Committed to creating value

At present, China’s chemical operations are very competitive when compared to the West. The cost of goods is significantly lower. Old equipment has already been amortized thus reducing depreciation; salaries are low; R&D costs and marketing expenses are modest at best. However, as China modernizes operations in the future, the economic situation for local Chinese operations will certainly change dramatically. Salaries will increase, investments in new equipment and technologies will need to be made, sales and marketing teams will need to be strengthened. Companies will be compelled to pay more attention to these increasing costs not only to survive in a tough economic environment but also to ensure that they satisfy their future shareholders. Innovative and high-margin products should prove to be the impetus for positive growth.

Creating value to ensure continued operations through innovation and better competitiveness.

For western companies, sustainable development also implies that operations create value for both shareholders and employees.
Creating value means increasing the return on capital employed (ROCE). Optimizing innovation and improving competitiveness are two important ways to achieve this objective.
Innovation that is both broad and deep means developing increasingly high performance products to meet changing market demand and trends by listening even more closely to customers, partners and consumers. It is important to accelerate time to market by minimizing the timeframe for designing and manufacturing new products which generate higher margins. The role of innovation becomes all the more important when a company chooses to partner with an industry leader.
- By introducing best practices and encouraging employee involvement and commitment, a company can improve its competitiveness. When costs are reduced, margins improve.