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ISSUE 81

April 15th, 2011

Bluestar Acquires 100% of ElkemBluestar PR Dept.

April 15, 2011, Bluestar announced in Beijing the completion of its acquisition of 100% stake in Norway-based Elkem.

Elkem, a wholly-owned subsidiary of Norway-based Orkla Group, has been the leading manufacturer of silicon materials in the world. Elkem operates through many factories and marketing centers worldwide and deals with silicon materials, foundries, carbon and solar energy, with annual sales revenue of about 2 billion dollars.

Bluestar signed the acquisition agreement with Orkla on January 10, 2011 for a transaction value of 2 billion dollars. This transaction was approved by regulatory authorities. The Royal Bank of Scotland, PricewaterhouseCoopers, Selmer, Shida, Clifford Chance LLP, Zhonglun W&D Law Firm, Photon and CRU served as the advisors for Bluestar, while Moelis & Company and Thommessen advised Orkla on this deal.

Ren Jianxin Visits ChemChina Companies in Nanjing

Zhou Jun

April 12, ChemChina President Ren Jianxin visited Bluestar Adisseo Nanj ing and Nanj ing New

Materials. After being debriefed by General Manager of Bluestar Adisseo Nanjing Mr. Grimon, Ren spoke highly of the confidentiality system, team building, corporate culture development and project progress of the company, saying, "I will join you in sharing the pleasure of success when the AT88 project is commissioned." At Nanjing New Materials Ltd, Ren carefully heard out COO Mr. Lanny's presentation about the operation of the BDO plant, expecting the second phase of the THF project of the company to be successfully commissioned at the first try by the end of this year.

Bluestar Holds Continuous Improvement Task SessionBluestar Continuous Improvement Office

March 22, Bluestar held the 2011 Bluestar continuous improvement task session at the headquarters of

ChemChina to review the status of continuous improvement targets, continuous improvement capability building, belt-level personnel training and leadership belting program in 2010. The session also looks deeper into the problems with continuous improvement efforts and plans for the next year's continuous improvement activities. The continuous improvement efforts at the corporate level in 2011 will center on the drive to improve the overall operational capability through implementation of a BWCM program, with strategy and performance as the drivers.

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Two Project Teams of Nantong Plant and Xinghuo Plant Win Third Prizes of ITEA China

Huang Ling

March 25, the CD-3 sa l t -f o r m i n g c r u d e

product single-batch yield rate improvement project team of Nantong Plant and the team for the project to improve a high-voltage f r e q u e n c y c o n v e r s i o n system for stable and cost-effective operation of a 75 ton boiler at Xinghuo Plant each won the third prize at the 2011 First ITEA China Final held in Shenzhen. The International Team Excellence Award (ITEA), which was launched by the American Society for Quality in 1985, is the world's only international integrated rating event in the field of quality management, assessing project team building, project design, implementation and outcome, an arena for excellent project teams and an important part of the annual World Conference on Quality and Improvement held by ASQ. The ITEA rating system and the establishment of the ITEA award are comprehensively supported and actively attended by practitioners in the fields of international quality management, industrial management and project

management. This year is the first time a qualifying t r ia l was held in China w i t h o n e g o l d m e d a l , two s i l ve r meda ls and three bronze medals to be presented to Chinese I T E A a w a r d w i n n e r s during the first China-US quality forum. The award-winning teams will be given opportunities to represent Ch inese compan ies to compete for ITEA awards at the upcoming WCQI conference to be held next

year. This contest consisted of a preliminary elimination and a final selection. Of all candidate teams from all over the country, 24 teams were elected to the final according to the ASQ rating criteria and procedure, where these teams met the jury and their competitors. Nantong Plant's and Xinghuo Plant's project teams stood out from the 24 candidate teams as the second runners-up, who will upon the invitation of ASQ join four other winning teams to attend the 2012 WCQI conference in the US on behalf of Chinese companies to compete with outstanding project teams from all over the world.

Shenyang Chemical Removes Production Bottleneck through

Technical InnovationShi Changgui

Over the past two years, inadequate incoming steam pressure has been a major bottleneck to the production of paste resin at Shenyang Chemical Ltd. To address this problem, the

company has been actively engaged in technical innovation, with remarkable results. After the commencement of heat supply in the winter of 2010, the steam pressure from the power plant dropped dramatically to a level where the pre-dryer steam pressure averaged about 0.3MPa with hot-blast temperature below 130℃, or even below 0.2MPa and 110℃ in the worst case, pushing the production of paste resin to the verge of shutdown many times. During this past winter, the problem was handily mitigated by electric heaters, put into operation in succession. With these heaters, the drying temperature increased by 20~40℃ to over 150℃, which not only increased the output of dried paste resin but also played a critical role in chlorine gas balance and production stability. The use of heaters between November 2010 and February 2011 resulted in additional output of 4,657 tons of paste resin.

Bluestar (Guangxi) Exceeds the Targets Set for 100-day Sales Contest Ahead of Schedule

Qiu Zi

Bluestar (Guangxi) achieved record sales revenue and sales volume by changing

its marketing model in light of today's market dynamics. As of April 7, the company sold 10,044 tons of titanium white for RMB133 million, exceeding the target of sales volume

of 10,000 tons and sales revenue of RMB105 million set for the 100-day sales contest ahead of schedule. This contest became an extraordinary success, with expected sales volume of 11,400 tons and sales revenue of RMB146 million, a rise of 27% and 67% respectively.

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Bluestar Children's World

I Am Changing

Wang Yiran Harbin Petrochemical

How fast time flies! I have grown up from a naïve child to a young woman without even noticing the change. The days when I played with my buddies

in the first grade seem like only yesterday but in fact are far gone. Where is that naughty me, exactly? That childish me can no longer be found and has been replaced by an extroverted and prudent girl.

Last September, under the golden sunshine and with beautiful hope, I started my junior middle school. From the military-style training to the pre-commencement baseline exam and then to the first monthly test, I changed dramatically within a mere month - tears came to my eyes when I said goodbye to my military training instructor although I did not spare even a single tear when I departed from my classmates upon graduation from elementary school; instead of hanging out all day with my buddies as I used to, I now can keep focused on my desktop while studying; I enjoy thinking about things alone instead of talking all the time every day.

I have no idea when I began to have my own inner world, a world full of my little secrets that I am unwilling to share with my parents. I have no idea when I quit sleeping in my dad's arm and started changing clothes under the cover of my quilt for fear of being noticed. I

think maybe my puberty is around the corner. So I began working harder, getting up early and going to bed late everyday, just to make me happy every day and make the day count. Every day, I study, play piano and practice dance, all of my own accord, no longer in need of my parent's supervision. Every day I look into the mirror, smiling at myself with confidence and thinking I've grown up and become more independent, as evidenced by my tidy and clean appearance. Sometimes I chat with my friends about my school life, about my idols, but no longer in a showy way like before. Sometimes I frolic with my friends but I no longer call each other names with boy classmates. I don't know why I intentionally keep distance from boy classmates and they will not make fun of us girl classmates. Maybe everyone does the same as he or she grows up.

My inner world is becoming more mature as I kiss my childhood goodbye and embrace my adolescence.

� BlueStar Communication Chinese Editor: Jiang Bo English Editor: Ma Chao Layout: Ma Changjie

Macau, the Magnificent

Macau's mixture of East and West brings together an eclectic mix of Old World Europe and the Orient in one beautiful package. Portuguese traders leased Macau

from the Guangzhou Mandarins in 1557. Portugal governed Macau for more than 440 years until returning it back to China in 1999. Macau still maintains its Portuguese-style and coupled with the numerous Mediterranean buildings, it feels as European as it does Chinese. Senado Square, surrounded by bright colored Portuguese buildings and cobbled stone alleys; this is the best place to get a feel for what Macau has to offer. Surrounding Senado Square you will find some of the best shopping in Macau, everything from antique Chinese furniture to the latest in designer fashion. The beautiful St. Dominic Church, which has been standing for the past 400 years, east of Senado Square, holds mass on the weekends in Cantonese. Farther down the cobbled stone street is the Ruins of the Church of St. Paul. Built in the 1602 by Jesuit priests, the church was destroyed by fire in 1835, and only the massive stone façade survived. Today the ruins of St. Paul are the official symbol of Macau and offer great photo ops. Next to the ruins is Monte Fortress, the largest fortress remaining from Macau's imperial past. Inside the fort is the Macau Museum, an interesting museum with artifacts and a detailed history of Macau from the early days to the present. Within walking distance of the museum is St. Michaels Cemetery to the east and Camoes Grotto and Gardens, to the north. South of Senado Square is the tallest point in Macau, the Macau Sky Tower, standing at 338m, it's hard to miss. Along the road leading to the tower you'll pass by the brightly painted Residence of the Portuguese Consul and the Chapel of Our Lady of Penha. The gothic church sits on top of a small knoll overlooking the bay and glows eerily when lit up at night. Macau Sky Tower offers an unparalleled 360-degree- view of the ocean, Macau and the mainland border city of Zhuhai. For those who are a little more adventurous, there are tours available that allow visitors to walk around the outer rim of the observation deck unimpeded by windows or even a rail. Harnesses with lines attached to a beam keep people from being blown off into oblivion. If you prefer finding excitement with your feet firmly on the ground, then head to one of the many casinos or racetracks scattered though out Macau. Lisboa Hotel with its birdcage

shaped building is the most famous casino in town and is conveniently located between Senado Square and Macau Sky Tower. Across from the Lisboa Hotel is the Cybernetic Fountain, which provides a mesmerizing show of lights and water at night. Guia Lighthouse, northwest of Senado Square, occupies the highest natural point in Macau and was a sign of relief for far-eastern trade ships, signaling that their arduous voyage from Europe was finally over. Beside the lighthouse is a small chapel and Flora Garden sits at the base and offers gondola rides for those who would prefer not to walk. North of Flora Park is Kun Lam Temple, one of the largest temples in Macau, where many important documents have been signed, including the treaty leasing Macau to Portugal. The A-Ma Temple is on the southwest corner of the peninsula and is another temple worth checking out and is located across from the Maritime Museum and Barra Fort. The fort was once a cannon battery, it has since been turned into a Portuguese inn with amazing character and charm.

Clockwise from top right: Ruins of St. Paul's; Casino Lisboa; St Joseph Seminary Church; Governor Nobre de Carvalho Bridge; A-Ma Temple; Guia Fortress; Macau Tower.