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ISSUE 16 EVENTSMST Vice-MinisterCao Jianlin InspectsMCRICui LijuanQingping Phosphate MineResumes ProductionYang Hong, Li YongjiangOn November 22nd, Deyang Haohua Qingping Phosphate Mine Co, Ltd. helda ceremony to mark the resumption of production at the 1,000-meter mainadit (horizontal entrance) at Yanziyan. At 11 am, four locomotives loadedwith high-quality ore exited the mine, marking the formal resumption of productionat Qingping Phosphate Mine.On August 21st, with the Hanwang-Qingping road reopened to traffic, QingpingPhosphate Mine held a meeting to make arrangements for resuming production.After 100 days of hard work, the good news finally came that mine productionwould resume. Chairman and General Manager Xiang Ping said at the ceremony:"During the past difficult 100 days, our staff worked hard and brought the mine upfrom ruins with their courage and wisdom."Plans call for the company to produce 60,000 to 70,000 tons of phosphorite beforeSpring Festival and then gradually resume the operation of other mines. The supplyshortage of phosphorus chemical raw materials in Deyang will be gradually eased.Vi c e - M i n i s t e r o f t h eM i n i s t r y o f S c i e n c eand Technology (MST)Cao Jianlin recently inspectedthe Marine Chemical ResearchI n s t i t u t e ( M C R I ) a n d w a sreported on its general situationand operations as a NationalKey Laboratory.Cao praised MCRI's progressand noted that its researchs h o u l d b e o r i e n t e d m o r et o w a r d s o c i a l n e e d s . H ealso highlighted cooperationbetween MCRI and universitiesto optimize use of talent andsci-tech research while stressingthe importance of intensifyingindustrialization. The Ministryof Science and Technology willprovide full support for MCRI,he said.Tianjin Summit to Promote World's Advanced Materials IndustryWang XiaoxueOctober ended on a high note inBinhai New Area, Tianjin as theSecond International AdvancedMaterials (Tianjin) Summit was held fromOctober 30th to November 1st in thenow-bustling area of the municipalitydirectly under administration of thecentral government.Convened amid the global economicm e l t d o w n , t h e s u m m i t t h e m e d"Opportunity & Responsibility," pooledmore than 300 delegates representinggovernmental, academic, corporate andinvestment banking circles for a meetingof minds on the development of theworld's advanced chemical materialsindustry. Ren Jianxin, President ofChemChina, addressed the summit.With the global financial tsunamispilling over into substantive economies,the advanced chemical materials sectorwill not be immune to the impact ofthe economic slowdown of such a globalmagnitude.However, it was unanimously agreed bydelegates to the summit that challengesdo not come alone, but rather togetherwith opportunities. The prevailingworld outcry about resource depletion,environmental degradation, ecologicalimbalance and climate change all indicategreater vistas for the advanced chemicalsector, which can contribute to a moreharmonious society through innovation.The summit also adopted the TianjinProposal for the Advanced ChemicalMaterials Industry reflecting a broadconsensus about the importance ofself-discipline, fulfillment of socialresponsibilities by companies andcoordinated development of the industry,society and the environment.December 20082

ISSUE 16 EVENTSShanxi Synthetic Rubber Appoints COOLi MengBlueStar appointed Dr. Stephen Pask as ChiefOperation Officer (COO) and Deputy GeneralManager of the Shanxi Synthetic Rubber Group Co.,Ltd. Dr. Pask was born in the UK. With rich experience inthe operations and management of chemical enterprises,he has worked for many world-famous chemical giantsincluding Bayer and Lanxess. Pask will be the first foreignhigh-level manager at a subsidiary company of ChemChina.On November 20th, the formal appointment was heldat ChemChina headquarters. Before the ceremony,ChemChina President Ren Jianxin met with Pask andextended a warm welcome. Mr. Ren expressed hope thatPask can lead the company to its best operation and builda team of top talent by introducing advanced technologyand management. Yang Xingqiang, President of BlueStarand assistant to Ren Jianxin, presented the letter ofappointment to Pask.BlueStar New ChemicalMaterials Wins AwardCui JunBlueStar New Chemical Materials Co., Ltd. wasrecently named "Most Influential Enterprise in theChemical Industry." Organized by the China EngineeringPlastics Industry Association (CEPIA), a total of fiveenterprises won the honor after a series of strictexaminations, verifications and selection by an expertpanel.On November 5th, Ms. Federica Placidi, Chief Representative ofItalian SaiPem in China, along with SaiPem's managers of technology,quality and purchasing, visited Sichuan BlueStar Machinery Co.,Ltd. for an inspection. The visit gave her full confidence in futurecooperation between the two companies. (Photo by Tang Anshu)Yiyang Rubber & Plastics Machinery expandedexports recently with the test run of three internalmixers to be exported to India, following the exportof hydraulic vulcanizers to Japan in October. Thecompany exported RMB214.61 million worth ofequipment from January to October, up 46.26% fromthe previous year. The photo shows the test run of aGN270 internal mixer to be exported to India. (Photoby Li Zhonghong)December 20083

ISSUE 16 PROJECTSiping Haohua ChemicalLaunches Two200,000 t/a ProjectsLi Xiujingmeeting to mark the startup of two 200,000 t/a projects byA Siping Haohua Chemical Co., Ltd. was held in Changchun,Jilin Province on November 16th. Jilin Governors Wang Min,Han Changfu and Wang Rulin attended along with China HaohuaChemical (Group) Corporation President Fu Xiangsheng andChemChina Vice-President Fan Xiaosen.Following two other 50,000 t/a projects that went on streamin August 2006, Siping Haohua Chemical started constructionon facilities on June 10th, 2007 to produce 200,000 t/a of ionexchangemembrane caustic soda and 200,000 t/a of PVC resin.With a total investment of RMB1.3 billion and covering 204,400sq meters, the two projects employ state-of-the-art processesand equipment to utilize and reuse resources more efficiently.After the two systems are fully operational, the company'soutputs of PVC and ion-exchange membrane caustic soda willboth reach 300,000 t/a, creating annual output value of RMB3billion and profit of RMB350 million.BlueStar Petrochemical (Tianjin)CHP Program ReceivesGovernmental SupportMao XueqiangBlueStar Petrochemical (Tianjin) Co., Ltd.recently won an incentive award from theTianjin Municipal Government for its initiativewith a CHP (combined heat and power) energysaving project.The project running continuously for almosttwo years and yielding an annual profit of morethan RMB5 million is a result of renovationof the company's old CHP facility that hadbeen mothballed for 5 years as part of energyconservation and emission reduction measures.A total of RMB3.43 million was invested torenovate its processes and technology. Theprogram paid off in only 10 months, fully tappingthe great potential of the CHP process.ChemChinaDaqing Branch Launches80,000 t/a Ethylbenzene/StyreneXing Jiweiwww.chemchina.com.cnOn November 1st, an 80,000 t/a ethylbenzene/styrenecomplex of ChemChina Oil & Gas Corporation Daqing Branchformally produced finished styrene with purity of 99.9%.It achieved a successful startup in its first operation and set a newrecord of the shortest startup time among similar domestic units.It took nine and a half months to complete construction ofthe ethylbenzene/styrene complex. On September 12th, 2008,the startup process formally began with feeds of gasoil. Theethylbenzene unit was started up 24 hours ahead of schedule,executing a full cycle from the introduction of raw materials tofinished products distillate. On October 30th, dehydrogenatedliquid was transferred into the styrene distillation unit. It took fivedays to produce qualified styrene products, which was two daysahead of schedule. The product purity is as high as 99.9%. Thecomplex achieved successful startup with stable operation in itsfirst commissioning.December 20084

ISSUE 16 PROJECTHaohua South China Kicks offAll-steel Tire ProjectLi MeijunHaohua South China (Guilin) Rubber Co., Ltd. recently began construction of its allsteeltire project that will have the capacity to produce 600,000 tires a year.The project to be constructed in two stages will first develop capacity to produce300,000 radial truck tires and 150,000 semi-steel passenger car tires annually usingexisting facilities, unused workshops, idle equipment and capacity and the company'sR&D strength in aircraft tires. Following a total investment of RMB150 million, it isprojected to achieve annual sales of RMB550 million. In the second phase beginning inFebruary 2009, another RMB100 million investment will bring full capacity by August2009 for annual manufacture of 600,000 all-steel tires. After fully operational by theend of 2009, the project can generate annual sales revenues of RMB800 million.Yiyang Machinery ManufacturesChina's Largest Plate VulcanizerLi ZhonghongIn October, Yiyang Rubber & Plastic Machinery Group Co., Ltd. was successful in itsindependent development and manufacture of its 1.6-by-12-meter wire plate vulcanizer,the longest in China, adding a new series of products to the company's vulcanizer family.Yiyang Group is well known for its banbury mixer, tire vulcanizer and plate vulcanizerproducts. Over the past 30 years, the company has continued to innovate and produce 20kinds of vulcanizers - ranging from 1.4-by-10-meters to 2.7-by-10-meters - that have wideapplications in the vulcanization of general rubber conveyor belts, nylon conveyor belts,wire rope conveyor belts, fire-retardant conveyor belts and large-scale molded rubberproducts. In the process of improving technology for higher quality and larger scale, thecompany has made great contributions to the industry. While manufacturing its 1.6-by-12-meter plate vulcanizer, the company also developed the 2.7-by-16.4-meter type, theworld's largest plate vulcanizer spec, which has been ordered by a famous foreign rubberbelt enterprise.At present, the company's large plate vulcanizing machines have 70% of the domesticmarket and are exported to more than 20 regions worldwide including the United States,Sweden, Mexico, Brazil and South Africa. Three of the world's top five non-tire rubbermanufacturers have selected Yiyang Machinery as their supplier.Giant TankDelivered toShaanxiOn N o v e m b e r 2 1 s t , H u n a nX i a n g d o n g C h e m i c a lMachinery Co., Ltd. shipped anew nitrogen storage tank toa client in Xianyang, ShaanxiProvince. The tank, 34.6 metersin length and weighing 110.3 tons,is another giant product madesuccessfully by the company.Keeping an eye on the marketm o v e m e n t s i n r e c e n t y e a r s ,Xiangdong Chemical Machineryrelocated its businesses andt u r n e d m o r e a t t e n t i o n t omanufacturing super-long andsuper-heavy products. With awide industrial recognition forits rich experience and maturetechnology, the company is nowreceiving an increasing number oforders. The success is a new proofof the company's competitivestrength in making large-sizedchemical equipment. (Photo byHe Weirong)www.chemchina.com.cnBlueStar (Lanzhou) 200,000 t/a Methanol Unit OperationalRecently, a 200,000 t/a refined methanol unit of BlueStar(Lanzhou) Chemical Co., Ltd. became fully operational.Lanzhou Mayor Lu Wucheng made a survey tour of BlueStar(Lanzhou) New Chemical Material Industry Park at Hekouin Lanzhou, Gansu Province and paid a visit to the newmethanol facility.The methanol unit uses natural gasas raw material and adopts advancedprocesses that include a distributedcontrol system (DCS) to monitoroperations with a greater degree ofautomation through process checking,Qiu Lanliandata processing, process control, energy assessment and circuitdisplays. Refined methanol, the facility's major product, iscommonly used in formaldehyde and acetic acid production,while a new type derivative also has good prospects for use inautomotive fuel and dimethyl ether. Commissioning of the unitstarted in October 2008 and it becamefully operational on November 10th.The launch of the new unit willgenerate annual sales revenues ofRMB400 million for the company andat the same time help boost the localeconomy.December 20085

ISSUE 16 COMPANY NEWSHaohuaSouth China'sGiant Tire PassesAcceptance TestLi MeijunOn November 15th, the statesponsored"Key manufacturingprocess and equipment for thegiant all-steel radial engineeringtire project" by Haohua SouthChina (Guilin) Rubber Co., Ltd.,passed an acceptance test bythe Department of Science andTechnology of Guangxi ZhuangAutonomous Region.Begun in May last year, theproject's first 36.00R51 giant tirerolled off the line half a year later.Pilot production soon started and aroad test followed in May 2008. Withsound performance during the roadtest, Haohua South China has begunmass production and export of thegiant all-steel radial tires.To support manufacture ofthe giant tire, the company alsodeveloped molding machines,v u l c a n i z e r s a n d o t h e r k e ye q u i p m e n t . T h e c o m p a n y h a sapplied for 56 national patents asa result of the project, 21 of whichhave been approved. The projectnow leads 36.00R51 all-steel radialtire production in China's giant tireindustry.On October 21st Nantong XingchenSynthetic Material Co., Ltd. wonapproval as a "hi-tech enterprise," whichbrings favorable tax policies, yet thecriteria were challenging to meet.Since joining BlueStar Group, NantongXingchen's combination of scientific andtechnical innovation and large scaleproduction have developed from anexperimental factory with annual outputvalue of about RMB10 million into a largescale enterprise with total assets of morethan RMB1 billion. Its scientific researchprojects that are complete or progressinginclude high-performance PBT engineeringplastics, halogen-free flame retardantengineering plastics, epoxy resin for fanblades in wind power generators andmodified PPE alloys.In 2005, Nantong Xingchen beganNantongXingchenNamed Hi-techEnterpriseMao Daliant h e c o n s t r u c t i o n o f B l u e S t a rC h e m i c a l ( N a n t o n g ) A d v a n c e dMaterials Industry Base at the newsite at the Nantong Economic andTechnological Development Zone,w h e r e c o l o r d e v e l o p i n g a g e n t s ,modified engineering plastics andthe newly established 60,000 t/a PBTfacilities are now in operation. Alongwith other new facilities beginningoperation - including a 50,000 t/aepoxy resin unit and a 90,000 t/abis-phenol A unit - the project willgenerate annual sales revenues ofRMB3 billion. With the investment ofmore than RMB10 million on worldclasshi-tech research equipment,its new engineering R&D center willmake great contributions to sci-techinnovation.Haohua's Employee Library SetsGood Example in GuangxiPan WuyiAn employee library at the tire factoryof Haohua South China (Guilin)Rubber Co., Ltd. was recently honoredas a "Demonstrative employee libraryof the Trade Union of Guangxi ZhuangAutonomous Region." The library hasreceived more than 900 books donatedby the Trade Union of the GuangxiZhuang Autonomous Region and 250from the Guilin Municipal Trade Union,and now boasts a collection of over6,000 volumes on various subjects tofacilitate employees learning in theirspare time.December 20086

ISSUE 16 COMPANY NEWSTwo BlueStarFirms to Set National StandardsCai LiangzhenOn November 5th, the StandardizationAdministration of China announced 154newly approved 2008 national standardsincluding for industrial bisphenol A submittedby the Wuxi Resin Factory and methyl RTV(room temperature vulcanizing) silicone rubbersubmitted by Jiangxi Xinghuo Organic SiliconePlant, both in the name of BlueStar, authorizingthe two firms to draft the respective standards.It is the first time the two technologies havequalified as national standards. When put inforce, they will be of great importance tostandardize the domestic markets of bisphenol Aand methyl RTV silicone rubber in China.Guilin Latex Plant:Revisions to NationalStandards ApprovedLiu BinIn mid-September two new mandatory nationalstandards primarily drafted by Guilin LatexPlant - the "Once-off non-sterilization surgicalrubber gloves" and "Natural latex rubber condoms:Technical requirements and test methods" -passed review at the Zhuzhou Research Instituteof Rubber, Hunan Province. According to theexpert panel, the first "provides technical supportfor regulating the production and testing of onceoffnon-sterilization surgical rubber gloves,"while the latter "provides more scientific andreliable basis for product quality supervision bythe quality supervisors." Both will be released andimplemented late this year or early next year.www.chemchina.com.cnFour Patents Granted toWuxi Resin FactoryGong JingxiaWuxi Resin Factory recently receivedfour patents on technologies, including"Reuse of benzene-containing wastewaterin production of phenolic and epoxy resins(invention patent)," "Device for regulatingconcentration of diphenylol propane inpurification via two-stage crystallization(utility patent)," "Device and process forregulating concentration of diphenylolpropane in purification via two-stagecrystallization (invention patent)" and"Reducer for screw feeder (utility patent)."In addition to the four already awarded, thefactory is applying for two other patents.Changsha InstituteCelebrates 30th Anniversarywith New StartLiu QiliangNovember 23rd was the 30th anniversary of thefounding of the Changsha Design and ResearchInstitute, an institution now in the name ofBlueStar. More than 500 employees assembled at theceremony to mark the event.Over the past 30 years, the Changsha Institute hasmade great progress for the country on exploitationand utilization of potassium salts and saline lakemineral resources, as well as R&D of liquid phase miningtechnology. Its considerable contributions to China'smining industry have won national recognition and it hasbeen granted a number of national and industrial awards.To date, the institute has been built into a scientificresearch and design enterprise with technical strengthand recognized brands, and significant restructuring isnow underway.The ceremony unveiled China BlueStar ChanghuaEngineering Technology Co., Ltd. - its temporary Englishname - which is a newly registered enterprise originatedand transformed from the Changsha Institute. Thecompany's new name and logo that have been submittedfor official registration were also displayed.December 20087

ISSUE 16 EMPLOYEE WORLDChristmas Party at BlueStarA "lucky draw" for employees by Mr. Stephen Pask,COO of BlueStar Shanxi Synthetic Rubber Group.The performances catch the audience's eyes.The Christmas Party themed"We are Family" was held atBlueStar on December 13th.Assembled from Beijing, Shanghai,Shenyang, Tianjin, Shanxi, etc., over40 foreign employees of BlueStarand their families got togetherwith their Chinese workmates andenjoyed a wonderful evening. RenJianxin, President of ChemChina andChairman of BlueStar, appreciatedthe foreign employees' hard workfor the corporation and theircontributions to cultural exchangesbetween China and the world. Heextended best wishes to all foreignstaffs of ChemChina and BlueStar,expressing sincere hope that theywill have a wonderful Christmasand Happy New Year with health,happiness and prosperity.C h e m C h i n a n o w o w n s f i v eoverseas companies and the numberof its foreign employees in China isapproximately 40. (Photos by WangXiaoxue)President Ren greeting the foreign employees.Awardees showing their awards.Chinese and foreign employees singing a Frenchsong "La maladie d'amour."Chinese God of Wealth extending his best wishes toall the spectators.www.chemchina.com.cnBlueStar President Yang Xingqiang unveiling thefinal award-winners.P r e s i d e n t R e nawarding a prize toMs. Jane Butler fromQenos (Australia),for her outstandingp e r f o r m a n c e i nChina over the lasttwo years.Beetles' "Yesterday," brought by Atos Origin.Attendees posing for pictures.December 20088