JEC COMPOSITES MAGAZINE - Issue #35 - September 2007 - 22

BUSINESS Market survey: China the largest glass fibre producers in the world. We will continue to improve our glass fibre production capacity and strengthen our development efforts in large-scale production and specialization to become the largest glass fibre producer in the world. As far as composite materials are concerned, we are mainly focusing on advanced products such as pressure vessels, rotor blades, high-pressure oil pipes, composite products for tertiary petroleum production, insulation products and pipes for nuclear power stations, water pipes, tanks for the chemical and food industries, desulphurization, boats and yachts, and auto parts. The development target of CNBM’s composite business is to meet the market demand by enhancing R&D into new technologies and products, focusing on new energy solutions, environmental protection, transportation, and sports and leisure applications. We will emphasize the development of new technologies and processes for large composite wind turbine blades to improve efficiency, lower costs, further reduce harmful emissions and reach an environment-friendly production process. The China Composites Group Corporation (CCGC), a subsidiary of CNBM, introduced German technology and equipment for a 1.5 MW rotor blade in 2005, and put it into production in March 2006. By the end of 2007, CCGC will reach a capacity of 600 sets of 1.5 MW rotor blades. With a view to meeting the European market demand, CCGC acquired the German company NOI at the beginning of 2007 and incorporated SINOI, which is not only an overseas R&D centre but also a 2 MW rotor blade producer with an annual output of 100 sets. We have launched an R&D plan for 3 MW rotor blades to meet the Chinese market demand. By 2010, we will achieve an annual capacity of 3,000 sets of MW class rotor blades that will be compatible with a variety of wind conditions and power requirements in order to become the main supplier in the Chinese rotor blade market and a major supplier in the global market. g…/… Interview CNBM - Mr Song Ziping Additionally, we will enhance our R&D and improve our production capacity for composite boats & yachts and highpressure bottles according to the market demand. JCM: What is your strategy for CNBM’s development in China and abroad? Mr. Z.P Song: In the 21st century, CNBM . is entering a promising era of development. Economic globalization will radically change the competitive situation in the Chinese building materials industry. The local industry urgently needs to incorporate strong groups to face this challenge. The rapidly expanding national economy and the soaring demand in both domestic and overseas markets represent great opportunities for the fast development of CNBM. China’s sustainable development strategy sets higher technological requirements for our company and we must have strong scientific and technological innovation capabilities. Therefore, the development strategies of CNBM focus on the following four aspects: Scientific and technological innovation Scientific and technological innovation is a fundamental way to improve any company’s skills. CNBM is an innovative company and regards innovation as a life force and a source of development. Technological innovation, management innovation and system innovation have been identified as an important base for us. The group will put more effort and investment into the renovation of traditional industries with advanced technologies, into R&D, and into the production of new products and equipment. The group’s scientific research institutes and state-grade technological centres need to cooperate with manufacturing units to improve their scientific innovation capabilities. They also need to develop core specialties and help accelerate progress in technology so as to boost the group’s development, making scientific and technological innovation one of the key pillars supporting the development of CNBM. Building materials Economic globalization has dramatically changed the structure of competition, which calls for the emergence of a leading group to address the resulting challenges. Through the reallocation of resources and industrial integration, CNBM is becoming the Chinese leader in the building material industry. We have grown into a multibusiness group with core specialties through strategic reorganization and restructuring. By doing this, we are able to use resources more efficiently, reduce production costs and develop high-tech products. Inter nationalization We are optimizing our export structure by increasing our exports of a) complete sets of technology and equipment, and b) hightech, high-quality and high-value-added products, while decreasing our exports of resource-based products. By stressing international communication and cooperation, CNBM is becoming one of the world’s leading suppliers of comprehensive services in the global building materials industry. In March 2006, the group was listed on the Hong Kong Stock Exchange for the first time, becoming a major player in the international capital market. This is a milestone in our development towards a world-class building materials company. So far, the group has four publicly listed companies. Its target international markets in the short term are the Middle East, Southeast Asia, the Commonwealth of Independent States, South Asia and Africa. We will explore the international market gradually in the future. Our ultimate goal is to grow into a world-class building material manufacturer. Invigorating the company through human resource development Our strategy is to keep our leading position in recruiting, using and retaining talented people in management, science and technology, so as to provide substantial personnel and intellectual support for the scientific and technological innovation of our subsidiaries. JEC Composites Magazine / No35 September 2007

JEC COMPOSITES MAGAZINE - Issue #35 - September 2007

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