What CFO said in 2009 has clear relevance today, and you can connect the dots, so to speak, as China Sunsine's environmental measures have ensured not only its continued survival but its growing industry dominance while many other players have shut down.
Q You said you will spend RMB 20 million on waste water treatment. That's expensive as it costs only around RMB 10 million to build a plant. How much do you expect to put aside regularly to meet international eco-friendly standards?
Mr Koh: That’s a good one. Over the last few years, we have invested over RMB 100 million in waste water treatment and waste gas treatment. The RMB 20 million is for an upgrade of our plant in Facility 2. This is our competitive advantage over the small players in China who may be indifferent to regulations and risk being shut down by the authorities. We instead comply 100% with PRC environmental regulations. Our clients do come to our plants and do inspections.
Sunsine has been raising its bank borrowings. Together with its stronger cashflow (as a result of higher ASPs), it is in a strong position to buy competitors. Is its ambition to be a giant in China (even tho it's already the No.1), like BASF, the world's largest chemicals company?
Another possibility is acquisition of sub-par MBT factories and getting them to produce MBT more cleanly.
China Sunsine’s GM is quoted as saying that his company is producing slightly more and has difficulty meeting July orders. (山东尚舜化工有限公司也是满负荷生产，该公司总经理刘径福说，公司最近产量略有上升，来公司洽谈的企业很多，有国外的也有国内的，7月份的货都快供不上。)
The dispatch adds that it takes time to set things right in the acquired factories. MBT shortage therefore will persist for the rest of 2014. It is also unlikely that MBT factories that have been closed down or being suspended will be allowed to get back to business. (除此之外，中国化工报记者了解到，现在很多企业只能采取收购一些小的促进剂M生产企业，然后投入资金，将其改造后达到环保要求。但这也不是一朝一夕能完成的，业内人士普遍估计年内促进剂M市场都保持紧张。而且从目前的情况来看，被关停的企业短期内还很难恢复生产，甚至有业内人士认为，被关停企业不可能再度复产。)