Charles Neivert: Got it. And last question is on the Nylon side with all the exports coming out of China that you’re seeing, are they sort of direct competition for the nylon versions that you produce? Or they tend to be at the commodity end, but they’re dragging prices down across the board and obviously taking some volume? I mean how are they competing? Clearly, I don’t think they can do the same sort of level of higher-end grades that typical North American producers get. So how is it — how do you see their product in the marketplace? Is it, like I said, just commodity grade, that’s a price drag? Or they taking on volume from others? Or what’s going on there?
Erin Kane: So we do see the exports from China and broader Asia, right? As the trade flows have shifted here, I would say that their offerings are primarily looking to compete strongly in Engineered Plastics, right? So these are compounding resin offerings. And so if you think about just with the trade flows, just with where they’re willing to offer, again, and losing a bit of the discipline to the marginal producer cost dynamic in a stronger market, that just kind of pulls pricing down across the board creates that pressure to regional premiums. And that’s mostly the dynamic that we have on packaging and fiber and filament, we do have an edge in quality, and that helps a bit. But certainly, just overall pressure on the pricing side just exists with this dynamic.
Operator: Once again, we have David Silver from CL King.
David Silver: Okay. Just one last one. And this would be — I guess, I’m just kind of taking a temperature on M&A opportunities. So in this release, you talked a lot, a bit, a fair amount about portfolio simplification in the current weaker environment. And my sense is that many other companies are trying to do some of the same things. And in that environment, I mean, maybe a business that doesn’t fit in a larger organization might be a very tight fit with what you’re doing in specialty intermediates or other areas. You’ve maintained a pretty healthy balance sheet as well during this period. So how do you view the opportunity set for maybe an opportunity to bolt on some products or product lines that might help you in terms of breadth or geographic positioning or maybe production assets? How are you thinking — are you going to be maybe continuing to fine-tune your own portfolio? Or is there the opportunity to maybe see what might be available?
Erin Kane: Certainly. I might start with contextually, right? Our capital allocation approach and priorities remain consistent, right? And we’re committed to leveraging and using the disciplined approach to allocation to deliver strong and sustainable CSR over the long term. So as noted in our action, certainly, we want to make sure that first, we are making smart decisions on our portfolio, and there are opportunities to continue to reflect and refresh those views. Our base CapEx is important, in that run and maintain HS&E capital to sustain the business. Our growth and cost savings CapEx investing in ourselves is always a great place, and you see that in our commitment to the SUSTAIN program and plant nutrients overall, given its profile will continue to be an area where we look to accelerate our profitable growth opportunities.
We have a return of cash to shareholders as you say. Accretive M&A has always been part of our framework. And certainly, it is an area where we continue to evaluate opportunities this is an interesting time relative to that. But I think certainly, we are not the only company, right? Who reflects on their long-term view what’s right in the fit of the portfolio and where the opportunity sits. So we have a framework, we continue to look at opportunities again for value chain integration, where we can drive profitable growth in molecule and product upgrades. Again, broader expansions with bolt-ons, things that will leverage our core strengths and expertise, to strengthen our core geographic positions. And so these are things, but certainly making sure things are free cash flow accretive and fitting our financial profile of the future is important as well.
So we continue to look, but certainly navigating and pulling through and investing in ourselves is core through this down cycle and ensuring that as we come out of it, that we have continued to build a stronger business that will perform with higher through-cycle profitability and a larger base to grow from.
Operator: This concludes our question-and-answer session. I would like now to turn the conference back over to Erin Kane for any closing remarks.
Erin Kane: Thank you all again for your time and interest this morning. While there are puts and takes across our end markets and broader macro uncertainty, we are focusing on executing what is in our control. We have a demonstrated playbook and track record as well as a healthy balance sheet to navigate these dynamics, and we’ll continue to position our business for long-term sustainable performance. With that, we look forward to speaking with you again next quarter. Stay safe and be well.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
