Lori Ryerkerk: Yes, no, thanks for the question, P.J. Look, maybe to clarify, so VAM going down in Frankfurt wasn’t because VAM couldn’t make money in Frankfurt. It was just we saw the demand go down so much towards the end of the year. I mean VAM demand in December was down — in the fourth quarter was more than 50% off Q3. So we had a really huge demand destruction in the fourth quarter because of pricing, because of the weather, because of destocking, because of all of those things. And so — but even at that, I mean, we could have run VAM profitably, it is not normally the most expensive VAM production in our network, but because of the high pricing we were seeing in Europe last year. It just made sense because the total capacity for the globe was down, it just made sense that we – shutdown that facility that was challenged due to energy pricing and move material from other lower cost energy locations.
But we’re starting it up now. I mean, the March order book for VAM in Europe is really the strongest we’ve seen in six months. So now we need IPH. And it makes sense, we’re going to be about — I think that the order book right now is about 85% is what we saw in the third quarter. So it makes sense to start a VAM. We have lower energy prices. So again, Frankfurt returns to not being the highest priced one. So again, this is the beauty of a global network. We have the optionality to take units down to skew where we make it based on what is most cost competitive at the time based on where the demand is at the time. And that just happened to be Frankfurt last year, but it could be something different in the next year. But that’s why we like having all of this optionality around the globe.
P.J. Juvekar: Great, thank you. And then on M&M, it seems like it was really under managed in the last one year of ownership. Do most of M&M’s issues are residing more on nylon area? And can you upgrade the M&M portfolio? Because I think you had more EV exposure than them. And so is there a natural upgrade there? Thank you.
Lori Ryerkerk: Yes, so I would say if you look at the portfolio from M&M, certainly, nylon was the most challenged. I think elastomers was more robust then. And even within the nylon portfolio, high-temperature nylons and some others didn’t see the impact. It was more, I would say, in Zytel and the PA66 line. And as we’ve called out before, I mean, there were many issues around decisions being made around pricing, both positive and negative, maintaining volume in standard grades and those sorts of things. And there were very high raw material costs and a take-or-pay contract that requires them to take us. So, I think there’s just a lot that went into that underperformance in 2022. But the good news is these are things that are fixable.
And this is what Tom and his team have been working very hard on in the last three months is moving the pricing, getting the inventory down in the fourth quarter, which certainly hurt us in the fourth quarter that will help us now as we go forward in 2023 and are able to sell lower cost basis inventory, more in line with pricing. So, I think the good news is going forward, this is all stuff that is fixable, and we are working rapidly to do so.
Scott Richardson: Yes, the earnings power of this combined portfolio hasn’t changed from when we announced the deal a year ago. If anything, I think it’s – we’re even more convicted around that going forward. There is, near-term challenges. And we’ve been, over the last several quarters, very clear about the disappointment and the performance. And it is requiring a big lift in the near term, but the long-term earnings power of these combined portfolios and combined with the acetyl chain, as you look out three to four years, is very substantial.
