Interview Report
Company: Sinopec Shijiazhuang人教版
Address: Hebei Shijiazhuang City.
TEL: *************
Contact/title: Sales Mgr, Mr. Li
Visit/phone: Field interview
Interviewer:MD
1.we are states owned company belong to Sinopec, the plant has quite few years
history, it is originally invested by the government of local province (Hebei) in order to solve the none production of CPL problem in China, and then when the government find it is very hard to break even, and also the most important is the government wants to change all the stateowned capital to a more business oriented market, so they assigned Sinopec to take over all the CPL production activity in China, and this plant is just one of it.
2.since it is a subsidiary of Sinopec, this plant has no sales and marketing team, we
上海公租房申请条件only have veral sales support person, but the overall sales and marketing activities are handled by the mother company, and all we did is support them to deliver the goods, and maybe sometimes for technical support to our clients
3.we ar e the stateowned company, but it doesn’t mean we don’t want to make
money, of cour, we are under lower pressure rather than other plants since the government can give us a lot protection, eg. As you know our first initial investment is very very big, it is almost about 3.57 billion, we bought the lines from Italy using the SNIA technology, and that time, since no one in china knows about tho technology and facilities, so we paid a lot money, but now it proves that tho facilities are not worthy that time, also becau of the corruption, it makes the investment bigger than usual, so we will never breakeven bad on that investment, but now the government give us some benefits on the financial policy, they allowed us the move 2 billion number to other sinopec business, so that it makes the CPL business looks better.
4.if you are going to do any business CPL in China, you have to have very good
relationship with government, they can easily kill you or support you by no n.
5.we start business in 1997, and Sinopec took over at 1998, we are now having适合宝妈开的小店
70000 ton capacity, we planed to expand capacity to 160000 ton by this year, by adopting another 90000 ton capacity using Baling’s techonology (HPO)
6.the quality of our products are little bit lower than other DSM HPO products,
becau their technology is better than us, so most of our products are ud in the tire cord industry, as it is the biggest downstream application.
7.since we all belong to Sinopec, we really don’t need to worry too much about the
sales, we can always get out products sold and source our RM from other bother company.
8.we pay a little bit lower price than the market to our brother companies since we all
called Sinopec, but this different is not huge, and actually, since the Sinopec company is now a public holding company, they also need to show profit in their
accounting system, but we don’t need to pay them the cash, and there is no payment delay issues between us, so this is also one of our advantage
9.in last year, we totally sold about 70000 tons CPL, the major application is tire cord
it is aout 50000ton, the next is textile, about 11000ton, next is auto and machinery parts about 7000 tons, fish net is also big consumption in China, we sold 2000 tons last year.
10.the price of CPL last year is about 21500 RMB per ton (VAT17%), some application
are more expensive, but not very big different, tire cord is not expensive,
11.from our history, we believe the tire cord and textile is 2 major application so far,
and tire cord is the biggest one. Which is more larger than textile.
12.as you know the CPL market so far is still rely on the imports, and the way how we
tup our price system is also bad on the market price, once it goes up, we will rai up the price as well, once it goes down, then we will decrea the price down as well. But there is few days delay, actually, as you can e, I believe more and more suppliers including MNCs are willing to do the direct sales, and has no distributors or more tiers distributors involved in the business, one of the m ajor reason, is tho distributors will destroy the CPL price system in order to make the money by themlves.
any other plants in China since we are using SNIA technology, and one of the most disadvantage of this technology is the by products production is larger than DSM HPO, we normally have 3-4 kg per kg CPL production, but this is also one of our revenue, as we sold many to the fertilizer company, of cour, we can not rely on lling the by products, and tho ammonium sulfate price fluctuated last year between 550 to 800 RMB per ton.
牛壁纸14.as we are a stateowned company, labor concern is also one of the major concern,
we can not be like other private companies, the better the less operators, we have to solve certain number of labors, as this is the goal of government, we totally have more than 800 workers, and also hundreds part-time or retired but still getting the payment every month, we have to make them alive also most of them are not contributing to the plant, but this is Chine situation, we have 20 more engineers, they all belong to the mother company, but work here in our plants, I really don’t know who is paying the money to them, but that is not a matter, we all called sinopec.
15.our plant overhead must be very larger, becau it is a stateowned company, the
performance of the company is not really related to much to personal benefit, so we just work get the money, we don’t consider save cost, tho concerns belong to the government people and tho high position managers.
叶酸有什么功效16.we are not breakeven so far, as the huge investment is the major barrier, but if
counting like government which took 2 billion out of our sheet, then we can break even, but no matter we breakeven or not, I don’t think this will trouble us a lot, we can ll all the products we produced, and we also going to expand the capacity, all tho means currently, the China CPL market is a supplier market, the demand exceeds the supplier
头戴红帽子17.I think in future, the price of CPL will still rely on the crude oil, but if the crude oil
keep stable as the same rate as now, the CPL price will go down, becau there are
more and more capacity invested in the recently future.
18.as I know, the other 3 major plants in China is Baling Shihua, Nanjing DSM and
Juhua group, all of them is going or has already expanded the capacity, so as we, Baling is now 140 Kt, Nanjing DSM same, Juhua is 5K but they also think to expand to 9K.
19.
Engineer, Mr Ma
1.we u SNIA technology, all the facilities are invested since the plant are ever
started in 1997, and after that, we take over the plant and put is under Sinopec company, the first investment is about 3.6 billion RMB including every thing, the facilities are from Italy,
2.the major RM is toluene, which we can get directly from Sinopec.
仰卧推举3.we currently has 70000 ton capacity, but will expand to 160000 tons by adopting
Baling’s technology (HPO), all the expanding work is planned to finish in the end of 2007.
4.we currently has 9 sub work shop with max 110 workers dealing the different step
of over all CPL production, the whole production line can be cut into 3 part, one is the material preparation procedure, next one is the reaction procedure, the last the purifying procedure.
5.besides the toluene, we also need a lot accessory material such as H2, steam,
H2SO4 etc. and the investment for tho material production is also huge, I believe this might be the biggest barrier for MNCs to invest CPL plant in China. But since we are Sinopec, we have no problem to source tho material
6.the SNIA technology is a bit behind the current world dominating technology which
is DSM HPO, the major different is the by products production and the reaction efficiency, our by products is 3.2kg per CPL kg, and the yield is 72%
7.within the overall cost structure, the material cost counted for at lea 55% to 60%
mainly is the toluene, but the H2 also accounts for a significant amount
8.the utility cost is about 3-5%, the electricity and steam is major cost here
9.the labor is minor, our average salary here is 2000 RMB per month for an operator,
and 4000 RMB for higher position production manager, 5000 to 6000 RMB for engineers like me, but for our boss, we don’t really know how much they earned every year, but it is for sure the corruption is very popular here
10.the depreciation cost took at lea 25%, now you e where our problem is.
11.for one ton CPL we need 1.15 ton Toluene
12.every year we do the maintenance, but it doesn’t mean we have to stop the
production, we normally will shut down one or two work shop for doing the maintenance, the maintenance cost is also huge, although it cost only around 1% of total investment
13.after veral years development, we also modified some process to meet the
requirement, I think one of our mission that the government gave us for taking over the CPL production in China is to master the technology, that’s also why the
china government can allow the huge investment, so, not only us, but also all the other suppliers except Nanjing DSM, they will put the technology as their most important objective in running the plant
14.so we modified the procedure and some process, the major achievement is to
improve the by product production, before we will produce at least 4 kt sulfate among each kt CPL, but now the number reduced to 3.2 kt averagely
15.we also have downstream PA6 production capability, but that is now key point for
us, the capacity is about 25000 ton per year, our priority is to ll the products out, but we will u some left for production of PA6 fiber.
16.the DCS control system is applied fully in the whole process, but I can not say it’s
excel甘特图fully automated, as there still many process are manually, such as input the materials, change temperature, but the DCS control system do help us monitor each process, and we have a main control room with all the data monitored. 17.
