September 2007

Our Company, Process Research Products makes specialty Chemicals that are sold to the Silicon Wafer & Solar Industry. Our manufacturing site is in New Jersey U.S.A. These niche chemicals are mid-tech cleaners, lapping coolants & wire saw fluids. Our Company is privately owned and will be 50 years old in 2008. The focus of the company has always pointed to Export Markets. In the Sixties and Seventies, we concentrated on Europe, but from the mid 80's our objective became Asia Centric. Firstly, we set our sights on Japan, but we found that market frustrating and difficult to penetrate. We then sought out markets that were more realistic such as Malayasia, Korea and Taiwan, all markets that had strong Electronics manufacturing facilities.


Although it took some years to get established, we managed to sell and service global markets by building long-term relationships with strong indigenous Distributors and supporting them on the ground. After eight years, we established a million dollars worth of profitable specialty chemical business. China sent us their first order in 1994. Our initial Chinese customers had heard of us by word of mouth through Western educated Chinese Graduate engineers returning home to work. These engineers had seen western manufacturing processes up close. They realized that world-class manufacturing could be achieved with more certainty by adopting Western processes & products. 

This was exactly the "jump start" that we needed. As an entrepreneurial company, Process Research generally does things on their own, however, we have made good use of the following resources. U.S. Dept. of Commerce, Washington, D.C.U.S. Commercial Office in Shanghai U.S. Commercial Gold Key Shanghai U.S. Export Assistance in Newark, NJ 

Initially orders from China were phoned in from individual Chinese agents working out of their apartments in California, Texas or Shenzhen, etc.


This was cumbersome so we engineered an effective business model for our Company filtering out the middlemen, establishing contact with end users on a direct basis over the telephone by Chinese speaking staff . We negotiated purchase agreements directly with end users and this made life a lot easier. Altogether we identified a dozen significant prospective customers and converted 10 of them into repeat consumable buyers. We selected forwarding agents and sea ports to meet the customer's geographical needs and also ensured viable payment terms for both us and our Customers. We also worked hard at reducing the cost of transportation by selling full containers whenever possible. Our "first tier" customers paid in dollars, most on open account. We also insured our receivables with Credit Insurance. 

Early on Process Research Products recognized the importance of communication making two trips annually to our customers plants and also visiting with them at SemiCon China, which is held every Spring in Pudong. We were most impressed with the possibility represented by Semi Con, Shanghai and will exhibit there in 2008. Recently we have redesigned our Website in Chinese language to get our message across. .


About eighteen months ago we realized that we were missing out on customers that could only buy in non-convertible Chinese currency. With the help of the US Commercial office in Shanghai, we identified a Distributorship run by an American national. His warehousing and sales operation was ideally located in our best market, Shanghai and with this additional service component, we were able to service not only smaller customers, but also the exciting new Solar Industry, which is beginning to explode all across China. 

Overall, in fact, we find it quite straightforward to deal in China. 

If you are already a seasoned exporter on a Global basis and you have a "brand" product or something fairly unique or niche oriented, you really should explore the largest growth market in the world. We did and we have only positive feelings and no regrets.