Q:

A: Deuchem has been competed with BYK in the price since entering China, but nowadays, there are many companies competing in the same price. Therefore, the company should highlight its characteristics. In one way, we should research new products, and in the other, we will improve the old characterized products. Due to 9.11, the worldwide economics has suffered great impact, but China still develops with a speed of 7.4%, which means that the economical center of the world will change to China. When the economics is not booming, the corporation should improve its system to meet customers’ requirements.

Q: Deuchem is not a big corporation in the world, but how can you be so successful in China?

A: our success would owe to the chance, the drumbeating of several magazines such as Paint & Coating Industry, and also our after-sale service. We gain great efforts from holding illustrative meetings, in which we not only illustrate our products, but also recommend consultant formulas, as well as analyze and conduct the performances of coatings using our products. In 1997, we set a technical service center in Shanghai to settle customers’ problems, which gain customers’ reliance. Besides, we possess of several products that other additives companies not have, such as adhesion promoter and various cere, which helps us gain more customers.

Q: How many domestic market shares do you have? And what about the market abroad?

A: In the mainland, Deuchem takes 20%-25% additives market. 90% of Deuchem’s operation is in China and Taiwan, and 10% in East Asia and South Asia. The annual sales value of Deuchem is about 0.3billion yuan.

Q: Your most additives are oil-based, and what about the water-based products?

A: Oil-based additives are our main products, and water-based additives take only 10%. Because the aqueous coatings are more and more popular, our company will catch up the world’s need. Now we are researching and developing aqueous products and additives.

Q: In the mainland, where does mass Deuchem additives market locate?

A: Just as all the raw materials providers, our market centralizes in South China and East China. However, after the successful application of 2008 Olympics, there will be a great market in North China, and Deuchem has prepared for it.

Q: As we know, Deuchem also produces resin. Will you produce resin instead of additives?

A: Deuchem will not change additives production strategy. We only produce selective resin, especially top grade resin used for automotives.

Q: What are the new actions of Deuchem as for the strategic arrangement?

A: At the present, Deuchem has the similar quantity of employees in China and Taiwan and there are ten offices in China. The production and sale have moved to China and R & D is in Taiwan. However, we will launch more in China in future.