Selling commodity approach

Because methanol producers operate in the commodity market, they are particularly sensitive to product availability, which can directfy affect product selling price. Thus, aU new projects are undertaken to position the new plant operator as a low-cost producer. Gas cost, as we have seen, plays a large part in this overall approach. As such, many projects are placed in -rich areas of the world, which can mean a remote location. 

There is a dichotomy within the major plastics producers in that they have the economic capability, and large R D groups with multidisciplinary talent, but are hesitant to invest significantly in smarter systems until sizeable economic opportunities are identified. The business model may have to be modified to include value capture of more downstream systems as opposed to selling railcars of pellets. One approach, perhaps more palatable to commodity resin manufacturers, is to develop and patent a smart system which has as its basis a commodity resin. Three markets are chosen here to illustrate potential applications of smart materials in combination with conventional polymer materials. 

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