Published November 1998
The global chemical industry is undergoing significant restructuring: Major companies are focusing product porrfolios by divesting noncore assets and using the capital obtained to acquire additional core businesses and high value-added assets. The noncore businesses being divested are frequently basic petrochemicals and commodity first-stage derivatives�areas that oil companies are increasingly dominating by building on feedstock positions.
The restructuring process is many-faceted, typically including one or more of the following steps:
- Divesting noncore assets
- Exploiting or creating structural advantages, primarily through chain integration
- Focusing on less cyclical businesses, with superior returns.
The results of the new strategies can range from a mild course adjustment to complete company transformation.
This Review identifies typical strategies and describes the actual strategies of companies.
