At the 2023 FlexPO+ (now incorporated into the ADI Forum), Katy Boettcher, Principal, Ara Partners, and John Griffin, Director, The Sterling Group, joined an insightful investor panel moderated by Uday Turaga, CEO, ADI Analytics. They discussed key investment criteria, innovative recycling strategies, and the growing competition for investors in the plastics sector. Firms investing in ESG prioritized both financial returns and significant GHG emission recycling’s volatility, a challenge stemming from the disconnect between fixed costs and fluctuating virgin plastic prices, particularly in the US. To mitigate this, strategies included optimizing feedstock like a refinery, leveraging scrap from partners, maintaining flexible procurement, and adapting operations to market shifts. Investors focused on maximizing high-quality output and improving efficiency. They sought new technologies and business models offering durable earnings, long-term customer demand, and reduced commodity price risk, as stable unit-level economics are vital for attracting lenders and boosting valuations. While less experienced investors entered during peak margins, many are now retreating, creating opportunities for more seasoned firms. Scaled recycling assets are expected to attract strategic buyers (waste management, chemical, packaging, building products companies) and financial buyers seeking quality, profitable ESG businesses.
About ADI Analytics
ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
We also host the ADI Forum that brings c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum.
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