Our Client, a leading provider of in-plant services for the petrochemical industry, sought PLG’s expert advice in evaluating opportunities to collect and upgrade plastic scrap. By entering the plastic scrap market, the company could leverage its expertise, workforce, and customer relationships with resin producers while it entered a sustainable market. But before investing, the company needed a deep understanding of the market dynamics to form its go-to-market strategy and to assess potential risks and rewards.
Due to PLG Consulting’s deep expertise in the chemicals, plastics, and recycling industries, the Client selected PLG’s team to conduct a comprehensive market assessment and to aid in outlining strategy recommendations for a successful go-to-market plan for the plastics scrap market. Additionally, PLG was able to provide analyses on how to optimize their investments via enhancement of the Client’s complementary services through acquisitions to further expand their capabilities to upcycle scrap materials.
Services Provided
The complete market analysis and strategy recommendations for the plastics scrap market included a comprehensive project engagement including deliverables of:
- Evaluation of the potential supply of plastic scrap and its past and projected fluctuations over time
- Summary insights on buyer dynamics
- Detailed typical contract terms
- Comprehensive overview of the competitive landscape
- SWOT analysis of opportunity
- Analysis of opportunities for complementary services and advice on where the Client can best approach the market
Results
With strategic advice from PLG, the Client has continued to grow into a leading provider of sustainability solutions. The engagement results included:
- Company invested in a 200,000 square foot facility where it aggregates and densifies plastic scrap for use as a custom feedstock material
- Company has made multiple acquisitions of compounding and pelletizing companies to further enhance its ability to upcycle scrap materials
