GENRE: Email letter
AUTHOR: Daniel Z
DATE SENT: Sun, Jan 20, 2013 at 7:37 AM
TITLE: Attn. Flexicon – Questions on products and possible effects resulting from recent policy changes
STATUS: Awaiting response
UPDATES: Any updates should be posted in the comments section below
According to your website, “For many years various Australian authorities have been slowly installing water-fluoridation plants in a general endeavor to promote dental health. In the last few years, though, the pace of fluoridation has quickened as various states have introduced fluoridation programs, backed by state government subsidies. Queensland, for example, decreed in 2006 that 90% of Queenslanders would have access to fluoridated water by 2012… ProMinent Fluid Controls Pty Ltd. has supplied more than 60 fluoridation systems over the past 25 years… The Flexicon system is the only one that ProMinent uses for fluoridation plants.”
I am conducting specific research on the fluoridation chemical supply chain, with a particular focus on the net profits of both first and second hand suppliers (i.e. the chemical manufacturers; and the facilitators of the chemical injection process). I therefore ask:
a) Hypothetically, what would be the estimated net annual loss to Flexicon, if ProMinent Fluid Controls Pty Ltd were to lose all, or a large portion, of its fluoridation plant contracts in Australia?
b) Given that numerous Councils are now ceasing fluoridation programs in their respective regions in Queensland, how will this financially effect Flexicon, considering Flexicon’s prominent position in the supply of bulk bag unloaders with double-wall telescoping tubes for toxic fluoride powder?
c) How will any downgrading of fluoridation programs in Australia effect Flexicon’s share price; and has the company got contingencies in place for possible demand shortages, resulting from reductions in overall fluoridation chemical usage?
d) Would Flexicon care to speculate on how many other companies along the fluoridation chemical supply chain may be negatively impacted by a reduction in demand for fluoridation chemicals in Australia? Would Flexicon be able to confirm that the water fluoridation program in Australia has a direct correlation with the profit margins of various industries along the chain of supply?
I thank you for your time. I look forward to hearing back from you.