Will China's rise ruin business in the rest of Asia?

Carbon black is an obscure but essential industrial product. It is the coloring agent in many things black, including the ink on this page. Its biggest application is in automobile tires, making the rubber more stable and durable (and also black). It is, in other words, a commodity. Conventional wisdom is that Chinese companies have the cost advantage to undercut commodity producers around the world. This low-cost prowess is supposed to be especially damaging to …

…in China under Srinivasan, who now makes regular trips to China to oversee the renovation work going on at thefactory. The move to China, however, is essential if Thai Carbon Black hopes to secure its place as the world's fifth-largest carbon black producer--and the action now is in the Middle Kingdom. "When you are in a commodity business, you have to stay close to your customers," says Srinivasan. "We want to remain strong in Asia."