The Changing Structure of the Chemical Industry

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.