Chemicals Consulting for the Chemical Industry

Chemical Consulting: Strategy and Business Planning

Deep insight and robust analysis, provided by highly credible and experienced consultants, is crucial to effectively evaluate and determine strategies to establish and maintain growth.

Built on IHS Markit reputation for integrity and our extensive industry intellectual capital and proprietary information, our consulting team has developed deep expertise performing business evaluations, to develop and propose strategies that support companies operating at any point across the chemical spectrum. Our strategy team assists clients with major decisions that entail external market and competitive considerations. From pricing, portfolio and procurement assessments, and performance improvement, to determining long term corporate plans; we help organizations formulate strategies that will maximize value.

Combining the unmatched breadth and depth of the information and insight provided in our multi-subscriber databases and reports, with our consultants' first-hand industry experience, we uniquely understand the complex and dynamic chemical industry. IHS Markit is equipped to anticipate the risks and opportunities of strategic choices, and provide critical thinking to support companies to progress their most profitable strategic opportunities.

We can help answer:

How do I pursue a downstream integration strategy?
What are the most prosperous portfolio and product strategies?
How do I successfully expand to a new region or entry a new market segment?
What is the most effective corporate strategy for my company?
What is the impact of megatrends or external shocks on my strategy?
What strategic options do we have for maximizing shareholder value?
What role should inorganic growth play in my strategy?

Our capabilities include:

Corporate strategy development
Portfolio optimization strategy
Market entry strategy
Diversification strategies
Capital investment planning
Price benchmarking and optimization
Procurement benchmarking and strategy
Go-to-market planning
Supply chain design
Performance improvement and business turnaround

Qualifications and Experience

This list is not exhaustive and is intended to serve as an introduction to Chemical Consulting’s breadth of services offered by IHS Markit:

Project Name	Project Description
North American Aspirational Growth Strategy	IHS Markit was retained by a leading advanced materials manufacturer to identify growth and procurement opportunities across existing and new markets as a result of the direct and indirect effects of the North American “shale gale” that would enable them to achieve a goal of 10% CAGR by over a five year period. Working with colleagues in chemicals, energy and multiple end use markets as well as conducting significant primary research, the IHS Markit team compiled a of over 400 market opportunities and profiled the best 40 growth and 15 procurement options. Using a rigorous screening approach, the joint IHS Markit/client team selected the top priorities, including opportunities in aerospace and defense, polymer compounding, life sciences, environment and procurement. As part of the effort, developed action plans including proposed acquisitions and partnerships to accelerate entry and increase traction in new markets. The CEO and senior leadership of the company ultimately approved to move forward with all 5 proposed strategies/plans.
Megatrends Impact on Global Petrochemicals	IHS Markit was engaged by a leading Middle Eastern petrochemicals producer to identify key megatrends and determine their impact on major chemical end use markets and on leading industry participants. Working with IHS Markit's economists, chemicals experts, and end market specialists, identified five quantifiable megatrends, and determined their impact on 12 target chemical end use industries, across 10 regions and 16 specific countries. Using the market demand requirements based on sector growth rates and product demand elasticities, determined the major chemical products necessary to meet future applications and forecasted demand. Identified resultant opportunities and challenges associated with specific products and value chains across the target geographies.
Latin American Market Entry Strategy	A Latin American National Oil Company engaged IHS Markit to develop a petrochemicals downstream integration strategy. IHS Markit worked with the client to select its future product portfolio and target markets. IHS Markit developed a market focused strategy with emphasis on establishing a leading regional market presence based on a competitive value proposition for each product group. IHS Markit also developed a business entry strategy addressing capital investments, critical capabilities and potential partnering approaches.
Competitive Positioning and Strategic Options	IHS Markit was engaged by a North American packaging resin producer to develop strategic options for maximizing shareholder value. Key options under consideration were continuation as a standalone company and potential M&A options for enhancing shareholder value. Based on an in-depth analysis of the packaging resin industry, a competitive map for the North American packaging resin market was developed. Potential industry evolution along alternative paths was developed as well as the implications for shareholder maximization.

Case Studies

North American Polyolefin Market Entry Strategy

Challenge: A major North American resin supplier engaged Chemical to develop a polyolefin market entry strategy capitalizing on shifting global trade patterns.

Solution: We developed an analysis of the global and regional polyolefin markets to determine the viability of overseas supply to the North American market. The market analysis included the supply, demand and margin environments, detailed market segmentation and the market opportunity for imported resins. A global cost analysis was developed to determine the cost competitiveness of potential polyolefin suppliers. This project also included a detailed analysis of the polyolefin value chain in North America. Key players and prevalent business models were identified with an emphasis on resin producers, plastics converters and distributors. Buying behavior and buyer decision criteria were determined for each end use market segment.

Results: The client received a market entry strategy with various options, including addressable market segments and supplier requirements.

Packaging Resin Market Assessment, Competitive Positioning and Strategic Options

Challenge: A North American packaging resin producer hired Chemical to develop strategic options for maximizing shareholder value.

Solution: We examined the client’s main options, including continuation as a stand-alone company, as well as potential M&A options for enhancing shareholder value. Project analysis included a competitive cost analysis for the North American packaging resin industry, including overseas suppliers to the market. We also developed a detailed analysis of the packaging resin value chain in North America. Key players along the value chain were identified and profiled. Prevalent business models were defined. The packaging resin market was also segmented by major end uses. Market growth, industry trends and competitor positions in each end use market were determined. Competitive positions were determined based on a combination of buyer behavior-oriented bases of competition as well competitive cost position and business portfolio considerations.

Results: Based on the packaging resin industry analysis, a competitive map for the North American packaging resin market was developed. We identified potential industry evolution along alternative paths as well as the implications for shareholder maximization options.

Middle East Go-to-Market Strategy

Challenge: A Middle Eastern petrochemical producer engaged Chemical to design a more unified go-to-market approach for its diverse petrochemical and joint venture portfolio.

Solution: We benchmarked the client against leading global marketing and logistics practices.

Results: The client received a recommended go-to-market strategy that better aligned with its competitive market requirements, as well as enabled an extended market reach. We also recommended the client realign its market organization to more effectively conduct sales for the client and its joint venture partners.

Procurement Strategy for a Leading Confectionary Company

Challenge: A global confectionary company hired Chemical to help formulate a response to its narrow and declining supplier base against a background of increasing price volatility for its petrochemical-based raw materials.

Solution: As part of the engagement, we helped the client better understand the nature of the factors driving the supply and demand and pricing of these key raw materials.

Results: Working with the client, we developed a procurement strategy that reduced supply risk, increased the long-term supply base and optimized category spending through a combination of improved contracting structures and practices, as well as the identification of potential alternative suppliers and alternative raw materials.

Russian Gas Chemical Strategy

Challenge: Chemical was retained to examine the financial viability of constructing a world-scale, gas-based petrochemical complex in the Far East of Russia.

Solution: As part of the study, we examined the facilities at three different locations in the Far East of Russia that would deliver product into China, Northeast Asia and the global markets.

Results: We provided the client with a cash flow analysis of potential options and a marketing plan indentifying the optimal mix of sales into each of the regions.

Gas Utilization Master Plan

Challenge: An energy company in Southeast Asia/Oceania hired Chemical to provide a systematic and strategic master plan that identified midstream and downstream opportunities tied to natural gas.

Solution: We analyzed target markets, project descriptions, estimated economic returns, capital requirements and joint venture and alliance opportunities.

Results: The client received a study comparing and recommending multiple products over several years.

Customer Stories

Braskem Idesa builds advantage with bold strategy and largest petrochemical investment in Mexico in 30 Years

For its landmark Etileno XXI project, this company -- a joint venture of the premier thermoplastic resins producer in the Americas and one of Mexico’s leading petrochemical groups -- secured a total investment of $4.5B to build the largest petrochemical facility in the Americas, capable of producing 1+ million tons of ethylene and polyethylene annually.

SEE CASE STUDY

Latin American Petrochemical Company Makes Investment Decisions to Grow Market Share

Listen to Rina Quijada, Senior Director of Latin America for chemical, explain how a petrochemical company expanded its market share through solid, long-term investments in multiple countries using IHS Markit data and forecasting across the entire supply chain. From feedstocks to end-use products, company leaders are making informed business decisions that set the stage for long-term growth.

View Video

National Oil Company Develops Informed Strategies for Growing Chemical Business in Changing Global Market

This national oil company wanted to give investors confidence so they developed a two-pronged strategy to grow its core oil business and set the stage for launching a new chemical business, while staying abreast of market changes and avoiding up to $4 billion in potential costs/risk to its reputation.

Learn more about our client’s successes

Toray Industries America Implements Strategic Roadmap to Uncover New Markets for Aggressive Growth by 2020

This US subsidiary of the global industry leader – with headquarters in Japan and operations in 25 countries – compiled a list of more than 400 market opportunities before selecting 5 priorities and developing action plans to accelerate entry and increase traction in new markets. All five plans were approved by the parent company's CEO.

Learn more about our client's successes