Due to security accidents, the plant equipment that Japan Chemicals has contributed half of its production capacity has been shut down since December 19 last year. The company announced on the evening of March 19 that the company is actively adopting corrective measures to strive for all of the equipment before the end of March 2018. Reorganized in place to meet the requirements for recovery of production.
According to reports, since the accident, the company's accident plant has been temporarily suspended. The plant mainly produces ACR products and AMB products. The production capacity of the plant accounts for approximately 50% of the company's total production capacity; in the first three quarters of 2017, the production of the products in the plant area Operating income accounted for approximately 67% of the company's main business revenue, and net profit accounted for approximately 78% of the company's total net profit. If the plant area cannot be resumed for a long time, it is expected to have a significant adverse impact on the company's future performance.
The company stated that there are three production workshops in the accident site. The company has removed the drying workshop and equipment related to the accident. At the same time, the company has also investigated and rectified the problems related to the workshop where the accident did not occur, and formulated a detailed rectification plan for the hidden dangers. , For all the rectifications in place by the end of March 2018, to meet the requirements for the restoration of production.
In response to the supply gap caused by the suspension of production, the company stated that it will use technical capacity of strategic partners to fill gaps in the production capacity of the accident site by outputting technical, personnel, customer resources, and financial support to strategic partners to restore the supply and demand balance of the industry, ensuring that The normal operation of the industry protects the interests of customers from damage.
The company’s subsidiary, Ricoh Rubber and Plastics, has not been affected by this safety accident. The '100,000 tons of plastic modifier ACM and 10,000 tons of chlorinated polyvinyl chloride CPVC project, which it undertook, will be built in June this year. The project is ready for use. At present, the project's main building and main equipment have been installed. The company expects that after the project reaches full production, it can realize an annual operating income of 837.54 million yuan and a net profit of 52.86 million yuan. In addition, the company also cooperates with Qingdao University of Science and Technology. Signed the "Technology Development (Delegation) Contract" and commissioned Qingdao University of Science and Technology to develop the "Application Technology Project for Chlorinated Polyethylene Elastomers in Treads for Treads." If the technology is developed to achieve the desired goals and successfully marketed, there will be This will facilitate the release of the company's new project production capacity and further improve the company's profitability.
According to the company, driven by multiple factors such as increasingly strict environmental protection checks, product upgrades and intensified market competition, some environmental protection and technology renewal are not up to the standard. Enterprises with weak capital strength begin to reduce the workload and will gradually withdraw from the market. ACM products are important Strategic Opportunity Period. With the commencement of the new Japanese Rubber & Plastics project, it will effectively mitigate the impact of the suspension of the accident plant on the company's future performance.