In 2020, in response to the impact of COVID-19, Sinochem International formulated flexible management strategies taking the opportunity of economic stabilization and industrial changes, finally achieving steady growth in its main business.
1、Chemical new materials business
High-performance materials and intermediate business:
the new materials business kept practicing the value of “In Science We Trust”, and strengthening internal force to better cope with potential challenges, thanks to which it made new breakthroughs in the technical improvement regarding the project of 500 tons of aramid fibers, and broke the deadlock of no industrial orders for proprietary products in terms of anode materials; the intermediate business seized opportunities in such industries as wind power and pharmaceuticals to tap the potential of existing devices and release production capacity, and as a result, such core products as epoxy resin and methyl chloroformate acquired excellent performance, and Lianyungang Phase-I products achieved stable switching between new and old production capacity under external pressure brought about by the epidemic, contributing a new driver for the growth of operating results; thanks to our active response to the severe epidemic and market conditions and continuous efforts on strict prevention and control, the ABS business didn’t experience any unexpected shutdown, while ensuring year-on-year growth in sales volume, which further consolidates our position in European market.
Polymer additive business:
in response to the serious impact of slumped oil price and epidemic outbreak at home and abroad on automobile tire demand, the antioxidant business, through improving product quality, stabilizing supply, and consolidating customer service advantages in combination with market changes, urgently activated the production-supply-sale coordination mechanism, and implemented relevant operating measures, thus effectively ensuring profitability and market share stability; thanks to its successful expansion of customers, the insoluble sulfur business achieved the growth of sales volume.
Closely centering around market demands, the agrochemicals business invariably followed the principle of supporting rapid sales by increasing output and took the lead in overcoming the impact of the epidemic and achieving work and production resumption at the beginning of the year. Thanks to its deep tapping of potential, the business’s output reached the best level in history. The business finally achieved growth against the downward trend through such measures as rapidly responding to overseas market changes and customer demands, competing for the market of fly-repellent incense for further market expansion, continuously deepening the cooperation with leading downstream enterprises, strengthening the sales of superior products, increasing outputs and accelerating sales through tie-in sale and other means, improving solutions against the pain points of crops, actively exploring online-offline linked marketing, and compensating price with quantity.
Medicine and health business:
the strategic layout of core medicine and health businesses was under constant promotion. To be specific, the device business introduced high-quality product line resources from world-renowned brands and improved the layout of key regions; the healthcare products business accurately grasped opportunities during the epidemic period and consolidated the market position of the three core products; the medicine business strengthened R&D customization, and supported the contribution of high value-added products.
Natural rubber business:
in 2020, under the impact of overseas epidemic and other relevant factors, the downstream demand on automobile tires decreased significantly, the rate of operation of natural rubber and tire factories also reduced, and the global market price of natural rubber reached the lowest level in nearly a decade in the middle of the year, accompanied by the reduction in the year-on-year sales volume of natural rubber. Meanwhile, the bad weather in Indonesia and other Southeast Asian countries and other relevant factors contributed to a decrease in the output and increase in the price of the raw materials for natural rubber, and synthetic rubber was not as profitable as expected under the impact of multiple factors.
in 2020, the trade business adjusted the pace of procurement and marketing, strengthened the performance of contracts, and controlled business risks in the first half of the year, and timely adjusted operation strategies, and seized market opportunities in the second half of the year. To be specific, the engineering plastics business promoted market expansion and increased the proportion of terminal customers; the automobile materials business intensified customer development efforts and further tapped the value of strategic customers; the fine chemicals business kept developing new categories and new sales territories; the distribution business achieved steady operation; the department of coke and chemicals maintained its leading position.