Planning an integrated petrochemical business portfolio for long-range financial stability

This paper is an extension of a research on sustainable planning of the petrochemical industry. We have previously quantified sustainability to pollution prevention represented by a health index of the chemicals and increased profit represented by a process added value. In the present study, a model with an environmental objective and strategic constraints is considered. The objective in the new model is still quantified in the same fashion as that in our previous model. However, in addition to material balance, supply/demand, and economic constraints, a new constraint set is introduced. This set represents a strategic tool in the form of the Boston Consulting Group growth/share matrix and is used as a product selection criteria to give a competitive advantage to the industry and to direct products with good growth potenial. The ultimate results would be sustainable and financially stable businesses. The model is tested on a case study of planning the development of Kuwait's petrochemical industry. Results give an optimal development structure for different scenarios but also provide a tool for long-range growth and financial stability.