strengthen the resilience of our product portfolio and operations. Our strategy remains focused on innovation, cost efficiency, and growth in our core markets in Europe (with a strong focus on Poland) and in the United States.
The year 2024 once again posed significant challenges for the global economy, especially for European industries such as the chemical sector. The ongoing war in Ukraine, persistently high labor, energy, and raw material costs, extensive regulatory burdens, and strained economic conditions in our markets all impacted our business activities. In addition, we are – without sufficient protection – facing increasingly unfair and, in some cases, ruinous competition from imports originating from countries like China – imports produced under far lower standards for in respect of social responsibility, occupational health and safety, human rights, environmental protection, and climate policy. Europe cannot continue to allow such imbalances to continue unchecked. It is essential to counter these practices without compromising our own values and standards. The European industry, which in many respects operates as a model of responsible conduct, must be protected through well-crafted regulations – and PCC is actively advocating for such measures at key decision-making levels.
Because progress on this front takes time, the PCC Group continued to grapple with difficult external influences in 2024. Reflecting broader industrial and market trends, the PCC Group posted revenues in the fiscal year under review of 960.0 million euros – slightly below the prior-year figure – and EBITDA of 88.0 million euros.
These external pressures prompted us to take further steps to sustainably strengthen the resilience of our product portfolio and operations. Our strategy remains focused on innovation, cost efficiency, and growth in our core markets in Europe (with a strong focus on Poland) and in the United States.
The container terminal
in Brzeg Dolny operated
by PCC Intermodal S.A.,
the Polish market leader
in combined road / rail transportation.
Driving forward our
expansion in the USA, we
are planning to build
a chlor-alkali production
facility at the site of
our partner Chemours in
DeLisle, Mississippi.
A key milestone in this effort was the signing in December 2024 of major agreements
for our chlor-alkali project in Mississippi, USA, by our local project company. For a
planned twenty-year production period, we secured a competitive long-term
electricity supply with, and significant sales volumes of our main product, chlorine,
to our project partner, Chemours. We are also benefiting from state and local tax
incentives in Mississippi and Harrison County, and have signed a comprehensive
contract package with one of the world’s largest engineering firms for the project’s
design and potential execution. This investment would give us access to an attractive
market with a world-scale project that we envision as the nucleus of further expansion
for our core business in North America. By securing this production site on the
US Gulf Coast and expanding our local sales activities, we are moving closer to our
goal of delivering top-quality products and outstanding service to our global business
partners in the world’s key markets.
Our forward-looking approach is also reflected in the continued high level of capital expenditure in fiscal 2024, which totaled 126.5 million euros. Our leading subsidiaries, PCC Rokita SA and PCC Exol SA, played a major role with the expansion of polyol and ethoxylate production capacities – enhancing their competitiveness through greater economies of scale. Even before these new facilities go into operation, we are proud of the strong performance of these affiliates, whose technical expertise and capacity for innovation continue to deliver added value and strengthen customer loyalty.
Our silicon production facility in Iceland, however, remains heavily impacted by adverse market and regulatory forces. In response, we have initiated a comprehensive restructuring program with the support of internal and external specialists. To achieve sustained profitability, the market price for silicon must decouple from Chinese dumping levels and be realigned with fair pricing in Europe. In 2025, the local Icelandic subsidiary will continue to require financial support from PCC SE to offset projected losses. A temporary shutdown of operations cannot be ruled out, depending on how market prices develop.
Our forward-looking approach is also reflected in the continued high level of capital expenditure in fiscal 2024, which totaled 126.5 million euros. Our leading subsidiaries, PCC Rokita SA and PCC Exol SA, played a major role with the expansion of polyol and ethoxylate production capacities – enhancing their competitiveness through greater economies of scale. Even before these new facilities go into operation, we are proud of the strong performance of these affiliates, whose technical expertise and capacity for innovation continue to deliver added value and strengthen customer loyalty.
Our silicon production facility in Iceland, however, remains heavily impacted by adverse market and regulatory forces. In response, we have initiated a comprehensive restructuring program with the support of internal and external specialists. To achieve sustained profitability, the market price for silicon must decouple from Chinese dumping levels and be realigned with fair pricing in Europe. In 2025, the local Icelandic subsidiary will continue to require financial support from PCC SE to offset projected losses. A temporary shutdown of operations cannot be ruled out, depending on how market prices develop.
Our new Innovation and
Process Scaling Center of the
PCC Group was co-funded
by the EU.
“Fiscal 2024 witnessed the PCC Group consistently pursuing its innovation strategy, focusing on (…) products with ever-broader application potential.”
Dr. Peter Wenzel
Chairman of the Executive Board of PCC SE
Chairman of the Executive Board of PCC SE
Our joint venture with PETRONAS Chemicals Group in Malaysia is also under intense
pressure due to massive low-cost exports from China into Southeast Asia. To address
this in a structured and efficient manner, we have implemented a company-wide
program here, too, that includes initiatives to reduce costs and boost sales.
Against this backdrop, we are all the more pleased to report on our successful research and development efforts, which are key drivers of our future business development. Fiscal 2024 witnessed the PCC Group consistently pursuing its innovation strategy, focusing on high-performance, sustainable products with ever-broader application potential.
In the polyols and polyurethanes area, we introduced improved polyols as the basis for flexible foams used in viscoelastic, cooling, and ventilated mattresses. These innovations are grounded in circular economy principles, incorporating recycled materials – such as post-consumer polyurethane foams – and natural raw materials like soybean and rapeseed oil.
In our phosphorus-based specialty chemicals operations, we scaled up production of anti-wear additives and developed halogen-free flame retardants. We have also tested phosphorus nanoparticles to enhance the performance of lithium-ion batteries, and in the production of ultra-pure phosphorus oxychloride for semiconductor manufacturing.
The PCC Group has also introduced eco-friendly surfactants and biodegradable emulsifiers for personal care applications, and in the construction sector we have developed new additives for engineered timber products, gypsum boards, asphalt mixes and low-emission cements.
The PCC Group’s new Innovation and Process Scaling Center, co-funded by the EU, supports sustainable innovation and is fully equipped for polymer chemistry development, application testing, and advanced analytics. This strengthens our R&D excellence and accelerates commercialization of new technologies.
In battery technology, our startup PCC Thorion GmbH – working with the Fraunhofer Institute for Solar Energy Systems (ISE) and other partners – secured federal German funding to develop a new compound based on nano-silicon powder, aimed at enhancing performance and environmental sustainability in lithium-ion batteries. The European Commission recognized this initiative as one of 47 strategic raw materials projects under the Critical Raw Materials Act. PCC Thorion has established its own research laboratory in Oberhausen, Germany, to drive progress in this field and is currently raising external capital to scale its operations.
PCC Intermodal S.A. achieved excellent results again in 2024 with its environmentally friendly combined road and rail container transportation services. The logistics segment as a whole increased its EBITDA by 35.1 percent. We expanded our services to include full container block trains between Gliwice, Poland, and Padua, northern Italy, and are developing a new terminal south of the seaports of Gdynia and Gdańsk. A particular highlight in 2024 was achieving market leadership in intermodal transport in Poland, with a 19.6 percent share of freight revenue.
At the heart of our company are our employees. Their dedication underpins the continued success of our business. We are proud of our highly motivated and skilled team, whose members give their best each and every day. Retaining PCC’s people long-term, motivating them, and providing opportunities for personal development remain core priorities.
Continuity is also essential at the leadership level. On July 1, 2024, our long-serving and experienced CFO, Riccardo Koppe, was appointed to the Executive Board of PCC SE. At the same time, Ulrike Warnecke transitioned from the Executive Board to our Supervisory Board, where she brings the full weight of her experience and expertise gained since PCC was first established. These leadership changes mark an important step in the ongoing development of our company and the unique spirit that defines us.
At PCC, we believe it is our responsibility to seize the opportunities that arise in our business – agilely and creatively – while adhering to conservative risk management, resource-efficient technologies, and trustworthy, faithful collaboration with all our stakeholders. So I would like, on behalf of the entire Executive Board of PCC SE, to thank you, our highly valued investors and business partners, for the trust and loyalty you have placed in us, and to express my heart-felt gratitude to all our employees for their extraordinary commitment to the common cause at PCC. I very much look forward to our continued shared successes.
Against this backdrop, we are all the more pleased to report on our successful research and development efforts, which are key drivers of our future business development. Fiscal 2024 witnessed the PCC Group consistently pursuing its innovation strategy, focusing on high-performance, sustainable products with ever-broader application potential.
In the polyols and polyurethanes area, we introduced improved polyols as the basis for flexible foams used in viscoelastic, cooling, and ventilated mattresses. These innovations are grounded in circular economy principles, incorporating recycled materials – such as post-consumer polyurethane foams – and natural raw materials like soybean and rapeseed oil.
In our phosphorus-based specialty chemicals operations, we scaled up production of anti-wear additives and developed halogen-free flame retardants. We have also tested phosphorus nanoparticles to enhance the performance of lithium-ion batteries, and in the production of ultra-pure phosphorus oxychloride for semiconductor manufacturing.
The PCC Group has also introduced eco-friendly surfactants and biodegradable emulsifiers for personal care applications, and in the construction sector we have developed new additives for engineered timber products, gypsum boards, asphalt mixes and low-emission cements.
The PCC Group’s new Innovation and Process Scaling Center, co-funded by the EU, supports sustainable innovation and is fully equipped for polymer chemistry development, application testing, and advanced analytics. This strengthens our R&D excellence and accelerates commercialization of new technologies.
In battery technology, our startup PCC Thorion GmbH – working with the Fraunhofer Institute for Solar Energy Systems (ISE) and other partners – secured federal German funding to develop a new compound based on nano-silicon powder, aimed at enhancing performance and environmental sustainability in lithium-ion batteries. The European Commission recognized this initiative as one of 47 strategic raw materials projects under the Critical Raw Materials Act. PCC Thorion has established its own research laboratory in Oberhausen, Germany, to drive progress in this field and is currently raising external capital to scale its operations.
PCC Intermodal S.A. achieved excellent results again in 2024 with its environmentally friendly combined road and rail container transportation services. The logistics segment as a whole increased its EBITDA by 35.1 percent. We expanded our services to include full container block trains between Gliwice, Poland, and Padua, northern Italy, and are developing a new terminal south of the seaports of Gdynia and Gdańsk. A particular highlight in 2024 was achieving market leadership in intermodal transport in Poland, with a 19.6 percent share of freight revenue.
At the heart of our company are our employees. Their dedication underpins the continued success of our business. We are proud of our highly motivated and skilled team, whose members give their best each and every day. Retaining PCC’s people long-term, motivating them, and providing opportunities for personal development remain core priorities.
Continuity is also essential at the leadership level. On July 1, 2024, our long-serving and experienced CFO, Riccardo Koppe, was appointed to the Executive Board of PCC SE. At the same time, Ulrike Warnecke transitioned from the Executive Board to our Supervisory Board, where she brings the full weight of her experience and expertise gained since PCC was first established. These leadership changes mark an important step in the ongoing development of our company and the unique spirit that defines us.
At PCC, we believe it is our responsibility to seize the opportunities that arise in our business – agilely and creatively – while adhering to conservative risk management, resource-efficient technologies, and trustworthy, faithful collaboration with all our stakeholders. So I would like, on behalf of the entire Executive Board of PCC SE, to thank you, our highly valued investors and business partners, for the trust and loyalty you have placed in us, and to express my heart-felt gratitude to all our employees for their extraordinary commitment to the common cause at PCC. I very much look forward to our continued shared successes.
Sincerely,
Peter Wenzel
Chairman of the Executive Board of PCC SE
Peter Wenzel
Chairman of the Executive Board of PCC SE
