Petchem producers must adopt proactive strategies to improve profits

In the next 10 years, the worldwide commodity petrochemicals industry will experience a larger fixed and variable production cost gap between the large, global petrochemical companies and smaller, regional players.Five years of poor business conditions created these circumstances. Larger producers have reduced fixed costs by consolidating and shutting down higher-cost assets, and lowered variable costs by investing in low-cost feedstock sources. Regional producers, however, did not have merger opportunities and had limited feedstock supply selection inherent in regionally focused operations.The flawed industry view that long-term survival depends solely on riding the profit cycle crests h...

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