For a lot of the same reasons, we do see the — well, first, let me start with this. I mean, we have seen just like natural gas in Acetyls, we have seen significant drop in raw material costs in the first quarter, which is extending through into the second quarter. This lower raw-material costs has led us to build lower or not build, but now replaced higher-cost inventory with lower-cost inventory. So that alone, as we go into the second quarter is going to be about a $40 million lift for the EM, M&M portfolio combined as we go into — as we have the second quarter. And then again, we have the typical the destocking because it is pretty much finished here at the end-of-the first-quarter we actually see really good improvement here in March in our order books.
We see we are past Chinese New Year so we start seeing the lift from that I mean, to give you an idea we are seen February we started the month flow, but we are still seeing orders coming in today for February deliveries. So, this is a big deal, usually at this time in the month, our orders had stopped, and we don’t see new orders come in until the next month but we’re still seeing orders for EM, for M&M for February and our March book quite frankly, it has filled up for both the legacy EM and the legacy M&M businesses, consistent with the order book that we received in March of 2022. So I think these are all really strong proof points to say, you know, we are seeing the demand recovery coming now as we’re moving through the end of February and into March and we expect that build to continue to grow through the second quarter.
We are seeing modest improvement in our — in automotive production, builds a pretty much flat but people are not destocking anymore. So we’re seeing order patterns restore closer to normal levels for automotive and this is very typical with what we also saw coming out of the end of ’21 and into ’22. So I think we feel really good about it, uplift in EM in the magnitude of $50 million to $100 million as well. And then on top of that, we also will have additional synergies from the M&M acquisition and we expect another uplift of $10 million to $20 million in synergies in the second quarter, our first quarter as well. And like I said, that’s still again productivity continues. So I think we feel quite comfortable in the guidance that we’ve provided for Q2 based on everything that we see happening now in terms of raw material, energy pricing and recovery of market as indicated by our order books for March.
John McNulty: Got it. That’s hugely helpful color. And then I guess just as the follow-up, just maybe a quick one on the debt redomiciling, it sounds like you’re kind of part of the way there now, I guess. Can we think about all of this being done by the first half of the year? Is that the right way to think about it? Or you guys waiting for something in particular to maybe change in the markets like, I guess, how should we think about that because it does seem like the rates are lower as you’re starting to refinance some of this debt out?
Scott Richardson: Yes, thanks, John. I think we’re going to be opportunistic here. I think we’re looking and making sure we have the right opportunities, I mean, currencies are moving in the right direction. We didn’t want to make those changes when the dollar was certainly at its strongest because then as things move certainly from an absolute debt perspective, it would go against us. So we’re going to continue to look for the right opportunities there and we’re certainly targeting to get it done here in the first half, but just depending on some of those movements and where the dollar is at, it may linger into the second — the early part of the second half.
