Chemrez taps Russian market

REPORT FROM BUSINESSWORLD Publicly Listed Chemrez Technologies, Inc. (ChemrezTech) has exported $80,000 worth of paint colorants to Russia in line with the company’s plan to expand its reach. In a statement, Chief Operating Officer Jun Lao said the first shipment was sent last month. A second shipment, worth $70,000 has been booked, he added. "The Russian market has strong potential as it is a ‘virgin’ market where there are few competitors and margins are better," he said. The market, he said, is currently dominated by European and American colorant manufacturers. ChemrezTech manufactures ChromaPlus, a colorant system that gives paint companies the capability to generate thousands of colors accurately. Called a "universal colorant system," ChromaPlus works in water and oil-based paint systems. ChemrezTech’s formulation of ChromaPlus took into consideration the stringent European regulations for solvent-free and environmentally-friendly paint products. "This is a high tech-high value product currently dominated by multinationals. The colorant system allows paint stores to mix paints to the exact color shades chosen by the buyer. Stores can also produce customized colors with consistent quality in the exact quantity needed for a lower cost," Mr. Lao said. ChemrezTech already supplies ChromaPlus to TOA Paints of Thailand, one of the biggest paint companies operating in Southeast Asia. ChemrezTech has a 40% share of the Thai market accounting for about $2.5 million of the $6 million monthly colorant business. Aside from Russia and Thailand, ChemrezTech also exports its colorant products to Vietnam, Myanmar, Australia, Pakistan and Egypt. Other brands being sold in the international market include Aquasol and Ultrasol. Mr. Lao said ChemrezTech is also promoting its paint colorant products to the Middle East. ChemrezTech exports a total of 330 metric tons of paint colorants worth $3.96 million a year while it sells around 400 metric tons of these products in the domestic market every year. Formerly Corro Coat, Inc., ChemrezTech also manufactures and exports, as well as sell locally, bio-diesel. — R.A.M.R./BusinessWorld