Consolidation would help to avoid the squeeze and innovation through research and development would help build more value rather than moving downstream, 27176-87-0 he said, adding: R&D translates to multiple premium. 1885-14-9
If it was not possible to invest as much in R&D, it is good to buy it, he said. And finance is not an issue for the sector, which as Jadwa Investments Chief Economist and Managing Director for proprietary investments Brad Bourland said, is a darling of the banks, they love lending to petrochemical companies.
He added: Simply moving downstream is not the solution. Corporate strategy should be cognizant of feedstock position, geographic location, portfolio positioning, cutting edge innovation and most importantly returns on capital.
Integration would also save costs and build value, he said, pointing to ExxonMobil as an example where the petrochemical arm of the company has made huge gains because of the integrated model. 68213-87-6 In pursuing demand and feedstocks, the industry might need to look at relocation, he added.
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