Oil Exporter Profits in 2000Dalian West Pacific Petrochemical Co Ltd. (WEPEC), a money loser two years ago, has become one of the biggest exporter of oil products in China, according to China Daily."A quick development in the world market helped us provide 2.2 million tons of oil products to overseas clients in 2000," said Lin Aiguo, general manager of WEPEC. Lin said exports last year were more than twice that of the company's 1999 level and comprised a third of the country's total oil export. The export earned the company US$500 million. Two years ago, the company was 210 million yuan (US$25.3 million) in red. "Despite the rising price of the crude oil, the rising demand for the oil products in the world market presented WEPEC a rare chance," Lin said. While many of its counterparts were trying to scratch the domestic market, WEPEC kept a keen eye on the oil markets in Singapore and London. Equipped with an advanced software system, WEPEC changed the price and standards of its products quickly as market conditions changed, Lin said. A team of professionals specializing in the study of world business have established a network focusing on markets in Japan and the Republic of Korea, a method that has proven effective. A sharp reduction in cost by 23 per cent last year also helped WEPEC to become a winner in the world market, he said. WEPEC oil is well received in dozens of countries and areas such as Japan, the Republic of Korea, Singapore, the United States, Australia and the Middle East. During negotiations last autumn, the company landed orders for more than 1 million tons of oil from foreign customers. WEPEC, designed to process 5 million tons of crude oil annually, expanded its annual processing capacity to 6.2 million tons last year. To withstand the risks of the world market, WEPEC will strengthen itself by expanding its capacity and further reducing costs over the next five years, Lin said. |
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