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CONTINENTAL STAFF VISIT AGENDA

Important Discussion Topics: 

ANSWERS IN RED​:

Main root causes of mold/ yeast, tank-3 improvements, ambient temperature, air ventilation filters, water analysis etc.

Tank # 3 is already repaired and its operation is adequate.

Removal of washing process from chicle processing.

A new system has already been developed to demold the blocks without using water washing.

Resting time after processing before packaging (7 days etc.) to be decided together.

We have no problem leaving the blocks longer before packing.

Visual control of chicle blocks, vacuum packaging processes. Additional cost to be discussed.

We have some samples that were already packed with the vacuum system.

Cold transfer of chicle, frigo containers. (Cost to be paid by CCC).

It is not appropriate to use refrigerated containers.
The shipping cost will increase a lot and there is a risk that the boxes will get wet.

Next chicle orders.

That is a CCC decision.

Answers to more Questions

 

Chicle that we can not use.

Answer in the attached annex APPENDIX 1

If we start again, when will we get new production?

The approximate time is one month.
Which volume is available for CCC. in short-and longer term.

The amount of chicle gum base that is available to CCC,

it is only conditioned to having its purchasing programs 6 months in advance.

Is there any risk for supply security for the near future (2-3 years)? 

There is no probability that we will stop supplying our product.

The only possible risk is delaying the delivery dates of the product, due to weather problems.

How can we get better pricing?

May be rebate from the volume.
General price-stability chicle.

​Answer in the attached annex APPENDIX 2

​How can we support Aboaf with sharing knowledge, especially using the natural gum base

of standard commodity gum?

To achieve that our companies have a good commercial relationship

through technological exchanges and experiences.

​The most important points are:

​1). Make all CCC Staff understand. that chicle gum base is a real natural product,

that depends on many factors dictated by nature, so it has variations in its quality​.​

​2).Do not compare this product with the quality standards of synthetic gum bases.

3).Make the ABNB Staff aware, to increase the parameters in the quality control, 

in the manufacture of the lots that will be for CCC.

Max/prolonged durability of the good quality gum base in our stock.

The minimum time is two years, which we guarantee to keep its characteristics stable the products.

APPENDIX 1
PROPOSAL TO RESOLVE THE RETURN OF THE PRODUCT:

 

CCC issued a return invoice for 14 tons in the name of AB Natural Base SA CV.

The ABNB logistics company collects the product at the CCC factory in Istanbul.

to transport it to the different ABNB clients.

ABNB will pay all transportation costs.

To reimburse CCC, the funds from the invoice,

and avoid complications with the tax ministry in Mexico.

They have a very strict regulation to make monetary returns abroad, 

because it requires first that the product be returned to Mexico,
before you can make the money transfer.

So that both companies do not have tax and accounting problems.

We propose these two options.

 

OPTION 1)
CCC prepares the return document on behalf of ABNB.
ABNB prepares an invoice in the name of its client.

The ABNB logistics company collects the product at the CCC warehouse.
And ships it to ABNB customers.

At the time the customer pays the ABNB invoice
ABNB transfers the funds to CCC.

 

OPTION 2).

The total cost that CCC paid for the 14 tons was: $138,350 US Dlls.

Which includes the cost of the product and ocean shipping.

The current cost of the SF-020, EWX Mexico City is: $9.60 US Dlls / Kg.

In the following CCC orders, the price we offer you for the SF-020 EWX

will be: $8.50 US Dlls / Kg.

which is a discount of $1.10 US Dls / Kg = 11.5% of the current price of the product.

Shipping 120 tons with this new price, we pay CCC the value of the return invoice.

If this procedure is accepted by CCC. Make an agreement between both companies.

Water Quality
Analysis report made to the water used in the factory

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