Shell CEO Wael Sawan says the company is committed to turning around its underperforming chemicals unit, which has been hit hard by what he calls one of the longest industry slumps in recent memory, Bloomberg writes.
In an interview with Bloomberg TV, Sawan said Shell is pursuing a series of turnaround efforts, including exploring partnerships in the U.S. and selective closures in Europe—where high energy costs have squeezed margins and made operations less competitive. The company recently completed the sale of its Singapore chemicals plant as part of a broader strategy to “high-grade” its portfolio.
Shell is not alone in facing these challenges: Major players like Dow and ExxonMobil have also closed or idled capacity in Europe amid weak demand and rising costs.
Sawan notes that added capacity in China is further weighing on the global market. Despite the headwinds, Shell is focused on the levers it can control to improve performance over time.
Read the full story. A subscription may be required.
