ISSUE 58 July Newsletter

Events Technology

1 ChemChina Haohua Begins Work on Zigong Industrial Complex 5 BCMC, Asahi Kasei Renew Ion Membrane Electrolytic Tank Electrode Tianhua Institute Develops 's First New Filter Press Sichuan Danchi Recognized as State-level High-tech Company Shenyang Chemical Retains Its High-tech Enterprise Status

ChemChina Announces Its Social Responsibility Report 6 Zhuzhou R&D Institute Test Center Gets State-level Evaluation Zhonghao Chenguang Gets Provincial Funding for Two Patents Beijing Engineering Center for Tire Advanced Technology Dalian Institute Holds 15th Academic Soda Ash Conference BRDIRI Research Project Brings China's First SIBR 2 SASAC Gives Nod to ChemChina Informatization Product Media Converge on Shenyang Chemical

Employee World 3 Xinghuo Plant Water Supply Unit Commissioned SASAC Commends Skills Contest Winners BRDIRI's New Approach to Company Cooperation 7 Xinghuo Plant Declared Role Model in China's Safety Culture Drive Shenyang Chemical Donates Books to People in Poor Project Mountainous Areas Shanxi Synthetic Rubber Helps Remote Villagers Zhenghe Petrochemical Safety Education Covers 4 Cangzhou Dahua 70,000 t/a TDI Plant Goes into Bus Commuters Operation NanTong XingChen Multi-variety Epoxy Plant Up and Running Aeolus Tyre Trial Results in New All-steel Engineering Tires

8 Yuxing Chemical Retiree Displays His Paintings Shenyang Chemical Shows Its Care for Employees ChemChina Oil & Gas Corp Gets Its First Basketball Tournament

July 2012 Newsletter ISSUE 58 EVENTS Newsletter

ChemChina Announces Its Social Responsibility Report sustainability practices, and an outlook for the future. One item describes its attempts to apply an encyclopedic view to the way China's Museum describes the evolution of China's chemical industry and to develop the museum into both an educational center and a forum of communication for the chemical industry worldwide. This report shows ChemChina's accomplishments, as a major SOE, in promoting sustainable development in the economy, society and the environment in six areas -- technological development, technological innovation, occupational safety, environmental stewardship, employee health, and charitable activities. This follows its guiding philosophy of maximizing shareholder value and creating jobs. The report was well received by those at the meeting and by company stakeholders for its data, success stories, and readability. The conference's sponsor was the China Federation of Industrial Economics and it is the first of its kind where the CSR report is t the China Industrial Corporate Social Responsibility made public. Its first meeting was in 2009, and ever since it has Report Conference, on May 26, in Beijing, ChemChina was served as a forum for Chinese enterprises to demonstrate their one of 74 companies to show her 2011 sustainability report CSR practices, promote an open, transparent self-disciplined and, Mr. Yang Xingqiang, vice-president, of the company mechanism with social supervision, and develop a stakeholder Awho attended the meeting, accepted a CSR report certificate on forum that includes the government, industry, enterprises, and the company's behalf. the general public. This is an important element in enterprises' This was the second time for ChemChina to issue a sustainability disclosure and sharing of CSR practices and in improving socially report and the new 60-page document covers basic CSR topics, responsible management practices.

ChemChina Haohua Begins Work on Zigong Industrial Complex Wu Ling, Wen Dijia

hemChina Haohua began the construction of its industrial Ccomplex at Yantan Industrial Park, in the city of Zigong, Sichuan province, on June 16. ChemChina's president, Ren Jianxin, said that this is a milestone in joining the efforts of ChemChina and Zigong City to implement new projects and economic development. It is an important move by ChemChina to improve its business portfolio and its competitiveness in Sichuan. After this auspicious beginning, ChemChina will use all its resources and related personnel to speed up development of the project. The industrial complex will be built energy-saving, low-carbon, and environmentally friendly and concentrate on coal, electricity, salt, and alkaline for comprehensive resource utilization, energy saving, and emission reduction, and to improve traditional lines of business with technical innovations. (Continued on next page)

July 2012 Newsletter 1 ISSUE 58 EVENTS Newsletter

(Continued...) research institutes to do the following: build a large It is initially designed for 17 projects, on a 200-hectare tetrachloroethylene and chloride methane plant; develop industrial base and it will grow into a multi-billion yuan pentafluoro-ethane liquid phase reaction technology; have business after it goes into operation. The base will develop the best combination of chlorine resources and fluorine; and basic chemical engineering, while following a recycling develop new environmentally friendly types of refrigerating economic path, and industrial integration focused on the agents. environment, materials, and the life sciences. Its primary According to Haohua Honghe's CEO and President Xie objective is a low-carbon, fully halogen-based, alkaline Xueduan, the base will have DCS control; an energy production process that combines Hou's Process with chlorine management center MES, using an automated problem-solving alkali, using salt brine resources and innovative technology. system, and an ERP-based, production operations control The further objective is to become one of China's top three system that combines management with business information. refrigerant makers by working with prominent engineering The industrial base's business plan is already in place.

SASAC Media Converge on Gives Nod to ChemChina Shenyang Chemical

Informatization team of journalists from State-owned news sources visited the Shenyang AChemical Industry Group on May 21-22 to get a closer look at the company, ASAC recently released a Circular after it got a lot of attention worldwide when it put more than 6 billion yuan Son Outstanding Organizations and Individuals in the Informatization Drive into several large of Major SOEs in 2011, where ChemChina petrochemical projects, is ranked among the top five SOEs thanks particularly when to the significant progress made in it completed the 2011. Guo Qiong, from the company's construction of the Administrative Office, and Li Zhongcheng, world's first 500,000 t/ from the Shenyang Chemical Industry a heavy-oil catalytic Group, were singled out in the report. pyrolysis cracking (CPP) ChemChina has improved its corporate olefin production plant image in the SASAC community as a result in a short span of three of its informatization accomplishments, years. In interviews, which reflects its business landscape, reporters spoke highly facilitates the sharing of best business of the innovative and practices, and helps the decision-making enterprising spirit of process. Shenyang Chemical.

July 2012 Newsletter 2 ISSUE 58 EVENTS Newsletter

Xinghuo Plant Water Supply Unit Commissioned

Du Yanqing, Hu Minchang

he Jiangxi Xinghuo Organic Silicone Plant completed has four components – raw water pretreatment, integrated the commissioning of its integrated water supply water supply, desalinated water treatment, and a boiler. The Tsystem, on May 31 as part of its 200,000 t/a silicone desalinated water treatment unit uses a state-of-the-art, plant revamping and expansion project. By now, 370,000 reverse osmosis, multi-media, mixed bed process, with more tons of raw industrial water and 16,000 tons of desalinated than 90 percent of it automated and cost effective. The full water have been delivered to their required standard. unit will be able to treat over 200 tons of desalinated water The water supply unit is responsible for treating and per hour when it goes into operation. supplying all production and firefighting water to the Construction work on the integrated water supply began in 200,000 t/a silicone plant and related public works. It 2010 and was completed in May 2012.

SASAC Commends Skills Contest Winners ASAC issued a notice of commendation recently president Wang Xianshan. for the winners and outstanding organizations SASAC calls for all employees of major SOEs to follow the Swho took part in a skills contest of major SOEs in winners' example and improve themselves professionally 2011. They included the Hunan Yiyang Rubber & Plastics in order to help build world-class businesses that are Machinery Group and the Hunan Xiangwei Co, Ltd, as competitive worldwide, and to implement a talent well as the Shenyang Chemical Co, Ltd labor union leader development strategy soon for fully coordinated, sustainable Shi Changgui, and Zhenghe Petrochemical's assistant business development.

BRDIRI's New Approach to Company Cooperation

Song Jijun

he Rubber Industry Beijing Research & Design Institute equipment, and technology and both of the parties expect (BRDIRI) signed a cooperation agreement with Nanjing to build BRDIRI into an R&D center for the Nanjing company T7425 Rubber & Plastics on May 31 on the latter's by using the human resources, managerial, and technical relocation. This agreement is expected to provide Nanjing strengths of BRDIRI. They also want to build Nanjing 7425 7425 with the needed services, by leveraging BRDIRI's into a testing site for BRDIRI's technological development abilities in rubber industry plant design, management, projects.

July 2012 Newsletter 3 ISSUE 58 PROJECT Newsletter

Cangzhou Dahua 70,000 t/a TDI Plant Goes into Operation Yu Ping

angzhou Dahua's 70,000 t/a TDI plant was fully capacity to 150,000 t/a. Construction of the plant began commissioned at the Lingang Chemical Industrial on March 18, 2010, at a total cost of 1.20 billion yuan. Park on May 16 for the production of TDI products. Cangzhou Dahua was one of China's first companies to The plant has the largest capacity of its kind and commission a TDI plant and the first company of its kind with Cthe highest level of technology relative to any similar TDI operations featuring the longest life cycle, which put an plant in China, and this increases its total TDI production end to China's long dependence on imported TDI products.

anTong XingChen Multi-variety N Epoxy Plant Up and Running eolus Tyre Trial Results in ANew All-steel Engineering Wang Xiaoning Tires

he first line of Nantong Xingchen's 35,000 t/ a multi-variety epoxy resin plant was fully Xu Li commissioned recently, for the production of T eolus Tyre recently had a trial production of epoxy resin E-39D. Unlike the production of 50,000 t/a basic epoxy resin, an all-steel engineering tire -- the 24R20.5 the new multi-variety epoxy produced by this new plant Amulti-purpose model -- which can be used employs proprietary technology and was based on the in construction trucks, agriculture vehicles and technological and application experience of advanced emergency vehicles. It uses an anti-floatation pattern plants both in China and abroad. The plant has nine with wide tread, and a shoulder pattern specially production lines and 13 reactors, which can produce designed for heat dissipation and good tracking, as 35 types of epoxy that are in huge demand, with less well as good soil-discharge and draining properties. energy and material consumption and fewer emissions, The special anti-scrape design of the shoulder in a high-quality, cost-effective, efficient way. protects the tire body from scratches or piercing. The Work on the project began last May, and the plant tread of this product uses a special heat-resistant was finally commissioned thanks to the painstaking formula that reduces heat generation during high- efforts and collaboration of project and commissioning speed travel and extends the service life of the tire. personnel, in spite of the enormous difficulties involved. The high-strength casing and bead design ensure good After the first production line was stabilized, the second passing performance and safety under low-pressure production line was added, with other production lines conditions. The successful trial of this tire improves expected to go into operation in the future, while staff Aeolus' engineering tire mix and the competitiveness members keep on improving the quality of products. of the firm's whole engineering tire portfolio.

he Yiyang Rubber & Plastics Machinery Group started a three-day Thoisting skills contest, on May 25, with the emphasis on safety. 35 employees took part in it and their excellent performance won wide acclaims. The contest was another of the company's moves to promote its World-Class Program and motivate employees in acquiring more knowledge and skills and to ensure safer hoisting operations. Contestants drop pails on designated spots. Photo by Li Zhonghong

July 2012 Newsletter 4 ISSUE 58 TECHNOLOGY Newsletter

BCMC, Asahi Kasei Renew Ion Membrane Electrolytic Tank Sichuan Danchi Recognized as Electrode State-level High-tech Company Zhang Li Wan Yinghe he Bluestar (Beijing) Chemical Machinery Co, Ltd. (BCMC) and Asahi Kasei of Japan recently reached fter undergoing an evaluation by the Sichuan an agreement on a joint venture -- the Asahi Kasei AProvince High-tech Enterprise Accreditation T Management Team, Sichuan Danchi was Bluestar (Beijing) Energy-saving Electrolytic Technology Co, Ltd – and the incorporation is now applying for licenses, designated as a State-level high-tech enterprise The new joint venture has $2 million in registered and registered with the National High-tech capital, split 50-50, and is expected to start operations by Enterprise Accreditation Leadership Team. the end of this year. This accreditation will facilitate the company's This type of cooperation in future market development business restructuring and technical innovation appears particularly important, in view of the rapid growth and help it maintain a lead in the industry of the global chlorine alkali industry and a changing market in reforms and innovation, since it gives the structure. BCMC already brought in a bipolar ion membrane company favorable tax policies and access to electrolytic tank manufacturing process from Asahi Kasei, more funds, information and projects. back in June 1984, followed by some high-current density natural circulating tank technology, in August 2002. This new JV will make full use of the market positions and existing resources of both companies, with Asahi Kasei's strong technical expertise and BCMC's strong manufacturing and service capability.

Shenyang Chemical Retains Its Tianhua Institute Develops China's High-tech Enterprise Status First New Filter Press Feng Mianhong Wu Zhenyun hanks to its strenuous effort, Shenyang he Tianhua Institute of Chemical Machinery & Chemical passed its annual exam in 2011 and Automation recently put its innovative filter press, T held onto its status as a nationally recognized China's first of its kind, into operation at T high-tech enterprise, which will cut its income Petrochemical's terylene business unit, meeting international tax from 25 percent to 15 percent within 3 standards. years' time. This means that the company would Shanghai Petrochemical's oxidation plant No 2 was be exempt from paying 12.80 million yuan in built in the early 1980s, one of the oldest such plants in income tax last year. The preferential treatment China's PTA industry. Its design uses two-level, high-speed took effect recently. centrifugal units and requires a great deal of maintenance In applying for technical innovation projects and expenditure. So, the Tianhua Institute did a theoretical at the provincial or city level this year, the analysis and model calculation, along the lines of the company received an additional 1.5 million government's policy on energy-saving and emissions- yuan in tax exemptions for three research and reduction, and set up a pilot unit, and did an improvement development projects and, another technical study for the filter press. After two years of painstaking innovation project the company proposed effort, Tianhua was able to develop what is China's first large was approved by the Liaoning provincial filter press, one that consumes much less energy. government. So, these four projects, including This new unit has replaced the original centrifuge and a special high thermal stability PVC paste resin vacuum filter at Shanghai Petrochemical, and is reported project, will earn the company 2 million yuan to be saving 20,000 kWh of electricity and 20,000 yuan in in tax exemptions based on the preferential tax utility costs daily, as well as maintenance costs of 2 million policy. yuan annually. In addition, this unit is suited to use in coal processing, catalyst preparation, and other areas.

July 2012 Newsletter 5 ISSUE 58 TECHNOLOGY Newsletter

Zhuzhou R&D Institute Test Center Dalian Institute Holds 15th Academic Soda Ash Conference Gets State-level Evaluation Zhao Xiaoshu Tan Yunhua he 15th annual academic conference on soda ash Tof the Chemical Industry and Engineering Society he Certification and Accreditation Administration of China's inorganic acid and alkali salt committee, of China, China National Accreditation Service for recently opened at the Chemical Industry Dalian Conformity Assessment, and China Petroleum and Research & Design Institute, with representatives from T 45 organizations, including the China Soda Industry Chemical Industry Federation did a "five-in-one" field evaluation of the Rubber & Plastic Industry's Zhuzhou Association and various universities, on hand. The Research & Design Institute testing center, May 24th- participants discussed a wide range of industry issues, 27th, in the following way: National Rubber and Latex including belt filters, ammonium chloride drying and Products Quality Supervision and Inspection Center decomposition, wet-process desulfurization of boiler evaluation, lab accreditation review, Chemical Industry flue gas using white slime from chlorine alkali plants, Rubber Product Quality Supervision and Inspection and energy-saving and emissions-reductions. The Center metering review, and Industry Inspection Center meeting's goals were all met and there was an increase authorization. in academic exchanges in the soda ash industry, The testing center passed the evaluation and laid concerning the application of new technology and a solid foundation for the National Rubber Product equipment for soda ash plants, and the development of Inspection Center getting official approval. the industry.

BRDIRI Research Project Brings China's Zhonghao Chenguang Gets First SIBR Product Provincial Funding for Two Patents Cai Shangmai panel of experts approved an SIBR commercial test Wang Yude A and SIBR tire production application undertaken wo of the Chemical Industry Zhonghao Chengrang by the Beijing Yanshan branch, Sinopec Research Institute efforts recently received Beijing Chemical Research Institute's Yanshan Chapter, financial support from Sichuan province. The two and BRDIRI, on May 3, with Sinopec's Technology T Development Dept's approval. are: special Teflon dispersed resin for two-way stretch film and a substitute for pure fluorine octanoic acid The styrene isoprene butadiene rubber (SIBR) is a ammonium (PFOA). high performance rubber with good road behavior and The funding is a part of the provincial patent rolling and abrasion resistance. Currently, Goodyear is implementation and promotion program of 2012. the only company that can mass produce SIBR for fuel- efficient, anti-skid, low-noise, high-performance use and as an all-weather "green" tire. Japan's Synthetic Rubber Company and Zeon are in the process of producing SIBR on a trial basis. Two SIBR varieties–random oil-extended SIBR2535 Beijing Engineering Center for Tire and non-oil-extended block SIBR2505–developed by the above-mentioned three organizations were recently Advanced Technology subjected to a study, with BRDIRI conducting a basic performance assessment, commercial formulation Li Shuhuan research, tire trial production, and finished rubber test for the two varieties of trial products, with good he Beijing Engineering Center for Tire Advanced results. Technology proposed by ChemChina Rubber Experts taking part in the test all agreed that the TCorporation, Aeolus Tyre Co., Ltd and Beijing SIBR out-performs conventional emulsion-type styrene University of Chemical Technology under the leadership butadiene rubber and solution type styrene butadiene of BRDIRI was recently approved by Beijing Reform and rubber as a new type of high performance radial car Development Commission after many rounds of evaluation tire tread. This was the first attempt at the industrial and Q&As. The center was officially inaugurated on May development and application of SIBR in China's synthetic 18. rubber industry.

July 2012 Newsletter 6 ISSUE 58 EMPLOYEE WORLD Newsletter

Xinghuo Plant Declared Role Model in China's Safety Culture Drive Du Yanqing

his April, the State Administration of Work Safety Building", "Everyone is a Safety Officer", "At-home Safety", named the Jiangxi Xinghuo Organic Silicone Plant as "Minor Accident Reporting", "100-day Safety Campaign", and Ta role model in the country's drive to build a safety "Speaking Contest on Safety" initiatives. By encouraging culture, the only company in Jiangxi province to receive this employees to be more safety conscious and to keep business honor. activities proper, the company has gradually developed In recent years, the company has steadily implemented a corporate culture of safety where everyone is a safety ChemChina's safety-first policy and has increased employee officer, effectively supporting long-term safe operations. awareness of the importance of safety through a number So far, the company has run 3,800 days without a serious of activities, including the "I Want Safety", "Year of Team accident.

Shenyang Chemical Donates Books to People in Poor Mountainous Areas

henyang Chemical has already improved the qualifications of its Semployees since it has initiated a book-reading campaign. At the same time, the company has encouraged its staff to donate more than 2,000 books to people living in mountainous areas in rural China through the Shenyang city government. Photo by Song Lianqin

Zhenghe Petrochemical Safety Education Covers Bus Commuters

Yang Huijuan

mployees of Zhenghe Petrochemical Ewere surprised to see some LCD displays in their commuter buses, on May Shanxi Synthetic Rubber Helps Remote 28, with a safety video played on the Villagers screens to alert them to the importance of safety. This little bit of pre-work safety he Shanxi Synthetic Rubber Group organized a five-day charitable education during the commute was just Tevent, starting May 15, with a medical team and photographers another move by the company to improve visiting five villages in Yanggao County for free checkups and photo shots employees' safety awareness. of elderly villagers. Over 700 senior citizens were involved. This move brought the company closer to local villages and showed the company's commitment to community development. Photo by Shi Shaojun

July 2012 Newsletter 7 ISSUE 58 EMPLOYEE WORLD Newsletter

Yuxing Chemical Retiree Displays His Paintings

Ren Chun

ne retiree of Yuxing Chemical,Jing Xinyin, recently held an exhibition of his paintings at the Wulongtan Wuzhongqi Memorial to celebrate Othe 30th anniversary of the company's retirement system. Jing used to be Yuxing Chemical's Deputy Party Secretary and is a versatile person with a wide range of interests. Way back in 1974, he exhibited his art works at workers exhibitions in the cities of Jinan, Qingdao, Weifang, and Zibo. Jing started preparing for this exhibition last year and selected over 50 of his better works, from nearly 100. The day of the exhibition, nearly 200 calligraphy and painting fans visited the exhibition, and local media, including Jinan Daily, Qilu Evening News, and Jinan TV, covered the event.

henyang Chemical cares a lot about Shenyang Chemical the living conditions of its employees, Sso it held a cooking contest recently for the company cafeteria employees, Shows Its Care for with the idea of improving cafeteria services, the cooks' level, and the quality Employees of life of the employees. Photo by Han Jingchao

ChemChina Oil & Gas Corp Gets Its First Basketball Tournament

ompanies affiliated with the ChemChina Oil & Gas Corp recently made full use of their synergistic production capacity and Coperation and sales capacity when, from May 5-8, Zhenghe Petrochemical held a company-wide basketball tournament to increase exchanges, friendship, and cooperation among ChemChina Oil & Gas Corp's companies. The photo shows the opening match of the tournament. Photo by Li Xuefeng

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