Chemrez Technologies, Inc. (COAT, the Company) was incorporated on June 1, 1989 under the name Corro-coat, Inc. It was listed in the Philippine stock exchange on December 8, 2000. In 2006, COAT ventured in biodiesel production by acquiring its resin producer affiliate Chemrez, Inc and changed its name from Corro-coat, Inc. to Chemrez Technologies, Inc.
The Company derives its revenues from its two principal segment oleochemical and resin & powder coatings.
Oleochemical or agricultural based products is mainly composed of biodiesel. The company claims to supply approximately 20% of the total biodiesel requirement of the country in 2011. Other oleochemical products of the Company include glycerine and other methyl ester (CME) derivatives which are used mainly as foaming agents for soaps and detergents and are sold primarily in the export markets. Exports comprised 17% of the total revenues of 2011.
Resins & Powder Coating Segment
Powder coatings are protective materials applied to metal and other surfaces through an electrostatic coating process to provide resistance against heat, weather and UV light, and certain chemicals. It is used in home appliances, metal furniture, fixtures and fittings, mechanical parts, tools and equipment and also in the construction industry.
Resin includes polystyrene resins for the plastics industry, polymer emulsions for the paint industry, and polyester resins for the construction, shipping, and furniture industries.
In the Company’s March 31, 2012 quarterly report, their oleochemical segment suffered a 30% decrease in revenue sales or 470 million decrease as compared to the same quarter last year due to increased competition in biodiesel. However, resin and powder coating sales increased by a total peso figure of 24 million.
A notable attribute of the Company is its conservative management of capital. They prefer to fund capital expenditure using internally generated funds while they tap short term loans to fund their working capital requirements. As a result, they have a balance sheet with no long-term debt and very manageable debt.