Plastics 101 : What is the supply chain in the plastic industry

The plastic industry works like a long relay race with different companies handling specific stages of the journey from crude oil to finished products. 

1. Resource Companies:

• Function: they drill for oil and natural gas.
• Example companies: ExxonMobil, Shell, Saudi Aramco.

2. Petrochemical Companies:

• Function: they turn oil and gas into basic plastic chemicals (monomers).
• Example companies: Dow Chemical, INEOS, LyondellBasell. 

Monomer: small, simple molecule that can bond with others to form a larger chain.

3. Polymer Manufacturers:

• Function: they convert basic chemicals into different types of plastic (polymers).
• Example companies: BASF, Borealis, Formosa Plastics. 

Polymer: large molecule made of many repeating monomers linked together in a chain. 

4. Compounders:

• Function: they mix plastic with additives for specific properties (color, strength, flexibility).
• Example companies: PolyOne, A. Schulman, RTP Company.

5. Distributors:

• Function: they store and deliver specific types of plastic pellets to manufacturers.
• Example companies: Nexeo Solutions, M. Holland, PolymerSolutions.

6. Processors:

• Function: they melt and turn plastic into final products. 

• Example companies: Berry Global (containers), Amcor (packaging), Lego (toys). 

Each company has a role within the plastic industry, although some companies, such as ExxonMobil, may operate across multiple stages of the value chain.  

7. Polymer Manufacturers:

• Function: they convert basic chemicals into different types of plastic (polymers).
• Example companies: BASF, Borealis, Formosa Plastics. 

Polymer: large molecule made of many repeating monomers linked together in a chain. 

8. Compounders:

• Function: they mix plastic with additives for specific properties (color, strength, flexibility).
• Example companies: PolyOne, A. Schulman, RTP Company.

9. Distributors:

• Function: they store and deliver specific types of plastic pellets to manufacturers.

• Examples: Nexeo Solutions, M. Holland, PolymerSolutions. 

10. Processors:

• Function: they melt and turn plastic into final products. 

• Example companies: Berry Global (containers), Amcor (packaging), Lego (toys). 

Each company has a role within the plastic industry, although some companies, such as ExxonMobil, may operate across multiple stages of the value chain.