Flame retardants: three business models in Asia

China Coatings Online News: Three business models of the flame retardant industry in Asia - flame retardant is the real-life application of flame retardant technology, it is a special chemical additive used to improve the combustion performance of flammable and flammable materials, widely used in all kinds of decoration materials flame retardant processing. After half a century of development, flame retardants have become the second largest plastic additives after plasticizers, the market consumption is very large. With the development of China's synthetic materials industry and the continuous expansion of applications, flame retardants in chemical building materials, electrical and electronic appliances, transportation, aerospace, daily furniture, interior decoration, food and clothing and other fields have broad market prospects. The flame retardant industry in Asia started late, mainly using the following three business models.purchase mode. The main raw materials include epoxy propane, epoxy chloropropane, phenol, bisphenol A, tropoxyphosphorus, polyether PPG and so on. These raw materials are managed through different strategies such as formula pricing and differentiated procurement. In the procurement of these raw materials mainly refer to ICIS (Anxuns, International Chemical Information Service Network) prices, raw materials supply and demand, supplier quotations, and combined with their own business experience, determine the timing of raw materials procurement. In general, the mode of production and operation for the sale of fixed production, through the above-mentioned procurement management system, as far as possible the raw material market volatility risk in a controllable range, to avoid the risk of changes in raw material costs.production mode. The production mode is basically to sell fixed production, that is, to organize production according to customer orders. Every mid-month, according to the sales contract and sales budget provided by the sales department, prepare the production plan for the next month. Regularly check the inventory of all kinds of products on a weekly basis, adjust the weekly production plan according to the sales plan and the actual inventory, and prepare the production plan, and report it to the manager in charge of production for approval. After the preparation of the plan, the plant director and workshop director to organize production. At the same time, maintenance personnel and safety personnel on a daily inspection of machinery and equipment and workers' production, the establishment of daily equipment ledger, safety ledger and workshop site management ledger. The quality department according to the technical department of the product technical standards, the workshop production of each batch of products for complete testing, products at the factory and then re-inspection. From the production instructions to reach the product storage, the period is about half a month.sales model. From the sales model, the use of direct sales-oriented, distribution as a supplement to the way of sales. For the domestic market, especially the end-customer distribution of more concentrated areas, mainly by direct marketing. For smaller areas of the market, it is essentially sold through distributors. Export, for major customers such as Bayer Materials Technology, Shaber Basic Innovation Materials, BASF, Damirek, etc., are direct sales; For the flame retardant market is more mature in Europe and the United States, in addition to direct sales to the main customers, but also through dealers to serve local small and medium-sized customers.