- Cost Competitiveness Benchmarking for LAB and n-Paraffins
Challenge: A company that had successfully launched an n-Paraffin and Linear Alkyl Benzene (LAB) plant reached 100 percent of utilization levels. The client wanted to assess its position relative to major competitors in its target markets and identify new market opportunities.
Solution: Chemical performed a cost-competitive benchmarking evaluation as well as a market update.
Results: The client received a study that evaluated cash costs and full costs based on each LAB producer’s regional economics, integrated or non-integrated position and scale, with a focus on the impact of feedstock costs. The study included analysis of the impact of GTL paraffins on the LAB plant’s cost structure.
- North American Ethylene and Derivatives Industry Analysis
Challenge: A client wanted an analysis of the long-term evolution of the North American ethylene industry.
Solution: Chemical performed an ethylene cost curve and scenario analysis to assess the competitive position of individual producer plants and to indicate advantageous and disadvantageous production costs under various economic and energy scenarios.
Results: The study compared the apparent portfolio strategies of the major producers of ethylene glycol (MEG), ethylene oxide (EO) and EO derivatives, including MEG, ethanolamines, glycol ethers and surfactants. The study summarized the apparent producer strategies, as well as offered a qualitative assessment of the potential costs and benefits of selecting one strategy over another.
- Chlor-Alkali Feasibility Study
Challenge: Chemical was asked to review the feasibility of a proposed new chlor-alkali complex in the Kingdom of Saudi Arabia.
Solution: We conducted a study that included a project description, project structure, feedstock requirements, product market analysis, technology assessment, capital investment requirements, operating and fixed costs and economic analysis.
Results: Chemical provided ongoing updates and support during discussions with lenders, as well as conclusions and recommendations as to the marketability and pricing of the products, the likely ability of the proposed complex and the economic feasibility of the overall project.
- Company Benchmarking & Polypropylene Market Analysis
Challenge: A major North American polypropylene buyer engaged Chemical to assess its current procurement methodology and develop more desirable practices and supplier relationships.
Solution: We conducted a polypropylene study for the purpose of preparing senior executives for high-level discussions with their supplier base. The study incorporated the following scope of work items: assessment of resin procurement processes compared and contrasted to other resin procurement organizations, general current polypropylene resin market conditions, benchmarking and best practices of commercial terms, pricing, and rebate structure that other resin buyers have with suppliers in their market space and current volume demand and its percentage of their suppliers’ capacity. We also conducted interviews with PP suppliers and users in three major regions.
Results: Chemical provided a high-level procurement plan that identified areas of improvement and normalization in order to assist the client in presenting a more competitive and global front for its suppliers and other market participants.
- Plant-Siting Opportunities for a New Phenolic Resins Plant in China
Challenge: Chemical aided one of the world's leading developers and manufacturers of chemical intermediates in locating a long-term, strategically advantaged plant site to expand its phenolic resin business in China.
Solution: Our analysis of optimal candidate sites included identifying established chemical parks with substantial standing investment in the targeted regions with 50,000 square meters of available land and identifying merchant phenol, formaldehyde, methanol and isobutylene suppliers and proximity to target sites.
Results: We provided a full report with an executive summary containing our opinion on the suitability of potential candidate sites relative to the criteria outlined in the scope, as well as documentation pertaining to the site identification and data gathering.
- Supply and Demand Analysis and Large Buyer Identification for Selected Products
Challenge: Chemical aided a major consumer product client with a market overview for selected feedstocks and polymers as well as identification of major plastics resin purchasers in certain categories and geographies.
Solution: Our overview included global PET, PET feedstocks (PTA and MEG) and olefins (Ethylene and Propylene) supply and demand, both globally and by a specific geographic regional breakdown defined by the client.
Results: The client received a customized analysis that included identification of both existing capacity, future planned capacity, demand, net imports and exports and operating rates for the regions, as detailed by the client along with the identification of the top five global and North American buyers of plastics resins.