map9.14Our itinerary: Shanghai --> Shanxian --> Dingtao --> Weifang --> Shanghai. Map: Google

We will fly from Singapore to Shanghai today, then catch a train to Shanxian, where China Sunsine has its headquarters and a plant producing rubber accelerators.

As the name suggests, rubber accelerators are chemicals which accelerate the vulcanisation or curing process of rubber.

China Sunsine, listed on the Singapore Exchange, is the largest producer of rubber accelerators in the world, counting the likes of Bridgestone, Michelin and Goodyear as its clients.

Shanxian is also where we will visit a new plant that China Sunsine has invested RMB150 million in. 


Its boilers produce high-pressure steam that drives turbines to generate electricity for the company's own use, saving it about RMB15 m a year in electricity costs.

This plant also produces low-pressure steam that is used in drying rubber accelerators prior to packaging.

From Shanxian, we will travel to China Sunsine's plants in Dingtao and Weifang.

The Weifang plant is interesting for its own reasons: It is located near many producers of aniline, a raw material that is used to produce MBT which, in turn, is a key ingredient for making rubber accelerators. 

The Weifang plant produces rubber accelerators which are exported through the nearby Qingdao port to tyre-manufacturing plants in various parts of the world.

250_2gohchoonkongKoh Choon Kong, previously CFO of China Sunsine, currently an Independent Director of the company.
NextInsight file photo.
Also on the trip: A writer from The Edge Singapore, analysts from 5 broking houses, plus several investors who are paying their way there -- and China Sunsine independent director Koh Choon Kong.

(Mr Koh was previously Sunsine's CFO -- and now works as CFO in a privately-held education company. He is currently an Independent Director of Sunsine, an appointment that dates back to 2012.

(Furthermore, rare among independent directors of Singapore listcos, he has a direct interest in 950,000 shares of China Sunsine and a deemed interest in 3,226,000 shares, as stated in the 2013 annual report.)

Look out for our reports and photos!

We seek to understand how China Sunsine has achieved a rapidly-widening business moat through, among other things, its investments in environmental measures.

The results have showed up of late: The company reported a 159% jump in net profit for 1H2014 to RMB83 million (S$17 million).

For more, see: CHINA SUNSINE to benefit from long-term pollution clampdown

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Comments  

#1 I AM A REMISIER... 2014-09-15 20:19
from my experience last few years those plant visits are only for SHOW at best and photos to brighten and color up their research reports...whats going inside they will never know. :lol:

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