Competition / Competitors
The markets for our products have been experiencing increased levels of demand
as China continues its accelerated growth. Nevertheless, the markets for our
products are highly competitive. To date, our sales have been mainly limited
to customers within China (less than 1% of our sales are to overseas customers)
and we expect that our sales will remain primarily domestic for the immediate
future. Our marketing strategy involves developing long-term ongoing working
relationships with customers based on large multi-year agreements which foster
mutually advantageous relationships.
We believe we have a leading position in the industry with greater resources,
sales channels and market penetration than our competitors. We compete by
providing the highest quality bromine at the best price. Our reservoir is a
significant advantage over our competitors in that it allows us to purchase
bromine from smaller bromine producers when market prices are low and then
resell that bromine when market prices are high. While the bromine we purchase
from other producers is not as high quality as ours, we purify such bromine to
meet our standards before reselling it.
Our principal competitors in the bromine and crude salt business are Shandong
Haihua Group, Shouguang City Haoyuan Chemical Co., Ltd, Shandong Dadi Salt
Chemical Co., Ltd, Changyi Mingkang Bromine Co., Ltd, and Weifang Longwei
Industrial Co., Ltd.
Our principal competitors in the brominated specialty chemicals business are
Shandong Shouguang Weidong Chemical Company Ltd., Shandong Tianyi Chemical
Company Limited., Shandong Sino-Israel Bromine Compounds Company Limited and
Shandong Yucheng Chemical Company Ltd.