Overseas acquisition leads to rising revenues

Ascend Performance Materials made its first overseas acquisition in 2018 and continued investing in anti-static fibers, helping boost the manufacturer’s revenues by 24 percent and its employee count by 100 people.

As the world’s largest manufacturer of the nylon 66 polymer, Ascend Performance Materials ranked

fifth on Houston’s list of top private companies based on revenues. Ascend Performance Materials reported $2.6 billion in 2018 revenues and 2,600 total employees (732 are in the Houston area). That’s up from $2.1 billion and 2,500 total employees reported in 2017.

About 60 percent of its business comes from manufacturing the nylon 66 polymer, an engineered thermoplastic that’s in items consumers use frequently and items they hope to never use. The first category includes cable zip ties. The second includes vehicle air bags.

“Those two businesses are both growing businesses,” said President and CEO Phillip McDivitt.

Cable zip ties are growing alongside the use of electronics. Cars have more electrical components than ever, and auto manufacturers need zip ties to organize those wires. Similarly, new overseas regulations are requiring auto manufacturers to add airbags to their vehicles.

The company is bringing some of its polymer operations closer to European customers with last year’s acquisition of Netherlandsbased Britannia Techno Polymer. McDivitt said this facility is primarily used as a compounding site. Nylon 66 is manufactured with additives such as glass to create a plastic pellet that is stronger or can withstand higher temperatures, based on customers’ needs.

Ascend Performance Materials has also expanded operations at its facilities across the U.S., including Chocolate Bayou south of Houston where it creates acrylonitrile, a raw material for nylon 66, and other specialty chemicals.

It began diversifying into specialty chemicals about four years ago, and this now makes up roughly 40 percent of the 10-year-old company’s business.

Its next diversification push includes investing in new forms of technology in engineered thermoplastics and fibers, such as an antistatic fiber that is woven into curtains and clothing. This fiber helps prevent dust or animal hair from clinging to the fabric. McDivitt said it could be found in popular brands and department stores such as Kohl’s within the next year.

“What we’re trying to do is develop products that actually make individual consumers’ lives better,” he said.