Synalloy’s adjusted EBITDA jumps 12% as “BioBased project” tolling volumes ramp up

In South Carolina, Synalloy Corporation reported strong growth in earnings as “Pounds shipped” in its speciality chemicals unit during Q2 and 1H 2015 increased 16% and 12%, as business ramped up for the BioBased project. Last year, the company unveiled a three-year tolling agreement to produce the bio-based product line Agrol for its new customer, BioBased Technologies® LLC.   

Arkansas-based BioBased Technologies incorporates bio-based polyols into the manufacture of products. Polyols are the building blocks for polyurethane foams and are used in end market applications including automotive seats, carpet backing, furniture and adhesives. Agrol polyols are derived from soy, cashew nuts and castor oil and include many USDA Certified BioBased Products for environmentally conscious customers looking to reduce their impact on the environment.

As part of the tolling agreement, BioBased Technologies agreed to pay for capital improvements required to support the project, and production started at the beginning of 2015. Initial annual volume is over six million pounds, with growth potential.