Epsilon Refinery Group

It was May 2007. Earlier in the week, Epsilon Refinery Group had received notification from one of its major suppliers that the price of a key raw material, hydrofluoric acid (HF), would increase at the end of the year—in just seven months. This action was in accordance with an environmental clause in the contract with Cornwell Performance Products (CPP), a division of the multinational chemical manufacturer, Cornwell, Inc. Also in accordance with the contract, action would be required within the next 60 days. Preliminary discussions within Epsilon focused on three primary alternatives. These limited options and the very high stakes involved made the pending discussions with CPP among the most important in recent Epsilon history. Excerpt UVA-QA-0796 Rev. Aug. 21, 2012 Epsilon Refinery Group It was May 2007. Earlier in the week, Epsilon Refinery Group had received notification from one of its major suppliers that the price of a key raw material, hydrofluoric acid (HF), would increase at the end of the year—in just seven months. This action was in accordance with an environmental clause in the contract with Cornwell Performance Products (CPP), a division of the multinational chemical manufacturer, Cornwell, Inc. Also in accordance with the contract, action would be required within the next 60 days. Preliminary discussions within Epsilon focused on three primary alternatives: · Accept the price increase. · Commit Epsilon to an alternative external sourcing plan with another HF supplier. . . .