BEATING The Chinese at their own game OTC : FLKI

FLKI is a rapidly growing company operating globally in two core business segments, chemical and wet wipes product conceptions. The production of its products requires price stability, notably in the essentials ie various innovative high tech substrates for manufacture and distribution of FLKI conceptions to its markets.

FLKI product conceptions rely on unique innovative and entirely eco-friendly materials, and the World Trade was expected to result in substantial economies of scale for procurement destinned to manufacturers of FLKI conceptions, including the world renowned Clean Plus® brand. FLKI is able to leverage raw material cost for customers throughout the world. Raw materials are procured and locked in to futures agreements by World Trading from suppliers throughout the world but notably in Nigeria, Brazil, Turkey,India, Hong Kong, the Philippines, Libya, China and others.

World Trading actively deals in bulk chemicals, finished product lines, degreasers, soaps, anti-graffitis, flow packs, wet wipes for consumer, professional and industrial uses etc. through alliances such as that with Norex.

Commenting, Manuel Garcia, Communication Officer for FLKI, stated, "We are very encouraged by the results of operations which now permit us to source various innovative materials and substrates ensuring substantial savings in the cost of raw materials for all producers and consequently distributors of FLKI product conceptions."

Recently, China has developed a near stranglehold on certain raw materials needed, in fact essential in the Automobile After-Market industry. China produces 95 percent of the world's supply and claims about 60 percent of known reserves within its borders. These raw materials happen to be essential to many emerging green technoligies - including those employed in FLKI product conceptions. As a freelance analyst for the industry for more than 25 years, and having covered this company since 1997, it never ceases to amaze me. How could it have planned for, first of all known, that China would just as these elements are becoming more essential, undertake a fresh brand of resource nationalism. In early September a few month after FLKI enlarged its procurement and hedging strategies through World Trading, China declared its plan to streamline the domestic industry, impose export controls, and establish a national reserve. Export quotas were severally indeed, dramatically curbed to levels whoefully insufficient to fill the global needs of the industry. In just one component the industry will require 142,000 tons and this is expected to double in 2015. The Chinese say their goal is not to hoard, but rather to push the industry to open factories in China - this tongue in cheek statement has the industry panicked because it hungers for these raw materials. The present demand alone exceeds China's new export quotas.

Drop the idea of alternative producers because even if they redoubled their efforts to exploit their own reserves of these materials it would take five years before any meaningful difference is felt. During that time I see FLKI interests blossoming to its shareholder's extacy ! Of course that implies my belief that the competition are not going to all rush to establish factories in China - but that would take at least a couple of years to put on line.

And what happens if China get's annoyed and decides to cut off the supply line ? I see many problems for many in that case, but not for FLKI and its producers. The commercial advantage for FLKI is absolutely fabulous.

So where does that lead us, and notably as concerns the topic of my industry sponsored report. Well, FLKI anticipated this event - though it will not admit or deny its possession of a strategic magical wand - and that means that it has likely hedged by locking alternative sources into a box as for which its affiliate World Trading will hold the only key. That to me spells a wonderful business opportunity for FLKI. As for one it will avoid for it, the scrambling in the industry that is already starting to be witnessed, and second it will avoid a break down in the supply line of producers ensuring the plentiful availability of its product conceptions. But there is more. Competitors caught asleep, will either have to limit the volume of their productions leaving shelf space for FLKI product conceptions, or supply themselves with the raw materials which FLKI can make available. It doesn't take much to enjoy the scenario - from an FLKI perspetive.

We've all heard the rumor of interest in FLKI by major companies. This is being cloaked up like a national secret. Though pressed a few days ago, the company felt compelled to provide the usual "will not confirm or deny"... the fact is that they did not deny. Is it to wonder ponders this analyst ; is it not cheaper to buy the company than be at its mercy for raw materials, continue to lose market share to its product conceptions, sit helplessly by as the distribution network of FLKI product conceptions expands exponentially... no, I smell some kind of deal. Just an opinion of course !

Related Articles - Car care, car-care, autocare, chemicals, polishes, wax, wipes, wet wipes, clean plus, Lingettes, Nettoyant, Desinfectant, Wipes, Chimie, Degraissan,

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