AGC Chemicals Europe 2024 Accounts: PFAS Listed as Top Risk, Zero Financial Provision

AGC Chemicals Europe Ltd’s annual accounts for the year ended 31 December 2024 are publicly available on Companies House (company number 03825057). They were filed on 3 September 2025, signed by director N. Mori on 27 August 2025, and audited by MHA (Richard Powell BA FCA) with an unqualified opinion.

The accounts are a matter of public record. Several aspects are relevant to the Hillhouse PFAS investigation.

Financial Summary

The company recorded a net loss of £1.83 million for the year ended 31 December 2024 — a significant deterioration from a profit of £3.55 million in 2023. Turnover fell from £172.9 million to £151.6 million, a decline of approximately 12.3%, which the directors attribute to “Global economic downturn.”

Operating loss was £713,000 (compared to operating profit of £6.5 million in 2023). After interest charges and a loss on disposal of a subsidiary, the pre-tax loss was £1.57 million.

The accounts note that in October 2024, a fire affected the Steam Pyrolysis section of the plant — the part of the site that produces tetrafluoroethylene (TFE), a key precursor in fluoropolymer manufacturing. The fire caused a three-month production outage. An insurance claim is ongoing. The accounts include a going concern note stating that AGC Inc. (the Japanese parent company) has provided a letter of support for at least twelve months from the date of signing.

Capital expenditure in 2024 was £5.2 million — higher than the £4.4 million recorded in 2023.

Employee numbers fell from 221 to 208, with the reduction concentrated in administrative roles.

PFAS as First Principal Risk

The Strategic Report in the 2024 accounts lists the company’s principal risks. Increase in PFAS regulations is listed first — the leading identified risk to the business.

The second stated risk is that capital investment is weighted towards satisfying HSE and environmental requirements — indicating continuing expenditure on regulatory compliance at the site.

Note 24 — Contingent Liabilities

The accounts include a Note 24 on contingent liabilities relating to PFAS. The full text of that note reads:

“AGC Chemicals Europe Ltd manufacture and sell a variety of fluorine-related products.

Per- and polyfluoroalkyl substances (PFAS) are a broad group of chemical compounds containing carbon and fluorine atoms, with an estimated total of around 12,000 different types. Currently, only a small number of these PFAS are regulated under international treaties due to concerns about their potential impact on human health and the environment.

AGC Chemicals Europe Ltd has never manufactured or sold PFOS or PFHxS. Additionally, we voluntarily discontinued the manufacture and sale of PFOA prior to its inclusion in international regulatory frameworks.

Although each PFAS compound has distinct characteristics and properties, recent developments in Europe and certain U.S. states suggest a trend toward regulating PFAS as a single group.

Recognising the essential industrial role of our fluorine-related products, AGC Chemicals Europe Ltd is committed to ensuring that PFAS regulations are appropriately scoped, based on robust scientific evidence, and take into account the specific properties of individual substances. We are actively participating in regulatory discussions, including submitting public comments to European authorities.

While the final scope and content of PFAS regulations remain uncertain, there is a possibility that future regulatory developments could affect AGC Chemicals Europe Ltd’s business performance, depending on the nature and extent of such regulations.”

Note 24 is a narrative contingent liability disclosure. No monetary provision has been made for any PFAS-related cost — whether regulatory, environmental, or arising from civil liability. The note is framed entirely as regulatory business risk. It does not mention EEA-NH4 by name. It does not mention the River Wyre discharge. It does not mention the EA’s investigation into contaminated land at Hillhouse.

Intercompany Balances

The accounts disclose, under related party transactions (Note 29), that at 31 December 2024 the company owed £25.5 million to group undertakings — AGC Inc. and fellow subsidiaries — down from £34.2 million in 2023. The company was owed £10.3 million by group undertakings.

The company’s bank loan (£13 million drawn from a £24 million facility provided by Bank of Tokyo at 0.65% above LIBOR equivalent) is guaranteed by AGC Inc.

The accounts invoke the FRS 102 section 33.7 exemption, meaning that individual intercompany transactions — management fees, royalties, or technology licensing payments — are not individually disclosed, as AGC Inc.’s consolidated accounts are publicly available in Japan.

Summary of Key Facts

The 2024 accounts are accessible to the public via Companies House: https://find-and-update.company-information.service.gov.uk/company/03825057

Sources: AGC Chemicals Europe Ltd, Annual Report and Financial Statements, year ended 31 December 2024. Companies House, company number 03825057. Filed 3 September 2025. Auditor: MHA (Richard Powell BA FCA). Signed: N. Mori, 27 August 2025.