Due Diligence Finds $300M in Cost Reduction Opportunities

Due Diligence Finds $300M in Cost Reduction Opportunities

01| Challenge

Identify cost reduction synergies and optimize product and asset portfolio.

  • Perform due diligence and identify acquisition synergies for polyester and nylon fiber acquisition and assimilation.
  • Benchmark operating performance of 44 sites globally.
  • Benchmark the industry’s Best-in-Class and perform a gap analysis.
  • Develop a 3–5 year Improvement Plan for each site.
  • Implement a global Operations Excellence program with a framework of work processes and practices that would help reduce cost, improve uptime, yield, and improve profitability.
  • Identify cost reduction synergies and then optimize product and asset portfolio.
  • Determine which assets should be producing which products.
  • Identify opportunities to rationalize and consolidate sites as well as improve.

02| Solution

Perform Operations Excellence Due Diligence & Assessment

  • Perform Operations Excellence due diligence & Assessment – Worked with team to visit sites, analyze operating performance, and Identified cost reduction opportunities
  • Developed a model that assisted in evaluating economics for consolidating and rationalizing low-performing assets.
  • Identified opportunities to capture hidden plant potential at high-performing assets.  The network was reconfigured to focus more heavily on higher-margin resin/polymer products vs low margin fiber products.
  • Developed a Technology Investment plan
    (5-year time horizon) that repositioned the company to be focused on high margin products/
  • Developed a plan to roll out Operations Excellence Work Processes and Best Practices globally – the project was executed in series of waves
  • Assisted Client in creating a Central OPEX organization to steward and sustain best practices.

03| Results

Identified more than $300M/yr. in cost reduction opportunities globally.  Worked to capture more than $300M/yr. through OPEX and Network Footprint Optimization

  • Due Diligence identified more than $300M/yr. of synergies.
  • Operations Excellence Framework and Best Practices were ultimately implemented in all sites outside the handful that were shut down due to network optimization.
  • The client worked to develop an Operating Platform / System that was leveraged as new acquisitions were made – Assimilate to Client Operating System.


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