JEC COMPOSITES MAGAZINE - Issue #35 - September 2007 - 23

Market survey: China JCM: What is your main target and do you plan to invest? Mr. Z.P Song: The targets of CNBM’s . composites business are: 1) to build it into a core industrial platform of civil composite products, to stride forward as a mass industrial group with technology and market leadership focusing on energy, environmental protection, construction, transportation, boats and yachts, and leisure industries; 2) to implement a basic mass industrial strategy by consolidating current assets, expanding CNBM through mergers and acquisitions at low cost; 3) to place emphasize on building the Tongxiang glass fibre production base, the Lianyungang composite industrial zone, the Changzhou composite production base, the Weihai boat & yacht production base, and to gradually develop so as to become a leader in the glass fibre and composite products industry in China. We will devote more investments to our glass fibre production base in order to further improve our quality level and capacities, broaden our glass fibre product ranges, and work to become the world’s largest glass fibre producer. Over the next three years, we will put emphasis on building the Lianyungang composite industrial zone in order to increase our market share through continuing growth of our earnings in FRP pipes & tanks, high-pressure bottles, and desulphurization equipment. We will appropriately adjust the product structure, support and invest in composite rotor blades, according to country and market demand. CNBM’s annual production capacity for MW class rotor blades will be more than 3,000 sets by 2010, and we’ll become the main supplier in China and a major supplier in the world, joining global competition. In the Changzhou composite production base, we’ll support and invest in the development of glass fibre mats and new functional floorings, taking advantage of our core technology, the high market demand and high added value to keep a leading position in China. We already have the best local production base for composite fishing boats and yachts More information China National Building Material Group Corporation (CNBM) is a state-owned enterprise in charge of administrative affairs in building material industry. CNBM has a total assets of 20 billion RMB yuans (1,9 billion euros or 2,6 billion dollars); a staff of 30,000; 200 affiliated companies; four publicly listed companies in which CNBM has a controlling percentage of shares; 11 publicly listed companies in which CNBM has a substantial percentage of shares. CNBM is among the top 500 Chinese companies. in Weihai (Shandong province) and our products are exported to Asia, Europe and Africa. Leisure and amusement have become an indispensable part of human life as living standards keep increasing. Luxury yachts should become a hotspot of consumption for families and companies over the next 10 years in China, with better market prospects. We’ll manufacture high-value-added luxury yachts at a suitable time to develop the potential local market. JCM: What is CNBM’s position in the world? Do you have any overseas development plans? Mr. Z.P Song: As the largest manufacturer . of building materials in China and a provider of comprehensive services in the global building materials industry, CNBM’s philosophy is to make “efficient use of resources to serve the society”. Our aim is to become one of the most competitive transnational corporations in the global building materials market through extensive international cooperation. CNBM has established close relationships with more than 20 well-known global companies including Saint-Gobain and Lafarge (France), Kingfisher and Pilkington (UK), Knauf (Germany), Fugro (Netherlands), Armstrong Holding Inc., Johns Manville and Owens-Corning (USA), Mitsubishi, Nippon Steel and Toli (Japan), Cemex (Mexico) and LG (South Korea). Subsidiaries such as BNBM Homes Co. Ltd., B&Q Shenzhen, Changzhou Liberty Toli and Changzhou Zhongxin Tianma Glass Fiber Products Co. Ltd. have set up strategic partnerships with famous companies from Japan and the USA, among others. With strong R&D and a complete set of equipment, CNBM and its subsidiaries have won contracts for more than 50 engineering projects such as largescale production lines for float glass, cement and ceramic tiles in the Middle East, Africa, Southeast Asia, and South Asia. The group has witnessed a rapid increase in both imports and exports, with a total volume amounting to USD1.13 billion in 2006. By implementing a strategy of “going global”, CNBM has set up branches in the USA, Japan, Australia, Vietnam, etc., and subsidiaries in the USA, Hong Kong, the UAE, Papau New Guinea, and Russia. In the first quarter of 2007, the CNBMfunded Huaxia Composite Corporation Ltd was established in South Africa. Production lines with an annual capacity of 10,000 tons of chopped strand mat were also commissioned. Initiating an overseas acquisition plan was an important move at the beginning of 2007. CNBM announced the acquisition of NOI Rotortechnik GmbH (NOI), a German wind turbine blade company, in January 2007. This acquisition not only initiates the group’s overseas acquisition policy but it also strengthens our belief and resolution to go global and become a world competitive manufacturer of composite materials. In the years to come, CNBM will adhere to its philosophy of mutually beneficial cooperation and excellent services, with the goal of offering a better return. CNBM is going global step by step. More information: www.cnbm.com.cn No35 September 2007 / JEC Composites Magazine

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JEC COMPOSITES MAGAZINE - Issue #35 - September 2007

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