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Sulfur - DMC's strategic business product

Sulfur is one of the most used industrial chemical materials. Sulfur is mainly used to produce sulfuric acid, the main ingredient for fertilizer production, and it is also used to produce batteries, detergents, rubber vulcanizers, fungicides, etc.

Currently, the demand for sulfur in the world (excluding South America) is concentrated mainly in Asia, especially in China which accounts for 90% of the amountwith about 10-11 million tons per year. Viet Nam’s yearly domestic demand is also about 460 thousand tons for fertilizer production and about 40 thousand tons as raw materials for other small industries such as sugar, paper, rubber, etc. Realizing that this is a good opportunity, in 2013, the Drilling Mud Corporation (DMC) has officially embarked on this potential product business.
In the first year, DMC consumed 50,000 tons of products, occupying 21% of the domestic market. By 2014, with the strong increase in demand for sulfur, the DMC Corporation took up 11% more of the market share increasing the consumptionvolume of products to 80,000 tons.
With the aim of becoming an international sulfur business unit, after two years of negotiations, DMC has signed a long-term contract with the Abdullah Abdul Aziz Oil Company (ADNOC) with a capacity of 120,000 tons in 2 years. As soon as the supply is stable, DMC has begun to expand its consumer market to customers in South East Asia and China. Particularly in 2016, sulfur business brought revenue of 168.57 billion VND with the profit of 11 billion VND for DMC.
In 2017, when DMC continues to face difficulties from the oil crisis, with high safety, high revenue source, once again, Sulfur is selected as one of the items that DMC has chosen to step up business in this stage. In the first six months of 2017, DMC successfully sold 60,000 tons of sulfur products to foreign customers which resulted in revenue of 145.93 billion VND reaching 62% of the year 2017 plan and 132% of the same period last year 2016. The profit is estimated at 4.77 billion VND reaching 286% of the plan for 2017. Even in the early days of July 2017, DMC has sold 45,000 tons of sulfur shipments and prepared to sell more 60,000 tons in the next month.
In order to enhance business capacity in the coming period, DMC will simultaneously implement strategies to diversify supply as well as expand customer network. For supply, in addition to long-term strategic partner ADNOC, DMC also registers to the Petronas customer list (Malaysia) and regularly participates in Procurement of Formosa (Taiwan). In addition to traditional customers in the country, DMC has deployed a number of international clients such as Bayegan (Turkey), Marubeni (Japan), Petrochina (China). These lists are being further updated.
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