NO.2 Jun. 2016 · K2K3 Motor Shafts Completed and Shipped to Pakistan Suc-cessfully Progress Made in SINOMACH Heavy Industry Projects in the First Quarter The Main Part of Raw Material

VOL.36NO.2 Jun. 2016

YOUR RELIABLE PARTNER

SINOMACH VOICE

In the past year, SINOMACH seized the overseas market oppor-tunities presented by the “Belt and Road” Initiative and con-

struction of China-Pakistan Economic Corridor and forged a num-ber of star projects. It over-fulfilled its plan of doubling exports, chalking up over $ 639 million in manufactured product export, exceeding the goal by 33%. Those star projects include China-Be-larus Industrial Park, Thar Coal-power Integration Project of the China-Pakistan Economic Corridor, and the Cambodian Tatay Hy-dropower Station.

They are achievements of new choices made by SINOMACH in proactively taking advantage of the new opportunities from the “Belt and Road” Initiative. In response to the economic new normal, SINOMACH proposed the concept of “Creating a New SINOMACH Overseas.” SINOMACH currently has 270 projects in 35 of all the 65 countries along the “Belt and Road,” with a total contracted amount of over $ 18 billion.

Promoting export of China’s quality capacity and equipment not only benefits the economic and social development of countries along the “Belt and Road,” but also creates new development spac-es for enterprises. Our goal is to increase the revenue of overseas assets to half of the total. And we are clear about it.

However, “going global” is not so easy as many have imagined.

Currently, enterprises are faced with double taxation in overseas investment, which makes it difficult for enterprises to achieve the expected benefits if not addressed. Therefore, we hope that relevant agreements could be signed by China with the host countries to avoid double taxation, to encourage and support overseas invest-ment by enterprises and strengthen production capacity cooperation.

In addition to heavy tax burden, difficult financing and cumber-some formalities are also obstacles to “going global” for interna-tional production capacity cooperation. At the Boao Forum for Asia this year, one sub-forum was especially eye-catching, and that was none other than international production capacity cooperation. We are considering further increase overseas investment this year to promote machinery and equipment, especially high-end equipment, in overseas markets, via reforming general trade, engineering con-tracting and business models, as well as overseas investment.

The challenges behind the achievements should by no means be overlooked. In the future, efforts will be made in innovation-driven development, restructuring, opening up for strengthened cooper-ation, deepening reform, and improving quality and efficiency to transform and upgrade SINOMACH. Overall, the new undertaking of creating a new SINOMACH overseas is the general mission objective of SINOMACH for some time to come. And we are de-termined to realize it.

Seize the Opportunity and Introduce Chinese Equipment to the WorldRen Hongbin Chairman of SINOMACH

1

Three Main BusinessR&D and ManufactureProject ContractingTrade and Services

Market PositionRanked 288th among Fortune Global 500Ranked 1st among China’s Top 100 Enterprises in Machinery IndustryRanked 25th among Top 250 International Contrac- torsRanked 72nd among Top 225 International Design FirmsRanked 17th among China’s Top 500 Foreign Trade EnterprisesRated as Class A in central enterprise performance appraisal

This publication is intended for no commercial purpose but for internal exchange only.

Internal magazine for free subscription and all rights re- served. Written permission is required for the reprint of any part or the whole of the content in the magazine.Part of the picture source: Getty Images

PublishPublished by:China National Machinery Industry CorporationWebsite: www.sinomach.com.cnAddress: No.3 Danling Street, Haidian District, Beijing, China 100080Tel: (86-10) 8268 8888Fax: (86-10) 8268 8811

Members of Editorial BoardEditor-in-Chief: Shi KeDeputy Editor-in-Chief: Xie BiaoChief Editor: Su WeikeExecutive Chief Editor: Chen XingxiangEditor: Zhang Shaochen Mao WeiyangCorrespondent: Zhang Qingchun Duan TIng Chen Ziyao Liu Xuesong Han Sicheng Yue Xin

Editorial DepartmentTel: (86-10) 82606725, 82688727Fax: (86-10) 82688724Editorial Company: Beijing Prominion Publishing Co., Ltd.Design: Beijing Prominion Publishing Co., Ltd.E-mail: [email protected]

CONTENTS

FOCUS POINTS

Ren Hongbin Attends B20 First Joint Meeting

SINOMACH Wins First Prize for National Enterprise Man-agement Modernization Innovation Achievements

SINOMACH Tops Again the List of Top 100 China Machin-ery Industry Companies for the Year 2015

CMEC Awarded the Prize of GoldenBee · Outstanding CSR Performance Overseas

SINOMACH Ranks 16th in 2016 China Top 500 Foreign Trade Enterprises

SINOMACH Forum cum Report of the Training Sessions in Stanford University and the University of California at Berkeley Held in Beijing

Huaneng’s Changxing Power Plant Wins “Industrial Water Project of the Year” for ZLD Water Treatment System

SUMEC Becomes a Best Example of “Going Global” for Textile and Apparel Enterprises

Mutual Visits

State-Level Training Seminar Participants Visit SINOMACH

China-Belarus Industrial Park to Take Shape in 2016

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11

12

PROJECT PROGRESS TRADE AND SERVICES

SINOMACH OVERSEAS

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25

CHMC Signs EP Contract with Aman Cement Mills Ltd. in Bangladesh

CEI Signs New Contract to Expand Its South Asian Market

SINOMACH Heavy Industry and CMEC Sign an Equipment Supply Contract for Pakistan Thar Coal Project

CHMC Signs EPC Contract for Phase V and VI of Rural Grid Expansion in Cambodia

Official Commissioning Ceremony Held for Cambodian Ring Power Transmission Project Undertaken by CHMC

Final Acceptance Completed for CMEC Berezov Power Plant Project in Belarus

First Unit of Sopladora Hydropower Station in Ecuador Par-tially Undertaken by CMEC Integrated to the Grid for Power Generation

First Coal-Fired Power Plant Constructed by CNEEC in Laos Handed over

SUMEC Successfully Completes 10 MW Photovoltaic Power Plant Project in Cabanatuan City

The Aid Project of Chairman Mao Zedong School to Namibia Successfully Completed

CHMC Wins Bid for 500 kV Power Transmission Project in Pakistan

Celebration Ceremony Held for Launch of the CMEC Paki-stan Coal Mine and Power Plant Project and Closing of the Financing

CAMCE Overseas Projects Inspected by Political Leaders Worldwide

TRIED Signs a Cooperative MOU with LS Industrial Co., Ltd.

CNEG Signs an International Technical Cooperation Agree-ment with Romax on Wind Power Gearboxes

K2K3 Motor Shafts Completed and Shipped to Pakistan Suc-cessfully

Progress Made in SINOMACH Heavy Industry Projects in the First Quarter

The Main Part of Raw Material Vertical Milling Project Ex-ported to Iraq Successfully Installed

YTO Forklifts Exported to Ethiopia

CAMCE Lauded by Domestic and Overseas Media for Quake-Relief Efforts in Ecuador

Ren Hongbin Attends B20 First Joint Meeting

On April 17, Ren Hongbin, Chairman of China National Machinery Industry

Corporation (SINOMACH) attended the B20 First Joint Meeting held in Washington in 2016, in his capacity as Chair of B20 In-frastructure Taskforce.

At the plenary session held in the morning, Ren Hongbin attended the symposium on be-half of B20 Infrastructure Taskforce, saying that structural reform was the basic condition for promoting global economic recovery, and that the business community welcomed national governments to accelerate the pace of reform and increase investment in infra-structure construction.

In the afternoon, Ren Hongbin presided over the group session of the B20 Infrastructure Taskforce. Five proposals were recognized by the B20 Infrastructure Taskforce for 2016, in complementation of the existing G20

action program. Specifically, they include:

1. Increase and accelerate the reserves of high-quality projects with strong financing capabilities.

2. Develop beneficial supervisory regulations to promote the development of innovative financial instruments; promote construction of local capital market to free investment.

3. Strengthen the catalytic effect of multi-lateral development banks and agencies in promoting investment in infrastructure by the private sector.

4. Improve the productivity of infrastructure projects throughout their life cycle and build future-oriented advanced infrastructure by enabling and supporting best practices and innovative technologies in asset manage-ment.

5. Strengthen or establish national, regional and global projects to enhance the interoper-ability and interconnection of the infrastruc-ture in various industries.

Once implemented, these high-impact policy recommendations are expected to create $ 2 trillion in economic benefits and 35 million jobs per year for G20 countries.

As we all know, revitalizing and increasing public and private investment in infrastruc-ture has been a prioritized initiative of all countries in developing economy, boosting productivity, improving social welfare, strengthening competitiveness and deepen-ing interconnection. However, according to estimates by the World Economic Forum (WEF), global demand for infrastructure in-vestment annually amounted to $ 3.7 trillion, and there was a funding gap of $ 1 trillion.

In addition, 2016 B20 Infrastructure Task-force also reviewed the above policy recom-mendations on May 11 and May 31 respec-tively.

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FOCUS POINTS PROJECT PROGRESS TRADE AND SERVICES SINOMACH STAFF ABROAD

SINOMACH Wins First Prize for National Enterprise Management Modernization Innovation Achievements

On April 17, the 22nd National Enter-prise Management Modernization

Innovation Achievements were officially publicized. Board Construction with Im-provement of Scientific Decision-Making at the Core for Central Enterprises, with SINOMACH Chairman Ren Hongbin as the primary author, was awarded the First Prize.

Since it launched board piloting in 2009, SINOMACH had actively promoted a learn-ing- research-oriented board, and initially formed a corporate governance structure of balanced rights and responsibilities, co-ordinated operation, and effective checks and balances, and fostered a board culture with SINOMACH characteristics, constitut-ing a beneficial exploration in solving the problems encountered in reforming Chinese state-owned enterprises, and in promoting their transformation from the traditional sys-tem to the modern enterprise system.

It is reported that the evaluation and judg-ment of National Enterprise Management Modernization Innovation Achievements is jointly sponsored by the State-owned Assets Supervision and Administration Commis-sion of the State Council (SASAC) of the People’s Republic of China, the Ministry of Industry and Information Technology of the People’s Republic of China, and the China

Enterprise Confederation. The National Enterprise Management Modernization In-novation Achievements Award is the top and most authoritative award for enterprise man-agement in China, and the only state-level award of its kind. A total of 453 achieve-ments were submitted to the 22nd session of this event, and 31 first prizes and 170 second prizes were eventually awarded after initial review by experts, preliminary review, me-dia publicity and approval by the national review panel.

Increase and accelerate the reserves

of high-quality projects with strong

financing capabilities

Develop beneficial supervisory

regulations to promote the

development of innovative financial

instruments; promote construction

of local capital market to free

investment

Strengthen the catalytic effect of

multilateral development banks and

agencies in promoting investment in

infrastructure by the private sector

Improve the productivity of

infrastructure projects throughout

their life cycle and build future-

oriented advanced infrastructure

by enabling and supporting

best practices and innovative

technologies in asset management

Strengthen or establish national,

regional and global projects to

enhance the interoperability and

interconnection of the infrastructure

in various industries

Global demand for infrastructure investment

annually amounted to $ 3.7 trillion,

and there was a funding gap of $ 1 trillion

According to estimates by the World Economic Forum

SINOMACH had actively promoted a learning- research-oriented board

Balanced rights and responsibilities

Coordinatedoperation

Effective checksand balances

Fostered a board culture with SINOMACH

characteristics

Five proposals were recognized by the B20 Infrastructure Taskforce

$ 1 trillionFunding gap

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FOCUS POINTS

SINOMACH Tops Again the List of Top 100 China Machinery Industry Companies for the Year 2015

On May 26, the China Machinery Indus-try Federation (CMIF) and the China

Association of Automobile Manufacturers (CAAM) jointly released the List of Top 100 China Machinery Industry Companies and Top 30 China Automobile Industry Compa-nies for the year 2015. SINOMACH again topped the list with revenue of RMB 222.7 billion yuan from its main business.

Of the Top 100 China Machinery Industry Companies, 39 exceeded 10 billion yuan in scale, 8 exceeded RMB 50 billion yuan, and two exceeded 100 billion yuan. No. 2 to No. 5 on the list were Weichai Holding Group Co., Ltd. (main business revenue at RMB 107.5 billion yuan), Shanghai Electric Group Co., Ltd. (main business revenue at RMB 93.7 billion yuan), Tianjin BENEFO Machinery Equipment Group Co., Ltd. (main business revenue at RMB 83 billion yuan) and Xuzhou Construction Machinery Group Co., Ltd. (main business revenue at RMB 73.9 billion yuan).

According to statistics, the main business revenue of the top 100 machinery companies and top 30 automobile companies totaled RMB 5.62 trillion yuan in 2015. Compared with last year, the revenue of the top 100 machinery companies was down by RMB 64.5 billion yuan or 3.6%, and that of top 30 automobile companies was up by RMB 61.8 billion yuan or 1.61%. In terms of profit indicator, the former witnessed a decline of

4.09%, and the latter witnessed a decline of 4.63%.

Wang Ruixiang, President of the CMIF, said that seen from the primary operation data of the industry in 2015, a moderate growth had been achieved, with industrial added value up by 5.5%. He added that after successive years of rapid growth, the industry had en-tered a new stage of medium-speed growth. The list for the Top 100 China Machinery Industry Companies and Top 30 China Auto-mobile Industry Companies had few changes in ranking and companies included. This is especially so for the top ten. In addition to individual changes in ranking, most man-aged to retain their original positions. This indicates that the top 100 machinery compa-nies and top 30 automobile companies have maintained in transition a good momentum of development and strong competitiveness.

Top 5China Machinery Industry

Companies 2015

SINOMACH

Weichai Holding Group Co., Ltd.

Shanghai Electric Group Co., Ltd.

RMB 222.7 billion yuan



RMB 83 billion yuan


Tianjin BENEFO Machinery Equipment Group Co., Ltd.

Xuzhou Construction Machinery Group Co., Ltd.

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SINOMACH Ranks 16th in 2016 China Top 500 Foreign Trade Enterprises

According to the report, against the con-text of sharp decline in world trade, in

2015, China Top 500 Foreign Trade Enter-prises had chalked up a new high in total im-ports over the recent three years, amounting to $ 751.728 billion, up by 1.16% against

CMEC Awarded the Prize ofGoldenBee · Outstanding CSRPerformance Overseas

From June 6 to 7, “The Eleventh China International Corporate Social Responsibility

(CSR) Forum cum the Ceremony for Announcing 2015 GoldenBee CSR China Honor Roll”

was held in Beijing. CMEC was awarded the prize of “GoldenBee • Outstanding CSR

Performance Overseas” with the Berezov 427MW Combined-Cycle Power Plant Project in

Belarus.

In the process of going global, CMEC has become an outstanding example in

performing CSR by actively exploring the practical road to CSR performance overseas. Meanwhile, the CSR practice case of CMEC has been included in the 2015 GoldenBee Case Set of CSR Competitiveness.

“GoldenBee CSR China Honor Roll” is a non-profit social responsibility assessment and contesting event launched by China WTO Tribune under the Ministry of Com-merce in 2007. Voluntarily participated by Chinese companies, it aims at promoting CSR development in China, by publicizing the annual list of outstanding Chinese en-terprises in performing social responsibility. So far, eight sessions of this event have been held. This year’s prizes were awarded after six months of preparation, and contested among nearly 364 candidates.

In the “2016 (The Seventh) China Top 500 Foreign Trade Enterprises” list released on June 1

by Statistical Society for Foreign Economic Relations and Trade of China, SINOMACH ranked

16th.

to larger enterprises. It is predicated in the report that China’s total value of foreign trade in 2016 will be roughly the same as 2015, probably with a slight increase.

the unfavorable general environment. For foreign trade enterprises in China, the degree of concentration for import is higher than that for export, and major import enterprises have a greater impact on the overall import of the country. Import is further concentrated

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FOCUS POINTS

SINOMACH Forum cum Report of the Training Sessions in Stanford University and the University of California at Berkeley Held in Beijing

Huaneng's Changxing Power Plant Wins "Industrial Water Project of the Year" for ZLD Water Treatment System

On March 16, 2016, the first SINOMACH Forum cum “Second Pioneering for

Creating a New SINOMACH Overseas—Report of the Training Sessions in Stanford University and the University of California, Berkeley” was held in Beijing.

To implement the strategy of “Creating a New SINOMACH Overseas,” SINOMACH organized two training delegations in Sep-tember and November 2015 to the Univer-

On April 20, at the Tenth Global Water Summit held in Abu Dhabi, capital

of United Arab Emirates, the Zero Liquid Discharge (ZLD) Water Treatment Project undertaken by Beijing Woteer, a subsidi-ary of China CAMC Engineering Co., Ltd. (CAMCE) at Huaneng’s Power Plant in Changxing was awarded “Industrial Water Project of the Year,” together with Northern WTP undertaken by GE in Australia. It was

2015. As the world’s first forward-osmosis based large-scale industrial wastewater treat-ment commercially operated, it is capable of 100% recycling, with pollutants isolated in the form of sludge and salt crystals. There-fore, it can significantly reduce investment and operating costs for the client. Complete automatic control has been exercised to en-sure more convenient operation and equip-ment maintenance.

Global Water Awards are known as prizes of real value within the industry for their

impartiality, professionalism and high degree of internationalization. The judges said that

the success of ZLD Project at Changxing Power Plant marked an exciting breakthrough of

forward osmosis technology in China.

sity of California at Berkeley and Stanford University respectively. SINOMACH Vice President Xie Biao introduced the overall situation of the two training sessions, and based on the strategy and priority work of SINOMACH, made an in-depth analysis of the three “advantages” to be seized in its international operation, specifically in own-ership, internalization and location, offering new reference and inspiration for creating a new SINOMACH overseas.

the first time for a Chinese environmental technology company to win an international award in water treatment, as well as the first time for a Chinese enterprise to appear on the awarding stage with world-renowned en-terprises at the Global Water Summit.

The ZLD water t rea tment sys tem at Huaneng’s Power plant in Changxing was commissioned and put into operation in May

8


On March 14—15, China Apparel & Textile “Going-Global” Summit cum

China and Asia Textile Forum 2016 was held in Shanghai, attended by over 300 presidents of chambers of commerce, merchants and elite businessmen of the textile and apparel industry from more than 20 countries and regions, including China, the United States, European Union and Asia.

In his keynote speech, Jiang Hui, China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT), in-troduced the methods and paths adopted by Chinese textile and apparel enterprises to achieve leapfrog development, with “Best Practices of SUMEC Textile & Light Indus-try Co., Ltd. in Upgrade” as the example. SUMEC Textile & Light Industry Co., Ltd. has continued to strengthen localization of its overseas operations, and its capacity in allocating global resources. It has gradually transformed its international trade into in-ternational operations via fruitful attempts

SUMEC Becomes a Best Example of "Going Global" for Textile and Apparel Enterprises

and efforts in market expansion, industrial transfer, cross-border mergers and acquisi-tions and other aspects. Relying on SUMEC Group’s worldwide network of international trade and branches, the company went deep into the market to launch marketing and of-fer services at the frontline. It has construct-ed a globalized R&D and marketing plat-form by establishing offices in the UK for utilization of localized R&D and marketing power overseas. It has gained direct access to foreign brands and channel resources by holding equity interests in well-known US textile enterprises. It has set up a number of factories and offices in Myanmar, Cambodia and other Southeast Asian countries. It has made a conscious effort to build the school uniform brand Eton Kidd. Those systematic approaches have effectively promoted its rapid growth.

Internationaltrade

International operations

Industrial transfer

SUMEC went deep into the market to launch marketing and offer services at the frontline

It has constructed a globalized R&D and marketing platform by establishing offices in the UK for utilization of localized R&D and marketing power overseas

It has gained direct access to foreign brands and channel resources by holding equity interests in well-known US textile enterprises

It has set up a number of factories and offices in Myanmar, Cambodia and other Southeast Asian countries

It has made a conscious effort to build the school uniform brand Eton Kidd

9

FOCUS POINTS

Mutual Visits

Ren HongbinSINOMACH Chairman

Xie BiaoVice President of

SINOMACH

Meets with BCG President Hans-Paul

Pays a Visit to Botswana

Pays a Visit to Singapore

Meets with Eric Mothibi Molale, Minister of Presidential Affairs and Public Administration of Botswana

Meets with Vice Minister of Industry of Belarus

Meets with Sabati Cisse, Minister of Petroleum & Energy Côte d’Ivoire

Meets with Robert Burundi, the Chairman of the China-Ukraine Business Council of the Ukraine Side

Date: March 17th

Date: March 17th to 23rd

Date: April 12th to 15th

Date: May 16th

Date: May 19th

Date: April 6th

Date: March 31st Details: Ren Hongbin discussed with Mr.

Hans-Paul a number of issues for the B20 Infrastructure Taskforce this year. Ren Hong-bin also talked with Mr. Hans-Paul on the SINOMACH strategy of “Creating a New SINOMACH Overseas,” before exploring in-depth exchanges and cooperation between the two companies in potential businesses.

Details: Details: During the visit, the dele-gation held several rounds of talks with On-kokame Kitso Mokaila, Minister of Minerals, Energy and Water Resources (MMEWR) and officials from power companies. The two sides reached a package of solutions to prob-lems faced by the Morupule B 4 × 150 MW Coal-fired Power Plant Project undertaken by China National Electric Engineering Co., Ltd.

Details: Exchanged views with the proprietor of the Indonesia coal transport project, in which SINOMACH is involved on a non-physical level. The two sides held several rounds of negotiations over the preliminary feasibility study and financial arrangements for this project, and signed a memorandum of understanding.

Details: The two sides shared ideas on construction and buy-back of certain projects in Botswana and furthering cooperation in agriculture and other areas.

Details: The two sides exchanged views on promoting cooperation between enter-prises of the two countries in the fields of in-dustrial planning and promotion of industri-alization, and in developing the cooperation platform of China-Belarus Industrial Park. They reached the agreement that communi-cation between SINOMACH and Ministry of Industry of Belarus would be further strengthened.

Details: The two sides shared ideas on the progress of the power grid project in Côte d’Ivoire. Xie Biao said that SINOMACH set great store by the project and would ensure its smooth implementation.

Details: The two sides shared ideas on issues related to establishment of a trade council and cooperation in privatizing public enterprises and grain deals in Ukraine.

10


On May 25, participants of “2016 Seminar for

Scholars and Think Tank from the Countries along the ‘Belt and Road’” organized by the State Administration of Foreign Experts Affairs of P.R.Chi-na (SAFEA) paid a visit to SINOMACH. They were met by Ding Hongxiang, who introduced the vision and initiatives of SINOMACH for the strategy of “Creating a New SINOMACH Overseas,” and expressed the hope for multi-facet cooperation with countries along the “Belt and Road” in project contracting, trade and services, investment management, and other areas. Participants of the seminar are primarily govern-ment officials, university teachers, experts and scholars from India, Afghani-stan, Uzbekistan, Palestine, Bangladesh and other countries along the “Belt and Road.”

Liu Jingzhen

Wang Kewei

Liu Jingzhen Meets with Chairman of Russian Renova Group

Wang Kewei Leads an Inspection of CHMC Cambodian Project

Date: May 17th

Date: March 16th to 19th

Details: The two sides exchanged ideas on cooperation in relevant fields.

Details: By listening to reports, checking relevant data and paying visits to the project site, the inspection delegation acquainted itself with the situation of the project, and examined the implementation of “double responsibility for individual posts” at the project site, project procurement and sub-contracting, bidding and tendering, on-site financial management and etc.

On May 4, Algerian local financial officials at-

tending the seminar at Chinese Academy of Governance (pre-viously named China National School of Administration) paid a visit to China National Ma-chinery Industry Corporation (SINOMACH). They were welcomed by SINOMACH Vice President Ding Hongxiang, who introduced in detail SINOMACH’s business in Africa and Alge-ria, and expressed the hope of strengthening cooperation between SINOMACH and Algeria in engineering, trade, investment, new energy and other fields. The Seminar was a key international one of its kind to be hosted by Chinese Acad-emy of Governance. The visit of seminar participants to SINOMACH will play an active role in promoting development of the Algerian market and helping cre-ate a new SINOMACH overseas.

State-Level Training Seminar Participants Visit SINOMACH

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FOCUS POINTS

China-Belarus Industrial Park to Take Shape in 2016Infrastructure Completed for Phase I Starting Areaand Plan Formulated to Invite Another 10 Enterprises

According to the plan, China-Belarus Joint Venture will complete in 2016 the

infrastructure construction for the starting area of Phase I, and build 12,500 square me-ters of R&D building, and 8,000 square me-ters of standard factory buildings. In invest-ment promotion, efforts will be redoubled, so as to invite another 10 enterprises to invest in the Park.

Earlier, the SINOMACH and China Mer-chants Group had reported to the Ministry of Commerce of the People’s Republic of China the objectives and plans for China-Belarus In-dustrial Park in 2016, formulated the inverted ledger and division of responsibilities for the year and proposed corrective recommen-dations for cumbersome formalities in land transfer procedures, overly stringent stan-dards for admitting enterprises, slow response in Q&A and consulting services, and other specific issues incurred on the part of Belarus.

At this board meeting, the parties discussed some key issues and reached agreements. Deputy Director of Belarus President Office Snopkov Nikolay, SINOMACH Vice Pres-ident Xie Biao, Governor of Minsk Shapiro Semen, China Merchants Group Director Hu Zheng and CAMCE Chairman Luo Yan attended the meeting.

On the General Meeting of Shareholders held on March 28, the proposals submitted

were reviewed and vote cast. At last, all proposals were unanimously adopted and minutes of the meeting signed. After the meeting, Hu Zheng, CEO of China-Belarus Joint Venture and Li Haixin, its General Manager, signed the Liability Statement of 2016 Performance Appraisal Objectives for China-Belarus Joint Venture.

In 2015, SINOMACH assumed the role of principal for China-Belarus Industrial Park Project in accordance with the requirements of the State Council of the People’s Republic of China. In the past year, construction was started successfully for the starting area of 3.5 square kilometers. On May 12, Chinese President Xi Jinping and Belarusian Presi-dent Alexander Lukashenko paid a visit to the site of the industrial park. Meanwhile, great progress has been made in investment promotion, with admission agreements signed by eight companies. After optimizing the shareholder structure, China-Belarus Joint Venture is gradually improving corpo-rate governance and management structure.

Last year alone, the industrial park held 23 various investment promotion activities in China and Belarus, attracting more than 1,000 delegates from over 700 companies. A total of 62 governmental and corporate del-egations were received at the park site, with over 500 corporate delegates.

Which developments are to be expected

of China-Belarus Industrial Park for 2016?

From March 27th to 28th, the conference

of board of directors and shareholders of

China-Belarus Industrial Park Development

Co., Ltd. (China-Belarus Joint Ventures in

short) was held in Beijing, for discussion

on the planning, financing, construction,

assessment and many other issues related

to the Park. The attending parties eventually

agreed on all important issues.

2015

2016

May 12

March 27-28

Construction was started successfully

for the starting area

Will complete the infrastructure

construction for the starting area of

Phase I

The conference of board of directors

and shareholders was held in Beijing

Chinese President Xi Jinping and

Belarusian President Alexander

Lukashenko paid a visit to the site of

the industrial park. Meanwhile

Admission agreements signed by

eight companies

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Recently, China National Heavy Machinery Corporation (CHMC) signed an EP Contract with Aman Cement Mills Ltd. in Bangladesh for the second vertical mill cement production line. It is the fourth consecutive contract for vertical mill cement production lines signed by the company in the Bangladesh market.

The project involves construction of a new OPC cement vertical grinding mill production line with an hourly capacity of 240 tons, with Loesche LM56.3+3CS slag cement vertical mills produced by Germany as the core equipment. The construction will be launched at the same site as the Aman Cement Vertical Mill (Phase 1) that is currently undergoing installa-tion by CHMC.

The contract totaling $ 12,200,000 in amount has come into effect. Project design and equip-ment shipment are expected to be completed within the year 2016, and installation and de-bugging to be completed in the first half of 2017.

On March 18, a contract for CKD parts procurement was signed by the whole-set equipment company of China Electric Appa-ratus Research Institute Co., Ltd. (CEI) with a South Asian company. Totaling $ 5 million in amount, it is a new contract of CKD parts brought about by product development fol-lowing the two contracts for product design and development, tooling and equipment, one worth $ 5 million and the other $ 7.5 million in 2014.

By designing and developing white house-hold appliances for its client, the whole-set

Contracts Signed

CHMC Signs EP Contract with Aman Cement Mills Ltd. in Bangladesh

CEI Signs New Contract to Expand Its South Asian Market

rounding areas, and bring new opportunities and prospects for development for household appliance development contracting and inte-grated procurement of CKD parts throughout Asia.

equipment company was advantageously positioned to access the technical require-ments and key parameter documents for all the components, which laid the foundation for supplying CKD parts. Meanwhile, the procurement saves the client from troubles involved in choosing suppliers, and ensures the conformity of procured spare parts with the technical requirements of its products.

The new contract is of strategic significance to the company in tapping the market poten-tial in the entire South Asia. It will enhance the company’s radiation to the market of sur-

THE CONTRACT TOTALING


$ 12,200,000

$ 5,000,000

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PROJECT PROGRESS

On March 31, China SINOMACH Heavy Industry Corporation (SINOMACH Heavy Indus-try) and China Machinery Engineering Corporation (CMEC) signed in Beijing a supply con-tract for Pakistan Thar Coal Project on large hydraulic excavators. The contract of over 100 million yuan has entered into force on April 5, 2016.

On March 30, China National Heavy Machinery Corporation (CHMC) signed an EPC Con-tract with Cambodia’s state-owned Electricité du Cambodge (EDC) for Phase V and VI of its rural power grid expansion, totaling approximately $ 100 million in amount. Covering 13 provinces of Cambodia, the project involves construction of nearly 2,525 kilometers of me-dium-voltage power lines, installation of pole-mounted equipment, construction of two new 115 kV substations, and construction of 22 kilometers of 115 kV high-voltage transmission line connecting the substation.

After its completion, the project will greatly improve the electricity supply for cities along the lines. Plans have been formulated to provide access to the gird for over 50,000 house-holds without electricity supply, not only meeting the electricity demands of residents in rural areas along the lines, but also guaranteeing electricity supply for the newly established agricultural and sideline processing industries and the industrial production. The project is of great significance to improve the layout of the Cambodian national grid and promote lo-cal social and economic development, while laying a solid foundation for the realization of “power supply for all villages,” a policy on the livelihood of Cambodians.

The signing of this contract marks the seventh power project won by CHMC in the Cam-bodian market via the strategy of “regional rolling development,” opening a new chapter in power transmission engineering in the country after Phase III and IV of rural grid expansion in the country was officially contracted and launched.

SINOMACH Heavy Industry and CMEC Sign anEquipment Supply Contract for Pakistan Thar Coal Project

CHMC Signs EPC Contract for Phase V and VI of Rural Grid Expansion in Cambodia



￥ 100,000,000

$ 100,000,000

Over

14


At 8:00 on April 28, an official commis-sioning ceremony was held at the site of GS7 Substation in Kandal Province for the Phnom Penh Ring Power Transmission Proj-ect. Constructed by China National Heavy Machinery Corporation (CHMC), the project includes construction of 160 kilometers of

After a two-year warranty period, Berezov Power Plant Project undertaken by Chi-na Machinery Engineering Corporation (CMEC) in Belarus came to a successful close, as the constructor and proprietor signed a performance certificate on April 14 in Brest, Belarus.

The Project witnessed the first export of SGT5-4000F-class combined cycle units manufactured by China, and CMEC once again achieved a “first in China.” At the same time, it is currently the project with the

Project Completed

Official Commissioning Ceremony Held for Cambodian Ring Power Transmission Project Undertaken by CHMC

Final Acceptance Completed for CMEC Berezov Power Plant Project in Belarus

high-voltage transmission lines, GS5 and GS7 Substations newly established, and expansion of another two substations. It was officially launched at the end of 2011, and successively completed and put into use in 2013 and 2014.

The project is in line with the overseas strat-egy of the “Belt and Road” Initiative of the Chinese government, as well as the grand plan formulated by Cambodian Prime Minis-ter Hun Sen for electric power development. Its completion and commissioning marks a milestone of cooperation between CHMC and Cambodian grid companies.

It is reported that as an important part of the Cambodian grid, the Phnom Penh Ring Power Transmission Project has attained remarkable achievements in the year after its inauguration. It has tripled the transmission capacity of the Phnom Penh area in one fell swoop and solved the power shortage prob-lem in economic zones around Phnom Penh, benefiting millions of Cambodians.

largest and most efficient gas-steam combined cycle units commissioned in Belarus. Its power generation accounts for about 10 percent of the aggregate generating capacity of the country. The project has been successively awarded First Prize for Outstanding De-sign of 2014 in the Power Sector (including Thermal Power, Transmission and Distribu-tion Engineering) by China Electric Power Planning and Engineering Association, and

Luban Prize for (Overseas) Construction Engineering in 2015 by China Construction Industry Association and other prizes.

15

PROJECT PROGRESS

On April 15, the first unit of Sopladora Hy-dropower Station partially undertaken by China Machinery Engineering Corporation (CMEC) was successfully integrated to the grid for power generation.

Under arrangement with China Gezhouba Group Corporation (CGGC), the general contractor for Sopladora hydropower project, CMEC was charged with the core content of the project, i.e., as the subcontractor of me-chanical and electrical equipment. Its respon-sibilities specifically included design, supply, transportation, installation, testing, debugging

Recently, No. 3 Unit for HONGSA 3 × 626 MW Power Station Project was handed over by China National Electric Engineering Co., Ltd. (CNEEC) to Laos, indicating that the project had entered the warranty phase as a whole. The project will not only improve

First Unit of Sopladora Hydropower Station in Ecuador Partially Undertaken by CMEC Integrated to the Grid for Power Generation

First Coal-Fired Power Plant Constructed by CNEEC in Laos Handed over

and commissioning of all electrical and me-chanical equipment, as well as related person-nel training and other technical services.

After the project was launched in May 2011, all members of the project team made con-certed efforts toward its completion, winning the praise of the proprietors, the supervision and the general contractor.

Sopladora Hydropower Station consists of three Francis-turbine generators, each with a water head of 375.6 meters and rated power of 162.60 MW. After its completion,

the power station will provide 13.9% of all electricity sent to the national grid of Ecua-dor, saving about $ 200 million per year for the country in fuel and energy import, and cutting CO2 emissions by nearly 1.7 million tons at the same time.

CNEEC’s influence at home and abroad, but also effectively boost the economic and so-cial development of Laos.

The project is a key project under the frame-work agreement for energy cooperation

between Thailand and Laos, and the largest power cooperation project ever implemented between the two countries. The power plant under the EPC contract of CNEEC involves a total investment of $ 1.68 billion. It is located in northwestern Laos, more than 30 kilometers from the northeastern border of Thailand and about 350 km from the demar-cation line between China and Laos.

Project planning was started in 2005 and EPC contract for the power plant project for-mally signed in 2009. After its completion, the majority of electricity generated will be fed into the national grid of Thailand via a 500 kV transmission line, and part of it fed into the national grid of Laos via a 115 kV transmission line.

16


Recently, the FCRV 10 MW photovoltaic power plant project undertaken by SUMEC Group Corporation (SUMEC) in Cabanat-uan City, Philippines, was completed and integrated successfully to the grid for power generation.

On March 9, Chairman Mao Zedong Middle School (Otjomuise Middle School) designed by China IPPR International Engineering Corporation (IPPR), an aid project of China to Namibia, was formally delivered.

Chairman Mao Zedong Middle School is a cultural engineering aid project from the Chinese government, intended to showcase the local historical, cultural and national characteristics of Namibia and the advanced building technologies and design concepts of China. In both facade and interior dec-oration, local building materials were rea-sonably exploited after ample investigation and in view of local traditional architecture styles.

SUMEC Successfully Completes 10 MW Photovoltaic Power Plant Project in Cabanatuan City

The Aid Project of Chairman Mao Zedong School to Namibia Successfully Completed

In the FCRV project, string inverters man-ufactured by the Chinese company Huawei were adopted, with an overall conversion efficiency value of up to 82.7%. After it was put into operation, the project has been running with a daily generating capacity of

up to 58,000 kWh. It is the first photovoltaic power plant project built by SUMEC in the Philippines, with a whole-set equipment subsidiary of SUMEC responsible for engi-neering design, equipment supply and con-struction management.

As the photovoltaic market develops in Southeast Asia, the Philippines undoubtedly presents a market with promising investment prospects. The completion of this photovolta-ic power plant and its integration to the grid have established SUMEC as a brand in the country and ushered in a prelude for tapping the Philippines PV market by the company.

The project is located 14 kilometers to the northwest of urban Windhoek, capital of Na-mibia, with 7,835 square meters of construc-tion area over a total area of 7.97 hectares. It is capable of providing schooling for 700

students, and accommodation for 220. The campus is divided into three parts, i.e., the teaching area, the sports area and the dorm area.

17

PROJECT PROGRESS

CHMC Wins Bid for 500 kV Power Transmission Project in Pakistan

Celebration Ceremony Held for Launch of the CMEC Pakistan Coal Mine and Power Plant Project and Closing of the Financing

On April 20, China National Heavy Machinery Corporation (CHMC) received a letter of ac-ceptance from National Transmission & Dispatch Co., Ltd. (NTDC) of Pakistan, announcing its decision to award the Thar-Matiari 500 kV Same-Tower Double-Circuit EPC Project to the company.

After three years of unremitting efforts by the project constructor China Machinery Engi-neering Corporation (CMEC), the groundbreaking ceremony was held for Thar Block II Coal Mine and Power Plant Project at the Thar Project Site in Sindh, Pakistan, on April 11.

As a priority project of “Energy Planning for China-Pakistan Economic Corridor” under the “Belt and Road” Initiative, the project is the first coal-power integration project implement-ed in Pakistan, ushering in a new phase of independently and stably solving the problem of power shortage with indigenous coal. It will be of great significance for Pakistan to overcome its energy crisis, improve its power structure and promote local economic development. Thar Block II Coal Mine and Power Plant Project is CMEC’s first EPC project driven by overseas investment. Its official implementation will be of great significance for CMEC and its share-holders, as well as the Chinese and Pakistani governments.

Related News

With a contracted amount of approximately $ 60 million, the project involves about 135 kilometers of 500 kV same-tower double-cir-cuit transmission line stretching from Thar to Matiari in Sindh Province. It is an important part of the backbone grid of Pakistan.

Pakistan has maintained long-term close co-operation and profound traditional friendship with China, and constitutes an important target market of heavy machinery manufac-tured by China. With the steady progress in China’s “Belt and Road” Initiative, Pakistan becomes increasingly important for its stra-tegic position as a bridgehead. The winning of this bid by CHMC against strong domes-tic and foreign competitors marks its break-through in the power transmission market of Pakistan.

18


On March 29, Rafael Correa, President of the Republic of Ecuador, paid a visit to site of Zofragua Hospital Project undertaken by China CAMC Engineering Co., Ltd. (CAMCE). During the inspection, the Presi-dent expressed his satisfaction with the over-all progress of the project, and re-empha-sized the social significance of the project and the urgency to complete it, requesting efforts be made to ensure its timely comple-tion and inauguration.

On March 15, Edgar Chagwa Lungu, Pres-ident of Zambia, attended the inauguration ceremony of the Mbala-Nakonde Road Proj-ect undertaken by CAMCE and inspected the project site.

CAMCE Overseas Projects Inspected by Political Leaders Worldwide

President of Zambia Attends the Inauguration Ceremony of the Mbala-Nakonde Road Project Undertaken by CAMCE

Ecuadorian President Rafael Correa Inspects CAMCE Zofragua Hospital Project

Deputy Prime Minister of Uzbekistan Inspects CAMCE PVC Production Complex Project

On April 13, Deputy Prime Minister of Uzbekistan Ibragimov paid a visit to the site of temporary buildings for the PVC Production Complex Project undertaken by CAMCE in Uzbekistan.

After being briefed the overall planning for the PVC production complex and its progress, the Deputy Prime Minister inspected the project site where construction is imminent, expressed his satisfac-tion with the project progress and urged all parties involved in con-struction to work together, so as to complete the temporary build-ings and start construction of the main project as soon as possible.

On the ceremony, Lungu said that the inauguration of the Mbala-Na-konde Road was of great significance to the country, spoke highly of the project progress and construction quality and urged CAMCE to continue its efforts, so as to make greater contributions to infrastruc-ture construction in Zambia and benefit the local people.

19

TRADE AND SERVICES

On April 15, LS Industrial Systems Co., Ltd. (LSIS) from the Republic of Korea signed a cooperative MOU with Tianjin Research Institute of Electric Science Co., Ltd.

(TRIED) for development and promotion of the Master-P5000 Series DCS Distributed Con-trol System. The event indicates that cooperation between the two sides has officially entered a substantive stage.

After the signing ceremony, the two sides made specific requirements and arrangements for cooperation and promotion of DCS Distributed Control System, and for further contact in other areas, so as to look for cooperative opportunities at multiple levels and in wider ranges.

To speed up the transformation and upgrading of the company, TRIED will give full play to

On April 6, China National Erzhong Group Co. (CNEG) signed in its exhi-

bition center a strategic cooperation frame-work agreement and an international tech-nical cooperation agreement on 2 MW wind

TRIED Signs a Cooperative MOU with LS Industrial Co., Ltd.

CNEG Signs an International Technical Cooperation Agreement with Romax on Wind Power Gearboxes

its own advantages, and proactively explore new areas of cooperation. It will strengthen cooperation with foreign-invested compa-nies to further explore cooperation models with them for common development, so as to enhance its market competitiveness and achieve mutual benefit and a win-win situa-tion.

turbine gearboxes with the British company Romax.

Relevant principals of CNEG and Romax expressed their expectations for successful

cooperation between the two companies and the hope for achieving stated objectives via joint efforts. The partnership will lead to transformation and breakthrough of China Erzhong Jingheng Driving Equipment Co., Ltd. in the technology and manufacturing of wind turbine gearboxes. The international technical cooperation in design and man-ufacture for high-efficiency wind turbine gearboxes will also promote further cooper-ation between the two sides.

The two sides signed a strategic cooperation agreement and an international technical coop-eration agreement on 2 MW wind turbine gear-boxes, indicating that CNEG had restarted R&D and manufacturing of wind power products.

20


Progress Made in SINOMACH Heavy Industry Projects in the First Quarter

K2K3 Motor Shafts Completed and Shipped to Pakistan Successfully

Recently, the motor shaft for the K2K3 main pump of Karachi Nuclear Pow-

er Plant in Pakistan, undertaken by China National Erzhong Group Co. (CNEG), was successfully shipped. This is the third contract of nuclear power motor shaft of main pumps performed by CNEG, following the two con-tracts for Fuqing Nuclear Power Plant and Fangjiashan Nuclear Power Plant. Successful completion of this motor shaft on schedule indicates that CNEG has attained mass pro-duction capacity for motor shafts for nuclear power main pumps, and constitutes a convinc-ing key performance in its global initiative for marked development of nuclear power.

After the contract was formally signed, CNEG nuclear power project management

office quickly organized technical prepa-rations for analyzing the risks involved in its performance. Through full cooperation of various departments, the difficulties and risks in the production process were success-fully eliminated. Due to effective promotion and implementation of quality assurance measures, no nonconformity incident oc-curred in manufacturing the six motor shafts. Just as the client commented, “the strength

of CNEC in heavy equipment manufacturing was once again fully displayed.”

Main pumps have always been known as “the heart of nuclear power plants.” Their domes-tic manufacturing has been the bottleneck re-stricting the development of China’s nuclear power industry. The motors are the power center of main pumps, while the shafts are crucial to the operation of the motors.

The first 10,000 tons of rails were de-livered to Iran and the payment re-

ceived in full amount. The project is part of the contract signed last year for supply of 30,000 tons of rails. Via its implementation, the company accumulated valuable experi-ence and qualifications for the rest 20,000 tons of rails. Over 10 pieces of construction equipment were also successfully shipped to a project in Africa, including truck cranes, truck-mounted cranes, excavators, flat auto-

mobiles and forklifts and other products. At the same time, a glass cutter was also recent-ly shipped to Southeast Asia.

It is worth mentioning that substantial result has been made in another project in Africa. As of late March, contracts totaling 10.5 million euros in amount have been signed, covering machinery, vehicles, materials, and etc., with shipment expected to be completed in April.

In the first quarter, the China SINOMACH

Heavy Industry Corporation (SINOMACH

Heavy Industry) ushered in a good beginning

in operation, with marked progress in a

number of projects, laying the foundation

for achieving its annual goals.

21

TRADE AND SERVICES

The raw material vertical milling project for the clinker production line of KAR

Group Cement Plant in Qarachog with a daily capacity of 6,000 tons undertaken by China National Erzhong Group Co. (CNEG) in Iraq had been making steady progress since the launch of on-site installation in De-cember 2015. Recently, the main part of the installation was successfully completed.

The raw material vertical milling project in Iraq is the first export project undertaken by CNEG under arrangement by China Nation-al Heavy Machinery Corporation (CHMC), as well as the first project implemented by CHMC according to project management

Faced with worsening macroeconomic situation, continually shrinking market

demand and the trend of substantial decline in industrial vehicle industry, YTO (Luoy-ang) Transportation Machinery Co., Ltd. took proactive measures in response to dif-ficulties and challenges, and made a point of innovating its ideas and methods. Under the premise of ensuring the quality for products sold in the domestic market, it had continued to expand foreign markets. Its excellent qual-ity, prompt response in after-sales service and timely accessory supply had helped it obtain sustained and stable overseas orders.

The Main Part of Raw Material Vertical Milling Project Exported to Iraq Successfully Installed

YTO Forklifts Exported to Ethiopia

system since its foundation. The project team has from the moment of its establish-ment set great store by strengthening prog-ress and quality control, making possible delivery ahead of schedule, promoting the overall quality of CNEG vertical milling, thus guaranteeing quick and smooth progress in on-site installation. At the same time, the project team dispatched technicians with rich experience in installation and a strong sense of responsibility to the project site to assist with the installation. In merely three months, installation of the main body of the vertical mill was completed, laying the foundations for subsequent debugging.

YTO (Luoyang) Transportation Machinery Co., Ltd., is a forklift manufacturer special-ized in production and marketing of YTO Forklifts. Its products mainly include YTO rough terrain forklifts of 1.5 tons to 5 tons in capacity, internal combustion forklifts of 1.5 tons to 10 tons in capacity, gasoline and LPG forklifts of 2 tons to 3 tons in capacity, and battery forklifts of 1.5 tons to 3.5 tons in capacity. YTO forklifts can be found in many countries and regions creating a better life.

On March 14, YTO forklifts exported to

Ethiopia were shipped.

22


On April 11, Bauma (the International Trade Fair for Construction Machin-

ery, Building Material Machines, Construc-tion Vehicles and Equipment) was held in Munich, Germany. SINOMACH Heavy In-dustry attended the fair with its 957H wheel loader, PY220M grader and TTC055G1-II

On March 22-25, the international ex-hibition forum of the 19th Belarus

“Architectural Exhibition • Spring” and the Third Belarusian Expert Forum for the Construction Industry were held in Minsk, capital of Belarus.

China CAMC Engineer ing Co. , Ltd . (CAMCE) Office in Belarus and CAMCE Logistics Co., Ltd. (originally named as CAMC Transportation Co., Ltd.) attended the exhibition, demonstrated the strength of CAMCE in engineering, investment, trade and logistics, and further improved the pop-ularity of CAMCE in Belarus.

SINOMACH Heavy Industry Shines at Bauma 2016

CAMCE Attends Architectural Exhibition in Belarus

chinery and lifting machinery, and a perfect embodiment of its current strength in R&D and manufacturing. All three products can not only meet the needs of clients in the Chinese market, but can also be widely used in the western world for their strong adaptability, higher emission standards and energy-sav-ing and environmentally friendly qualities. They are representative of the current ad-vanced research and development ideas and cutting-edge technologies in domestic engineering machinery, and reflective of the initiative of “offering outstanding solutions throughout product life” implemented by SINOMACH Heavy Industry.

All three vehicles were ordered during the exhibition, waiting to be shipped after its close.

truck crane, catching the eyeballs of many visitors.

The products exhibited at the fair represent the latest technological achievements of SINOMACH Heavy Industry in the three areas of earth-moving machinery, road ma-

23

TRADE AND SERVICES

Recently, through fierce competition with over 100 top engineering design

and management companies from various industries across the country, No. 6 Institute for Project Planning and Research of Ma-chinery Industry Co. (SIPPR) successfully won four qualifications in industrial and civil construction for enterprises engaged in turn-key foreign aid project management, industrial and civil construction, agriculture and forestry for entities of turn-key (techni-

On March 1, Geely Automobile completed the testing of two vehicles in the natural environmental test station of State Key Laboratory of Environmental Adaptability for

Industrial Products (hereinafter: SKL), China National Electric Apparatus Research Institute (CEI) in Jeddah, Saudi Arabia. This is the first natural environmental testing undertaken by the first overseas environmental testing station of China and the first study on weathering re-sistance by an indigenous auto brand of China in overseas environment.

As an influential country in the Middle East, Saudi Arabia is a major export destination of equipment for China. Due to climatic and environmental reasons, phenomena of equipment failures have been prominent, making targeted research very urgent. After nearly one year of preparation, SKL built in Jeddah, an important node along the “Belt and Road,” China’s first overseas natural environmental test station, that is, the Tropical Desert Natural Environmen-tal Test Station along the Coast of Middle East (shortened as “Saudi Test Station”).

SIPPR Wins Four Foreign Aid Eligibilities

China's First Overseas Natural Environmental Test Station Completed to Boost Overseas Development of Chinese Automakers

cal assistance) project feasibility study, and housing construction for entities of inspec-tion and acceptance, making a milestone achievement 6 years after its engagement in foreign aid.

Covering all aspects of foreign aid projects, including project design and management, feasibility study and project approval, and project completion and acceptance, those qualifications are the result of unremitting

efforts by SIPPR in the field of foreign aid over 6 years. They are a manifest of SIPPR’s comprehensive strength in designing and managing foreign aid projects.

It is reported that Saudi Test Station cov-ers an area of 2,000 square meters. Fully equipped for collecting data on irradiance, ambient temperature and humidity, rainfall, corrosiveness, and other environmental indexes, it is capable of accommodating natural exposure test and relevant research for whole vehicles, parts and materials. It is the first overseas station independently built by China at a time when the “Belt and Road” Initiative gains full momentum. CEI will provide technical support for quality evaluation and targeted improvement for equipment exported by China to the Middle East.

24


CAMCE Lauded by Domestic and Overseas Media for Quake-Relief Efforts in Ecuador

Human, Material and Financial Resources Promptly Allocated for Disaster Relief

At 7:00 p.m. on April 16th, 2016, a magni-tude-7.8 earthquake rattled Ecuador. As of the afternoon of April 22nd local time, the earthquake had taken over 600 lives. Ac-cording to a presidential decree signed by the President of Ecuador, Ecuador entered a two-month state of emergency. Near the epi-center, Portoviejo City of Manabí Province was one of the hardest hit areas. It is also the site of Portoviejo Hospital Project undertak-en by China CAMC Engineering Co., Ltd. (CAMCE).

On the morning of April 17th local time, the construction team of Portoviejo Hospital

7.8Magnitude

Earthquake Rattled

Ecuador

As of the afternoon of April 22nd local time

At 7:00 p.m. on April 16th, 2016

Magnitude-7.8 earthquake rattled

The earthquake took over 600 lives

Project started rescue work in the city. At 11:00, the first batch of four digging ma-chines arrived at the rescue site. At 4:00 p.m., the second batch, including one digging ma-chine, 10 loaders, one crane and one small loader, was dispatched to three rescue sites in the city center, at the disposal of the local fire brigade.

For the whole day of April 17th, CAMCE engineers, both Chinese and Ecuadorian ones, were working in three groups. The first group was stationed at the temporary com-mand center to help make rescue plans. The second group joined hands with local disas-

25

SINOMACH OVERSEAS

ter relief department to inspect one by one all the buildings in the worst affected areas downtown, determine dilapidated buildings to be demolished, and draw a sketch map for the reference of relief agencies. The third group assisted the police in setting security zones, and proposed to close roads in high-risk areas to avoid secondary injury.

At the rescue site, the Chinese personnel were given the thumbs up by the local peo-ple and the police, who shouted: “Bravo, the Chinese.”

After the earthquake, Portoviejo City had suffered from blackout and cut-off water supply. All the shops were closed and ma-terial shortage was widespread. Most of the roads leading into the city collapsed, making it difficult to transport relief supplies. Seeing the great difficulty in rescue work under high temperatures, the hospital project team immediately donated its stock of over 300 bottles of drinking water and other supplies to the rescue team, in a bid to support the relief work.

At the same time, CAMCE actively prepared relief supplies in Guayaquil and Quito. At 5:00 a.m. on April 18th, the first truck loaded with drinking water, candles, biscuits, milk and canned food and other relief supplies set off from Guayaquil towards the rescue site in Portoviejo. Subsequently, a steady stream of supplies was transported to the afflicted area.

At the rescue site, the Chinese personnel were given the thumbs up by the local people and the police, who shouted: “Bravo, the Chinese.”

26

FOCUS POINTS PROJECT PROGRESS TRADE AND SERVICES SINOMACH OVERSEAS

Active Performance of CSR Wins Unanimous Praise from Chinese and Ecuadorian Media and Local Residents

CAMCE Project Standing Intact in the Post-quake Rubble Testifies to Supreme Engineering Quality

In addition to timely and heart-warming assistance to Ecuadorians afflicted by the disaster, CAMCE is particularly praisewor-thy for the quality of its projects, which withstood the test of earthquake. CCTV “Xinwen Lianbo (News Broadcast)” and “Live News” ran reports titled “‘Built by China’ Withstands Earthquake and Actively Launches Disaster Relief” and “Ecuador Rattled by Earthquake on Northwest Coast: the 911 Emergency Center Built by China Still Running” respectively. The “Evening News” Program of Ecuador TV reported the deeds of CAMCE in actively supporting the disaster relief via cooperation with the local government and people at all project sites,

CAMCE undertook the construction of seven 911 Emergency Command Centers in Ecua-dor, and none of the four centers located in the earthquake zone suffered any major structural damage. Although they had long past the warranty period, CAMCE nonetheless sent teams of professional engineers on the morning of April 18th to Portoviejo Emergency Command Center and Esmeraldas Emergency Command Center to conduct a comprehensive inspection, and volunteered to implement renovations after the earthquake.

The unfinished Portoviejo Hospital Project also survived the test of the earthquake without damages.

A local engineer said in an interview: “The anti-quake columns and beams in the quakeproof system of the hospital project are essential. They effectively prevented a collapse resulting from separation of walls from the body of the building as the ground shook violently in the earthquake.”

The other hospital projects undertaken by CAMCE in Monte Sinaíand Esmeraldas were also in good condition. In some cases, even the scaffolding was intact after the earthquake.

and allocation of a large number of machin-ery, equipment and personnel.

In the worst hit City of Portoviejo, a large number of houses collapsed or suffered se-rious damage; however, a three-story white building still standing became the gathering place for many homeless residents. That building is none other than the 911 Emergen-cy Command Center built by CAMCE for Ecuador. Later, it was made the temporary quake relief command center and press cen-ter. On the evening of April 17th, it was in the building that Rafael Correa the President of Ecuador made his first televised speech to the nation after the earthquake.

A local engineer said in an interview: “The anti-quake columns and beams in the quakeproof system of the hospital project are essential. They effectively prevented a collapse resulting from separation of walls from the body of the building as the ground shook violently in the earthquake.”

27

SINOMACH OVERSEAS

The Spirit of Charity Passed on—Blood Donation Organized by CAMCE Ecuador Branch

On May 24, 2016 local time, a blood dona-tion vehicle of Ecuadorian Red Cross arrived at the project site of the Ecuadorian govern-ment’s financial management platform. Staff of CAMCE Quito Branch, the project team of the financial management platform and subcontractors attended the event together.

Registration, screening tests, blood sam-pling... the event proceeded smoothly, as Yang Liang, General Manager of No. 5 Engineering Department, and Wang Xiang, manager of Ecuadorian government’s fi-nancial management platform took the lead. A total of 197 blood donors participated in the charitable cause. The principals entrust-ed with the management of this event by the Ecuadorian Red Cross expressed their sincere gratitude to employees of CAMCE Ecuador Branch for their selfless dedication.

After the earthquake, CAMCE launched a comprehensive inspection of damages to all projects, including completed ones and those under construction, according to pro-fession and work surface. The main-body structure of all projects was stable and the overall architecture intact. No casualties were reported from project sites in Ecua-dor. The projects undertaken by CAMCE had withstood the test of the magnitude-7.8 earthquake and offered strong professional guarantee for post-earthquake relief efforts, winning the praise of the local government and the mainstream media in China and

Ecuador, showing the strength of “Built by China,” and burnishing the favorable image of Chinese enterprises exercising the strate-gy of “going global.”

The mystery was unveiled by the remarks of

Project Manager Xiao Tiekui, who said in an interview by reporters, “We have taken into full consideration of the anti-seismic re-quirements at the beginning of architectural design, which was carried out according to the most stringent quake-proof standards in Ecuador.”

Aware of the fact that Ecuador was situated in an area susceptible to earthquakes, engi-neers of the project fully considered the an-ti-seismic factor at the beginning of project design. CAMCE had vowed to put the safety of life and property first, and kept its words.

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FOCUS POINTS PROJECT PROGRESS TRADE AND SERVICES SINOMACH OVERSEAS

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SINOMACH OVERSEAS

VOL.36NO.2 Jun. 2016

Documents

NO.2 Jun. 2016 · K2K3 Motor Shafts Completed and Shipped to Pakistan Suc-cessfully Progress Made in SINOMACH Heavy Industry Projects in the First Quarter The Main Part of Raw Material