Stavian Chemical attended the BSR’s Seminar on the consumption of Polypropylene (PP) resin

Business 18/08/2022 555

Hoi An (August 17, 2022), Binh Son Refining and Petrochemical (BSR) held a seminar on the market overview and consumption of Polypropylene (PP) resin manufactured by BSR.

The Seminar took place in Hoi An, Quang Nam with the participation of Mr. Bui Ngoc Duong – General Director of BSR, Board of Directors of BSR, and representatives of the Company’s divisions along with representatives of 06 long-time partners of BSR in the field of Polypropylene (PP) resin distribution and consumption. Regarding Stavian Chemical, Mr. David Nguyen – General Director of the Company attended and presented at the Seminar.

At the event, Mr. Bui Ngoc Duong recap the business results of the Dung Quat Oil Refinery. Since its establishment, Dung Quat Oil Refinery has produced more than 80.1 million tons of products, gaining a total revenue of 1,345 quadrillion dongs and contributing more than 195 trillion dongs to the Government budget. In the first half of 2022, Dung Quat Oil Refinery has operated stably and efficiently at optimal capacity, achieving significant revenue and high profit after tax, as well as making a great contribution to the Government budget. However, as the fluctuated market has significantly affected the consumption of PP resins, it is necessary for BSR to hear its partner’s feedback for better solutions that can balance the interests between the manufacturer and customers.

From 2018 to 2022, BSR has applied a new and innovative sales method in the form of long-term contracts to create more benefits for its customers, namely establishing a higher level of commitment when the market goes down, ensuring stable manufacturing and business for both parties, helping distributors to proactively develop and expand their distribution network, market share, and products diversity. Nevertheless, this new method has caused BSR more difficulties when expanding its market share, being dependent on long-term partners’ distribution channels, and facing higher competitiveness from other big manufacturers in the market, etc.

At the seminar, BSR’s partners and customers also expressed that the current market was gradually becoming unfavorable for BSR and the long-term customer group. Therefore, to ensure the interests of both parties, BSR needs to research and adjust the selling price to suit the market situation as well as introduce a more flexible price mechanism. In addition, BSR should change its CRM policies for long-term partners, develop more Polypropylene products, and build a nationwide and up-to-date distribution network. Besides that, BSR also needs to provide more international qualification certificates for their Polypropylene to guarantee the manufacturing and selling of PP-based products in European and American markets.

Valuing all opinions, Mr. Bui Ngoc Duong emphasized that BSR would consider all raised issues. The Company would make more efforts in improving brand awareness and product promotion, researching to launch more new products to meet the market demand, optimizing and reducing production costs to increase competitiveness, operating flexibly, and further increasing technical exchange opportunities between BSR and its customers, etc.