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Aromatics value chain to only survive if customers thrive, Sven Royall

25 Nov '10
4 min read

Mr Royall suggested: “For the industry, the best response to HSE concerns is to continue our close engagement with ongoing and long-term research into the potential hazards and risks relating to our products. It is essential that we continue to press the case for a science-based response to regulation, and to promote the beneficial societal impacts of our products.”

As the western world emerges from the ravages of recession, Shell expects to see a sustained upturn in overall demand and an increase in demand for products such as insulating materials and low-weight, high-strength products for the automotive sector.
“The aromatics value chain will only survive if our customers thrive. So it is imperative that producers' strategies are aligned with the growth strategies of their customers. This could take the form of growing in new markets, assisting in new formulations of products, being proactive in the management of inventories, etc. In short, the value chain needs to be customer-focused,” Mr. Royall continued.

“To remain competitive, new and existing capacity will fare best if they have some inherent advantages, such as access to low-cost feedstock, safe and reliable assets, economies of scale, site integration with upstream and downstream plants, and technology and customer linkages. As far as Shell is concerned, being at the start of the C6 value is a logical location for an integrated energy group. Having long since withdrawn from the downstream sector of the C6 value chain, we have no intention of returning. For our joint venture partners and customers who do have downstream businesses, our message is clear: Shell sees its future as a leading global merchant supplier of benzene, styrene and phenol.”

Shell Chemicals Limited

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