John Bissell:
Oh, okay, got it. Yeah, got it. So with PET... Its an interesting question. I think were seeing demand all across the board, so were seeing
domestic demand, were seeing overseas demand. I think probably that rationalizing... And we will build, ultimately, overseas capacity to supply the overseas demand and build domestic capacity to supply the domestic demand. At the moment,
theres so much demand that thats not a problem we have to rationalize. Rich, you may have comments on that as well.
Rich Riley:
Yeah, our customers are very global. The European and Japanese companies are specially sort of forward-thinking on climate matters, it seems, and our products
are readily transportable within the existing global materials transport infrastructure, so we dont see it a problem but more of an optimization opportunity over time, to reduce that.
Mark Connelly:
Can you talk a bit about the customer base? Who
is the buyer here, since a lot of these are intermediate products? And whos making the call on it, even if theyre not the buyer?
Rich Riley:
Yeah, thats a great question. So we typically start with a chief sustainability officer, which is a relatively new role that there werent that
many of them two years ago, and now it seems that almost every company has one. And so it typically starts with the chief sustainability officer, chief technology officer, materials experts within these companies. And in some industries, like CPG,
they buy a lot directly. Theyre very vertically integrated and so we can actually sell directly to them. In some of our major in markets like apparel, they tend not to produce their own products, and so theyve got a supply chain. And so
we work with them to integrate into their supply chain, which were happy to do.
Rich Riley:
And so an example of that is our announcement with PrimaLoft, which, on the other side of PrimaLoft, are nine brands that buy from PrimaLoft, and so its
a great way for us to efficiently get to 900 brands on the other side. Automotive is similar, with a fairly complicated supply chain, and then retail is even more complicated, where they really are buying end products and not intermediate chemicals
and other materials, and well partner with them to spec into the supply chain.
Rich Riley:
So were very adaptable, in terms of working through the various sort of verticals in the way they want to get the materials. Whats consistent
across all of them is they all are under a lot of pressure to decarbonize and to transition to sustainable materials, and so the supply chains, the customers are feeling it from their senior leadership and shareholders, et cetera. The supply
chains feeling it from their customers, and so theres sort of a lot of alignment in terms of finding solutions, and we sort of navigate that framework.
Mark Connelly:
Now I want to ask a question thats sort of
short term and long term at the same time, because youve touched on the opportunities short term in HTC, including pellets and things like that that are still relatively of low value, but youve also talked about much higher performance
opportunities for both CMF and HTC over time. So can you talk about how important it is to tackle those in parallel?
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