June 2010

ISSUE 33June

Foreign "CXOs" at Jiangxi Xinghuo Silicone

Events

Growing Through Transformation-- On the 6th Anniversary of the Founding of ChemChina

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Armenian President Attends Launch of Shanxi-Nairit's 30,000 t/a Neoprene UnitCHC Promotes Unified Branding StrategyYang Xingqiang Elected CPCIF Vice ChairmanFirst ChemChina Companies Join Group-wide Centralized Capital Management

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ChemChina to Fuel Sustainable Development of Advanced Chemical MaterialsChemChina Tyre & Rubber (Guilin) Selected to Pilot National IPRs Protection ProgramHaohua Yuhang Chemical Launches Two Joint-venture ProjectsSRDICI Makes Breakthroughs in Two R&D Projects

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The Rebirth of the Sichuan BlueStar Machinery and Qingping Phosphate Mine

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Employee World

ChemChina Employees Tour World Expo Shanghai8

Project

Ren Jianxin Wins Award for Most Outstanding Person in Global Chemical IndustryRen Jianxin Receives Australian VisitorsChemChina Q1 Sales Up 53.2%ChemChina Launches HR Transformation and a Career Planning Program

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Growing Through Transformation-- On the 6th Anniversary of the Founding of ChemChina

Last year, I wrote an article on the fifth anniversary of the founding of ChemChina, saying that we would be striving to begin another five year for the company by enhancing our competitiveness amidst the economic crisis under the guidance

of a correct business philosophy and appropriate corporate values. Adhering to the principle of letting development strategy decide operational activities, we have been working closely with world-renowned consulting firms to define the 12th five-year plan for the country. The preliminary study by our project team indicates that the growth of sales and the assets of ChemChina have reached 31% and 34% respectively over the last six years, much higher than the benchmarks of 1% and 4% across the industry. Likewise, the company's EBITDA is also growing considerably faster than the average rate of its global peers. Today, ChemChina is among the world's top 20 chemical giants in terms of both sales and assets. It is indeed an "amazing growth story." However, achievements represent only the past and our focus should be on the future. Looking to tomorrow, both statesmen and entrepreneurs believe that 2010 will be the most complex and unpredictable year since the dawn of the new century. How will the global competitive landscape change? No one is able to tell exactly. Turbulence and lack of tranquility is an intrinsic feature of today's business environment. Globalization, technological innovation, demographic expansion and environmental stress - all of these factors are intertwined in reshaping the competitive landscape across the world. To invest or bide our time, to restructure or optimize business or to go for listings or mergers and acquisition - we are constantly perplexed by the different options on offer. Strategic decisions makers in the business community always find themselves caught in the dilemma of either missing an opportunity or taking the wrong action. Looking into the future at this new starting line, we at ChemChina need to find a clear answer to two questions - "What shall we do?" and "How shall we do it?" Last year, throughout the national campaign of learning and implementing a scientific approach to development, I suggested that, for companies like ChemChina that are in a fully competitive market, structural readjustment will be the most important challenge. Based on our current business portfolio and in light of the general trend in the global chemical industry, we have decided to shift our priorities to new businesses with higher added-value and growth potential. We will strive to be competitive in material science, life science and environmental science businesses underpinned by our strength in basic chemicals, which means ChemChina will have a new business pattern of "3+1." This new formula was challenged initially for being too advanced to start with and so dramatic that our traditional businesses risked being marginalized. However, these considerations are biased and

even e r roneous . We need to unde r s tand that i t takes two to t h r e e d e c a d e s o r even longer for a new bus ine s s to ach ieve real competitiveness. It requires companies to forge a unique DNA in their offerings that will make the business v ibrant forever. Our clear vision of business re s t ruc tu r ing shows us the silver lining of the cr is i s , providing u s , l i gh thouse - l i ke , with a new direction. The lighthouse itself, h o w e v e r , c a n n o t s u b s t i t u t e f o r t h e struggles of the sailors. Market competition waxes and wanes. The eventual winners are the survivors of the jungle the market has become. Only the captain and sailors who can maneuver freely on the "red ocean" are qualified to sail on the "blue ocean." Our practical choice is singular and simple - stay focused on management transformation in order to improve our management and competitive levels with limited resources, no matter how the circumstances may change. We have foreseen clearly that changes in the mode of development for ChemChina will remain an arduous task, for a wide range of reasons. A number of our businesses still cling to the old, worn out idea of relying on massive investment for growth, whilst a healthy mechanism for organic growth has yet to be established. Extensive management and low-end products remain distinct problems. Different business units vary sharply in terms of performance and profitability. Capital utilization across the group is low, which has had a negative effect on the overall return on investment. This low profitability is attributable to the lack of stable supply of upstream feedstock and raw materials, the weakness of overall business planning and layout, the untapped synergies latent among the businesses, as well as the problems of homogeneous products and poor marketing and branding, etc. This low capital efficiency is the result of a poor allocation of productive resources such as capital and technologies, the overcapacity in the industry as a whole and excessive or redundant investment leading to idle capacity and the low turnover of assets. These are not matters relating to where the competition is. It is more a matter of the nature of one's competitiveness is. This is an "unbearable weight" for traditional chemical companies such

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as ourselves. Compared to our peers, we have huge room for improvement. To achieve value creation, transformation is the only option. As most of our businesses are in a fully competitive market, cost-effectiveness is critical to maintaining our competitive edge. At the current stage, the margin for profit has been squeezed heavily due to overcapacity and global competition. Only through enhanced management can we form our advantageous competitiveness. Unfortunately, the majority of the business managers we have today are experience-based managers. We need to introduce and cultivate professional business managers to help us survive and thrive amid cut-throat competition. As a result of this, we have decided that management transformation is the central task for ChemChina in 2010. This is the consensus we have reached in battling the financial crisis, overcapacity and cyclical change in the global chemical industry. Management transformation, I believe, is essentially the task we need to undertake to achieve sustainable and profitable growth for the business. It needs to be implemented in a holistic and multidimensional way and addressed in three key aspects - organizational structure, human resources and management methods. Organizational structure is the basis for transformation. Without the right structure, clearly-defined interfaces and scientific processes, transformation will not have the right soil on which to grow and bear the fruit. In order to establish the roots for the transformation of organizational structure, we need to reduce the management hierarchies, cut the number of subsidiary plants, clearly define rights and responsibilities and promote the centralization of corporate legal entities. People are the essential element in executing this transformation. It starts from one's minds and needs to be translated into deeds. A successful transformation requires a unity of thought, management advocacy and full staff participation. Particularly important for the success of this transformation are initiative and a sense of urgency. Liang Qichao, the activist of the Hundred-Day Political Reform, once argued: "The world is destined to evolve from turbulence to tranquility; the source of victory will change from physical mightiness to mental prowess. Therefore, for a nation to be strong in today's world, the first priority is to improve the intelligence of its people… to sum it up the success of political reform essentially relies on the education of talented people." The crux of Liang's argument is that the success or failure of reform hinges on the human factor: it depends on the support, advocacy and the personal exemplary role of the management, particularly the senior management, of an organization. Only through enhanced human resources and building in a human-oriented approach can we strengthen our soft power of competitiveness and provide organizational and resource guarantees for the smooth progress of the management transformation. As the proverb says: "A workman must first sharpen his tools if he is to do his work well." The right methods are the sharpened tools for the task of transformation. I always say that the business philosophy of ChemChina is to do the right thing in the right way. Likewise, in management transformation, we need to find the right method that is the most effective and least resistant. I

believe this method involves the "introduction of strategic investors, professional managers and external advisers". To be specific, enterprises with the right conditions should actively introduce strategic investors in order to create the appropriate governance environment for the transformational endeavor. The introduction of professional managers and external advisers is intended to help develop systemic and specialized best practices, which will help us avoid making unnecessary mistakes. Since the beginning of this year, we have engaged with Stern Stewart & Co, the originator of the concept of economic value-added (EVA), to help us set up an EVA-based business performance assessment system. We have been working with McKinsey and Nexant on the 12th five-year plan project for ChemChina. We have hired Deloitte to assist us on our enterprise risk management project and employed IBM and Hewitt for our human resources transformation project. All those companies are world-class professional advisers and are well-respected and expensive. We have opened our arms to welcome them because we need their expertise to reengineer our management processes, build up a new and complete management system and harvest the fruits of scientific management. This will help us lay a solid foundation for the change of our growth model from an extensive one to an intensive one. The past efforts we have made only contribute to a foundation for growing our competitiveness, rather than competitive strength itself. The next five years represent a critical period for ChemChina to grow from being large to being strong and to develop its core competitiveness. We not only need to have a clear vision and targets for the company as it goes forward, but we must also change our mode of development, strike a balance between the scale and quality of development, optimize our business portfolio and go all-out to implement the transformation of management, so as to achieve valuable growth. Finally, let's remind ourselves of the story of the rebirth of the Alban eagle through fire. The Alban eagle is a special eagle from Monte Alban in Mexico. It can live to be 70 years old. However, when the eagle reaches 30 years old, its beak gradually becomes curved, its feathers stiff and its claws blunt. "To live or not to live," that is the painful question. The Alban eagle chooses rebirth through fire for itself: it goes to find a cave on a cliff and beats its beak against the rock until it falls off. Four months later the new beak has grown and the Alban eagle pecks its feathers all off with the new beak. Another four months pass before the eagle becomes fully fledged again. Finally, the eagle pulls out the nails on its claws, one by one, and waits another four months before the new nails have grown. After this long and painful rebirth, the Alban eagle once again takes to the blue sky, flying higher and higher.

If animals can be as resilient and tenacious as an Alban eagle, cannot we as human beings-let alone the unyielding and enterprising ChemChina people do the same?!

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Ren Jianxin Wins Award for Most Outstanding Person in Global Chemical Industry

The 8th International Exhibition-C o n g r e s s o n C h e m i c a l Engineering and Biotechnology

(ACHEMA) opened at the China National Convention Center in Beijing, China, on June 1st, 2010. During the opening ceremony, the prize for the Most Outstanding Person in the Global Chemical Industry was awarded by ACHEMA's organizers - the DECHEMA Society for Chemical Engineering and Biotechnology e. V., China Petroleum and Chemical Industry Association (CPCIA) and the Chemical Industry and Engineering Society of China (CIESC). Ren Jianxin, President of ChemChina, won the prize. He is the fourth Chinese person to win the prize in its history, following in the footsteps of Cheng Siwei, Gu Xiulian and Cao Xianghong. Mr. Hans Jürgen Wernicke, chairman of DECHEMA, presented the certificate and medal to Mr. Ren during the ceremony. Mr. Wernicke said that Mr. Ren began from scratch, developing

a small-scaled chemical cleaning company into ChemChina, one of the most prominent chemical corporat ions in Ch ina . Today, ChemChina has become one of the world's top 20 chemical companies, winning its founder, Mr. Ren, the title of outstanding entrepreneur. The DECHEMA Award for Most Outstanding Person in the Global Chemical Industry is presented once every three years, and the winner is announced at the ACHEMA chemical exhibition. The award is given to

people with great achievements in the international chemical industry and who have made outstanding contributions to the development of international chemical engineering communication platforms. The selection criteria are strict, requiring the candidate's application three years ahead of time. The winner is chosen by DECHEMA Board's unanimous approval.

Ren Jianxin Receives Australian Visitors

On M a y 2 1 s t , C h e m C h i n a

President Ren Jianxin met with Ms. Jacinta Al lan, the vis it ing M in i s te r o f Trade and Industry from Victoria in Australia and her colleagues a t C h e m C h i n a

headquarters. They discussed the prospect of ChemChina's Australian PE business Qenos Pty Ltd and agreed that this exchange is very important for further cooperation and the building of a long-term friendly partnership. (Photo by Li Meng)

ChemChina Launches HR Transformation and a Career Planning Program

On May 4th, several days away from the sixth anniversary of the founding of ChemChina,

a meeting was held to launch ChemChina's HR reform and career development planning program. This involved 180 participants and included the senior managers of ChemChina and its subsidiaries as well as directors and HR managers of the BlueStar companies. IBM and Hewitt Associates representatives presented details about the two projects prior to ChemChina President Ren Jianxin delivering a speech.

ChemChina Q1 Sales Up 53.2%

All ChemChina companies have been engaged in a 100-day group-wide sales campaign since the beginning of this year,

following the instructions from ChemChina's annual working conference. By seizing the great opportunity brought by the recovering chemical market in the first quarter, ChemChina's sales force overcame such adverse factors as prolonged cold weather and drought as well as the market fluctuation experienced in the first quarter and endeavored to increase market share and sales volume. As a result, ChemChina achieved sales revenue of RMB32.1 billion in the first quarter, 53.2% higher than last year, with a significant increase in profit margin.

To develop a clear picture of ChemChina's human resources, introduce global best practices and improve HR management initiatives, ChemChina decided to implement the HR transformation project and the career planning program, two projects that will be implemented at the same time in collaboration with Hewitt Associates and IBM respectively. This program will be initially piloted at ChemChina headquarters and the BlueStar companies and is expected to be completed within three years. Once completed, this program will further solidify the managerial foundation of ChemChina, establish a modern HR management system, improve ChemChina's HR management practices across the board and allow HR management to play a more active role in supporting the business development and strategic objectives of ChemChina.

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Armenian President Attends Launch of Shanxi-Nairit's 30,000 t/a Neoprene Unit

On May 3 rd , Se r zh Sargsyan, President of the Republic of

Armenia, attended the l aunch ce remony o f a Sino-Armenian 30,000 t/a neoprene rubber JV sited at Yanggao County, Datong City in Shanxi Province, along with

Armenian Foreign Minister Edward Nalbandyan and ChemChina President Ren Jianxin. The joint venture, Shanxi-Nairit Synthetic Rubber Co., Ltd, was co-financed by BlueStar Shanxi Synthetic Rubber Group and

the Armenian Nairit Plant CJSC. With work beginning in June 2007, this project has had its production control units, public utilities and production facilities all in place, representing a total realized investment of RMB1.65 billion to date. "ChemChina will continue to finance capacity expansion for the project," commented Ren Jianxin at the ceremony. "We aim to help the company optimize business portfolio and build it into an integrated and substantial business with resource efficiency and environmental friendliness." After the ceremony, Serzh Sargsyan planted a pine in collaboration with the distinguished guests present, symbolizing the evergreen partnership and friendship between the two countries.

CHC Promotes Unified Branding Strategy

Between May 16th and 18th, the China Plastic Chemical Industry Cooperation Forum & Chlor-Alkali Value Chain Summit

2010 took place in Taicang City in Jiangsu Province. During the event, the China Haohua Chemical (Group) Corporation (CHC) presented its unified PVC product branding strategy and announced its intention to establish the Haohua brand as a long-lasting Chinese brand through implementing its branding strategy. PVC resin, one of the signature products of CHC, is well recognized in the national market and holds a considerable market share. In 2009, the company's PVC production capacity reached 1,060,000 t/a - about 10% of the country's total. In particular, the company's Yuhang brand is one of the nine PVC brands traded on the Dalian Commodity Exchange.

irst ChemChina Companies Join Group-wide Centralized

Capital Management

Cao Wei

On April 19th, the capital in 25 bank accounts of the BlueStar New Chemical Materials Co Ltd and its 22 subsidiaries were automatically transferred into respective accounts kept by ChemChina Finance Co. Ltd. These were the first group of pilot ChemChina companies selected for implementation of a group-wide central ized fund management program that were brought online, marking the official commencement of the program after six months' preparation, as well as the realization of day-to-day centralized and corporate capital quota management. At 16:30 PM every day, any amount of bank deposits of BlueStar NCM companies in excess of the agreed quota is automatically transferred into the appropriate account kept at ChemChina Finance Co., Ltd while the finance company replenishes the bank account of these selected companies if any shortfall is found before 8:45 AM the next day. On the first day of the centralized capital management, RMB200 million was transferred into the finance company's bank account. As of May 12th, 155 turn-in transactions had been completed, involving a total amount of RMB1.08 billion, while 113 appropriations worth RMB736 million were made in total. Through a one-month tr ia l operat ion in collaboration with three banking partners – the China Construction Bank, the Bank of China and the Communications Bank of China - the capital centralization function of ChemChina Finance Co. Ltd's capital management system passed the acceptance check and proved secure, reliable and capable of achieving the objectives of the program, setting the stage for a rollout to the second group of 20-odd BlueStar companies by the end of May and the third group of 80-plus ChemChina companies by the end of June.

Yang Xingqiang Elected CPCIF Vice Chairman

The third general meeting of the China Petroleum and Chemical Industry Federation took place in Beijing on May 10. With the

approval of the State Assets Supervision and Administration Commission (SASAC) and the Ministry of Civil Administration, the China Petroleum and Chemical Industry Association (CPCIA) was officially renamed as the China Petroleum and Chemical Industry Federation (CPCIF). At this general meeting, a new charter for the Federation was accepted by a vote and the third group of leaders and the third executive council of the Federation formed through election. Eight companies, including ChemChina, were elected as corporate members in the capacity of senior vice chairmen. Eight individuals, including ChemChina vice-president Yang Xingqiang, were elected as senior vice chairpersons and 21 staff of ChemChina were named executive council members. To help China's petrochemical industry restructure industrial setup and change the way of economic development, the Federation decided to establish five branch organizations, - the resource conservation committee, the new-type coal chemical coordination committee, the international exchange and cooperation committee, the responsible care committee and the policy and legislation research committee.

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ChemChina to Fuel Sustainable Development of Advanced Chemical Materials

At the third International Advanced Chemical Materials (Chengdu) Summit held in Chengdu of Sichuan between May 6th and 7th, ChemChina President Ren Jianxin - the chairman

of the organizing committee of the forum - said that the prospects for China's high-tech industry over the next two decades were promising, mainly because of the advanced materials available. He also said that advanced chemical materials sector, as an important part of the advanced material industry, will grow rapidly. Mr. Ren said that, together, environmental protection and sustainable development define the road that China's advanced chemical material industry must follow. He promised that ChemChina will proactively meet its social responsibility, work with the scientific research community and water treatment companies to explore the chemical industrial wastewater treatment processes suitable for use by domestic companies. This will be achieved through technical innovation and the active pursuit of energy saving and emission reduction, with particular attention to environmental protection and sustainability. As part of its efforts to develop the advanced chemical material industry, ChemChina will restructure its existing six business units into a "three plus one" business portfolio - material science, life science, environmental science plus chemical raw materials. Top priority will be given to the development of fundamental, government-supported advanced chemical material products with strategic importance. R&D expenditure for the development of advanced chemical materials will be increased and technical innovation will focus on key industrial technology in order to establish core competencies and competitiveness. Advanced material technology is one of the three key technical applications of the 21st century. Advanced chemical materials, as the most important part of advanced materials, are very important to the national economy, especially for high-end and frontier technologies.

ChemChina Tyre & Rubber (Guilin) Selected to Pilot National IPRs Protection Program

Lu Nanjiang

In 2009, the ChemChina Tyre & Rubber (Guilin) Co., Ltd was selected by the State Intellectual Property Office (SIPO) as one of the fourth group of pilot organizations for the trial implementation

of the national intellectual property rights (IPRs) protection program. The company has recently received a certificate from the SIPO. This trial run started in January 2010 and will last two years. During this period, the SIPO will provide generous support with respect to IPR policy-orientation, patent strategy research, and patent information collection and utilization. It will also assist the selected organizations in addressing specific difficulties and the problems encountered in their IPR practices. ChemChina Tyre & Rubber (Guilin) Co. Ltd has developed a series of essential high-tech products - of which the proprietary 36:00R51 giant radial tire was the first of its kind ever created in China. It gave the company a major boost in securing domestic market leadership in the field of giant tires. So far, the company has filed 155 patent applications, including 77 patents for inventions. Of these, 77 patents were already granted, including six patents for inventions.

Haohua Yuhang Chemical Launches Two Joint-venture Projects

Shua Xuxiang, Zhang Bin

On May 11th, Haohua Yuhang Chemical Co. Ltd's two joint-venture projects - a 1,000,000 t/a calcium carbide residue-

to-cement project and a 60,000 t/a high-purity solid caustic soda project - were simultaneously initiated at the Qinbei Industrial Park in Jiaozuo City in Henan. Due on stream at the end of this year, these two units will increase the annual production capacity of the company's two leading products, caustic soda and PVC, to 640,000 tons and 600,000 tons respectively as well as generate an annual calcium carbide residue output of 1,020,000 tons (dry basis). For comprehensive utilization of all calcium carbide residue, Haohua Yuhang is currently working with the BBMG Corporation on the implementation of a 1 million t/a calcium carbide residue-to-cement project. With planned investment of RMB300 million, this project, once it comes on line in the first quarter of 2011, will consume 1.2 million tons of industrial residues a year, including all of the calcium carbide residue and fly ash generated by Haohua Yuhang as part of its production process. This unit is expected to generate annual sales revenue of RMB260 million and annual gross profits of RMB60 million. In addition, Haohua Yuhang secured RMB36 million investment from its strategic investor in order to build a 60,000 t/a high-purity solid caustic soda plant. This unit will go into use next May, with expected annual sales revenue of RMB180 million and annual gross profits of RMB12.5 million.

SRDICI Makes Breakthroughs in Two R&D Projects

Xie Zhaoping

On May 11th, the Sichuan Provincial Department of Science and Technology organized an expert panel to examine two

technological achievements of the Southwest Research & Design Institute of the Chemical Industry (SRDICI) - the production of synthetic natural gas from methanation of coke oven gas and the low-quality coal-seam gas and non-noble metal sulfur-resistant deoxidizing catalysis and process. The expert panel stated that the synthetic natural gas production technology represented a landmark for China's chemical industry, believing this new technology ready to be commercialized. After being commercialized, this new technology will open a new avenue for efficient utilization of the coke oven gas, drive technological progress in the coking and energy industries and resolve some of the problems of environmental pollution and the waste of resources caused by the discharge of coke oven gas. As the first coal-seam gas catalytic deoxidization technology ever developed at home and abroad, the low-quality coal-seam gas and non-noble metal sulfur-resistant deoxidizing catalysis and process represents an innovative technical solution to the safe utilization of coal-seam gas. It is believed the process will help reduce greenhouse gas emissions, reduce the likelihood of coalmine gas explosions, facilitate the industrialization of comprehensive coal-seam gas utilization and mitigate the undersupply of natural gas in the country. This new technology is said to have promising market prospects.

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The Rebirth of the Sichuan BlueStar Machinery and Qingping Phosphate Mine

Tang Anshu, Wang Yong

May 12 is a date that no one in the country can forget, s imply because of the catastrophic Wenchuan earthquake. Sichuan BlueStar Machinery Co Ltd and

the Deyang Haohua Qingping Phosphate Mine Co Ltd, two ChemChina companies located in the epicenter, were among the hardest hit by the devastation. Factory buildings collapsed, employees were injured or killed, a RMB10 million heavy vessel capacity expansion project was halted and the whole mine was all but razed to the ground. Two years later, a brand-new Sichuan BlueStar Machinery installation has risen in the Bajiaojing High-tech Industrial Zone in Deyang City in Sichuan. From restoration to full-scale operation within a mere six months at its old premises in Shifang City, to relocation to its new premises in Deyang City, Sichuan BlueStar Machinery has faced considerable adversity and difficulties arising from the reconstruction program. From a business angle, Qingping Phosphate Mine turned the disaster into an opportunity. Just two years after the tragedy, a prosperous and dynamic Qingping Phosphate Mine has been reborn under the public spotlight.

Sichuan BlueStar Machinery

According to the plan, the new premises of BlueStar Machinery in Deyang City will cover a floor area of 400,000 m2 and involve a total investment of RMB760 million. Covering 226,000 m2 floor area, the first phase of the project consists of three production lines - a 640-ton heavy vessel plant, a 50-ton special-purpose vessel plant and a large-sized 2000-to-10000 m3 ball sheet press. This new factory comprises a total building area of 74,000 m2 and 397 major new pieces of equipment, including 320-ton bridge cranes, numerically-controlled floor milling machines, rotating-type integrated wrapping machines, linear accelerators and several other production and testing equipment. This project will be completed and put into operation in June, with an expected annual capacity of RMB1 -1.2 billion. Another 174,000 m2 of land has been reserved for the second phase of the project. Instead of replicating the past, this reconstruction project represents the market-driven efforts of Sichuan BlueStar Machinery to optimize its product mix, which encompasses traditional chemical business, new materials, new energy and

environmentally-friendly business in line with the government policy concerning industrial restructuring. This represents part of the overall plan to build the company into the largest modern chemical processing equipment manufacturer as well as an alloy steel and iron railroad switch manufacturer in west China, ranking among the top five in the country. Currently, the heavy vessel production line has been substantially completed, 95% of the steel structure for special vessel production line and spherical tank production line is in place and the equipment foundations have been established. Office buildings, dining halls and dorms are undergoing interior decoration with 80% of the work having been completed. Key equipment, including a C-type 800-ton hydraulic machine, a 200mm bending machine and a numerically-controlled floor milling machine have been all erected in place and are currently in the process of commissioning. Preparations for the relocation are also well underway.

Qingping Phosphate Mine

On March 19th, a brand-new raise borer, bought by Qingping Phosphate Mine for RMB2.7 million, was put into operation, signifying that the restoration of the company at the new factory premises had reached a new stage. The company's RMB904 million project, which consists of a 600,000 t/a finished ore plant and a 200,000 t/a diammonium phosphate (DAP) plant, is well underway, indicating that this mining company will implement a combination of mining operations and chemical business through its post-disaster reconstruction efforts. Through the implementation of this new project, involving construction of a modern mining company and a modern phosphate ore processing business, the Qingping Phosphate Mine will change from a phosphate ore producer into a phosphate-based chemical business conglomerate, dealing with mining, fertilizer and phosphate production. The business objective of the company this year is to produce 800,000 tons phosphate ore and generate RMB180 million sales revenues and RMB27 million profits, surpassing its pre-disaster performance. The 700-day post-disaster reconstruction efforts represent a highlight in the history of Qingping Phosphate Mine. The company's long-cherished DAP project has been approved and wil l commence in the Gongxing Chemical Industrial Park, an initiative that will make the company a leading chemical business in M ianzhu C i ty, w i th an annual output value of over RMB1 b i l l i on . It is believed that the Qingping Phosphate Mine will embrace a new era of development after battling through this period of adversity.

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Foreign "CXOs" at Jiangxi Xinghuo SiliconeRecently, foreign executives with ChemChina and BlueStar came to Jiangxi Xinghuo Organic

Silicone Plant in close succession to assist the company in building a world-class factory, completing its marketing system, deepening its HSE efforts, accelerating its project

implementation and driving its human resources reform. They delivered training sessions to both the management and employees of the plant effectively facilitating the implementation of a number of pilot projects, improving the competency of employees and setting the stage for further business growth of the plant. (Photos by Du Yanqing, Lu Yuanlin)

David Allen, BlueStar Chief Manufacturing Officer (CMO), provides guidance at the production line.

Derek Baillieul, ChemChina Chief Auditing Officer (CAO), watches a tug of war during the field survey at Xinghuo.

John-James Farquharson, BlueStar Chief Human Resources Officer (CHRO), visits the Xinghuo gallery.

Harry Boot, BlueStar Chief Marketing Officer (CMO), attends the wrap-up meeting for the group-wide 100-day sales

campaign.

Jayendran Rajah, BlueStar Chief Planning Officer (CPO), conducts a field survey on the construction site of a

200,000 t/a silicone plant.

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ChemChinaEmployees Tour World Expo Shanghai

On May 23rd, about 100 production team or group leaders from ChemChina toured the World Expo Shanghai, all of whom were participants in the

distance-training program for outstanding production team or group leaders of major state-owned enterprises (SOEs). During the tour, they wore the same T-shirts and hats imprinted with the logo of ChemChina, drawing much attention from visitors to the expo. The ChemChina tourists viewed national treasure exhibits and watched the exotic folk dances of participating countries, marveling at the kaleidoscope of splendid achievements showcased at the event. After the

one-day tour, the group was said to be very excited by its experience of the distinctive national pavilions, themes pavilions and corporate pavilions, despite their physical fatigue. At night, the ChemChina tourists took a cruise on the Huangpu River. While onboard, they had a panoramic view of the beautiful city on both banks and were intoxicated by the charming lights radiating from the oriental pearl, which formed a sea of lights with colorful illumination from the nearby building complexes. Everyone was said to be totally immersed in the charm of nighttime Shanghai as the breezes carried their fatigue away.

S o h a p p y w i t h a h a r d - w o n admission ticket to World Expo in hand.

A different appeal f r o m a F r e n c h natives' life.

S t u d y i n g t h e tour route before departure

Fully confident in their photographic skills.

Heading for the long-cher ished World Expo park.

Z h e n g h e P e t r o c h e m i c a l employees posing for a group photo in the World Expo park.