Shandong Sunway Chemical Adopts Flexible Production Strategy Based on Sales Orders

Deep News04-03

Shandong Sunway Chemical Group Co., Ltd. stated in response to investor inquiries that its chemical business operates under a flexible production and management model characterized as "production based on sales orders with timely switching." The company adjusts production promptly according to short-term and long-term market demand, trends in raw material prices, product price movements, and inventory levels. Furthermore, the company's operational models for its products mainly include direct external sales and a combination of internal production use and external sales. Specifically, aldehyde products can serve as raw materials for alcohol and acid products, while some alcohol products can be used as raw materials for ester products, representing the combined model of internal use and external sales. Residual liquid products, acid products, ester products, cellulose acetate butyrate, and their derivatives follow the external sales model. The company possesses a relatively complete "aldehyde-alcohol-acid-ester" industrial chain. Compared to large integrated enterprises in the industry, the company benefits from greater flexibility in production and operations due to the absence of specific raw material constraints. By closely monitoring product marginal benefits and considering factors such as short-term and long-term market demand, raw material price trends, product price trends, and inventory status, the company can swiftly switch to high-margin product production through flexible adjustments in raw materials such as C2, C3, and C4.

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