In the third quarter of this year, the price of domestic raw material propylene oxide continued to rise, which brought continuous cost pressure to polyether factories. Many polyether exporters complained about profit loss or low sales. As one of the major domestic polyether exporters, Guodu Chemical has maintained a steady increase in polyether export volume this year compared with last year.
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It is understood that Guodu Chemical (Kunshan) Co., Ltd. was established in 2002, mainly engaged in the production and sales of epoxy resin, curing agent, polyether polyol, polyurea, etc. According to data, as of July 2014, Guodu’s polyether exports have accumulated nearly 20,000 tons, an increase of about 6,000 tons compared with the same period last year; how does Guodu Chemical maintain growth in the face of weak global market demand and high production costs? , and provide customers with high-quality and cost-effective materials to win the industry’s reputation? With this curiosity, PUdaily reporter came to Kunshan, Jiangsu, and visited Guodu Chemical (Kunshan) Co., Ltd. And I had the honor to interview Chen Biao, the head of polyether section of Guodu Chemical Sales Department, and share the success of Guodu Chemical!
(Figure It is a polyether installation in Kunshan Guodu, the source of the picturePUdaily)
PUdaily: Hello, Chief Chen! I am very glad to have the opportunity to interview Guodu Chemical. We know that besides the polyether business, Guodu Chemical is also a leader in the epoxy resin industry.
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Section Chief Chen: Right. Guodu Chemical started as an epoxy resin manufacturer in South Korea. It has a history of more than 40 years. Its current production capacity is 220,000 tons, ranking third in the world. Kunshan’s polyether production has been going on for 12 years, with a total production capacity of 120,000 tons. , including 15,000 tons of polymer polyol (POP), and more importantly, we have always adhered to the concept of making one thing better, so I think Guodu is more professional in these fields, just like PUdaily is the same as focusing on the PU industry.
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PUdaily: Thank you for your affirmation! Now that domestic new polyether devices are emerging one after another, what do you think is the difference between Guodu Chemical and other manufacturers?
Section Chief Chen: As far as the industry is concerned, we have always insisted on focusing on making polyethers well. We don’t want to expand upstream or downstream. To meet the needs of customers in different fields, therefore, all countries can basically provide the types of products that customers need.
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PUdaily: As far as we know, many domestic manufacturers are now developing high-end or special polyethers, and the country is now interested in this Is there a lot of block investment?
Section Chief Chen: Quite a lot. Here in Kunshan, we have set up a research institute with professional and experienced R&D personnel to develop products for new applications. In addition to common types of polyethers, we also supply PEG, modified polyethers and other special varieties. As written on the plaque erected at the entrance of the company: the value creator in chemical world, we hope to bring more valuable products to the polyurethane industry and even the entire chemical industry while creating value for ourselves.
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PUdaily: Now the domestic overcapacity is so serious.What measures does the country take to deal with it?
Section Chief Chen: To be honest, we also need to accept the reality rationally. As for the measures, as just mentioned, we put more energy into developing differentiated products and try to avoid the market with too fierce competition. Of course However, it is not so easy to develop differentiated products. The research institute established by the company provides a strong guarantee in this regard.
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PUdaily: In addition to increasing product variety and increasing added value, are there other measures? Is there a corresponding increase in exports?
Section Chief Chen: At present, the export volume of Guodu polyether accounts for about 60% of the total sales volume, mainly exported to South Korea, Southeast Asia, the Middle East and Africa and other countries and regions. In fact, domestic manufacturers, including us, have begun to slowly penetrate into North Africa. For the market occupied by suppliers, we will adjust the strategy according to the market conditions.
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PUdaily: This is also understandable, everyone is accepting the market’s choice. Now, what are the main varieties of polyether exported from Guodu?
Chief Chen: Soft foam accounted for more than 40%, followed by hard foam, and then CASE polyether. In 2013, these two varieties Add up to about 40% of the total export volume.
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PUdaily: Understood. For the supply of raw material propylene oxide (PO), currently no country has its own PO device, which means that the “throat” of Guodu is in the hands of others. In this case, how does Guodu provide customers with high-quality and cost-effective polyether materials?
Section Chief Chen: Indeed, our PO is all outsourced, like from July to September, domestic and imported POThe prices are going up crazily, which is indeed a challenge for us. I also heard that some of our peers are selling at a loss. As for the purchase of PO in Guodu, we have signed long-term supply contracts with our suppliers. Generally, our supply and price can be obtained ensure. And, quality is our first consideration, which is also responsible to our customers.
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PUdaily: Which PODoes the factory have cooperation?
Section Chief Chen: The mainstream suppliers in East China are also found in Shandong, and overseas include Dow and Lyondell.
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PUdaily: I heard that POThe supply will decrease, will this have an impact on the country?
Section Chief Chen: Yes, the import of PO is indeed expected to decrease next year, mainly because some new polyether plants are put into production, which will affect China’s The supply of PO will be reduced, and our procurement cost will naturally increase. The company is also actively considering countermeasures. It is estimated that domestically produced POThe supply will gradually increase, and the domestic sales of polyether will also increase appropriately.
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PUdaily: Does Pudaily have plans to expand production in the future?
Section Chief Chen: Judging from the current plan, there is no one for the time being.
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PUdaily: Looking forward to the future, what is your opinion on the development of domestic polyurethane industry?
Section Chief Chen: Judging from the current general trend, industries such as furniture, home appliances and automobiles will still be the main consumption areas; in the future, the domestic rigid foam consumption will maintain an upward trend, and the national energy-saving policy will be one of the main driving forces. In terms of soft foam, the amount of soft foam will gradually decrease, and the demand for high-end products will also be in a state of continuous increase, which is also in line with the development process of the industry.
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PUdaily: OK, thank you, Chief Chen, for sharing!
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This trip gave us a deeper understanding of Guodu Chemical’s business, especially polyether. “In the future, we will continue to deepen product research and development, expand product categories, and continue to provide customers with high-quality and advantageous products,” Chief Chen said confidently.
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(Reported by Karen Lau, PUdaily)
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PUdaily(www.pudaily.com) is Tiantian Chemical Network ( www.chem366.com) Overseas English channel, if you reproduce this article, please indicate the source, thank you!
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