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Building for
Greater Profit
 Diversification
Policy Defined
Sinclair's activities which produced chemicals
for direct retail highest profit sales leveled
attention on the policy of diversification,
first articulated formally in 1962. The
development of farm markets for
Sinclair-produced fertilizers and the
organization of a plastics venture, the
Sinclair-Koppers Company, by 1965 had surged
Sinclair's petrochemicals into a $100 million a
year business. Sinclair was committed to wide
diversification within petroleum-oriented
fields, to broaden and stabilize the profit
base; but expansion was not contemplated into
industries unsuited to Sinclair's management
experience and practical know-how. Thus
diversification is within the industry and not
into outside unfamiliar enterprises. Stability
of income was paramount in the huge
petrochemical expansion. Also, to increase
petrochemical profitability, products were
constantly upgraded, existing plants and
equipment were utilized more efficiently and
profitably and new plants were added.[
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