Sunvic Chemical

[ongweehiang]

On a valuation basis, it is best not to include the cashflow from the possible MTBE plant. The problem with most plants is that it takes time to scale up production after initial phase. And things may not work out to what they plan again (cost overrun, production hiccup). It is also prudent to take an impairment on the original RMB 1,000 m investment as the original cracking plant was never build to be a MTBE plant as the original investment should be regarded as a sunk cost when making the second decision.