“To compensate for [lost revenues in] these markets, we actually found ‘exotic’ markets or those markets where others do not want to go to—particularly Africa, Tunisia and Lebanon,” Dean Lao Jr., chief operating officer, told reporters in an interview.
The ChemrezTech executive said there has been a change in optimism among all export-oriented industries due to the slowdown in traditional export markets like Japan and the US.
ChemrezTech now ships oleochemicals to the newly found exotic market regularly. “We found out that these markets are actually good ones and that they even tend to be more loyal [buyers],” he added.
Except for Lebanon where ChemrezTech has been serving for quite some time, according to Lao, they have started to tap into these exotic markets three years ago.
Lao noted that Lebanon is actually qute a sophisticated market with respect to the way they use consumer products, specifically coconut oil-based hair and body shampoos. Company executives now plan to visit these new export markets more frequently compared with last year.
Lao added that they also plan to tap the South American market to complete the company’s global exports thrust. “We’ve had fewer transactions in South America, so we’d really like to have some more [similar deals],” he added.
“Another thing we’ve noticed is the Philippines has an advantage to take on supply contract negotiations for coconut oil-based products. We’re still the main and strategic source of anything derived from coconut,” Lao said.
Lao earlier said that ChemrezTech plans to invest $15 million as it expects its exports business to account for half of the company’s overall business in the next three years.
Lao told reporters: “Hopefully, our export of oleochemicals would comprise half of our total turnover by 2014 with most of the growth coming from Japanese, Thai and even American markets.”
Japan and Thailand continue to be ChemrezTech’s largest markets, but Lao pointed out that the US market is also starting to show a very good potential for dramatic growth, particularly for oleochemical products.
(Paul Anthony A. Isla)
