Thinking about a small side business selling SiC microchannel reactors and plates, looking for a reality check

[u/GreatSean]

I’m considering starting a small side business selling silicon carbide microchannel reactors and replacement reaction plates, sourced from manufacturers in mainland China. I’d like feedback from people who have worked with flow chemistry equipment or imported industrial equipment.

Questions:

1. Is this realistic for a small operation? Who typically buys SiC reactors or spare plates, and how do they choose suppliers?

2. For anyone who has imported process equipment from China: what were the biggest problems with quality control, export and import paperwork, tariffs, or shipping?

3. What would you want from a supplier of this equipment, such as certifications, material test reports, or after-sales support?

Any lessons learned, even short ones, are very welcome. Thanks!

[u/mattcannon2]

You need to figure out who youre going to sell to far before you commit to starting this.

You'd probably want to start by getting yourself set up as a distributor/supplier for the OEM in your country and get an agreement in place.

[u/SLR_ZA]

You are presumably looking to sell them for more than you purchase them for, so what are you doing to provide more benefit?

Will you spend a lot on inventory to buy in bulk and have a price margin on individual orders?

Will you offer support and spares that are close at hand for places that do not want to hold their own?

Will you assemble parts from multiple suppliers into rigs your local customers actually want?

For any of these you need to know the market and who buys them, not be asking here.

I've bought a range of equipment from China, from single channel ceramics and custom machined SS, PTFE and FFKM parts that assemble into stacks to 4000L of reactors, IX skids and industrial sized centrifuges.

Issues depend on the type of equipment. For the machined parts I had to check physical specifications, tolerance and threading pattern more carefully than with EU made parts - but mistakes were fixed quickly and replacements sent.

For larger equipment the MOC, documentation and software/control were usually the source of issues.

[u/GreatSean → u/SLR_ZA]

That's a fair point, and I think you're right that simply buying from China and reselling at a markup isn't enough to create lasting value.​

I'm exploring an overseas channel business focused specifically on silicon carbide microchannel reactors, reaction plates and related spare parts. I'm still working out which parts of the value chain make the most sense to focus on, rather than assuming that holding inventory or adding a margin automatically makes the business worthwhile.​

The areas I'm particularly interested in are helping customers communicate technical requirements clearly with the manufacturer, ensuring specifications and documentation are properly checked, coordinating after-sales support, and making replacement parts easier to source. Local stock, consolidated packages or integration services might also make sense, but that depends on actual customer demand and the economics.​

Your experience buying everything from precision-machined components to large reactor systems is exactly the kind of perspective I'm hoping to learn from. Your point about checking tolerances, materials of construction, documentation and software/control systems is especially useful.

From your experience, where do overseas buyers encounter the biggest avoidable problems when sourcing from China?
Thanks a lot!

[u/SLR_ZA → u/GreatSean]

Holy ChatGPT, batman!

[u/GreatSean → u/SLR_ZA]

Honestly I am quite curious about the equipment you bought from China, how is it working? how about the quality? good price? Any compliance issue to your country? such as the standard or regulation..

[u/Necessary_Occasion77]

1. I’d recommend that you figure out who you’ll sell to, and then figure out if it’s realistic.

2. You should do some research about logistics, imports etc.

3. You should ask your potential clients.

4. No one can answer your questions. And if they can, they’re not giving you this info for free. If you want to start a business you need to put in some work. What would you expect, to come back to a ChemE sub later to ask us to help you run your operation?

[u/GreatSean → u/Necessary_Occasion77]

Thank you!
Probably I will come back with the product information and share the progress with you in few weeks.

[u/boywithtwoarms]

Why would I buy them from you and not the manufacturer?

[u/WorkinSlave → u/boywithtwoarms]

I dont have a dog in this and have no idea what a SiC micro channel reactor is. However, it’s very common that you buy things from a channel distributor instead of an OEM for many reasons.

[u/boywithtwoarms → u/WorkinSlave]

I know. I was asking what he was offering because from the post he doesn't seem to have considered this.

[u/GreatSean → u/boywithtwoarms]

Since the manufacturer currently lacks the capacity to expand outside of China, we are exploring a potential partnership where I would act as their overseas channel distributor. To prepare, I’d like to look into relevant market access issues, including applicable regulations and standards.