13 October, 2020

Corsair Group – (SBCL) – Shareholders Monthly Report 9/ 2020

CORSAIR GROUP INTERNATIONAL  Socium Bangkok Company Limited (SBCL) 14.10.2020

Dear Shareholders, Partners and Associates of Socium Bangkok Company Limited,

It is my absolutely pleasure to be sending you this very first Shareholders Monthly Report.

The story of Our Company has just begun and already it feels like there are way too many topics and updates for us to even try to add into this first official report today. I will therefore focus on the most important areas and we will then be releasing additional updates about other important, but not as urgent matters, again here on our new website, CorsairNow.com.

In this Report we will cover the following areas:

  1. Summarized General Update
  2. Production
  3. Production target – Q4 / 2020
  4. Sales & Sales target Q4 / 2020
  5. Future reporting and timelines
  6. Conclusion
Socium Bangkok Company Limited (SBCL) / Corsair Group has already established itself as a serious player in the Chemical Recycling Market in Asia and soon in Europe. “McKinsey and Company”, a leading global business consultancy, believes that chemical recycling will become a USD 75 Billion revenue industry, with USD 25 Billion in profits within 2030.

What we have in our hands today is the beginning of an amazing journey, in one of the most ecologically important- and at the same time at one of the most lucrative, global industries of the future.

I hereby once again welcome you all to Socium Bangkok Company and into Corsair Group.

With kindest regards,

Jussi Veikko Saloranta  Chairman of the Board, Corsair Group International

Chief Executive Officer, Socium Bangkok Company Limited

1. Summarized general update

Since us taking over the Bangkok facility, we have made some tremendous progress in refurbishing the facility.  The following pictures will outline the transformation process of the facility.

Before:

Work being done at the facility:

After:

For all of us to have the same information at hand, I would like to highlight, that Socium Bangkok Company officially took over the facility in the beginning of August 2020, merely just 2 months ago. This is when our work at the facility started.

During less than 10 weeks we have upgraded the entire structural infrastructure of the facility, improved its M&E systems, replaced almost 50% of its old roofing, renovated the gutter and water drainage systems, upgraded the boundary walls of the facility as well as removed over 10 truck loads of old garbage, unnecessary items etc. On top of this we have performed a full scale renovation and maintenance for the two existing production units which we acquired during the acquisition of the facility.

We have been running these machines – mostly in performance testing purposes, with a very small capacity – but as high as possible during the past weeks, while doing renovations at the facility. In order to avoid major fire related security risks, we have been forced to avoid running the production units, while welding and other works involving fire and sparks has taken place.

Additionally we have been troubleshooting many arising issues, such as leaking caskets, valves, pipes etc – many times having to turn off the production units just hours after turning them on, once finding a leak or a broken part in one of the machines.

We knew and we accepted that this would be the situation upon taking over the units – in a similar way as you would when buying a used car. But with the right maintenance, dedication and focus on restoration, we knew that we would be able to make them run smoothly again – and now they are.

On top of that, we are now well on our way of installing the 3rd production unit into the facility, which is expected to start test runs within just 4-6 weeks from now.

Most importantly, we have established our Management- and Operational teams who have been trained by the most skilled and knowledgeable technical people, involved in the field of pyrolysis in Thailand, and we are now producing a steady flow of pyrolysis oil.

I sincerely believe that no one else would have been able to execute, what we as a team have achieved over this short period of time, with the resources that we have had in our disposal.

I am not exaggerating when I say that the team that we have assembled for our Management and for our operations is probably the best team in Thailand and most possibly the best in South East Asia.

2. Production

During the past weeks we have generated approx. 65 000 litres of pyrolysis oil by utilizing over 100 000 kilos of waste plastic raw material.

This has been done while doing major construction work at the facility as well as major maintenance work on the production units themselves. This does not in any way represent the potential of the production units or a production output of the two production units, when the units can be operated smoothly without any significant disturbance.

By referring to the study (click here to read the study) which found that the “plastic waste footprint” of a single European Union citizen is approximately 30 kilos of plastic waste per year – we have already removed the equivalent amount of plastic waste of what more than 3 300 people create in a year.

Considering the fact that we haven’t really even gotten started yet, I feel that we can all consider that as a significant environmental achievement in such a short time.

The impact of this plastic waste being removed from the environment is massive, when you consider that the amount of plastic waste shown in the below pictures, being carried by this semi truck is approximately 25 000 kilos:

In other words, we have during the last few weeks removed 4 times this amount of garbage plastic from our environment, which otherwise would still be rotting in the landfills for the next 400 years.

Now it is gone from the environment forever and will be used to generate energy for our daily lives.

For this we can all be truly proud of.

3. Production target – Q4 / 2020

Our production target for the Quarter 4 – starting from this October, will be to reach a steady production of 60 000 litres of oil per month, from the initial two production units, while continuing to upgrade the production and the operations in general. Upon the completion of the installation of the 3rd production unit, we will be able to start its test runs, which will increase the overall production capacity significantly.

We are targeting to reach a continuous monthly production of 100 000 – 200 000 litres per month by steadily increasing the production capacity during the next months. Additionally to this, we are also preparing to have the 4th production unit installed at the same time (and going operational at the end of 2020 – beginning of 2021).

Installation of the 3rd production unit:

4. Sales and sales target – Q4 / 2020

We have secured several important clients over the last months with whom we have started collaborations with.

What has become obvious that there is a huge demand for our oil product, both from the public as well as from the private sector.

At the same time the current market challenges have also become more clearer, one of the most important being the limiting effect of operating with small quantities.

Oil refineries and larger buyers of fuel in Thailand prefer to buy larger quantities of oil, delivered for them on a regular (monthly or weekly) basis, instead of dealing with small quantities. Typically, the clients we have now started to interact with, are looking to purchase larger volumes, such as for example 300 000 – 1 000 000 liters of oil per month.

There is currently no company in Thailand who is producing this much pyrolysis oil on their own. Therefore, there are several brokers on the market who are actively buying smaller production from companies and then “pooling” them into larger quantities in order to deliver them for the larger buyers. Obviously the broker will be adding a processing fee for each liter which is being distributed. The combined demand from our existing clients exceeds well over 3 Million liters of oil per month.

This is very assuring information for us to have as it clearly shows the existing and rising demand for our product. As a part of the operations inside the Corsair Group of Companies, one of the subsidiary companies of Corsair Group, “Corsair Reserves Company Limited (Thailand)” and its sister company, “Corsair Reserves B.V (Netherlands)” are in the business of purchasing oil from various producers, including Socium Bangkok Company Limited.

Due to the combined interest and efforts, Socium Bangkok will be supplying most of its sold oil in the future for Corsair Reserves, at the highest available market prices, which is in the process of storing the oil and the distribution of it for larger buyers. In this way Socium Bangkok will be able to benefit from these activities financially as well and receive a higher sales price for its product.

We also see the oil prices to continue their rise during the coming months.  As of right now, the Company has sold a total of 65 000 liters of pyrolysis oil. Our target is to reach a steady flow of production during this quarter and to generate oil in the range of 200 000 – 250 000 litres within Q4.

5. Future reporting and timeline

In order to establish frequent and stable flow of communication, we wish to establish the following communication and reporting structure:

  1. Shareholders Monthly Report – within the 1st week of each month – summarized version excluding confidential financial data to be released on the CorsairNow.com website
  2. Payment of Share dividends, after the 15th of each month
  3. Quarterly Earnings Report – with more specific financial details – within 30 days after each Quarter has finished – Starting from Quarter 4 / 2020
  4. Annual Reports – within 45 days after the end of each fiscal year
  5. Additional announcements will be made on the www site and social media accounts of Corsair Group on a regular basis – we welcome all Shareholders, Partners and Associates to follow us on these platforms

We also welcome you to contact us for more information about becoming a Shareholder of the Bangkok Project by getting in touch with our regional Executive Coordinators or directly with us at info@corsairnow.com.

6. Conclusion

We at the Board Of Directors of Socium Bangkok Company and Corsair Group are excited about the future which keeps unfolding in front of us. The recent events which have seen Socium Bangkok Company being incorporated as part of the Corsair Group, and its wider business plan, has created new opportunities for each and everyone involved.

Our Management team as well as all of our operational personnel in the Company are excited and motivated to work for our joint business. We work hard and we hope to be able to deliver for you some exciting news about the next steps of our expansion, as well as continue to deliver for you results and returns from our business.

With kindest regards,

Jussi Veikko Saloranta, Chairman of the Board

CORSAIR GROUP INTERNATIONAL Socium Bangkok Company Limited

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