ISSUE 61October

■ Events

NPC Vice Chairman Visits ChemChinaChemChina President Ren Jianxin Meets Governor of Victoria, AustraliaChemChina attends ICIF China 2012

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2 ChemChina establishes joint fluorine rubber venture with DupontFinancial information management and consolidation programAeolus Tyre named one of world’s Top 20 manufacturers

■ Project

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Intermediary Agency Appointed to Check up Safety Hazards First Petroleum Products Fair kicked off at Huaxing Petrochemical GroupBlueStar Machinery Delivered Products for Qingping Phosphate Mine Project

Shenyang Chemical’s city-wide master controller contestElkem panel of experts visits Xinghuo for teamwork trainingNCH Chemical’s onsite lubrication training at Zhonghao ChenguangGuilin Rubber Machinery develops all-steel giant tire former

■ Employee World

7 Retired Qingping Phosphorus Mine leaders “come home”Harbin Petrochemical increases home-safety culture effortYuxing Chemical provides health checkup for the seniorsRetired Wuxi Petrochemical employee finds new way to save water

8 Bluestar Lanzhou’s 28th anniversary painting and calligraphy exhibitionZhonghao Chenguang singing contest beginsGuizhou Crystal Group has a collective birthday party celebration

Zhenghe Petrochemical recreation center for the elderlyShenyang Axle involved in special health care program

■ Technology

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Bluestar Yima’s chromate salt clean production technology is a leaderDalian Institute gets technical innovation project grantHaohua Honghe PPS technology and operations projectUniversal Oil Products has exchange with Zhenghe Petrochemical

Bluestar Ruicheng starts its BWCM projectGuizhou Crystal Group’s fine coke-carbon material substitution projectBluestar Beijing’s young worker trainingQingdao Anbang gives TPM equipment maintenance demonstration

ISSUE 61 EVENTS

October 2012 1

NPC Vice Chairman Visits ChemChina

ChemChina attends ICIF China 2012

Sheng Huaren,Vice Chairman and Secretary General of the 10th NPC standing committee visited ChemChina, on Aug 28, to discuss the company’s development with

its president, Ren Jianxin, and to visit the Chemical Industry Museum of China.

During his tour of the museum, Sheng talked with Ren and his colleagues about his own experiences in the chemical industry, and said that it was a great achievement that ChemChina established the museum without outside help, and not an easy one. Sheng went on to praise ChemChina’s other achievements since its founding and encouraged its people to work harder in continuing to support the country’s chemical industry.

Speaking on behalf of ChemChina, Ren thanked the Secretary General for his recognition of and sincere hopes for ChemChina and vowed to lead the entire company in fulfilling the state leaders’ expectations and work

for greater success through innovation, management improvements, and restructuring under the 12th five-year plan. ■

ChemChina President Ren Jianxin Meets Governor of

Victoria, Australia

On September 16, ChemChina President and Bluestar Chairman Ren Jianxin met Governor of Victoria, Australia, Mr. Ted Baillieu, Australian

ambassador in China, Ms. Francis Adams and their colleagues for an exchange of ideas and thoughts concerning the current world economic landscape and the future cooperation. By PR Department of ChemChina. ■

ChemChina attended the 2012 International Chemical Industry Fair China (the 11th), on Sept 10, at the Tianjin Seaside International Convention Center

where the company showcased its technology and capability in new chemical materials and specialty chemicals, as well as other areas. The event attracted 600 exhibitors from 12 countries and regions in the petroleum, petrochemical, chemical, and related industries, displaying thousands of products and technologies in the 20,000-square-meter exhibition space.

The sponsor of the exhibition was the China Council for the Promotion of International Trade, Chemical Industry Section, and the China National Chemical Information Center, under the auspices of the China Petroleum and Chemical Industry Federation and Tianjin Municipal Government. The theme was “Future-proof competition,

strategy, and innovation”. It had areas for overseas exhibitors and petroleum and chemical businesses, along with 16 feature areas for basic organic and inorganic chemical materials, dyestuff and pigments, fine and specialty chemicals, synthetic chemical materials, and raw materials. It coincided with the 2012 Tianjin Summer Davos Forum, providing an excellent opportunity for international exchanges.

There were also high-level closed-door meetings, including a CEO roundtable and a China-Korea petrochemical meeting, and five open workshops on international petrochemical market trends, petrochemical logistics and supply chain management, innovative trade and financing for petrochemical products, the chemical industry and public awareness, and Chinese and international markets and technology for acetic acid and derivative products. ■

October 2012 2

ISSUE 61 EVENTS

The Zhonghao Chenguang Chemical Research Institute Co, a ChemChina subsidiary, signed a contract with Dupont (China) Ltd, in Beijing, on Sept 20, for the

establishment of a China joint venture to produce raw fluorine elastomers and premixed rubber. ChemChina’s President Ren Jianxin, and DuPont’s CEO Ellen Kullman attended the signing ceremony, which was followed by in-depth discussions.

According to ChemChina, the new joint venture will leverage Zhonghao Chenguang’s production and marketing channels and Dupont’s advanced technology and global marketing channels to push a fluorine rubber market centered on automobiles, oil, and gas, through technology-driven solutions for customers. The ChemChina Finance Company will serve as a financial advisor to Zhonghao Chenguang.

ChemChina’s top-priority in its business includes new chemical materials, such as its fluorine and silicon series, and it has a production and development system for dozens of high-tech, high-value-added products, such as silicone, fluorine rubber, and metallurgical process solar-grade

polysilicon. Zhonghao Chenguang is a ChemChina leader in the new chemical materials area, dealing mainly with R&D, production, and distribution of new chemical materials such as organic fluorine and silicone. It has more than 200 product types that are widely used in the aerospace, automobile, electronics, petroleum, chemical, and textile industries.

Dupont has operations in more than 90 countries and regions, with 39 joint venture or solely funded companies in China. Its products and services cover chemical, agriculture, food and nutrition, electronics, textile, and automobile industries. It is a global leader in the fluorine rubber field. ■

Financial information management and consolidation program

Yang Defu

ChemChina started its new financial information management system and consolidated statement program, on Sept 11, with ChemChina’s vice-

president, Yang Xingqiang, and CIO Ross Macallister on hand and the leaders and department managers of various companies joining in online.

IBM’s senior manager Zhuang Xinyue introduced the project’s background, objectives, implementation scope, project-specific organizational structure, responsibilities, and risk control on behalf of the project team, followed by a brief introduction to the next steps to be taken.

Bluestar’s vice-president Zhang Lijun said on behalf of the pilot companies that they will meet all challenges and complete their mission by defining responsibilities,

improving project management and work efficiency, sticking to the business focus, increasing communication with shareholders, and using a phase-by-phase approach in accordance with the ChemChina blueprint. The Bluestar finance office spoke briefly, on behalf of the key users of pilot companies.

Charles, IBM’s senior VP for industrial and commercial business, greater China, emphasized the importance of the project, and said they would make this project a SASAC benchmark by using the best resources available.

ChemChina’s CIO Ross Macallister gave a brief history of ChemChina’s IT implementation and said he expected all of ChemChina companies to participate fully in the consolidated program, with clearly defined responsibilities to ensure the revenue and other objectives are met within the budget. This two-year program covers a unified accounting policy and standards and a unified account system, and means developing financial performance indicators, establishing a regulatory framework for financial management, and a statement management, consolidation, analytic service, and centralization system. ■

Aeolus Tyre named one of world’s Top 20 manufacturers

Xu Li

The US’s Rubber and Plastic News recently published its list of the world’s Top 75 tire makers for 2012, with Aeolus Tyre joining the Top 20. It has recorded

sales worth 1.59 billion dollars for the first time. The list is compiled by Crain Communications, which ranks tire manufacturers worldwide by sales, in comparison with last year’s figures. This list has long been an index of the relative position of tire makers around the globe.

The list showed Aeolus moving up two notches into the 20-range, overtaking Double Coin and Double Star. In 2012,

there were 32 Chinese tire makers on the list, five more than 2011, with five among the top 20. Aeolus is the only State-owned company. ■

ChemChina establishes joint fluorine rubber venture with Dupont

October 2012 3

Intermediary Agency Appointed to Check up Safety Hazards

ISSUE 61 PROJECT

By Wang Hualong and Shi Yonggang

On August 17, the last one of the 4 products related to Qingping Phosphate Mine Project (a Post-disaster reconstruction project) undertaken by BlueStar

Machinery was transported for the timely delivery. The 4 products are two heat exchangers and two tanks, the key supporting products to Qingping Phosphate Mine Project, so whether we could deliver the products on a timely basis is closely related to the smooth completion of the entire project. The biggest tank has a diameter of 5600 mm., the comparatively largest product manufactured by BlueStar Machinery. The thin barrel could easily lead to the deformation, thus rendering it rather difficult

To have the overall inspection of safety hazards and ensure the safety production, China National Tire & Rubber Corporation appointed CPCIA in collaboration

with Beijing Guoshiankang Technology Co. Ltd., a special agency professionally engaged in the safety production technology service, to have the thorough inspection of the safety production hazards of its affiliates and subsidiaries as from early August.

At present the safety hazard inspection of Shenyang Rubber Research & Design Institute, Rubber Guiling Co.,

Ltd., and Shuguang Rubber Industry Research & Design Institute has been conducted with 106 discovered safety hazards. In view of these hazards, all relevant enterprises have worked out the rectification plans according to the comments and proposals advanced by the intermediary agency. Shenyang Rubber Research & Design Institute, particularly, will identify every July 21 as “Safety Production Day” and the last week of each July as “Safety Production Activity Week” to further enhance the safety production awareness of employees. All the inspection activity will be completed by the end of September, 2012. ■

First Petroleum Products Fair kicked off at Huaxing Petrochemical Group

By Wei Bin and Liu Yan

Recently, Huaxing Petrochemical Group grandly convened the first Petroleum Products Fair, attended by 570-odd client representatives from 250 domestic

enterprises with more than 30 sales contracts signed with the order quantity up to nearly 0.5 million tons for 3.5 billion yuan, mainly involving refined oil products, Petrol coke, LPG, Liquid sulfur, propylene and other relevant products.

The fair mainly focused on the business consultation by introducing the concept of the discussion forum, so the

BlueStar Machinery Delivered Products for Qingping Phosphate Mine Project

By Tang Anshu and Chen Hao

enterprise leaders, client representatives and industrial experts conducted the profound exploration of the current industrial situations and the outlook of the local refineries to seek the common corporate development strategy.

This fair represented a positive exploration and attempt for the sales and marketing against the new situations, expanded the full coverage of its sales network, enhanced the clients’ loyalty and consolidated the market guiding role to ensure the favorable production-supply-sales-capital balance. ■

to manufacture, coupled with the late delivery of the materials to us, etc., we felt rather pressed for time to satisfy the timely delivery. With a view to maintaining the company’s reputation and guaranteeing the schedule of the client’s project, the Special Container Workshop, having long dared to take challenges, accepted this arduous task.

With the joint efforts, the 4 products have been completed and delivered on a timely basis. The Project Group has guaranteed the scheduled delivery of the products in the indomitable fighting spirit and with the actual actions. ■

October 2012 4

ISSUE 61 PROJECT

Shenyang Chemical’s city-wide master controller contest

Ma Liangjun

Elkem panel of experts visits Xinghuo for teamwork training

Du Yanqing

Guil in Rubber Machinery develops all-steel giant tire

former

Li Li

The curtain of the 2012 Shenyang city skills contest for the chemical industry’s master controllers fell , on Aug 26. It was sponsored by Shenyang Chemical and drew in 219 master controllers from local industry, with 80 of them making their way to the final competition, after a written exam and test.

This is the third time for Shenyang to hold the skills contest, under Shenyang Chemical Corp auspices. The gold medal winner will be honored on May 1 as a Shenyang labor model and be given the title of “Chief technologist of Shenyang”, with the possibility of being promoted to senior technologist. The first runners-up will be given the “Shenyang technology pacesetter” title and be promoted to technologist. The second runners-up will get the “Shenyang technical expert” title and be promoted to senior worker. In the 2010-2011 period, 370 Shenyang Chemical employees took part in the contest, with 62 receiving titles and promotions. ■

The Xinghuo Plant recently invited a panel of Elkem experts to provide a training session with a “Team-building, morale-boosting” theme The Elkem experts’ lecture was an opportunity for the trainees to better understand the invisible barriers to team solutions and how to build an efficient team, deal with conflicts of interest, boost team morale, and develop motivation and team spirit. ■

The Guilin Rubber Machinery Plant has completed a test run of its 57’’ all-steel giant off-pavement radial tire former, which paves the way for its marketing of the product across the country. This former was added to a State-level technology development program list in 2009 and has been granted the Guangxi provincial Science and Technology Dept accreditation.

The product, at 57’’, is larger than the 2009 model and has a more reasonable forming time and a higher forming efficiency with two raw tire forming phases. It has an automated transmission, an improvement over the previous method of fabric tape-based transmission, which was susceptible to deformation. It is a much improved version of the earlier model, with many advantages, such as a broader design approach, on which the company has obtained many invention and utility model patents. It lays a solid foundation for tapping into the domestic market. ■

NCH Chemical’s onsite lubrication training at Zhonghao Chenguang

Wang YudeThe morning of Sept 13, an NCH Chemical on-site lubrication training team went to the Zhonghao Chenguang Chemical Research Institute to provide two training sessions. NCH is a well-known chemical company that for many years has specialized in maintenance for specific chemical products and has provided industrial maintenance solutions. Part of its technical services includes providing customers with onsite training and technical exchanges by using a technical service lubrication vehicle. ■

October 2012 5

Bluestar Ruicheng held a meeting on Sept 6 to kick off its World-Class Manufacturing Project, a project that is designed for optimal improvements in production

through world-class manufacturing practices, once the objectives and process indicators are defined. This project will be the shared responsibility of all employees, who will receive skills training and instruction from experts. While the project is being implemented, there will be a combined effort to improve marketing management and cut costs.

To help company management keep up with BWCM

practices and project progress, the team explained the basics of BWCM to 32 participants at the kick-off meeting and provided a comprehensive description of the project.

The company sent a team to Nanjing for a 3-week awareness session before the launch of this project. The team from HQs plans to spend 15 days from Sept 10 to Oct 8 providing a series of training sessions, followed immediately by seven weeks of implementation activities. This project is expected to go active by Nov 26. ■

Bluestar Ruicheng starts its BWCM project

Guizhou Crystal Group’s fine coke-carbon material substitution project

Bluestar Beijing’s young worker training

Qingdao Anbang gives TPM equipment maintenance demonstration

Chen Guijun

Ma Yue Sun Feng

Lei Zengping

Guizhou Crystal Group’s fine coke-carbon material substitution project recently started operations. This fine-coke balling and carbon material substitution

project, which started in late May, is a key one, undertaken for energy-saving and reduced-consumption, at a cost of 1 million yuan. It is designed to make full use of the existing plant and idle factory space. Part of the work on this project was completed in late July, followed by equipment installation. On Aug 2, the main equipment --

three-silo batching machines, sand mixers, dryers, and balling machines -- were installed and tried out. After the operating instructions and user manuals were prepared, on-the-job training was arranged. When it goes into full operation, this unit can produce nearly 10 tons of coke balls an hour, with a possible increase in calcium carbide and reduction in cost and consumption. It could also generate 3 million yuan in added revenues annually. ■

Bluestar Beijing attaches great importance to guide its young workers and improve both efficiency and quality. The photo shows CI instructors delivering a

lean six sigma training program for young workers. ■photo by Zhang Li, Wang Danhao

ISSUE 61 PROJECT

Qingdao Anbang’s 10,000-cubic-meter pump house recently became the company’s first Total Productive Maintenance (TPM) equipment maintenance

demonstration unit, after passing a TPM-instructor assessment. In the second half of this year, the company

has worked hard on a TPM equipment maintenance project, and the pump house was selected as a pilot area for TPM equipment management, with preventive maintenance team set up under the leadership of Han Dunjie. The TPM project has gone exactly as planned. ■

October 2012 6

ISSUE 61 TECHNOLOGY

Haohua Honghe PPS technology and operations projectWu Ling, Wen Dijia

The Bluestar Yima Chromate Chemical Co’s 10,000-t/a chromate salt clean production demonstration project

recently replaced an earlier process and cut the reaction temperature from 1200 C to 300 C, and energy consumption by 20 percent, bringing the chromate recovery rate to 98 percent, or 20 percent more than that of the earlier process. The chromate content in waste slug was reduced to 1 percent of that of the old process. This was done in cooperation with the Chinese Academy of Sciences’ Process Engineering Institute, using world leading, proprietary sub-fused salt-based chromate salt clean production and zero chrome slag discharge technology. This June, the project results were approved by a panel of Environmental Protection Ministry experts, as the first project of its kind to gain national environmental authorization.

Bluestar Yima’s chromate salt clean production technology is a leader

Wu Chunxiang

This project now has continuous, stable, cost-effective production, after more than a decade of experiments and technical innovations. It has solved the heavy-metal pollution problem that has long hindered chromate salt industrial development. It also eliminated health and environmental threats, posed by highly toxic chromium waste slag, chrome dust, and exhaust gas, and provides a new a environmentally friendly industry, characterized by zero chromate slag and recycling of chrome resources. The company is now working on the first phase of a 100,000-t/a plant expansion, with a 30,000-t/a plant, in an attempt to scale up the clean production technology for chromate salt as soon as possible, making the chemical business more environmentally friendly, and building a clean chromate salt production center. ■

Dalian Institute gets technical innovation project grant

Zhao Xiaoshu

The Zhonghao (Dalian) Chemical Research Institute Co recently received a 200,000-yuan grant from the Liaoning

provincial government for an “application of modified latex composite material in the construction industry for corrosion prevention” project. This involves expanding the application of modified latex composite materials to other chemical industries outside the soda ash field, for buildings and structures, and for the construction and maintenance of roads and bridges. The Institute also received a 1.41-million yuan grant from the Ministry of Science and Technology for R&D on scientific institutes, which will be used to fund the development of light-resistant high-performance fibers. A PCT patent application has been filed for this new material. ■

Haohua Honghe’s 2,000-t/a fiber-grade polyphenylene sulfide (PPS) plant has become a key project at

ChemChina’s Haohua Industrial base in the city of Zigong with its own leading technology. The plant has applied for three national invention patents, in recent years, one of which has been granted. It has also received a national invention patent for technological advancement for its PPS resin synthesis aid recovery process, and a third place award at the city-level. The project’s combined technology and operations have made four significant advances: an end-to-end continuous, stable operation with output increased significantly to 120-140 t/mo, or 80 percent of the design capacity; product quality has improved significantly, with the proportion of fiber-grade

Universal Oil Products has exchange with Zhenghe

PetrochemicalYan Xiaoqiang, Li Ning

Personnel from Universal Oil Products Inc recently visited Zhenghe Petrochemical for some technical exchanges

concerning Uniflex, catalytic reforming, and propane dehydrogenation. Universal is a wholly owned subsidiary of Honeywell, with strong technical ability in refining, petrochemicals and chemicals, gas separation, and energy, and is a leading supplier and licensor of process technology, catalysts, absorbent materials, equipment, and technical services in oil refining and gas processing. ■

products reaching 80 percent (as opposed to the designed 70 percent); raw material and energy consumption was cut dramatically, with the consumption of primary materials such as sodium sulfide, dichlorobenzene, lithium chloride and natural gas all at the design levels, and progress made in solvent consumption; manufacturing costs were down dramatically, profiting the company, especially in relation to current market prices.

The company has also embarked on another PPS technological development journey, in the recovery and recycling of waste salt, the solvent recovery rate, system bottlenecks, waste salt drying and processing, fiber-grade product proportions, and product modification. ■

October 2012 7

ISSUE 61 EMPLOYEE WORLD

Retired Qingping Phosphorus Mine leaders “come home”

The Qingping Phosphorus Mine recently invited 44 of its retired leaders to the company’s HQs in

Mianzhu, the home of its phosphorus ammonium plant, as well as the ruins of the May 12 earthquake and Yanziyan Square. The visitors listened to a description of production and operations, and were pleasantly surprised by the new equipment, factory buildings and environment. They were pleased with the company management and wished a bright future for the company. ■

Yang Hong, Liu Wenwen

Harbin Petrochemical increases home-safety

culture effortJiang Yu

Since it began its at-home safety initiative March this year, Harbin Petrochemical has

seen some progress thanks to its various events and activities. To support the initiative, it handed out a pamphlet on “86 essential safety tips you need to know” to 100 young campers at the Bluestar Summer Camp and had some quizzes and writing activities to encourage the youngsters to help make their homes safer. There were some remarkable results, even in spite of the short time involved and, by the end of the summer camp, the campers had all vowed to stay alert to any possible safety hazards and to remind their hardworking parents of the importance of safety. ■

Yuxing Chemical provides health checkup for the seniors

Ren Chun

The Jinan Yuxing Chemical Co spent two months providing free checkups for the people above

the age of 60 from its community as part of its commitment to the well-being and life quality of the elderly. It kept health records after the checkups for the more systematic management of chronic diseases afflicting the elderly, such as hypertension, diabetes, and cardio-vascular disease. It also provided reasonable, scientific health care advice to the participants for the improvement of their physical health and quality of life.

The head of the community health service station of Yuxing Chemical reported that they have been providing free checkup services since last year. ■

Retired Wuxi Petrochemical employee finds new way to

save water

Wang Xiaoning

Zheng Hangyan, an Wuxi Petrochemical retiree who has made a name for herself by

saving water, explains, “Saving water means we need to use a pail of water for many purposes. Always keep a pail of water for repeated use.” One example of this is using the same water for washing rice to wash vegetables, then, using it to flush the toilet. “Rice water can remove the agrochemicals on vegetables, with the same pail of water serving a dual purpose.”

The idea is to make the best use of every pail of water. According to the company personnel in charge of water saving, the monthly per-capita water consumption criterion is of 5.4 tons per person, while Zheng’s family gets by on less than half that amount. ■

October 2012 8

ISSUE 61 EMPLOYEE WORLD

Bluestar Lanzhou’s 28th anniversary painting and

calligraphy exhibition

Chen Luxiang

Bluestar Lanzhou’s trade union held an exhibition of calligraphy, paintings, photos, and handicrafts, on the

eve of the company’s 28th anniversary. There were 140 entries, with 80 chosen for their outstanding work, each of them attractive and fascinating in its own way. The various styles were poignant in meaning, and reflected the creator’s love of work and life, and showed the spiritual and cultural life and never-say-never attitude of Bluestar’s people. ■

Zhonghao Chenguang singing contest begins

Yang Xuelian

The preliminaries of a company-wide singing contest were held on the third floor of the Zhonghao

Chenguang office building, in the evening, Aug 24 and 25, with 40 contestants finally singled out after several rounds. Their unique voices and passionate performances meant that each contestant’s rendering of popular or classical songs, either solo or in a group, exhibited the indomitable spirit of the company’s employees no matter how great the challenge. The purpose of the contest was to enrich the cultural lives of employees, as part of the company’s commitment to employee education. ■

Guizhou Crystal Group has a collective birthday party

celebration

The Guizhou Crystal Group organized a tea party, on Aug 22, to celebrate the August birthdays of

20 of its employees. This birthday tea party will be a regular monthly feature from this August on. Photo by Chen Guijun ■

Zhenghe Petrochemical recreation center for the elderly

Yang Huijuan

Zhenghe Petrochemical recently opened a recreation center for the elderly , a special facility with its own

reading room, recreation room, and fitness canter, a place where retirees are always welcome, to play some poker or chess, read newspaper, play ping pong, or even dance. This center is expected to enrich the cultural lives of its retirees and make them aware of the benefits that the organization’s development can bring. ■

Shenyang Axle involved in special health care program

Sun Chuanke

In early September, the Shenyang Axle Co’s trade union got its employees to take part in an abdominal care

program that was organized by the Shenyang Trade Unions Federation, which was designed to ensure the physical and mental health of workers with a free checkup of the abdomen. Over 300 company employees signed up for the program. The city’s trade union federation chose the hospital and physicians and got a fleet of vehicles to ferry the participants to ensure punctuality. ■