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ISSUE 111

October 15th, 2012

On S e p t e m b e r 1 6 , C h e m C h i n a

president and Bluestar president Ren Jianxin m e t G o v e r n o r o f 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 l a n d s c a p e a n d t h e f u t u r e c o o p e r a t i o n . By PR Department of ChemChina.

On August 15, Bluestar Beijing held a kick-off meeting about an organizational change program.

As the f i rs t company to pursue organizat ional change within ChemChina, Bluestar Beijing started its organizational change program last August. This program has been implemented by Bluestar Beijing’s change team in collaboration with a world-famous consultancy. Extensive feasibility efforts led to the formulation of the organizational change plan at Bluestar Beijing.

Recently, Bluestar Beijing has completed several elements of the program, including strategy review, management approach identification, core business organizational structure planning for ChemChina and its

Bluestar Beijing Implements an Organizational Change Program

ChemChina President Ren Jianxin Meets Governor of Victoria, Australia

subsidiaries, critical process engineering, KPI database setting and documentation delivery. At this stage, Bluestar Beijing has identified environmental protection, energy conservation and fine chemicals as its core business portfolio for the future; seven essential management functions were identified and each business line will be managed under the division system; nine departments will be set up at the headquarters of Bluestar Beijing and a basic approach to organizational structure under division system was put forward; critical management process manual, core management process manual and KPI database were established and refined for the headquarters of the company.

This program is well underway at Bluestar Beijing.

Zhang Li

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By examining field instruments, calibrating PID of control circuits, optimizing control plan and adjusting

the operating parameters, Bluestar Lanzhou managed to increase the automation rate of its plant from 28.3% at the beginning of this year to 74.1% in early June. However, in the face of physical constraints, the continuous improvement of the automation rate met bottlenecks.

In mid-June, ChemChina’s CI office headed an expert panel to provide onsite instructions at Bluestar Lanzhou. The expert panel first made appropriate adjustments to the circuit parameters of the dashboard in light of the actual circumstances and the process requirements and availability requirements in practical operation. Then, 99 automated circuits were investigated and analyzed,

Shenyang Paraffin Wax Chemical Co., Ltd oil branch has 125 heat tracing pipes that

total 70000 meters in length, as well as over 1000 steam traps. As the winter is approaching, the oil branch examined the soon-to-be-used heat tracing pipes and steam traps one by one to identify and eliminate any problems as they arise. These pipes and steam traps were registered and put under the management of a specially designated person, in preparation for the smooth operation of production plants in wintertime.

Shenyang Paraffin Wax Chemical Co. Ltd Oil Branch

Bluestar Lanzhou’s Methanol Plant Becomes 88.9% Automated

followed by inclusion of damping time in flow meters through manual manipulation and adjustment of the level integral time of a water cooling tower. An improvement plan was defined or oxygen flow circuit and water-carbon ratio control circuit where conditions were not yet available. An onsite technical training session was delivered for DCS personnel. Finally, with the help of PI software engineers, the expert panel trained ten-odd members of the real-time database project personnel on the basics of PI system software, in addition to provision of appropriate technical documentation.

After the four-day onsite correction and optimization by the expert panel, the automation rate of the plant increased from 74.1% in May to 88.9%.

Chen Junran

Li Ning

Ping Jinli

In chromate salt production, turbidity is one of the important indicators of whether the quality requirements

for electroplated chromate anhydride products are met, but turbidity has not drawn much attention of the manufacturers as an indicator newly added to the national standard. As electroplated chromate anhydride is sold for a price several thousands Yuan higher than the ordinary chromate anhydride, Bluestar Yima(Bluestar Yima Chrome Chemical Materials Co., Ltd) has seize this opportunity to improve the product quality and increase profitability through technical innovation.

Since its chromate anhydride system has been fully retrofitted and put into operation in January 2011, Bluestar Yima saw continuous improvement in the quality of its chromate anhydride products. In May 2011, the average turbidity decreased from 20 to below 7, and 97%

of the products were first-grade, as opposed to 90% before 2010 when the renovation took place. However, despite the achievements, they continued to further reduce the turbidity strictly according to the current industry standard by requiring mechanics to improve the quality of maintenance conducted on tableting machine roller and requiring operators to improve the quality and speed of feed charging and strictly control the average turbidity of chromate anhydride. They worked to exert greater control on the reaction endpoint and on the holding points of chromate anhydride and sodium bisulphate, starting with the reaction process and feeding process.

In August, the company’s turbidity value further decreased, below 5 from 7 in 2011, thus exceeding the new national standard, with all products being first grade.

Bluestar Yima Improves the Quality of Its Chromate Anhydride Products

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Butterflies and Me

“Butterflies are dancing flowers, while flowers are still butterflies.” I loved catching butterflies most when I

was a little child, not only for their wonderful colors but also for the joy of success in catching them. When the middle of summer approached, my buddies and I could always be seen chasing butterflies excitedly. If any one of us caught one by chance, he or she would flaunt it with quiet pleasure, enjoying the feeling that the flapping little creature brings about in his or her little palm. A stream of silvery laughter would be left behind wherever a butterfly was flying past in the garden.

The young me gradually realized the importance of leaving other creatures undisturbed, so I have rarely ever attempted to catch a butterfly since then. But whenever a butterfly shows up, I become fascinated by it, unselfconsciously watching it flying away purely out of my love for that little creature. At this moment, it seems as if I have become a carefree butterfly, dancing in the air happily and freely.

One midsummer’s day, I came to the campus of my high school, and the first thing that attracted me was not the impressive teaching building, not the small picturesque garden, but it was the numerous dancing butterflies. What a surprise to see so many butterflies on this hustling and bustling campus!

When butterflies lingered on the campus amid the flowers and even dancing around my peers, nobody ever attempted to catch them or hurt them, so they naturally would not be afraid of us.

In the sunshine, we ran and played around in company with flipping-flopping butterflies. What a wonderful and fascinating scene! Isn’t this a perfect representation of trust and care?

Chen Danning, a child of Bluestar Beijing family.

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Located 60 km sou th o f Q i ta i County, Jiangbulak Scenic Spot is

a vast grassland in the eastern part of Tianshan Mountain. Its unique location endows it with beautiful landscapes, without any extreme weathers in the summer or winter.

Jiangbulak means the "source of holy water" in the Kazakh language. The spot boasts amazing natural scenes. The best season to visit Jiangbulak is June or July. Various flowers in different colors, massive barley fields, crystal lakes, and multi-peaked mountains abound.

BlueStar Communication Chinese Editor: Jiang Bo English Editor: Xu Lili

Baotu Spring is located in the centre of Baotu Spring Park and is renowned as the best of the

72 springs in Jinan (Shangdong Province). Since ancient times, many famous poems and prose have been written relating to its unique beauty. According to experts' research, this spring has a history of 3,543 years, dating back to the Shang Dynasty (16th –11th

BC). The special geographical structure in Jinan creates the special Baotu Spring. The spring pool is rectangular in shape, stretching about 30 meters (about 98 feet) west to east and about 18 meters (about 59 feet) north to south. Spring water pours out from the underground limestone cave throughout the night and day, sometimes reaching its maximum of 240,000 cubic meters per day. When water bursts out from the three outlets, the spring creates thunderous sounds and sprays water jets. Sometimes water columns are created that reach as high as 26.49 meters (about 86.9 feet), making a real spectacle.

The spring retains its temperature at 18 degree Celsius (64.4 degree Fahrenheit) all year round. In cold winter, water mist rises and floats over the spring pool like clouds. Ancient pavilions and halls with colorful drawings and carvings reflect in the clear water creating a landscape virtually emulating paradise.

Jiangbulak Scenic Spot

Baotu Spring