Peter Vanacker: Yes. Thank you, Richard. This is Peter. Good question. The process — I mean, the value enhancement program is ramping up quite impressively, I must say. We’ve done the major sites in the United States. And since the beginning of the year — I mean the 2 major sites actually in Germany. We’re expanding now also to other sites as we speak during the next quarters, both in the United States as well as in Europe. more than 3,000 projects that have been identified so far. And it goes, I mean, from areas in the manufacturing side to procurements to commercial excellence, supply chain management. So it’s a very broad portfolio of different projects. We will give a couple of examples during the Capital Markets Day to make it more tangible.
Today, we are mainly focusing on projects that have a very fast payback time, not so much projects that add and increase capacity, which is logical if you look at where the market is, but it is a continuous stage gate process that we have, where we continue to prioritize projects based upon the returns and based upon what we are seeing in the marketplace. So stay tuned, I would say, to get more specifics on a couple of examples on the 14th of March at the Capital Markets Day.
Operator: Our next question comes from the line of Duffy Fischer with Goldman Sachs.
Duffy Fischer: Two quick questions. One, in the increase in your operating rates across segments, does that contemplate some inventory build for the summer season? Or does that also — or do you see that as kind of sell-through as well for Q1? And then on the polymers for Americas, what — or what’s your plan, I guess, for the split between U.S. sold and export this year versus next year? Do you have to improve your export percent meaningfully with the new capacity in North America?
Peter Vanacker: Thank you, Duffy. I mean, let me split it up in 2 parts on your working capital question on the inventory question. First of all, Kim will give a bit of overview on the PO side. And then Kim can also talk about the olefins, polyolefins.
Kimberly Foley : Thank you, Peter. So as it relates to the propylene oxide side, yes, we’re building a a slight bit of working capital as a contingency for the startup. But once the startup is successful, which we have tremendous confidence in that inventory level will come down. And we expect throughout the year to operate at about 85% capacity based on the modest demand we see in propylene oxide right now.
Peter Vanacker: Yes. So I talk a little bit about O&P, and I want to just echo what Michael. It’s — the teams have done an outstanding job in the fourth quarter managing our assets to be able to maximize cash flow and really focused on producing the products that we need to deliver with customers. We’ll continue to do that going forward as we see markets improve, we will increase our operating rates to match that, and that may end up as Michael said, in markets taking working capital, but that’s a good thing because we’re going to have a stronger business as a result. But I’m just very proud of the team and everything that they did to manage that during the fourth quarter, which was quite a difficult time. To your question around increase in exports, we’re going to continue to to see an increase in exports, I think, in general from the United States market or from the Gulf Coast market, just with all the new capacity coming on.
As a company, we have been increasing the portion of exports for us as we ramp up the capacity with the new hypers assets. We’re going to continue to see that happen. But clearly, our strategy around channels to market is to find the highest value customers and segments and that tends to be closer to home. So we’re always trying to find more business here and we use the exports to really optimize the portfolio.
