The global financial crisis directly cut the demand for chemical products. However, ChemChina avoided its bad influence by restructuring, and maintained a good performance as other chemical enterprises suffered due to the downturn. It used key techniques and experience to further develop new chemical materials, and stuck to the development motto of "Traditional Chemicals, New Materials". ChemChina officials said they would embrace challenges and opportunities with more confidence, innovative ideas and proficient management.
1984 witnessed the foundation of the Chemical Cleaning Company, affiliated with the Lanzhou Institution of Chemical Machinery. Chemical Cleaning Company combines chemical cleaning technologies with commercial service, exploring a brand new market. The company moved its headquarters to Beijing and renamed itself BlueStar shortly after.
BlueStar acquired the Sparks Chemical Plant, which was undergoing a slump in business. The acquisition introduced BlueStar into the field of new chemical materials. The Sparks Chemical Plant was lagging in techniques, which led to its business crisis. To solve that problem, BlueStar gathered experts from home and abroad to upgrade its technologies and made great breakthroughs in techniques and equipment applied in organic silicone production.
By focusing on strategic goals, relying on technical advantages, and introducing a corporate style of management, BlueStar finally succeeded in large scale restructuring. BlueStar later acquired the Nantong Xingchen Synthetic Material Company which had failed seven times in the trial run of the first set of PBT continuous polymerization units in Asia. BlueStar introduced advanced technologies from abroad and helped it reach the capacity goal.
The following reorganization continued using this pattern. In 2004, the State Council approved the establishment of China National Chemical Corporation based on the combination of BlueStar and the Haohua Company.
In recent years, the group focused on enterprises with key technological resources and purchased shares of over 20 domestic companies, including Hebei Cangzhou Dahua Co, Ltd and Hubei Sanonda Co, Ltd, expanding its business into whole industrial chains of the chemical industry. When it came time to optimize new chemical materials, ChemChina chose to enter the downstream with scale and technological barriers and developed and produced end products, such as rubber and polyurethane.
By merging with Shenyang Chemical Industry Co, Ltd, ChemChina successfully solved the problem of raw materials needed for new chemical materials and fine chemicals. It also integrated the agrochemical industry by merging with Hubei Sanonda, acquired Taiyuan Chemicals and Cangzhou Dahua to occupy half of the TDI market, and discovered large development space in the polyurethane industry.
Since 2005 ChemChina has successfully carried out a number of overseas restructuring. Ren Jianxin, President of ChemChina, said two of the company's goals in overseas restructuring are to combine foreign proprietary technologies and domestic technologies, and to explore the global market.
In January 2006, China National BlueStar (Group) Co, Ltd, a wholly-owned subsidiary of ChemChina, made the 100% acquisition of Adisseo France S.A.S. With the acquisition, China turned a new page in the manufacture of methionine, no longer needing to rely on other countries.
ChemChina acquired total shares of Qenos (Australia) Pty Ltd in April 2006, the biggest ethylene manufacturer in Australia, which made total assets of ChemChina amount to 80 billion yuan.
In October 2006, China National BlueStar (Group) Co, Ltd completed the 100% acquisition of Rhodia's organic silicone and sulphide business. After the acquisition, BlueStar's production scale of organic silicone monomers ranked third in the world.
By the end of 2006, overseas companies of ChemChina applied for 1,283 patents and received 405 patent licenses. Through overseas restructuring, ChemChina has developed itself into a transnational enterprise with internationalized operation and comprehensive advantages in technology, raw material and market.
Today, several ChemChina businesses, a forerunner of China's new chemical material industry, rank top in the world. By the end of 2007, ChemChina had applied for 2,336 patents in total, of which 1,258 were patented. A number of its scientific and technical achievements were awarded the National Prize for Progress in Science and Technology.
ChemChina said it will continue to carry out restructuring and structural adjustments in the future and undertake the task of China's chemical industrial integration to enhance its international competitiveness.
