PODCAST: Markets punish big, diversified chemical companies much more than specialties

Author: Will Beacham

2020/08/11

BARCELONA (ICIS)--Large, diversified chemical companies are being punished much more by stock market investors than their specialty, solution-based peers, new research shows.

  • Valuations of big diversified chemical companies punished more than specialties
  • Portfolios play a large role in resilience of companies
  • Nutrition, mobility, specialties and agriculture-focused businesses fare better
  • Collapsing demand hits sectors like aerospace and automotive more than others
  • Companies can speed up decision-making via smarter analysis of market data/intelligence
  • R&D labs become more automated with staff remote-working
  • Add value to molecules by offering service and solutions
  • Energy transition solutions attractive to investors
  • China now worth 30% of the global chemical market
  • China is a huge export market, but may become more self-sufficient
  • New industry models based on value, affordability are needed
  • Supply chains to become more circular, regional

Listen to this podcast interview with AD Little managing director Michael Kolk and his colleague, principal Rodrigo Navarro plus John Richardson, ICIS senior consultant for Asia.

Read an article by Michael and Rodrigo in the latest ICIS Chemical Business, part of the ICIS news subscription.

ICIS is organising regular updates to help the industry through this time of crisis. Register here 

Read John Richardson's Asia Chemical Connections blog

Interview by Will Beacham