BlueStar NCM Increases Profit Ability   

BlueStar New Chemical Material Co., Ltd. (BlueStar NCM, SH: 600299) has formed six major product operations including the organic silicone monomer, special monomer, silicone oil, silicone rubber and silicone resin; the phenol, acetone, bisphenol A, epoxy resin and deep processed products; the engineering plastic; the caustic soda equipment (ion-membrane cell); rubber (neoprene rubber and butadiene) and titanium dioxide.
   The capacity of organic silicone monomer in Jiangxi site is 200 000 t/a. The output of organic silicone was 150 000 tons in 2007 and is expected to reach 190 000-200 000 tons in 2008. In addition, BlueStar NCM's metal silicon business operates normally today, hopefully bringing the profit of RMB100 million for 2008.
   The capacity of phenol/acetone at Harbin site in Heilongjiang province is around 125 000 t/a, of which around a 47 000 t/a capacity is for acetone.
   The capacity of bisphenol A at Wuxi site in Jiangsu province is 45 000 t/a. BlueStar NCM plans to start expansion of the 90 000 t/a production line in September 2008. The company will increase its production of 30 000 tons of bisphenol A in 2008. The 50 000 t/a epoxy resin project, under construction now, is scheduled for startup at the end of October 2008, making the company's epoxy resin output be 100 000 tons in 2008.
   The PBT (polybutylene terephthalate) unit at Nantong site in Jiangsu province has improved its process and the cost is reduced by around RMB100 per ton of product. The new 60 000 t/a PBT production line is expected to start production soon.
   The capacity of PPE (Polypheylene ether) at Yuncheng site in Shanxi province is 10 000 t/a. BlueStar NCM will produce 9 000 tons of PPE.
   After acquiring the 20% stake in China National BlueStar (Group) Corporation (BlueStar Group), Black Stone will initially invest US$500 million in BlueStar Group, and then increase an additional US$100 million later.
   According to a market watchdog, BlueStar Group is putting forward to getting listed in stock markets, to strengthen its new chemical material business and lift its profit ability.