Our Strategies and future plans are as follows:
Increase our market share in both domestic and overseas markets
We intend to expand our market share in domestic and overseas markets. To this end, we have invested in brand-building and creating greater awareness about our products by advertising our products in trade journals and participating in international trade fairs, industry conferences and seminars that are related to the chemical industry overseas. Through promoting greater brand awareness and increasing our sales and marketing activities, we will be able to reach out to a wider market for our products overseas. This will reduce our reliance on any single market and economy.
Project expansion to enjoy economies of scale and integration synergy
By taking advantage of our technology, products and marketing network, it is easier for us to enter into upstream and downstream markets. The development cost is relatively low. With the upstream and downstream integration, we can further increase the utilisation rate of our existing production capacity and broaden our revenue and profit base.
Our ongoing expansion projects:
- The construction of Phase III of 160,000-tonne AA plant in Taixing is scheduled to commence in Q3 2013. This Phase III Taixing AA plant is expected to be completed and begin production by end of 2014. Upon completion of Phase III of another 160,000-tonne capacity, our total annual production capacity will be 685,000 tonnes, remaining the largest AA producer in the Asia region and one of the top 5 producers in the world.
- Through its subsidiaries, SunVic Chemical has a total of 82.1% shareholdings in Jiangsu Jurong Petrochemical Co., Ltd ("Jurong Petrochemical").
Jurong Petrochemical is located next to our existing Yancheng plant. This 1,000,000-tonne catalyst-assisted cracking plant has been modified and converted to produce a new product MTBE. The new MTBE plant with 240,000-tonne capacity is expected to commence production from Q3 2013 onwards.