Challenge
The client needed assistance developing the company’s vision for Petrochemicals. Specifically, how strong is the base from which they start, and what growth paths should be considered?
Critical Uncertainties
- Strength and cash flow producing capability of core business
- Technology choices and availability
- Feedstock supply availability and cost
- Political uncertainties within country
- Global penetration of key product segments (volume and premium pricing)
Alternatives Considered
- Basic chemicals-only business in local geography
- Polyolefins and petrochemical business in region
- Aggressive growth and local industry consolidation through acquisition
- Entrance into alternative products (EPDM, urethane, acrylics, etc.)
Result
- Consolidation of local industry created improved base business
- Unique and differentiated strategy produced good results
- Human talent acquisition was crucial to success
- NPV>$ 4 Billion market capitalization