Luis Rojo: Sure, I will €“ I will let Scott later to come in on the small €“ on the very small delay that we’re seeing on the construction phase. What I will tell you, look, we have €“ you have on the expense side, you have three big buckets as well, right. I mean, you have the Pasadena premier startup investments, right I mean, if we’re going to produce full width €“ we’re going to have a full production capacity in 2024. We need to hire we need to train our people. You know, this is a chemical plant and we take this very seriously our training ESNS and everything so. With that, we are going to, as Scott mentioned it in the remarks that we’re going to commission in also the low 1,4-dioxane capabilities in Millsdale plant we started last year in Georgia, this year in Millsdale.
So between those two buckets, the net impact, because remember, we also had, high expenses in 2022, with the Millsdale press event that we had in Q1. So when you €“ when you net out the three, you are talking around $10 million of extra costs in our P&L, as we commissioning low 1,4-dioxane, and we invest to be ready on Pasadena. I will turn it over to Scott to talk a little bit more about the scheduled time.
Scott Behrens: Yeah. So Mike, as it relates to the construction of startup schedule, we have slipped, maybe a month €“ maybe two max. We’re about 20%, complete with the construction. So it’s in full swing. We had some raw material delays related to getting the civil construction done on the site. So nothing from just normal raw material constraints that were associated with the civil portion of the site project. So we should be mechanically complete, and up and running before mid year.
Luis Rojo: For example, we have already made your equipments already on site. I mean, when you think about the reactors and all the major equipments that we need, they are all on site already.
Mike Harrison: All right. Thanks. I’ll get back in queue.
Operator: Thank you for the question. The next question will be coming from Vincent Anderson of Stifel. Your line is open.
Vincent Anderson: Yeah. Good morning. Thanks, guys. I just wanted to ask, given your existing alkoxylate portfolio and the performing €“ PerformanX acquisition last quarter. How quickly do you think you can you can ramp and then fill the order book for the Pasadena facility once it’s up and running?
Scott Behrens: Yeah. So €“ good morning, Vincent. From an alkoxylation perspective, we have two existing alkoxylation facilities here in the US today, Pasadena will be our third. We also utilize a broad network of third party tool manufacturers today that we have been using as capacity to continue to grow the product line, which has been doing very well exceeding our expectations. So upon startup at Pasadena, we will €“ we will have a very good opportunity to get that utilization up in balance with how we want to manage our external tolling that network. So, we have, I think, the ultimate flexibility to ensure the proper utilization of our internal assets, and allow us to continue to grow using tollers as needed.
Vincent Anderson: Perfect. I’m not going to ask you to predict the future on raw materials and all that. But, if we continue along this slow demand environment for at least the first half of the year, is there any reason that we wouldn’t see a little bit of positive timing impact between price and raws, like we’ve seen in past down cycles?
