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Daaboul invests in LAB capacity

Publisher
Elsevier Science
Year
2002
Weight
32 KB
Volume
2002
Category
Article
ISSN
1351-4210

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✦ Synopsis

Daaboul invests in LAB capacity

A 40,000 tonne/y linear alkyl benzene (LAB) plant is being built near Damascus, Syria, by Daaboul Detergents. The facility was partially constructed in Bulgaria in the 1980s, but was never finished. The plant is being upgraded and rebuilt in Syria by Ballestra of Italy.

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## Abstract Excess capacity is expensive, yet persistent excess capacity is widely observed in the corporate sector. Using a real‐option approach to capacity planning, this paper shows that under certain conditions it is optimal to invest in long‐term (even permanent) excess capacity. This results