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In 1997 American Radnor Holdings Corporation acquired StyroChem from Neste Oy. In March 2000, the managing director of StyroChem Finland Oy had to make a proposal regarding the strategy of the company. Some customers were becoming dissatisfied because StyroChem Finland had difficulties supplying additional volumes on top of deliveries agreed earlier with the present customers. Also, new customers showed interest in StyroChem''s products but no deliveries were possible in high season. The situation could become a serious problem and jeopardise the future of the company. The production capacity needed expanding, and required decisions included the location, financing, sales and marketing strategy, and possible transformation from specialty product producer to commodity. The strategic decision was also how to cope with the situation in the short term in order not to lose customers, and whether to expand and how, at the existing production or new location(s). The industry was investment intensive. Please note that market information and financial issues are not discussed in detail. The case is suitable for strategy management and the suggested analysis relies on Porter''s five forces.