AFCONA Additives, is a new name whether to Chinese Paint industry or to international coatings world. What kind of the company it is? Recently, AFCONA Additives (Asia pacific) Co., Ltd. executive director Mr. Rongnian Su, director and technical majordomo Mr. Martin Philipoom, and Chinese manager and Shanghai agency Chief of the delegates Mr. Zhijun Wang and so on a group traveling together to CNCCC Changzhou Paint & coatings research institute. Our reporter specially makes an interview to them.

Reporter: As a new company, will the company issue any new products recently?

Mr. Rongnian Su: Yes. Aimed at the demands of market, AFCONA Additives developed many new products and technologies on the basis of former products, such as new type dispersants and leveling agents. The goal is to solve the bottle net problems when customers use additives. Now the products have been promoted to market.

Reporter: in a sense, AFCONA is a new company. So is there any plan for the company in the market orientation and deploitation strategy?

Mr. Martin Philipoom: The key strategy of AFCONA is localization research of additives products. The requirements of coatings property in global regions are different, for example the requirements on weather resistance property are different between China and South East Asia. Thus AFCONA products will not only stay on the research and development facing the regions in Europe and American, but to supply distinctive products according to the different demands and features in global different regions. In addition, the company will further improve the service quality for customers. That is very important to a new company.

Reporter: speaking of localization operation, many international companies including Ciba had begun production in China. Whether AFCONA have any plan about merge or localization in near future?

Mr. Rongnian Su: although company possesses matured technology, steady sales personnel, and technical service personnel, since having not been long established, the company is still in the stage of start off. Therefore, in short term, the company has no localization plan. But since headquartered in Malaysia, and with the manufacture base in Malaysia, we set store by the operation in China market. The company will intensify the performance in China market by increasing product development and completing the service network. Of course, our company will implement localization when opportunity is permitted by purchasing or other methods.

Reporter: at present the global coatings industry are confronted in environmental and cost problems, whether the company products will bring advantages to coatings enterprises?

Mr. Rongnian Su: yes. Escalating raw material prices and increasing strict demands for many countries in environmental regulations, it is undoubtedly a pressure to the global coatings industries. Facing this situation, as coatings additive supplier, the advantage of AFCONA will be sufficiently embodied.

Mr. Martin: Yes. Technically many products of our company have the advantage of environmental friendliness, no matter for environmental friendly coatings such as water-borne coatings, no solvent coatings, UV curing coatings, or high solid content coatings, our company could supply relevant additives, making them at the premise of keeping environmental friendly and meanwhile having properties near to solvent-based coatings.

Reporter: the development of Chinese coatings market is very rapid. The output of paint & coatings had reached 3.82 mil tons in 2005. As a raw material supplier, how about the company thinks of the current situation and future developing momentum of China coatings market?

Mr. Zhijiu Wang: I have been doing business with china coatings industry for years. In recently years, an obvious phenomenon is that many enterprises had begun to set up subsidiaries in other cities, and from the view point of a supplier, the operation of these subsidiaries are very successful. As far as industry paint, we could see many factories are enlarging the production. They built many new workshops. This testified that China coatings industry had got significant development.

Reporter: the company conducted technical lectures for scientific and technical personnel in Changzhou Paint & Coatings Research Institute, whether the company has planned to spread nationwide by this way?

Mr. Rongnian Su: yes. We shall make East china as starting point, and associate franchisers of various regions to outspread a series of technical lectures, to introduce our various environmental friendly additives to Chinese coatings world. As a supplier of coatings industry, AFCONA Additives is quite optimistic to the developing momentum of China coatings industry, and we believe our company will develop with the industry together.