As the global methanol leader, our strategy is simple and clearly defined - global leadership, operational excellence and low cost.
Our vision for global methanol industry leadership is to continue to grow our production capacity, maintain the highest reliability of our operations, provide world-class customer service, be a global leader in Responsible Care® and live and exemplify our core values of trust, respect, professionalism and integrity everyday. As we strive towards this vision, our ability to attract, retain and develop a global team of talented and engaged leaders is critical to our success.
We are focused on maintaining and enhancing our position as the major producer and supplier in the global methanol industry, enhancing our ability to deliver methanol to customers, and supporting both traditional and energy-related global methanol demand growth.
We strive to achieve operational excellence in all aspects of our business, from manufacturing and supply chain processes to corporate governance practices and financial management.
Our goal is to be the preferred supplier to every one of our customers, which we achieve by safely and reliably delivering them the methanol they need.
A low cost structure is an important competitive advantage in a commodity industry and is a key part of our strategy. Our approach to major business decisions is guided by a drive to improve our cost structure, expand margins and create value for shareholders. The most significant components of total costs are natural gas for feedstock and distribution costs associated with delivering methanol to customers.
Our production facilities are strategically located to supply our major markets. Further, more than half of our production is underpinned by natural gas supply contracts that have a variable price component that is linked to the price of methanol, enabling us to be competitive throughout the methanol price cycle.
We continually seek to minimize the costs of global distribution, from shipping to in-market storage and distribution. We optimize shipping efficiency by maintaining our own tanker fleet, and we stagger the maturities of our long-term ocean vessel contracts to reduce our exposure to changing market conditions. Other strategies to minimize distribution costs include regularly investigating strategies to increase the efficiency of methanol distribution from our production facilities to customers and seeking opportunities to leverage our global asset position by entering into product exchanges with other methanol producers.