In order to get rid of this new epidemic crisis, chemical manufacturer should mobilize and respond to the public health crisis, stabilize and absorb the financial impact, formulate strategies and take bold actions to seize unique opportunities from this crisis and realize responsible value chain for the future. Eight specific suggestions for chemical manufacturers are put forward
- ensure long time novel coronavirus pneumonia impact on the health and safety of employees through the strict cash and liquidity management to save business continuity, reduce surgical cost and understand the financial health of chemical manufacturer.
- Benefit from the government’s stimulus package and develop a ready priority list of projects that meet policy priorities (stimulating the economy, ensuring the security of basic commodity supplies, achieving decarbonization, circular economy and social impact goals).
- Understand the competitive cost position and break even point. Monetize value from market volatility, portfolio selection and services.
- Emphasize value creation and integration of customers and applications. Prices are based on the value and results of specific chemical products and solutions.
- Looking for M & A opportunities, making unexpected bold initiatives, accelerating growth, replenishing capabilities, and expanding portfolio (e.g., bio based materials, recycling solutions).
- Create a new business model supported by technology to meet the needs of end users and build the ability to effectively extend solutions across a decentralized customer / application base.
- Find a new balance between supply chain flexibility and cost. Start cooperation projects, re allocate and (partially) reposition the supply chain according to market structure changes.
- Put the goal at the heart of the response plan to achieve profitable and responsible growth and sustainable value chains for future generations.