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UIC is a trader, developer and distributor of specialty chemicalsthat are used in several industries such as cosmetics, healthcare,printing, food and plastics. We classify our products into twogroups: liquid chemicals that comprise alcohol-, ester- andglycol-based products; and chemical powders, comprising additivesand pigment products. Who are UIC's target customers? Our largest customer groups are makers of cosmetics and healthcareproducts, followed by printing ink and varnishing, foods andmedical supplies, plastics and containers, and others. In the pastcouple of years we have been able to increase our sales to theprinting ink and varnishing group the fastest, but we have seendouble-digit growth among all of our different customer segments.As well, sales from the chemical powder segment grew strongly in2011 and we will focus more on this because we have been able tobuild strong relationships with our customers. From here we will beable to sell more specialty chemical products. UIC is a subsidiary of Union Petrochemical Plc (UKEM). Why did thegroup decide to venture into UIC? UKEM is focused on commodity chemicals, which can be subject to thevolatility of commodity prices globally, while UIC focuses more onspecialty chemical products, which tend to be less affected byfluctuations in commodity prices. Specialty chemical product pricesare driven far more by demand and supply for the end productinstead of the cost of the raw materials. How important are UIC's relationships with its suppliers? We distribute several hundred types of products and ourrelationships with suppliers are crucial. For example we are adistributor of titanium dioxide which is manufactured by asubsidiary of Huntsman International in Malaysia. The value of thesales from these products accounted for nearly 30% of our totalrevenue in 2011. So our aim is to continue to foster therelationships with our suppliers and to help them expand theirmarkets in Thailand. Why did UIC decide to make an IPO? We wanted to raise funds to expand our business further. Themajority of the funds raised are used for working capital, and thishas allowed us to meet the growing demand from our currentcustomers and to go out and get new business. UIC's net profit doubled in 2011. How was this achieved? Customer focus. First, we saw that our customers required more ofthe specialty chemical products that we distribute. Second, we sawthat the industrial sector here offered strong opportunities forseveral other specialty chemical products, which is why we began todistribute chemical powder. Third, as a newly public company withadditional funds for working capital, we have been able to meetthis demand. What are the biggest risks facing your business today? Our biggest risk is our own inability to seize the opportunitiesthat are available. We are a small company that has been able todouble in size over the past two years and for us to maintain thisstrong growth we have to focus on our customers and ensure that wedeliver our products in an efficient manner. How would integration under the Asean Economic Community affectyour business? The AEC is a great opportunity for the region and we will firstfocus on strengthening our business here in Thailand so that it canwithstand any new competition from abroad. Where do you see UIC five years from now? In five years from now UIC will continue to be a distributor ofspecialty chemical products within Thailand. We will look to expandour existing portfolio of specialty chemicals that will enable usto sell a wider variety of products to our ever-growing customerbase. The Executive Q&A Series is presented by ShareInvestor, Asia'sleading financial internet media and technology company and thelargest investor relations network in the region, with more than400 listed clients. This interview was conducted by Pon VanCompernolle, the editor of . For more information, email or or visit. The e-commerce company in China offers quality products such as HTC LCD Digitizer , China IPod Touch Repair Parts, and more. For more , please visit IPhone 3GS Replacement Parts today!
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