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Bluestar News
Bluestar’s Subsidiaries Make Good Start into Chinese New Year
Source: ChemChina Date: 2022-02-08

At the beginning of 2022, all subsidiaries under Bluestar got off to a good start while celebrating the Year of the Tiger. They focused on key tasks, analyzed the opportunities and challenges, optimized production and operation, improved quality and efficiency, strived to make new records, and made breakthroughs in advancing all the work.

Bluestar Elkem Silicones Asia Pacific

Bluestar Elkem Xinghuo’s siloxane sales exceeded the expectation by 43% and the overall sales revenue the expectation by 33%, with the revenue growing over 30% year-over-year. With Elkem’s sales divisions in Guangdong officially integrated in January, the sales surpassed 110% of the expectation in the first month upon integration.

Elkem Silicones Asia Pacific’s commercial team utilized the digital marketing tool POWER BI to strengthen the big data analysis of sales market and optimize the customer structure and product mix. It achieved a phased price increase for upstream products and downstream specialty products from the Shanghai plant in January.

In addition, the enterprise has continued to promote the sales of new products in the high value-added industry chain, launching new products of low-viscosity silicone oil. It signed the first batch of orders for importance customers in the textile industry and delivered them smoothly. The new product of eco-friendly sealant Xinggui TM999 was released to the market, with the first orders coming from provincial dealer centers one after another. The company sold the electronic adhesive for new energy vehicles and silicone rubber for high voltage cable and wiring, achieving a quantitative breakthrough with a growth rate of 60% and 174%, respectively. This has made a big push for the development of new energy vehicles.

Bluestar Adisseo

The phase-II project (BANC2) of Nanjing Liquid Methionine Plant with an annual production capacity of 180,000 tons has been progressing smoothly, without accidents in 6 million working hours. At present, the project’s civil works are completed, and so are over 99% of the construction works. The project has entered the pre-commissioning stage. The commissioning is expected to be conducted in the second half of 2022 as planned. The capacity of the Nanjing plant will be doubled after the completion of the project.

Calysseo, a joint venture co-founded by Bluestar Adisseo and Calysta, is steadily advancing the first large-scale production unit project for Feikang? innovative protein products. Over 90% of the project’s construction works have been finished, marking a milestone of 900,000 working hours with zero accidents. Preparations for commissioning are conducted on schedule. Trial operations are expected to start in the fourth quarter of 2022.

The Bluestar Adisseo Million-Euro Research Fund program has been designed to solicit and fund research projects every year in its three-year period. This is the second year of the program. The 2022 call for projects is already open, focusing on the nutritional availability of new ingredients and alternative solutions for animal protection products — robust nutritional additives. The program has been boosting the industry’s cutting-edge development.

Upholding the concept of “in science we trust”, Bluestar Adisseo’s new R&D and innovation center in Nanjing has been put into operation. Its local innovation strength will assist the business division in China in realizing faster growth.

Nantong Xingchen

Since the beginning of this year, all managers and workers of Nantong Xingchen, facing the downward pressure of the market, have firmly safeguarded the bottom line of production safety, environmental protection and Covid-19 control, strengthened the management of production and operation, vigorously implemented the synergy marketing and comprehensive benchmarking, and put in place the ten actions of “four initiatives”. During the Spring Festival, production safety, environmental protection, and production & operation teams collaborated to get off to a good start. 616 million yuan of sales revenue was generated in January, up 25.4% year-on-year, with all main products sold completely.

The enterprise has prepared its day-based production plan of epoxy product chain in advance for the downstream market during the Spring Festival holiday. The production, supply, sales and transportation operated efficiently to reduce the inventory to a low level, laying a foundation for the fast start of sales after the festival. During the Spring Festival, the production and sales of engineering plastic product chain were synchronized, and the production of modified engineering plastic was not stopped. 534 tons of engineering plastics were produced from four production lines. The plants for PBT resin and viscosity enhancement were operated at full capacity to achieve 1,587 tons of products. The PPE product chain ran steadily in both plants. Regarding phenolic products, the enterprise took multiple measures to overcome the logistics and transportation restrictions and the shortage of containers, realizing a 51% YoY increase in sales. Overseas customers did not stop working during holidays, with the first order of the strategic customer delivered promptly.

Bluestar Chonfar

By the end of January 2022, Bluestar Chonfar signed multiple contracts for projects, including Wanhua Chemical’s works for 50,000 t/a iron phosphate and 50,000 t/a lithium iron phosphate and the works of Jinhai Lithium under EVE Energy for 10,000 t/a battery-grade lithium carbonate. In addition, the enterprise won the bidding for a number of projects such as Hubei Yihua’s mining design of Jiangjiadun phosphate mine with 1.5 million t/a capacity, Sinochem Quanzhou’s supervision of the underground water-sealed cave warehouse, Guizhou Phosphor’s supervision for its chemical park and Guiyang County’s EPC of waste residue treatment. The cumulative contract amount surpassed 100 million yuan.

The projects of Wanhua Chemical and EVE Energy were high-quality design ones with a single contract amount of over 10 million yuan. Those of Sinochem Quanzhou and Guizhou Phosphor were large supervision ones with a single contract amount of over 10 million. Bluestar Chonfar made a good start in the new year.

Bluestar Dongda

In December 2021, the domestic production capacity of propylene oxide and polyether increased by 25% and 15% year-on-year, further intensifying competition in the oversupplied polyether market. Confronted with this severe situation, Bluestar Dongda implemented diversified and multi-variety technology marketing strategy. The production, sales volume and net profit of polyether in January 2022 were better than the expectations in all aspects, with a good beginning made in 2022.

In recent years, Bluestar Dongda has always adhered to the business philosophy of “all staff center on market”, followed the route of differentiated and customized products, and made significant efforts to develop and sell high value-added products. In January 2022, under the leadership of the company’s Party committee, all departments worked together to create a new record high in polyether sales for the same period. The leading sales of high-margin specialty polyether accounted for 14.9%, up 10.5% over the 2021 sales, laying a solid foundation for the enterprise’s good start in the new year.

Shenyang Chemical

Shenyang Chemical kicked off its 2022 journey towards more achievements. In January, with the joint efforts of all the staff, Shenyang Chemical overcame the production constraints caused by the restriction of transporting hazardous chemicals during the “two festivals”. The output of its leading products, caustic soda and PVC paste resin, increased to 17,207 and 13,450 tons respectively, exceeding the planned output by 7.5% and 1.15%. The Shenyang enterprise made a good beginning.

The enterprise was challenged by the restriction of transporting dangerous chemicals for its operation and production in January 2022 when the people celebrated “two festivals” and the local government held “two meetings”. However, Shenyang Chemical held multiple special meetings before New Year’s Day, formulated a range of sales and production plans for key links such as steam fluctuation, chlorine balance, liquid product sales and calcium carbide slag treatment, and put in place spare parts for equipment and on-duty personnel for production in advance to ensure that the production system is always in optimal operating conditions.

BCMC

Through conscientious arrangements, accurate judgment and joint efforts, BCMC made a good kick-off in the first month in its three business sectors, with a total contract amount of 110 million yuan.

Chlor-alkali: The chlor-alkali business division signed a contract for a complete ion membrane electrolyzer plant with an annual production capacity of 108,000 tons of caustic soda and a contract for the repair and upgrading project for 1,685 tanks. In addition, it also signed a turnkey contract for 12,500t/a skid-mounted caustic soda plant, realizing BCMC’s first order for this unit.

Solar thermal: BCMC won the bid of Jiangsu Guoxin Jingjiang Power Plant’s 2×660MW unit molten salt energy storage project, representing China’s first large-scale thermal-power heating demonstration project through peak or frequency regulation.

Biomass: the biomass division completed the Tangshan offshore project, winning the user’s recognition. The annual supply contract for downstream deodorant products made from plant-derived extracts is being implemented, with the three-ton shipment completed in January.

Harbin Petrochemical

Harbin Petrochemical responded proactively to internal and external challenges, seizing the opportunity for benefits. In January, the 12,500.88 tons of products were produced to generate the total profit of 13,645,400 yuan, laying a solid foundation for the completion of the annual production & operation goal.

In the face of unfavorable factors such as Harbin’s secondary warning plan for heavily polluted weather, workshop technicians constantly adjusted and optimized the load in each section of the plant to maximize the product output. At the end of January, the output of phenol and acetone was 7,416.28 tons or 103% of the monthly plan, and 4,708.2 tons or 105% of the monthly plan. The production of phenol and acetone surpassed their planned output.

All members of the sales department considered the impact of the policy and the pandemic on market opening and transportation and took the lead in raising the selling price of products after establishing the price-rising trend of the market, strongly advocating a good price during the market shock. To enhance profitability, the enterprise promptly adjusted its marketing strategy through the price comparison of various settlement methods, generating the cumulative revenue of 8.6 million yuan. It strengthened its capability for targeted marketing, optimized the customer management by grade and gave priority to meeting the needs of core customers and those in high profit areas such as the northeast region and Inner Mongolia. Its sales in the northeast region made up 77% of the total, with a 5% increase from the previous quarter. It created benefits of 1.6 million yuan while satisfying customer demand. The comprehensive benchmarking has enhanced the quality and efficiency of sales. In comparison with those products of benchmark companies, the phenol was sold at an average price higher than 95 yuan/ton set by Jilin Petrochemical and 325 yuan/ton by Yangzhou Shiyou, while the acetone at an average price higher than 320 yuan/ton by Yanshan Petrochemical and 379 yuan/ton by Yangzhou Shiyou. Through the joint efforts of all the sales staff, Harbin Petrochemical sold all products and received all payments, with the profitability improved greatly.

The year of 2022 is vital to the 14th Five-Year Plan and Bluestar’s development. All subsidiaries of Bluestar will continue to practice the development philosophy of “in science we trust and the unity of knowledge and action”. Based on the good performance in 2021, they will record new highs, overtake themselves and create glories.
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