At the 2018 annual shareholder meeting, Crystal Plastic Manufacturing and Technology Joint Stock Company announced many new plans including the new field of factory investment. Artificial marble. Specifically this story like? Mr. Mai Thanh Phuong, Chairman of the Board of Directors of Crystal, shared about this issue.
Sir, many investors are asking why Crystal is producing Filler Masterbatch nuts – fillers in plastic industry, The packaging plans to expand into artificial Mable stone, an area that they think is not relevant to the current operation?
Mr. Mai Thanh Phuong: Yes, Pha Le was formerly known as Crystal Mineral JSC, is a company operating in the field of mining and processing minerals, especially in There are many CaCO3 white quarries with great reserves and good quality. The company changed its name to Crystal Plastic Manufacturing and Technology JSC in 2017.
For those who do not understand the industry, it may seem strange for a mineral company to turn into a plastic company, but in fact the Company’s products , from granulated stone, super-fine CaC03 powder, Filler Masterbatch fillers … and Marble artificial paving stones are made up of CaCO3 raw materials with a minimum density of 80%.
I can simply describe it using the following diagram:
In this process, the quarry mining which is conducted at the mines will be transferred to the primary crushing plant to create a product group including:
Stone chips are 3-6cm in size with a whiteness> 99%. This product is eligible for export according to Decree 41 / ND-CP on export of deep processed minerals. At the same time, it is also used as input material for the superfine grinding mill of Crystal Company. This group accounts for 55% of total catch.
The rest with the proportion of 45% is further refined and recovered 38% -40% to create stone chips from 1-6cm with white brightness <97 % is used as input material for grain production systems with different sizes used as input materials for product groups including: baits, shrimp meal, fillers in animal feed ( for feed). And especially the main raw material for manufacturing artificial Marble stone (~ 85% density) With this material group, Crystal plans to invest in hydraulic injection molding technology to create applied artificial Marble products. in paving products. . In addition, in the future, we will invest in new technology to develop new product groups of construction materials such as plastic wood and stone wood, which are still based on the basic material of flour, CaC03 granules.
As you describe, it seems the Crystal will take advantage of it, not leaving anything from the Quy Hop quarry?
With the production diagram and process as mentioned above, with a quarry put into exploitation, we have recovered more than 90% of the entire mining volume as tissue description of the raising and processing of “a cow”.
The fillet part is the low exploitation layer (negative ~ 150m) for block rock currently sold for $ 1,400-1,700 / m3. super fine powders are used for export or as an input for the Filler Masterbatch. The “heart” here is understood as the material using CaC03 “nut” factory as mentioned above.
In short, Crystal has used technology to create a chain of application of materials, the final product of a factory is the input material of a factory. Machine is invested with new technology.
For example, instead of exporting stone chips at $ 33 / ton, with the additional investment in technology, Crystal can create CaCO3 powder for export at 60 -90 USD / ton, artificial marble price from 300-350 USD / ton, Filler Masterbatch beads export price 300-400 USD / ton and if converted into packaging, the price will be 1,800-2,000 USD / ton.
Why did you make marble? How do you assess this market potential?
Products Marble artificial tiles are made from granules, recovered CaCO3 is crushed, mixed with additives, using hydraulic molding technology. The process of production and recall mentioned above has proved a great advantage of Pha Le when owning the material area and investing in a factory, deep processing CaC03 applied product groups in the mining area.
Besides, the cooperation between Crystal and businesses in the fields of investment, real estate, construction in big cities like Hanoi and Ho Chi Minh Minh … is the premise for the domestic market for artificial marble and export.
He was very confident in Crystal’s business plans, but in fact with the plan to issue shares to double its capital, PLP shares had strong discount in recent times. What do you think about this?
This issue we also received questions from shareholders at the 2018 General Meeting of Shareholders. In fact, PLP’s discount is in the general trend of the market. Vietnam stock market and maybe somewhere, some investors are dissatisfied with Crystal’s profitability.
However, I think that a manufacturing business wants to develop sustainably, it must invest in technology and investment in machinery and will not be able to have sudden growth. variable as financial investment enterprise. Typically, production investment projects need a minimum of 3.5 years to show effectiveness. With the Filler project officially operating in September 2016 and the Marble project expected to be implemented by the end of this year, the expected drop point of Crystal Plastic is expected to be in the period of 2019-2020. From PLP’s stock selection, we expect that investors in Crystal will be long-term investors in production and development activities so that we can collect sweet fruits.