Single Client Studies
MMSA offers a wide range of services intended to provide bankable analysis for those invested in or seeking to invest in the petrochemical industry.
Please contact us for specific requests.
MMSA assists clients in developing their understanding of petrochemical markets in a number of areas:
1. Description of Value Chains
Identification of the pertinent petrochemical value chains and provide the client an understanding on the location of a particular company/asset in that chain, and the key elements for success in that role.
2. Supply and demand fundamental assessment
Identification of key trends for petrochemical derivatives and the operational outlook for existing capacity in Asia. Includes a factored analysis of trade from other major producing and consuming regions, and trade of derivatives as either a threat or opportunity. Production, operating capacity, operating rates, trade, derivative consumption, and potential sources of new demand can be detailed. The impact of timely topics (e.g. China capital restrictions, Japanese economic recovery) on operations and market behavior can also be addressed in this type of analysis.
3. Price and margin characterization
For the major Asian region markers, provide a view on historical, current, and future prices and margins. The particular methodology employed depends upon client needs, but are always explained so that an understanding of the risks to the forecast are apparent.
4. Competitiveness assessment
Using in-house experience and cost models, assess the competitive delivered cash cost position of products in question to key markets. Typically, the major receiving areas of Asia (namely coastal ports in China) are evaluated in comparison with other global suppliers. Also, assess the impact of transportation / logistics costs on the competitiveness of the product, on a key market basis within Asia. Discussion of the major operating and planned production facilities, including highlights about their competitive position, cost structure and transportation costs to main demand areas.
Various petrochemical consulting firms have developed extensive models and forecasts of petrochemical markets, each with unique assumptions. These forecasts typically utilize methodologies that are by their nature uncertain, can be developed by consultants working remotely (in the US or Europe, for instance), and might omit specifics that the client is unable to demand a priority. MMSA consultants have developed and utilized such information to provide qualified owners of such data a tailored view as opposed to the broad assumptions contained in typical market forecasts.
MMSA can also develop a plan for a client to source information from data suppliers that is best suited to their particular analytical needs.
Technical Due Diligence Support Services
Using information gathered and interviews with key management personnel, MMSA can provide a report on operations for potential buyers or operators of manufacturing assets. Examples include:
Overall SWOT (strengths, weaknesses, opportunities, threats) analysis of condition of facilities and site
Assessment of plant capacity and equipment condition:
Summation of operating history, maintenance, and plant reliability
Assessment of historical and projected maintenance expenditures and shutdown periods
Quantification of “catch-up” capex required to remedy deficiencies; estimated “normalized” run-rate maintenance and capex
Review supply and off-take agreements for all products coming into / going out of plant
Review quality assurance programs
Review technology platform: product development, technical capabilities, and integration of facilities
Given the vast number of petrochemical processes and large variety in the integration of these processes in petrochemical complexes, MMSA would likely serve as the coordinator of this type of report, utilizing process experts as required to acquire the information needed.