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PR Newswire
01-05-2013, 08:13 AM
The company could not have been the buying party yesterday as it has not renewed its share buyback mandate.
The company is now being burdened by the high fixed cost of producing 6PPD, whose designed capacity is 15k tonnes a year. The current utilisation is very low, around 1k tonne each quarter.
The company has also built the capacity to produce enough 4ADPA (the intermediary for manufacture of 6PPD) to support ultimate production of 30k tonnes of 6PPD.
Things should improve when sales of 6PPD pick up after more tyre manufacturers accredit Sunsine's product. Sunsine's track record of technical competence in rubber accelerators and insoluble sulphur may provide some comfort to investors who are willing to wait out.
The company is now being burdened by the high fixed cost of producing 6PPD, whose designed capacity is 15k tonnes a year. The current utilisation is very low, around 1k tonne each quarter.
The company has also built the capacity to produce enough 4ADPA (the intermediary for manufacture of 6PPD) to support ultimate production of 30k tonnes of 6PPD.
Things should improve when sales of 6PPD pick up after more tyre manufacturers accredit Sunsine's product. Sunsine's track record of technical competence in rubber accelerators and insoluble sulphur may provide some comfort to investors who are willing to wait out.