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By Wang Lu
It will take five years for the company to bring up eight to ten products which can earn a profit of over 100 millions.
Recently, a series of good news are heard from Sinochem International. Firstly, the PTMEG project with an annual output of 20000 established in Taicang in Jiangsu province had successful trial operation, the first group of products of which have all reached world advanced level. After that, State Council has just agreed in principle Sinochem, the shareholder of Sinochem International to make a sole investment of US$560 million in purchasing the Renchuan Oil-refining Co. in Korea. Sinochem International will provide the company with part of raw materials, trade and logistics service for products distribution and earn equitable profits from that. Moreover, the company has also held a ceremony for the launch of ABS project with annual output of 60000 tons through signifying the official construction of the second industrial project with independent IPR of Sinochem International. Apparently, all these successive good news will promote the success of Sinochem International in the step-by-step realization of strategic transition. PTMEG: 28 persons will create 0.6 billion Yuan for one year
On November 19 Sinochem International held a ceremony in Taicang port developing region of Suzhou to celebrate the successful trial operation of PTMEG and catalyst production facilities. From the start of piling on Sep. 20th last year, to the recent successful trial operation, it only took the company 13 months to complete the construction, hitting the shortest record of construction The success made Sinochem International the second company possessing the one-step PTMEG production patent in the world and the patent on large industrial production equipment. Most of the investors may not know much about PTMEG. According to its introduction, it is mainly used to produce polyurethane elastomer, ammonia and ester-aether copolymer elastomer. In China the largest consumer of PTMEG is ammonia, which is the best among various elastic fibers and is keeping diversifying its application, though domestic enterprises still rely on import to meet their own demands. This time, Sinochem International R&D center has realized industrialization through 1000 times of the patent technology of small and medium test. The successful trial operation of PTMEG and its future adoption will certainly bring remarkable economic efficiency for Sinochem International. To make it much easier to understand, Luo Dongjiang, Vice President of Sinochem, used a economic index. He said, after PTMEG and catalyst facility are put into operation, the annual sales will record up to 0.6 billion Yuan. However, it only takes 28 workers a year to operate the whole equipment. That is to say, 28 workers can create a sales of 0.6 billion Yuan a year, which well demonstrates the high-tech content and the degree of modernization of the equipment. It was also on Nov.19th that the launch ceremony of ABS project with an annual output of 60000 tons was held in Taicang Industrial Park, signifying the official construction of the second industrial project with independent IPR of Sinochem International. ABS is a raw material for macromolecule fine chemicals, widely used in aspects like refrigerator innocuity plastic. With the initial ABS annual output of 60000 tons, the final annual output of the project will reach 50000 tons. Renchuan Oil-refining factory: expecting to become the upstream resource
On Nov. 15th, Sinochem International announced that the State Council has just agreed in principle Sinochem, the shareholder of Sinochem International to make a sole investment of US$560 million in purchasing the Renchuan Oil-refining factory in Korea. As the fifth largest oil-refining enterprise in Korea, Renchuan Oil-refining factory boasts a annual output of 14 million tons, belonging to the top class of productive capacity in comparison with that of Zhenghai Oil-refining factory, the largest in China, which is 16 million tons. The purchase is another crucial step took by Sinochem in the transition from the pure oil importer and exporter to the comprehensive oil dealer. Then, what does it mean to Sinochem International, the only subsidiary of Sinochem running chemical business? What if the purchase is successful? Luo told us, currently he could not give us the specific number of the earnings or profits made by Sinochem International after the successful purchase of Renchuan Oil-refining Factory. What we learned is that the favorable conditions were offered by Sinochem International in negotiation. And to be clear, what the company concern most is not earnings and profits but the significance of the purchase to its strategic plan. Luo also said, there is still a procedure to be finished in Dec. before the whole program call an end. When Sinochem gets the whole commercial right, it will gradually pass the right, such as supplying part of raw materials to Renchuan Oil-refining factory and distributing its products, on to Sinochem International, who will gain equitable profits from the trade and logistics service it provides. Fu Bo, Exclusive Director of Sinochem International said, with aromatics, the most valuable upstream resource of Renchuan Oil-refining Factory, and the trade advantage the company enjoyed, the volume of business will be blew up. Likewise, the company's capability of operation, administration and marketing as well as the development of Sinochem International will be promoted. Thusly, both aims of fianc and strategy will be realized. The four major businesses advance side by side
Some data show that, as the only subsidiary going to the public in mainland capital market of Sinochem, the giant keeping got listed in World Fortune Top500 for years, Sinochem International started the transition from a traditional chemicals trader to a comprehensive service provider of chemicals in 2002. Just within two more years, during which Sinochem International marched towards the field of fine chemicals production and chemicals logistics, the company has established its own industrial entity and advanced platform of industrial circulation. Now it is on the way to develop into the largest comprehensive service provider of chemicals. Fu said, The reason for Sinochem International to implement the transition strategy and to extend to upstream and downstream is that, as the historical creature of the planned economy, Chinese trade enterprises must strengthen its capability, so that they can face international competition after Chinese entrance into WTO. In the future, the company may set its role as an industrial enterprise running both trade service business and chemicals production, with high scientific content. At present, the company has divided its business clearly into four parts, namely chemicals, rubber, metallurgy & energy and logistics and it plans to spend five years in developing products which can earn over 10 billion profits. Then, how to realize these dreams? Fu said there are two ways: one is to strengthen itself on the basis of existed pattern, the other is to be realized through capital means, purchases and mergers, making investment in establishing factories and joint venture. And the latter will play the key role. He said, while developing major businesses, Sinochem International will keep committed to the perfection of corporate governance and the pursuit of sustainable growth in order to win the acknowledgment of the capital market and the popularization among investors. So far, the company has got in the list of Top50 listed companies of SSE and Fortune Top100 Chinese listed companies for three times in row. It should be convinced that, with the four major businesses advancing side by side, Sinochem International is bound to become an excellent listed company with international competitiveness. |
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From:Shanghai Security News 2004-11-23 |
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