KUALA LUMPUR: Ancom Bhd expects trade war to benefit the company in supplying its active ingredient (AI) synthetic molecule (weed controller) for the agricultural sector.
Group chief executive officer Lee Cheun Wei said global growers were on the lookout to reduce the risk of not having a consistent supply of products from China particularly for the plantation sector.
“The current environment allows us to be an alternative supply source for herbicides solutions other than the US and China due to the ongoing trade war between the two countries.
“Countries will need to find alternative sources to keep the supply stable for their agricultural sector,” he said.
He said Ancom has good relationships with clients and distributors globally, hence the company would open to any opportunities arising from the trade war.
”The trade war between the US and China continues to have an adverse effect on the global economy,” he said.
He also said the group’s molecule was unique in the sugar cane industry, as it was the main producer of herbicides active ingredient product for the sugar cane industry.
“We can completely leverage on our position as we command majority market share in Brazil for a particular niche segment.
“Brazil is the world’s largest sugar producer with about 10 million hectares,” he said.
Asked on the group’s political affiliation with the previous administration, he said the company’s business was not linked to any political connection.
“Our business composition does not depend on any government’s contract. Our clients are plantation players and multinationals. And 70 per cent of our businesses are export base.
“We export 70 per cent of our agricultural chemical products in overseas such as in Brazil, Australia, Argentina, USA, South Africa, Mexico and the remaining is in domestic market,” he said.