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The wood-derived chemical maker Ingevity has agreed to pay $100 million to get out of a long-term supply contract with the forestry product company Georgia-Pacific. Ingevity no longer has to purchase Georgia-Pacific’s supply of crude tall oil, a by-product of pulp and paper processing that is rich in fatty acids and other hydrocarbons. According to documents filed with the US Securities and Exchange Commission, the contract would have otherwise run until 2038. In November of last year, Ingevity closed its pine chemical plant in DeRidder, Louisiana, which converted crude tall oil into adhesives, rosins, and other commodity chemicals. In the filing, Ingevity says it is turning its focus toward specialty chemicals and may take other steps to that end this year.
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