There's no doubt about it - China is booming in nearly all regards and the country was better positioned to make it through the economic downturn than those in the west. Sinorgchem is a prime example - the Shanghai-based rubber chemical additives manufacturer expanded production capacity of PPD and 4-ADPA and is now well positioned to reap the benefits of a market that is now demanding more and more tires. Brandi Schuster asked the company's CEO and CFO Stephen Choi about what he is doing to enter the European market.

CHEManager Europe: What is your company's strategy for entering the European rubber chemicals market?

S. Choi: As a global rubber antioxidant leader, our development in the market is based on our global strategy. Our subsidiary has been established in Western Europe and is ambitious about entering into the emerging market such as Eastern Europe. The aim of setting up the subsidiary at The Hague in the Netherlands is to better support a large variety of our customers here in Europe.
Meanwhile, we are also expected to successfully finish the application process for ; we started preparation from the very beginning when EU announced this regulation.

How does your company compete with other leading European rubber chemicals manufacturers that have entered the Chinese market?

S. Choi: Firstly, Sinorgchem is already a market leader in China. Our products cover most users in the domestic rubber antioxidant market. In terms of products, our rubber antioxidants are reliable with high quality, making us standing at a leading position in global rubber additives market segment.

Meanwhile, Sinorgchem is providing a sustainable supply to our clients globally. Sinorgchem invested around $147 million in a new production expansion, which was finished in September. Our total annual production capacity of PPD series and intermediate 4-ADPA has now been increased to 120,000 tons and 150,000 tons, respectively.
Moreover, we insist on green chemical concepts and aim to lead the industry to upgrade environmental protection through self innovation. Jiangsu Sinorgchem uses high technology to improve traditional rubber additives and actively develop environmentally friendly production technology.

Which markets (regionally speaking) are the most important for Sinorgchem? Where would you like to expand your global footprint?

S. Choi: Sinorgchem has grown rapidly to become the market leader in China's rubber chemicals industry with its outstanding products and services. Currently, Asia market, especially China is still one of our most important regional markets.

We also keep on building up long-term strategic partners with key tires producers at a global level. We have set up subsidiaries in Europe and U.S. to better serve our overseas clients in those areas. We have already entered into Eastern Europe, the Middle East, South America and other emerging markets. At present, our products are exported to nearly 40 countries across Asia, Europe, South America, the Middle East and Australia. By 2009, Sinorgchem had captured around 20% global market share in the rubber antioxidant industry.

How did your company fare during the recession? Has your business benefited from the increasing demand for tires in 2010?

S. Choi: During the world economic recession, not only did our business operation run well, but also we achieved a historical high record of our product sales volume. Yes. Sinorgchem has been witnessed a steady growth in 2010. Through our continuous dedication on products, supply, and services, we hit another high sales volume both in domestic and overseas market in the year of 2010.