Global petrochemicals - Roland Berger Strategy Consultants

14Global petrochemicals – Who is really benefitting from the growth in the new world?A globalizing gameThe petrochemicals market is becoming increasingly globalized in terms of technology transfer,feedstock sourcing and market access. The companies active here all face the same basicissues of access to technology, feedstock and markets, but players have different startingpoints based on their respective strengths and weaknesses. And while the strategic issuesare specific to each geographic group of companies, all of them are facing the basic issueof how to compensate for their weaknesses within this increasingly global market setup.Possible actions include joint ventures, M&A or organic international expansion aimedat up- or downstream integration, product specialization or development of scale.The implications of any strategic decision are substantial due to the amount of investmentinvolved, and careful analysis and evaluation of the available options is key to long-termsuccess. It is therefore still a completely open question who will capture the new marketdemand. Will it be players from the fast growing Middle Eastern or Asian countries, orwill American and European companies stage a strong global comeback?