Ann: PEN delays Production & Accelerates Inhouse Resin Processing, page-63

This may well be good for the long term profitability of PEN but it certainly introduces a lot of turbulence in the short term and questions over cash flow and financing, contractual liability for non-performance of supply to customers etc. I am not buying into the "hostile takeover" debate just yet, if someone really wanted to throw the biggest spanner in the works they could have waited another couple of weeks and really cooked things. Providing notice prior to the ISR commencing was best case scenario for PEN - according to Wayne today!

There is a remaining grey cloud over how management didn't have a contingency plan already in place for this scenario - a critical input for production, sourced from a 3rd (and possibly combative) party, with the potential to inflict significant resource damage/degradation if it's supply is halted when ISR is running. Surely someone ran the ruler over that scenario - even the highest level risk assurance review would flag it.
So, on the back of todays call, I was hoping we would hear that it was Peninsula who pulled the pin because they couldn't get a supply guarantee - but what surfaced was basically (and I paraphrase) "we were blindsided and have no contingency except to now embark on a process of working out how to do it ourselves". Wayne couldn't even point to a potential secondary service that could be engaged - apart from saying that their initial review suggests the logistic is of that would be challenging, but if they find one then it could all be different!That in my view is poor management and the most disappointing element of what has unfolded.