Chemphil has been making business news headlines recently on account of its impending demise following the decision of the Trade Department to remove the tariffs imposed on competing imported TSPP (trisodium polyphosphate, I think), a critical ingredient in detergents and soaps.
Chemphil, a local company happens to be the SOLE supplier of TSPP in the local soap-and-detergent industry, and as such, since it monopolizes the industry, major manufacturers have no choice but to accept the relatively high TSPP prices of Chemphil. As a result, locally-manufactured soaps and detergents remain uncompetitive.
In contrast, allowing local soap manufacturers to use Chinese imports sans the tariffs, would result in lower production costs and consequently, relatively affordable finished products.
Predictably, Chemphil and so-called cause-oriented groups like the Free Trade Alliance headed by Rene Ofroneo has been lobbying the DTI to review the ruling and prevent Chemphil from going out of business.
The DTI rose up to the challenge and in a series of newspaper ads, presented a convincing argument why the protection afforded to Chemphil is detrimental to the bigger and more critical soap-and-detergents industry.
Clearly, Chemphil simply relied on its monopoly status, reaping huge margins without really exerting any effort to become competitive and efficient.
And the company is moving heaven and earth to maintain the status quo by claiming that it is a victim of globalization.
Yeah, right. Whatever.
Chemphil, a local company happens to be the SOLE supplier of TSPP in the local soap-and-detergent industry, and as such, since it monopolizes the industry, major manufacturers have no choice but to accept the relatively high TSPP prices of Chemphil. As a result, locally-manufactured soaps and detergents remain uncompetitive.
In contrast, allowing local soap manufacturers to use Chinese imports sans the tariffs, would result in lower production costs and consequently, relatively affordable finished products.
Predictably, Chemphil and so-called cause-oriented groups like the Free Trade Alliance headed by Rene Ofroneo has been lobbying the DTI to review the ruling and prevent Chemphil from going out of business.
The DTI rose up to the challenge and in a series of newspaper ads, presented a convincing argument why the protection afforded to Chemphil is detrimental to the bigger and more critical soap-and-detergents industry.
Clearly, Chemphil simply relied on its monopoly status, reaping huge margins without really exerting any effort to become competitive and efficient.
And the company is moving heaven and earth to maintain the status quo by claiming that it is a victim of globalization.
Yeah, right. Whatever.
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