July 2012 Newsletter

Newsletter

May 2013

ISSUE 68May

A strong line of defense against springtime fires

1

Zhenghe Petrochemical sets up technical specialist workstationGuilin Tyre recognized for product qualityAnbang Electrochemistry cut transportation costs

4

Shenyang Chemical works with university on innovationXinghuo Plant serves customers up closeDouble Happiness Tire works to build a homelike atmospherePhoto News: A Venezuelan customer to further cooperate with Double Happiness Tire

CRICC becomes a Beijing Science and Technology R&D InstituteTianhua Institute gets Gansu government awardYellowsea starts its youth STEP program

6Haohua Corp implements budget programChemChina Petrochemical Corp holds real-time database application trainingChemChina Assets Co recognized for property rights work

Sharing the responsibility to make a differenceMaking retired life more colorful

8

Aeolus Tyre starts senior executive lecture programZhonghao Chenguang earns National High-Quality Investment Project awardHuaihe Chemical works with Siema in air-separation gas supply projectChemChina Petrochemical (Tianjin) becoming automated

3

Project

5

7

Employee World

2

Events

Safety Culture

ChemChina introduces SHE management systemHangzhou Water Treatment Center sets up seawater desalination alliancePhoto News: Aditya Birla president visits Bluestar

July 2012 Newsletter

Newsletter

May 2013

ISSUE 68 EVENTS

1

ChemChina introduces SHE management system

ChemChina began using its safety, health and environment (SHE) management system, on April 1, to integrate the following elements: leadership commitment, policy and vision, resource management,

information and documents, employee safety and health, risk management, production and process safety management, pollution prevention, work safety, product safety, hazard detection, accident prevention and treatment, contractor and supplier management, community awareness, emergency response, auditing, and continuous improvement, covering ChemChina’s product lifecycle and entire SHE management. By following universal SHE management standards, policy, and checks, ChemChina provides a framework and guidelines for SBUs and direct affiliates. The former have used certain SHE management manuals and refined their SHE management

policy and checks under ChemChina implementation guidance, while the latter refined their SHE management policies and checks in accordance with ChemChina SHE management standards and the SUBs’ management manuals. ChemChina’s SHE management system was designed to reflect the actual situation and based on the Qenos good SHE practices rolled out across the company and the good SHE management practices of Sinopec and PetroChina. Its SHE management system was designed to meet ChemChina’s modern enterprise system requirements and global strategy, and is an important way to improve SHE management performance for scientif ic, safety-conscious, clean development and employee care and to build a green chemical business and an internationally competitive, environmentally friendly, intrinsically safe chemical group.

Hangzhou Water Treatment Center sets up seawater

desalination allianceWang Qi

The Hangzhou Water Treatment Technology Development Center worked with the State Development and

Investment Corp recently in setting up a National Seawater Desalination Industry Alliance in Beijing with the generous support of the NDRC, while inaugurating a Yellow Sea and Bohai Sea Industry Alliance and East-South China Seas Industry Alliance at the same time. The East-South China Seas Industry Alliance contains the Center and 16 other organizations involved in water treatment while the Yellow Sea and Bohai Sea Industry Alliance is a State Development and Investment Corp idea for resource sharing, shared strength, industry support and collaborative development, whose members will make full use of their resources and make every effort to help develop the seawater desalination business rapidly as a strategic industry. These alliances will make the integration of resources and seawater desalination strengths possible and are important for sustainable utilization of water resources and the development of China’s seawater desalination industry.

The Aditya Birla Chemical (Thailand) Co’s president Mr Pathak and his colleagues visited the Beijing Bluestar Chemical Machinery Co, on March 25 to discuss the upgrading and renovation of electrolytic tanks. The photo shows Pathak visiting the production shops of the company. Photo by Wang Danhao.

July 2012 Newsletter

Newsletter

May 2013 2

ISSUE 68 EVENTS

Haohua Corp implements budget program

Li Xiaoyan

Faced with daunting economic challenges and a depressed business environment, the Haohua Corp is trying everything possible to improve production, operation, management and profitability. It recently started a one-

on-one budget initiative for its subsidiaries to ensure sustainable growth, with the CEO, Hu Dongchen, communicating annual targets on a one-on-one basis with all its companies to come up with specific solutions to operational difficulties. This approach

allows Haohua HQs to keep track of the latest developments and operational difficulties of its subsidiaries and monitor, guide and help them in production and operations, making it possible for subsidiaries in the chlorine and alkali business to generate synergistic effect, cut costs and improve operations and efficiency. This initiative helps strengthen the budget practices and establish more scientific operations that will help contribute to better business performance of Haohua companies.

ChemChina Petrochemical Corp holds real-time database application training

Fan Liangzuo

Agroup of 30 O&M engineers from Changyi Petrochemical, Daqing Zhonglan, Huaxing Petrochemical, Zhenghe Petrochemical, Qingdao Anbang, Jinan Changcheng

and Jinan Bluestar took part in a one-week real-time database application training session at the Taiji Computer Corp in Beijing under the auspices of ChemChina Petrochemical Corp. The training introduced to the real-time database tools of SMT, ICU and ISU to improve O&M capabilities of real-time database

administrators; the use of the PI Processbook which provides foundation for further applications of the real-time database and construction of other devices; and the use of PI Datalink which can facilitate the development and use of reports and forms. There was also an explanation of PI AF which helps the modeling of large plants, pumps, columns and other vessels. The training session helped produce more capable operators and ensured the success of real-time database applications.

ChemChina Assets Co recognized for property rights work

Dong Quanlin

At the general conference of the Shanghai United Assets and Equity Exchange for 2013, the ChemChina Assets Co snatched the best organization award in

the equity exchange category, for the third time, among major SOEs. This shows that the company has become one of the most trusted equity service providers in the Chinese market. In 2012, the company as ChemChina’s designated equity broker explored the equity transfer business and carefully handled equity exchanges by making best use of its technical expertise and standardizing its operations.

It has provided SOPs with end-to-end supervision and management, full transparency and coverage of operations and controls, combined with such consulting services as appraisers, auctioneers and law firms, while using a unique approach to project implementation based on equity transfers and real assets disposal inside ChemChina, to form an operational model with the specialized separation of labor, market operations, and focused operations, and, ultimately, creating a one-stop equity exchange business model.

July 2012 Newsletter

Newsletter

May 2013 3

ISSUE 68 PROJECT

Aeolus Tyre starts senior executive lecture program

Xu Li, Zhang Daye

Aeolus Tyre’s mid-level management personnel attended a special training session, on April 7, conducted by the company’s president Wang Feng. This was the first training session after Aeolus Tyre

began a senior executive lecture program. This senior-executive-as-trainer approach has been successfully applied many times, with the senior executives holding sessions for employees using their area of expertise, on a quarterly basis. At this first training session, Wang spoke on “the industrialization of green tires and helping China’s tire industry go green”. He elaborated on scientific business development and the importance of doing business in a sustainable manner, in relation to the company’s actual situation, and addressed various challenges during rapid economic development, such as resources, the environment, pollution, and overcapacity. The topic of the second lecture has been decided and the program will be expanded to eventually include mid-level management and key employees as trainers, who will lecture frontline employees in their area of expertise.

Zhonghao Chenguang earns National High-Quality Investment Project award

Wang Yude

The Investment Association of China recently announced the 75 national high-quality investment projects for the 2012-2013 period, one of which was the 10000-t/a fluororubber

industrialization technology project of the Zhonghao Chenguang Institute. This project was developed in March 2005 to meet international fluororubber demands and China’s national defense needs. After it implemented the project, the plant’s production capacity, product quality, materials consumption, power consumption, and effluent discharge all met or exceeded design requirements. The production capacity of the reactor vessel was the largest of its kind at that time in China, and a leader in technology. This project helped raise the technology level of the organic fluorin industry, while promoting the industrialization of fluororubber and domestic sealants for the auto industry. It also helped increase the competitiveness of the institute internationally and the value-added utilization of natural gas and well salt, contributing to local economic development.

Huaihe Chemical works with Siema in

air-separation gas supply project

Pang Yuning

Huaihe Chemical signed an agreement with the Siema Group recently on an

air-separation gas supply project, as part of its effort to go green. This project will take a year to complete and is expected to change the traditional block coal that Shanxi

province produces into pulverized coal to broaden the resources, cut material costs, save water, power, and coal and improve safety in the synthetic ammonia system.

ChemChina Petrochemical (Tianjin) becoming

automated

This year, ChemChina Petrochemical (Tianjin) has increased its automation by

making better use of control parameters, fine-tuning its process plans, and eliminating malfunctions as part of its effort to raise its DCS automation level to 90 percent. By March, the DCS automation level of four main production plants had reached 91 percent, thereby hitting the annual target ahead of schedule. The picture shows decompression and catalysis equipment operators controlling the DCS system. Photo by Mao Xueqiang.

July 2012 Newsletter

Newsletter

May 2013 4

ISSUE 68 PROJECT

Zhenghe Petrochemicalsets up technical specialist

workstationYan Xiaoqiang

Zhenghe Petrochemical established a workstation for technicians recently and, at the inauguration ceremony, 53 technicians were assembled for the

first group of workstation employees. The workstation is mainly for preparing development plans, arranging technical innovation and development activities, duplicating talent development, proven technology, skills, and operating practices, and developing a large group of competent technicians. The plant layout calls for the workstation to have 10 specialized teams – decompression, DCC, hydrogenated coking, acrylic acid, utility purposes, quality inspection, O&M, storage and transportation, technical matters, and equipment, – but the primary responsibility of the workstation is innovation, technology development and production optimization based on the plant’s conditions. It will help improve the company’s technology and stabilize production and will provide intellectual support for continued growth.

Guilin Tyre recognized for product

qualityTang JInfu

The China Entry-Exit Inspection and Quarantine Association recently named Guilin Tyre as a “trusted company” for its product quality for meeting

qualification, standards, and certification requirements. This is the result of a three-year imperfection-free, high-quality record, its own brand name, and a leading position in the industry. The criteria for the award are stringent. Guilin Tyre has worked hard to become a domestic leader and global name with its “Torch” brand and consistent quality and integrity, developing high-tech tire products through technical expertise.

Anbang Electrochemistry cut transportation costs

Lu Zengbo, Kang Jie

Anbang Electrochemistry has taken r i g o r o u s m e a s u r e s t o c u t i t s transportation costs and improve

transportation efficiency and, after studying its ships over the past three years, has managed to reduce its freight charges in some areas, and hence cut transportation costs overall by more than 400,000 yuan. It has

also instituted a phased, batch rate bidding process and matching for hotspots and popular routes where the transportation is stable, to fine-tune its rates. And, it got transportation specialists to do a survey of agrochemical customers with small-quantity, multi-type needs, to reduce transportation costs.

Huaxing Petrochemical has just completed its steam turbine capping extension project, which is a significant move in following government environmental protect ion policies, as well as energy saving, and emissions reduction, and the optimal use of the power and heat-source of the factory. The photo shows construction workers hoisting the related equipment. Photo by Wang Xiao.

July 2012 Newsletter

Newsletter

May 2013 5

ISSUE 68 PROJECT

Shenyang Chemical works with university on innovation

Ou Jingyang

The Shenyang Chemical Engineering University opened a Liaoning Center for Collaborative Innovation on Fine Chemicals, on March 26, where Shenyang Chemical,

one of the eight participants, can use the school’s technical and intellectual resources to build a competent team, address technical challenges, and restructure its product mix. With rapid development in recent years, Shenyang Chemical has become one of Bluestar and ChemChina’s most important petrochemical complexes and a major part

of Liaoning province’s petrochemical industry, with a good value chain that covers crude refining, ethylene, propylene, and synthetic materials, and with great potential to expand applications and the use of fine chemicals. It expects to use the center to deal with technical challenges, achieve high-value, recognizable results, restructure its product mix and become a new-type of industrial complex focusing on fine chemicals and new chemical materials and, ultimately, high-performance products.

Xinghuo Plant serves customers up closeDu Yanqing

The Xinghuo Plant started a face-to-face customer interaction campaign in March to demonstrate its commitment to service and value creation. This

campaign comes in two phases: the first phase involves sales personnel collecting samples from end users across the country and getting detailed information on the samples to encourage visits to customers to learn how they use the products, after collecting samples, Xinghuo will put the products in its exhibition hall so employees can understand the end users;

the second involves a product application and customer awareness quiz, where teams of marketing personnel from each region will be assembled to present the customer samples and explain the application of each, along with a customer profile; this phase is designed to let employees learn more about the application and performance of products. Xinghuo previously held a customer roundtable under the theme “Creating new value for you with new plant, technology and services”.

Double Happiness Tire works to build a homelike atmosphere

Li Weiling

For the past two years, Double Happiness Tire has worked on its idea of creating an employee-friendly business, in the following four ways: first, hold a book-reading session for new middle management personnel

in both theory and practice, and, this year, train production managers on executive standards to develop talented people and an employee-friendly business; second, build capacities which addresses competence, coordination, collaboration, and executive standards of the middle management team; third, foster a sense of responsibility and eliminate the risks that a lack of responsibility poses for the company and ensure responsibility across the organization and its employees; fourth, improve personality, which means addressing the selfish, standoffish, confrontational mindset and creating an environment where people care about each other. The company has drawn up a plan to make this vision come true by identifying conflicts of interest in each department and shop, at the personal and operational level, to build a place that every employee identifies with a culturally rich, promising, attractive place where they care about and respect each other through self-realization.

A Venezuelan customer visiting Double Happiness Tire recently to talk with the leaders about possible opportunities for expanding the market share in Venezuela, and laying a solid foundation for future cooperation. Photo by Shi Jianhua

July 2012 Newsletter

Newsletter

May 2013 6

ISSUE 68 PROJECT

CRICC becomes a Beijing Science and Technology R&D Institute

Zhong Xiaoping

Beijing’s municipal Science and Technology Commission recently declared the Central Research Institute of China Chemical Science & Technology a Beijing Science

and Technology R&D Institute as of 2012. The Beijing Science and Technology R&D Institute designation is a creation of the municipal science and technology bureau, from August 2002, in accordance with a municipal government decision on encouraging the establishment of science and technology R&D facilities to make better use of the vast intellectual, technological and educational resources of the capital for scientific and technological advances, increased

innovative capacity, quicker development of knowledge-intensive services, and increased quality and efficiency in the economy. The BSTRDI cachet lasts for two years, subject to a biannual review. It indicates that the Institute has met certain criteria as defined by the commission in R&D ability, spending, facilities and personnel development. It will give the institute preferential treatment from the local government in tax incentives, assistance in patent applications, and bringing in talented personnel, and in applying to the commission for innovation grants. All of this will help the institute improve its R&D capabilities.

Tianhua Institute gets Gansu government awardWu Zhenyun

The Tianhua Inst i tute took third place in the Gansu provincial government’s scientif ic and technological advancement award for 2012 thanks

to its polypropylene steaming and drying technology. Polypropylene is the most important downstream product of ethylene, but most of China’s polypropylene is imported because the country’s production equipment lags behind and production costs terribly high. To close the gap, the institute began developing, industrializing, and commercializing its polypropylene steam and dryer and cyclone separator and its two-phase stainless steel welding process after many years of development, as demonstrated by its 1-million-t/

a ethylene plant polypropylene unit which conforms to international standards. This means China no longer has to depend on foreign technology, greatly reducing costs, and raising China’s technology level, significantly increasing the local content of large polypropylene plants in the country. The institute has also developed a polypropylene copolymerization reactor, continuous mixer, powder heater, and other polypropylene equipment and propylene drying technology used at the Lanzhou Refinery and Chemical Plant and Qingyang Petrochemical Co, and many other companies, including Tianjin Petrochemical, Ningxia Petrochemical, Luoyang Petrochemical, and Daqing Petrochemical.

Yellowsea starts its youth STEP programLv Xiaomei

The Yellowsea Co got its outstanding young employees to take part in the opening ceremony of the STEP Program of Qingdao, on March 22, the first appearance of this

youth initiative. This program deals with youthful dialogues, experiences, and hopes, with the intention of helping young employees achieve a work-life balance by experiencing social progress. Meanwhile, Hechi Chemical started a training-consulting service to support its 6S management and CTPM program and provide coaching and training to improve employees’ abilities. The photo shows trainers and consultants conducting a CTPM diagnosis and training frontline employees, in late March.

Photo by Yang Mingnan.

July 2012 Newsletter

Newsletter

May 2013

ISSUE 68 SAFETY CULTURE

7

A strong line of defense against springtime fires

In light of the dry and windy conditions during spring, ChemChina companies have developed fire safety initiatives to make employees more aware

of the need for fire safety and more able to deal with emergencies as part of the company-wide fire safety management effort.

Qingdao Anbang holding springtime firefighting skills competition.

Zhenghe Petrochemical examining fire facilities and recording the results.

ChemChina Petrochemical (Tianjin) holding a fire drill in removing possible fire sources.

Nanjing 7425 safety officers examining fire extinguishers.

Dezhou Shihua electrolysis shop holding a drill for a chlorine gas

tank accident.

Beijing Bluestar Chemical Machinery business department running a fire drill.

July 2012 Newsletter

Newsletter

May 2013 8

ISSUE 68 EMPLOYEE WORLD

Sharing the responsibility to make a difference

Shanghai POM Plant’s first team building session took place on March 5 at Shenlong Eco-Park in the Fengxian district of Shanghai, with 211

employees taking part in three groups. The participants made every effort to deal with the difficulties and completed four team-spirit tests with mutual trust and assistance. This team building exercise helped motivate the Shanghai Bluestar team and made it more cohesive and team oriented, with a strong sense of responsibility and discipline, and raised the awareness in the need for teamwork and mutual support and the sense of belonging. Another group of employees took part in some military training on a factory basketball court, with formations, marching and doing an about-face. The employees were earnest in their movements and in following the instructor, forming a perfectly straight line, moving in step in a disciplined, steady, vigorous way, while shouting out loudly, reflecting the morale of Bluestar’s people in Shanghai.

Making retired life more colorfulLin Yang

Huang Xiongying, 66, is a former employee of the Zhonghao Chenguang Institute’s finished product warehouse who is fond of embroidery and weaving.

Now that she’s retired, she’s rekindled her interest and has even embarked on a business venture in cross-stitching,

which has become increasingly popular with many people in China. In 2009, Huang decided to start a cross-stitching embroidery project under the t i t le of “A Picture of Musical Instruments, Chess, Calligraphy, and Painting”, which took two years to complete. It depicts 12 women in ancient times standing and contemplating calligraphic works and paintings or playing chess or musical instruments in beautiful silk gowns. Huang managed to bring out the grace and charm of Chinese women of the past on a single piece of cloth, by using her needles and thread. For the past two years, she has worn out more than 100 needles and used 102 types of thread of different colors to complete her masterpiece

of art. She says that she’d like to sell her artwork to some deserving person and has made no secret of the way she intends to use the proceeds of the sale to support her husband so he can pursue his interest in painting, support herself and make a donation to charity.

Liang Weiguo, Shanghai POM