The Urgent Need for Change and The Superior Path Forward
PRIORITY #1: STRATEGIC REVENUE OPPORTUNITIES
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We believe we can increase volume at Synalloy Chemicals to 2014-2015 levels
There is a meaningful amount of unused capacity at the Specialty Chemicals division that can be unlocked
through targeted selling efforts
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Due diligence shows that CRI Tolling, the Company's Chemicals operation in South Carolina, is materially
underutilized
Synalloy has done a very poor job of leveraging its
historic competitive advantages (cost and location) and,
due to poor cost controls, has fewer selling strategies
other than competing in a race to the bottom on price
Our plan to aggressively communicate the Chemicals
Segment's value proposition includes: 1) identifying new
products and new industries (e.g. agriculture,
healthcare, personal care), and 2) recruiting new sales
resources with specific market and chemistry knowledge
01. 02. 03. 04. 05.
Tolling produces chemicals where raw materials are owned by the customer, making it a low-margin
business that is dependent on capacity utilization and cost controls to generate acceptable margins
and returns
PRIVET
FUND
Our Plan To
Strengthen Synalloy
CRI Tolling, LLC (Google images)
UPG
STRONGER TOGETHER
Our plan contemplates just over $6 million in incremental chemical revenue, flowing
to EBITDA at a 10% margin
BELUE
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