no.1 mar. 2016 · rated as class a in central enterprise performance appraisal ... cern to previous...

VOL.35NO.1 Mar. 2016

SINOMACH VOICE

In 2015, the operating revenue of SINOMACH international op-erations reached RMB 176.4 billion, and the total profit RMB 7.1

billion, up by 19% and 37% respectively in comparison with 2011, and accounting for more than half of its total revenue and profit respectively.

Over the past year, SINOMACH achieved one success after another in overseas markets. Seizing overseas market opportunities brought about by the “Belt and Road” Initiative and the China-Pakistan Economic Corridor, it innovated the business model of engineering contracting, promoted transformation and upgrade of engineering contracting via “EPC +”, and forged a number of high-profile star projects.

Construction of the China-Belarus Industrial Park, a symbolic and strategic project of the Silk Road Economic Belt, was implemented phase by phase according to schedule. Investment promotion, park management and other work were launched smoothly and made a priority by head of state from the two countries. Thar Coal-Power Project, the first coal-power integration project in China-Pakistan Economic Corridor, had reached the stage of financing, ushering in a new concept for energy cooperation between the two countries. Tatay Hydropower Plant, the largest level-one hydropower station invested and built by a Chinese enterprise in Cambodia and the first

overseas BOT project of SINOMACH, officially began commercial operation. With an annual generating capacity of 900 million kWh, it will play an important role in the economic and social develop-ment and poverty eradication of Cambodia.

In the same year, SINOMACH continued to strengthen internal coordination, developed and promulgated the implementation pro-gram for “Agricultural Going Out” and strengthened its business in agricultural equipment. Its plan to double export was over-fulfilled. Last year, export of SINOMACH products exceeded $ 600 million, exceeding the target by 27%. Its non-entity operating was upgrad-ed, and agreements for a number of engineering contracting proj-ects were signed, with total contract amount exceeding $ 2 billion; efforts were being made to follow up over 20 projects, more than doubling the target set at the beginning of the year.

In the long term, SINOMACH will pursue balanced and optimal distribution in business structure, income structure, asset structure and personnel structure on a global scale, participate deeply in overseas strategic asset allocation, gain access to markets, brands, channels, technology, personnel and other high-end resources through investment, mergers and acquisitions etc. and promote the transformation from “product export” to “capital export” so that overseas assets may contribute to half of its revenue.

YOUR RELIABLE PARTNER Continue to Promote the Development of "A New SINOMACH Overseas"Ren Hongbin Chairman of SINOMACH

1

Three Main BusinessR&D and ManufactureProject ContractingTrade and Services

Market PositionRanked 278th 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 Weiyang

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

SPECIAL PLAN

FOCUS POINTS

PROJECT PROGRESS

TRADE AND SERVICES

SINOMACH Chairman Ren Hongbin Appointed Chair of B20 China Infrastructure Taskforce

B20 Summit to Be Held in Hangzhou, China, in September 2016

The Key to the Problem Is Communication

About the B20 Infrastructure Taskforce

04

05

06

07

22

22

22

23

26

26

27

08

12

13

14

Ecuadorian President Correa Attends the Completion Ceremo-ny for Samanes National Park Construction Project (Phase 1)

A Delegation Headed by Governor of Cochabamba Province of Bolivia Inspects Misicuni Dam Construction Project Un-dertaken by CAMCE

Governor of Zaire Province Inspects Cuimba Agro-industrial Farm Project in Angola Undertaken by CAMCE

CMEC Signs Contract for Kipeto Wind Farm Project in Kenya

First Set of Marine Cryogenic Pressure Container for Export Smoothly Shipped

SINOMACH Heavy Industry Ushers in New Year Busy Shipping Equipment

SINOMACH Heavy Industry Receives Two Orders in the New Year

Achievements of SINOMACH in 2015

Who Do the Company Managers Meet with?

CHMC Signs Contract for Coal-Power Integration Project in Laos, Worth about $ 2.1 Billion

First Coal-Power Integration Project of the China-Pakistan Economic Corridor Launched

Four Projects of SINOMACH Awarded National Prize for Progress in Science and Technology and State Technological Invention

SINOMACH Visits Iran for Business Opportunities Along the “Belt and Road”

First CPR1000 Forging Surge Lines Successfully Developed by CNEG

China-Belarus Industrial Park Ready for Admission

China’s Gross Import and Export Value Reached RMB 24.59 Trillion in 2015

China Sets 2016 GDP Growthat 6.5%-7%

15

16

17

18

20

21

SINOMACH Chairman Ren Hongbin Appointed Chair of B20 China Infrastructure Taskforce

B20 Summit to Be Held in Hangzhou, China, in September 2016

On January 26, 2016, the B20 China Kick-off Meeting was held in Beijing. Ren Hongbin,

Chairman of China National Machinery Industry Corporation (SINOMACH), attended the

meeting as chair of the B20 Infrastructure Taskforce, and presided over its group meeting,

briefing the honored guests with the basic information of the Taskforce.

The 2016 B20 Summit is scheduled to be held in early September in Hangzhou, Zhejiang,

marking the debut of this event in China.

Ren Hongbin noted that the topics of the Taskforce will be focused on three

areas: first, improvement of issues related to investment policies on infrastructure. "In this area, private enterprises are more active. They are more concerned about how the pol-icies could be made more transparent, so that they could invest in infrastructure. Mean-while, they hope that policies on infrastruc-ture investment of various countries could be made more stable, so as to improve their confidence and avoid losses to investors."

Second, innovation in financing for infra-

their representatives respectively expressed their views on the six topics proposed by the Taskforce and offered valuable suggestions. Subsequently, those topics were actively discussed by participating members of the Taskforce one by one.

At last, Ren Hongbin concluded the tele-conference, saying that the Taskforce will continue to uphold the positive attitude, to extensively collect policy recommendations from the business and industrial sectors around the world and submit them to the G20 Summit, for the reference of G20 lead-ers in decision-making, so as to make greater contributions to global economic governance and formulation of international economic and trade rules.

As a major supporting activity for the G20 mechanism, B20 is an important platform for the international business community to participate in global economic governance. Its main task is to study major issues in global economic development, summarize the observations and recommendations of the business sector, and submit policy rec-ommendations to the G20 Summit, so as to promote robust, sustainable and balanced growth in global economy from the perspec-tive of the business community.

structure investment, primarily in business model, and “the hot topic is Public-Pri-vate-Partnership (PPP).”

Third, measures to effectively give play to the function of multilateral banks and mul-tilateral organizations, so as to promote in-frastructure construction and narrow the gap between needs and investment.

On February 22, 2016, the first teleconfer-ence of B20 China Infrastructure Taskforce was convened, hosted by Ren Hongbin, the Chair. During the meeting, the co-chairs or

This year, the B20 will focus on a total of six topics, including financing growth,

trade and investment, infrastructure, SME development, employment and anti-corrup-tion. Aside from Infrastructure Taskforce, which is chaired by SINOMACH Chairman Ren Hongbin, the rest taskforces are as follows: Trade and Investment Taskforce, chaired by Ning Gaoning, former chairman of China Oil & Foodstuffs Corporation (COFCO); Employment Taskforce, chaired by Robin Li, chairman of Baidu; SME De-velopment Taskforce, chaired by Jack Ma, chairman of Alibaba; Financing Growth Taskforce, chaired by Miao Jianmin, presi-dent of China Life Insurance (Group) Com-pany (China Life).

Over the years, the topics of B20 have been well adapted to the themes of G20 Summit, covering financial system reform, trade, investment, energy, infrastructure, employ-ment, anti-corruption and other hot issues of global economic development. B20 gath-ers through working group meeting policy recommendations from the business sector

and submits them to the G20 Summit, so as to provide reference for G20 leaders in decision-making. Many G20 Summit lead-ers have attended the previous B20, and discussed policy recommendations with rep-resentatives from the business sector. Since 2010, B20 has submitted to the G20 Summit over 400 policy recommendations in total. Those recommendations were highly valued by the G20 leaders and some were included in the G20 Summit communiques.

There are 14 major events for the B20 of 2016. Aside from the launching ceremony, joint taskforce conferences are to be held in Washington and Paris, in April and June respectively. In addition, B20 will carry out policy dialogues with G20 Coordinators’ Meetings, Finance Ministers and Central Bank Governors Meeting, and sector minis-ter meeting, to truthfully relay the aspirations of the international business community. On this basis, the B20 Policy Recommendations Report will be formulated and submitted to the G20 Summit.

Chaired byRen HongbinSINOMACH Chairman

Chaired byNing GaoningChairman of China Oil & Foodstuffs

Corporation (COFCO)

Chaired byRobin LiChairman of Baidu

Chaired byJack MaChairman of Alibaba

Chaired byMiao JianminPresident of China Life Insurance (Group) Company (China Life)

Infrastructure Taskforce

Trade and Investment Taskforce

Employment Taskforce

SME Development Taskforce

Financing Growth Taskforce

54

FOCUS POINTSSPECIAL PLAN SPECIAL PLANPROJECT PROGRESS TRADE AND SERVICES

About the B20 Infrastructure TaskforceThe Key to the Problem Is Communication

Background information

Infrastructure is one of the main topics of con-cern to previous G20 Summits, and the focus of

attention for the international business community. Currently, the global economy is undergoing pro-found adjustment, necessitating countries to jointly foster new economic growth points and competitive advantages. All countries have reached a consensus on promoting infrastructure construction, acknowl-

In today’s economic world there are factors affecting the development of world econo-

my, including trade protectionism, the imbal-ance of economic development, regional con-flicts and the pressure of the downturn of the economy. I believe the key to the problem is communication, the communication among governments and between governments and business communities. Solution could be found through those communications.

B20 is a platform and serves as a bridge con-necting businesses, national leaders and pol-icy makers. B20 has the ability to cut across geographical boundaries and industry silos to exchange knowledge, and know-how. The voice of the B20 is powerful as the work fo-

Leadership of the Infrastructure Taskforce

Question and Answer

edging that the endeavor will not only lead to new economic growth points, but consolidate the founda-tions for their future development. In 2016, the B20 will uphold the priorities of previous B20 Infrastruc-ture Taskforces to further discuss ways to improve policy environments for infrastructure investment and encourage increased investment in infrastructure projects.

cuses on aligning private concerns with pub-lic interests. Yet its message remains simple: solving today’s toughest growth challenges relies on the shared commitment, continued coordinating, and hard work of both govern-ments and business communities

At present, the world economy and inter-national economic cooperation come to an important turning point. To lead the world out of economic downturn and boost a new round of economic growth depends on our common choice and consorted efforts.

The vitality of the world economy is one of the greatest concerns of the G20, and there-fore, the B20. In previous B20, it has played

an important role in providing advocacies for the leaders of G20, thus making great contri-butions to the world economy.

So, let us hope, from this robust platform, the B20 2016 can redouble our efforts to un-lock some constraints to the growth of world economy.

Being the chair of 2016 B20 Infrastructure Taskforce, what do you think the Taskforce should do for the B20 China?

Q:

A: B20 China should build on the pre-vious efforts of B20 to continue to

deliver incremental changes. To be more practical and efficient, I think we should:

Draw upon each other’s expertise, as leaders in different geographies, industries & sectors;

Have open & honest discussions about the challenges we are facing in each of our busi-nesses;

Be practical and focus on the most import-ant problems that impact many businesses

across the majority of countries; Keep an eye out for things we have missed,

emerging issues that require our action, and new and innovative solutions to old problems.

2016 will be a lucky year for infrastructure. The last 18 months have seen the launch of several new and exciting actors on the global infrastructure stage, such as the AIIB, the GIH, the GIF, and the Green Climate Fund.

This morning, in the infrastructure taskforce

kick-off events, we received many insightful inputs on improving infrastructure invest-ment policy environment, innovation in infrastructure financing, enhancing effective-ness of multilateral development banks & institutions from our taskforce members.

I strongly believe, with the efforts of all task-forces and together with my esteemed col-leagues, B20 China can definitely contribute to an innovative, invigorated, interconnected and inclusive world economy.

Thank you!

ChairRen HongbinChairman of Sinomach

Co-ChairLiu Zhenya

Chairman, State Grid Corporation of China (SGCC)

Co-ChairHans Paul Bürkner

Chairman, Boston Consulting Group (BCG)

Co-ChairKirill DmitrievCEO, Russian Direct

Investment Fund (RDIF)

Co-ChairMarcus WallenbergChairman of Skandinaviska

Enskilda Banken (SEB)

Co-ChairSam Walsh

CEO, Rio Tinto Group

Co-ChairJohn Beck

Chairman, Aecon Group Inc.

Co-ChairLu Ma

Vice President, State Power Investment Corporation (SPIC)

Co-ChairFu Chengyu

Ex-Chairman, China Petrochemical Corporation (Sinopec)

Ren Hongbin Chairman of SINOMACH

76

FOCUS POINTSSPECIAL PLAN SPECIAL PLANPROJECT PROGRESS TRADE AND SERVICES

Achievements of SINOMACH in 2015

Development during the "Twelfth Five-year Plan" Period

Achievements during the "Twelfth Five-year Plan" period

Significantly enhanced competitive edges

2011

2015

Annual revenue grew by 7.9% on average from 2011 to 2015

Ranked 288 in the World's Top 500 Enterprises

288Ranked

SINOMACH as a whole achieved a total profit of RMB 8.3 billion; the original SINOMACH (excluding China National Erzhong Group, referred to as CNEG) achieved

a profit of RMB 8.5 billion, up by RMB 60 million, while CNEG achieved a substantial re-duction in losses from RMB 8.4 billion in 2014 to RMB 48.56 million in 2015 through debt restructuring, making up deficits and shaking off predicament, etc. SINOMACH achieved RMB 4.1 billion in EVA, up by RMB 3.05 billion in comparison with the previous year, and turned over RMB 12 billion in taxes. It was rated Class A in performance evaluation by SA-SAC (State-owned Assets Supervision and Administration Commission of the State Council) for the seventh year on end.

1. Market expansion implemented in an orderly manner

Launched innovation of development model, signed strategic cooperation memorandum with GE the US company to jointly promote clean energy projects in Africa, with substantial cooperation in a host of projects, including the gas turbine power plant in Nigeria, the wind power project in Kenya.

2. Major projects steadily implemented

The China-Belarus Industrial Park was conscientiously advanced. Specialized departments were established at SINOMACH headquarters to strengthen project tracking and manage-ment; and China Merchants Group was invited to invest in China-Belarus joint-venture com-panies; efforts were stepped up to promote investment, 23 investment promotion conferences were held, receiving at the Park over 100 delegations from home and abroad; heads of state from China and Belarus visited the project site, speaking highly of the project.

3. Promotion of internal coordination continued

The number of companies participating in internal cooperation reached 35, generating con-tract amount of RMB 4.2 billion, RMB 1.8 billion of which had been completed. Six enter-prises launched cooperation with CNEG, signing contracts amounting to RMB 3 billion, and achieving synergetic turnover of RMB 1.86 billion.

In 2015, export of SINOMACH manufactured products reached RMB 639 million, exceed-ing the plan by 33%.

Non-entity operation was strengthened. The contracts were signed for Cameroon Water Company, a power plant in Serbia and a power transmission project in Côte d’Ivoire, totaling $ 2.33 billion. And 25 projects are currently being tracked.

4. Efforts stepped up to save costs and improve efficiency

YTO Group Corporation (YTO): Cost-optimization was enhanced and strict budget manage-ment launched. Annual benefits from reducing cost and improving efficiency reached RMB 140 million, meeting 140% of the annual target.

Hefei General Machinery Research Institute (HGMRI): Pursued cost reduction in the entire process of production and operation, covering R & D, material procurement, business recep-tion, energy conservation, and risk prevention, and achieved remarkable results.

Grew by 7.9% on average

SUMEC: Newly signed contracts for 16

photovoltaic power plants, with installed

capacity of 500MW, and total investment

of RMB 4.28 billion.

CMEC: Combined-cycle power plant in

Angola, with a contract amount of $ 985

million.

CAMCE: A sugar plant project in Ethiopian,

with a contract amount of $ 647 million.

China-Belarus Industrial Park: Eight

companies have signed admission

agreement, and 21 more submitted

agreement text for intent of admission.

Tatay Hydropower Station in Cambodia: Officially put into commercial operation,

reaching designed operation capacity,

expected to achieve an annual profit of

RMB 200 million.

The number of companies participating in internal cooperation reached 35

Generating contract amount of RMB 4.2 billion, RMB 1.8 billion of which had been completed

35 Companies

RMB 1.8 billion

Profit RMB 8.3 billion

Losses RMB 48.56 million

Up byRMB 60 million

From RMB 8.4 billion

98

FOCUS POINTSFOCUS POINTSSPECIAL PLAN PROJECT PROGRESS TRADE AND SERVICES

International Operations Fruitful

Exceeding the Plan of Doubling Exports

Create a New SINOMACH Overseas

Overseas projects and agencies

The "Belt and Road" Initiative

Recognition

433Projects

35Countries

36.5Billion USD

270Projects

186Enterprises & institutions

18Billion USD

433 projects being implemented

35 project hostcountries

$ 36.5 billion in total contract amount

270 projects being implemented

186 overseas enterprises and institutions

$ 18 billion in total contract amount

At the end of 2015, SINOMACH

was recognized by the

National Development and

Reform Commission (NDRC) as

a backbone enterprise qualified for undertaking international capacity cooperation mechanisms in countries with key partnership with China. Some of its

projects were set as priority

projects.

First, promote international cooperation in capacity and equip-ment manufacturing.Efforts will be stepped up in implementing the “Belt and Road” Initiative, and focus placed on overseas business expansion in countries along the “Belt and Road”. Efforts will also be made to help products, tech-nologies, standards and services go global and to compete in the international market in an orderly manner, and to proactively participate in project construction, in infra-structure interoperability, energy resources cooperation, industrial investment, and overseas construction of industrial parks. SINOMACH will draw on its own advan-tages and the overseas market demand to promote export of heavy equipment, agri-cultural and forestry machinery, engineering machinery, basic components and parts, smart manufacturing equipment, and green equipment for emerging industries. It will re-double its efforts in developing international engineering contracting business in electrici-ty, transportation, agriculture, forestry, water conservancy, public utility projects and other areas, to assist with Chinese equipment, including SINOMACH products in its bid to go global, via engineering contracting.

Second, promote upgrade of internationalized business.

SINOMACH will constantly optimize its structure, innovate its ways and means, and extend the breadth and depth of its business, to promote upgrade of its internationalized business from low-end to high-end in the industrial chain, and to offer high value-add-ed products and services. It shall continue to implement the non-entity operation model, redouble its efforts to promote the “going global” efforts of relevant research institutes, design institutes, construction companies, and equipment manufacturing enterprises, and prioritize science and technology ser-vices, to nurture new profit growth points. It shall vigorously consolidate the traditional international business market. While fully tapping the traditional markets in Asia and Africa, it will step up the efforts in develop-ing the markets of emerging economies and expanding the high-end markets of European and American countries. By optimizing its distribution in the global market and upgrad-ing its business, SINOMACH will continu-ally improve the scale, quality and efficiency of its international operations.

Third, promote innovation of international business model.

SINOMACH will explore combination of project contracting with direct investment, project construction with operation service, and infrastructure with industrialization. It shall actively promote China-Belarus Industrial Park and other key projects, steadily carry out foreign direct investment in equipment manufacturing and engineering service, effectively promote business model innovation in agricultural “going global” projects, so as to create a favorable pattern of synergetic development in export and import, international project contracting, foreign investment and operation and other businesses.

2.43.1

3.5

5.24.8

6.46.7

3.8

Base Planned objectives Annual targets

Unit: US $ 100 million

Actual completion

2012 2013 2014 2015

Vanguard Key Companies Internal cooperation Broad prospects

CMEC, $ 72.08 million YTO, China SINOMACH Heavy Industry Corporation

(SINOMACH Heavy Industry), China CAMC Engineering

Co., Ltd. (CAMCE), SUMEC Group Corporation (SUMEC),

China National Electric Apparatus Research Institute Co.,

Ltd. (CEI), Chinese Academy of Agricultural Mechanization

Sciences (CAAMS)

Over three years,

export via internal

cooperation totaled $

250 million.

The "Belt and Road"

Initiative, international

capacity cooperation,

Made in China 2025

Promote international cooperation in capacity and equipment manufacturing

Promote upgrade of internationalized business

Promote innovation of international business model

Offer financial support to subsidiaries in overseas mergers and acquisitions

Business structure

Personnel structure

Income structure

Asset structure

Market

Channels

Talent

Technology

Brand

Capital exportProduct export

1110


Who Do the Company Managers Meet with?

CHMC Signs Contract for Coal-Power Integration Project in Laos, Worth about $ 2.1 Billion

Xie Biao Meets with Zafaruddin Mahmood, Envoy for China-Pakistan Economic Corridor of Pakistani Embassy to China

Ding Hongxiang Meets with Delegation of ENGIE Group

Ding Hongxiang Meets with Baade , President of FINOBA

Liu Jingzhen Meets with Sami, Chairman of the National Investment Commission of Iraq

Date: January 22, 2016


Date: December 21, 2015


Topic of discussion: The two sides discussed efforts to further expand SINOMACH trade and invest-ment cooperation in Pakistan, taking advantage of the opportunities presented by the “Belt and Road” Initiative.

Topic of discussion: ENGIE Group was renamed from the GDF-SUEZ Group in 2015. As a global professional operator of energy resources, ENGIE Group is mainly engaged in electricity, natural gas and energy services. The two sides discussed issues related to joint promotion of the coastal power plant in India.

Topic of discussion: The two sides discussed cooperation in development and manufacture of auto parts and other related areas.

Topic of discussion: The two sides discussed promotion of airport construction projects in Iraq.

On March 17, China National Heavy Machinery Corporation (CHMC)

signed in Vientiane, the capital of Laos, with the Electricite du Laos (EDL) the EPC contract for Sekong Coal-Power Integration Project, with a contracted amount of about $ 2.1 billion.

The coal-power integration project is located in Sekong Province in South Laos, and its construction projects include a coal mine with an annual production capacity of 3 mil-lion tons and a pit-head power plant with a total designed installed capacity of 700 MW to be furnished by two 350 MW generator units. To be completed over 48 months, the construction will be implemented with com-mercial loans from the Export-Import Bank of China. The project is not only the over-seas EPC project with the largest contracted amount for a single project undertaken by CHMC, but also the EPC project in contract-ed amount in Laos.

According to the Power System Develop-ment Planning (2015 – 2025) formulated by Laos (EDL), as well as the country’s grow-ing demand for electricity, the electricity de-mand of Laos is estimated to grow by about 16.6% annually. It is currently mainly reliant on hydropower, of which a considerable part is from run-of-the-river hydropower stations without reservoir. In dry seasons, the gener-

ation capacity can reach only 20% to 40% of the installed capacity, causing power short-ages in urgent need of alleviation. To im-prove this situation, EDL planned to develop of “Sekong Coal-Power Integration Project.”

CHMC began tracking this project in 2014, actively participating in and organizing proj-ect site visits, geological exploration, fea-sibility report formulation and other work. After its completion, the project will provide Laos with a stable baseload, effectively improve the situation of power shortage in the dry season, benefit the safe operation of its national grid, better meet its demand for electrical energy, effectively promote local economic and social development and ex-ert positive influences for Laos and certain

ASEAN countries.

Meanwhile, it will also furnish state revenue for the local government and create numer-ous jobs, effectively promoting local social and economic development.

The project has been listed as a priority project in the “eighth five-year plan” of the Lao government, and included in the list of the “Belt and Road” projects applied by the country with China.

It is reported that CHMC will also be the general contractor for the 500 kV outgoing lines and substations of this project, securing outbound transmission of electricity in the future.

1312


First Coal-Power Integration Project of the China-Pakistan Economic Corridor LaunchedFinancing Agreements Signed for Thar Mining and Power Project in Pakistan of CMEC

Four Projects of SINOMACH Awarded National Prize for Progress in Science and Technology and State Technological Invention

On December 21, 2015, China Machin-ery Engineering Corporation (CMEC)

signed financing agreements with Pakistan Initiators led by the Engro Corporation, the bank consortium led by China Development Bank, and its Pakistan counterpart led by Habib Bank Limited, for Thar Coal and Power Projects in Pakistan, officially setting in motion the first coal-power project in the China-Pakistan Economic Corridor, a flag-ship project of the “Belt and Road” Initiative.

On the ceremony, Xie Biao, Deputy General Manager of SINOMACH, said: “35 years before, CMEC started its overseas contract-ing projects in Pakistan; after 35 years, it created a new pattern of development with the Thar project. In response to the require-

The research project “Key Technologies of Load Spectrum for 22 Models of Aircraft and Their Application” chaired by Yan Chuliang, academician of Chinese Academy of Sciences and director of Beijing Aircraft Strength Research Institute of SINOMACH, successfully solved a host of key technologi-cal problems and made possible using one aircraft for flight load spectrum measurement, fleet life determination and extension, and guarantee of flight safety. The research findings have been adopted in determination and extension of the service life of thousands of aircraft and in reliability design for new models of aircraft, substantially increasing the safe life for series of aircraft in China, and generat-ing significant economic, social and military benefits. They have provided technical support and guarantee for flight safety of series of aircraft.

ments of ‘The Belt and Road Initiative’, CMEC implemented ‘Three Combinations’, that is, combination of general project con-tracting and investment, combination of general project contracting and operation, and combination of engineering construction with local economic development, obtaining steady development for CMEC, and promot-ing the economic development of the host countries.”

Thar Block II Mining and Power Project signed here is a priority project of the two countries, involving a total investment of over 2 billion US dollars. It is the first coal-power integration project in the Chi-na-Pakistan Economic Corridor and the first of its kind throughout Pakistan.

In recent years, electricity demand in Pa-kistan has continued to grow with its eco-nomic development. However, Pakistan is highly dependent on imported natural gas and oil for power generation, imposing an increasingly heavy burden on the govern-ment. Currently, 64.99% of its electricity is provided by imported oil / high-speed diesel and natural gas, 30.37% by hydropower, and 4.22% by nuclear power, with less than 0.1% by coal-fired power plants. The Pakistani government is committed to using domestic resources such as coal for power generation; those resources have not yet been fully uti-lized in the past.

The signing of this agreement will facilitate the efforts of Pakistan in replacing imported oil with domestic resources (coals) and pur-suing balance of international payments. It will significantly improve the current mining industry, which is generally underdeveloped, help ease the tension between electricity supply and demand, and create a benchmark for integrated development of coal and elec-tricity in Pakistan. Infrastructure construc-tion will improve the overall appearance of the Thar region, directly or indirectly pro-vide jobs for the poor residents of Thar, and improve the local economic situation.

The “12,000-ton stretcher for aircraft-grade aluminum sheets” completed by China National Heavy Machinery Research In-stitute Co., Ltd. (SINO-HEAVY-MACH) as the lead unit is a major breakthrough in alumi-num slab production technology and equipment, making China’s ten thousand-ton stretcher of heavy-duty aluminum slabs grow out of nothing. It put an end to restrictions from depen-dence on imports for aluminum slabs, providing a strong guar-antee of raw materials for the manufacture of large aircraft.

“Full hydraulic drilling equip-ment and critical apparatus for geological core under 2,000 meters” completed by Wuxi Drilling Tools Factory Co., Ltd. as the third lead unit, has been widely used in China and ex-ported to over 20 countries and regions, occupying 70% of the market for full hydraulic geolog-ical core drilling rigs in China. The research finding has reached world advanced level as a whole and world leading level in some aspects and has repeatedly created world records in drilling technology. It established the technological system for geolog-ical core drilling within 2,000 meters, turning China from an importer of full hydraulic core drilling rigs into an exporter. In the last three years, it has attained RMB 1.669 billion in direct economic benefits.

On the morning of January 8, the National Science and Technology Award Conference was held in Beijing,

and four prizes were awarded to four companies under SINOMACH, including one second prize for

technology invention, and three second prizes for scientific and technological progress.

“Key technologies, set equip-ment and industrialization of control system of supersize water turbines” completed by Tianjin Research Institute of Electric Science Co., Ltd. as the sixth lead unit effectively solved the technical problems in the field of speed regulators, leading the international advanced level.

Key Technologies of Load Spectrum for 22 Models of Aircraft and Their Application

Full hydraulic drilling equipment and critical apparatus for geological core under 2,000 meters

12,000-ton stretcher for aircraft-grade aluminum sheets

Key technologies, set equipment and industrialization of control system of supersize water turbines

1 2 3 4

1514


SINOMACH Visits Iran for Business Opportunities Along the "Belt and Road"

First CPR1000 Forging Surge Lines Successfully Developed by CNEG

From January 22 to 24, Liu Jingzhen, SINOMACH Deputy General Manag-

er, SINOCONST Chairman, and chairman of China Ocean Aviation Group Limited (COAG), led a delegation to Iran. Liu Jing-zhen and his entourage successively visited Iran Water & Power Resources Company (IWPC), Thermal Power Plant Holdings (TPPH), Ministry of Roads & Urban Devel-opment and Farab the engineering company. Iran is faced with changing international situation and an important country along the “Belt and Road”. New developments are expected for China and Iraq to cooperate in energy, railways, roads, ports, mining, com-munications and other fields.

At IWPC, Liu Jingzhen met with its presi-dent Mohammadreza Rezazadeh, and had in-depth exchanges with him on the cooperative hydropower project in Azad. Liu introduced to Mohammadreza Rezazadeh in detail of the world-class construction strength of SINOMACH, its strong financing capability and representative projects. And Moham-madreza Rezazadeh said that SINOMACH had rich experience in construction of inter-national projects and very good reputation

On January 13, the four forging surge lines for CPR1000 regulator produced

by China National Erzhong Group (CNEG) for No. 5 generator unit of Yangjiang Nucle-ar Power Station were shipped from here to their installation site at Guangdong Yangji-ang Nuclear Power Station.

Those are the first set of forging surge lines domestically manufactured for CPR1000 regulators. From preparation of materials to completion, the manufacturing process took a mere 8 months, setting a domestic record in manufacturing a major nuclear power device. Experts of the industry said their successful development was of great signif-icance, not only meeting the urgent needs of domestic clients and filling a gap in nuclear power localization, but also indicating that China’s capacity for producing coolant pipes exclusively for nuclear power had reached world advanced level. At the same time, it

in the international market; he also said that in the new situation, Iran had enormous po-tential in energy and infrastructure construc-tion, and that there were broad prospects for cooperation with powerful corporations like SINOMACH, and that he looked for-ward to continued cooperative relations with SINOMACH.

At TPPH, Mohsen Tarztalab, president of the company, told the delegation that TPPH had resultant from Iranian Power Development Company (IPDC) via restructuring, a pro-cess that expanded the company’s business

scope in order to better perform the duty of providing Iran with quality energy resources. He also expressed the wish of large-scale cooperation with SINOMACH.

At Ministry of Roads & Urban Develop-ment, Liu Jingzhen met with Noorzad the Deputy Minister. The two sides discussed in-depth the railway project that SINOCONST had been contending for.

At Farab, Liu Jingzhen met with Mehren Lotfi, president of the company. The two sides expressed the hope that as partners in the Iranian market they might give full play to their advantages to quickly advance the process of cooperative projects, and continue to search for more cooperation opportuni-ties in energy and infrastructure, so as to promote local economic development, and contribute to the efforts of Iran in economic and social development.

Connecting the main channel and the regula-tor of nuclear power plant reactor, the surge line is so named because it is intended for buffering the thermal shock in the coolant of the primary loop and the fluctuating stress from the water hammer. It is the first-class safety equipment for nuclear power plants and first-class seismic-proof equipment. The CPR1000 regulator forging surge lines pro-duced by CNEG for China General Nuclear Power Engineering Co., Ltd. were the result of innovation in manufacturing technology. Mature and stable, they will provide a reli-able guarantee for the safe and stable opera-tion of No. 5 generator unit of the Yangjiang Nuclear Power Station.

Over recent years, CNEG has successfully developed the AP1000 main pipes and surge lines for Sanmen Nuclear Power Station, and Haiyang Nuclear Power Plant. It has also un-dertaken the manufacture of main pipes for a demonstration power plant of State Power Investment Corporation (SPIC), Lufeng Nuclear Power Plant and other domestic nu-clear power plants, as well as those of Hua-long One ACP1000 for the Karachi Nuclear Power Plant (KANUPP) in Pakistan. It has been the largest domestic supplier of coolant main pipes and surge lines for CPR1000, and AP1000, ACP1000, CAP1400, the 3-gen-eration nuclear power plants, with product quality and manufacturing capacity leading the country.

New developments are expected for China and Iraq to cooperate

in energy, railways, roads, ports, mining, communications and other

fields

Iran is faced with changing international situation and an important country along the "Belt and Road"

Their successful development was of great significance

8Months

Setting a domestic record in manufacturing a

major nuclear power device

The manufacturing process took a mere 8 months

But also indicating that China's capacity for

producing coolant pipes exclusively for nuclear

power had reached world advanced level

It demonstrated the equipment manufacturing

capacity of CNEG

Ushered in a new chapter for its long-term

cooperation with China General Nuclear Power

Corporation (CGN)

demonstrated the equipment manufacturing capacity of CNEG, highlighted its status as a manufacturer of nuclear coolant pipes, and ushered in a new chapter for its long-term cooperation with China General Nuclear Power Corporation (CGN).

1716


China-Belarus Industrial Park Ready for Admission

On March 20, 2015, construction of a starting area measuring 3.5 square kilometers was

implemented; on May 12, Chinese President Xi Jinping and Belarusian President Alexander

Lukashenko inspected the project site of the China-Belarus Industrial Park.

Marked progress was made in investment promotion, and 8 companies signed admission

agreements.

Investment Promotion Efforts Redoubled in 2015

Targets Set for Infrastructure Construction in 2016

Preliminary Agreement Reached with Belarus for Amending the Presidential Decree

Extensive investment promotion activities held for the Park

In 2015, China National Machinery Industry Corporation (SINOMACH) held in China and Belarus 23 investment promotion events, attracting over 1,000 participants from more than 700 companies.

Interaction with various governmental and corporate delegations from home and abroad at the Park

A total of 62 governmental and corporate delegations from China were received at the Park, including over 500 corporate delegates; inspections by 42 industrial and corporate organiza-tions from 14 countries including Russia, Germany, Switzerland, Japan, Canada, the United States, and so on, were entertained. During which, the policies and construction of the Park were introduced and cooperative models explored.

8 companies admitted and intention agreements for admission signed with 21 more companies

8 admission agreements were signed, with China Merchants Logistics Holding Co., Ltd., YTO Group Corporation (YTO), Zoomlion Heavy Industry Science & Technology Co., Ltd. (Zoomlion), Zhongxing Telecommunication Equipment Corporation (ZTE), Huawei Tech-nologies Co., Ltd. (Huawei), Chengdu Xinzhu Road & Bridge Machinery Co., Ltd. (Xinzhu Corporation), Gansu Juxin and Belarus Nano Pectin Corporation respectively; agreements of intention for admission were signed with 21 companies, including China Foma (Group), CITIC Construction, FiberHome Technologies Group (FiberHome), Hubei Yun Yin Industri-al, Shenyang Hongwei Plastic, Qinghai Flaxseed, and so on. In addition, Strategic Coopera-tion Agreement was signed with Shenyang City.

According to statistics, the 8 companies planned to invest a total of $ 100 million dollars over the 117 hectares of land rented.

Visits to key provinces, cities and businesses

From October to November 2015, the China-Belarus joint venture visited over 20 compa-nies from more than 10 cities in 8 provinces for investment promotion, including Shenyang, Shanghai, Hangzhou, Wuhan, Shiyan, Changsha, Guangzhou, Shenzhen, Xining, Lanzhou, Jiuquan and so on, to promote cooperation between the China-Belarus Industrial Park and those provinces and cities.

Infrastructure construction in the start-ing area (Phase 1) in 2015: Construction of roads and pipe network for the starting area was carried out on schedule; by the end of November 2015, 85% of the work had been completed. Before the end of 2015, construc-tion of all roads and pipe network (except landscaping) in the starting area should be completed according to the work plan jointly determined by China and Belarus.

The Park has reached the stage of investment promotion and operation, after completion of the planning and construction in the early stages. As the development work of the Park further unfolded, it was found that a number of important matters had not been made ex-plicit in the presidential decree. On the fifth meeting of the China-Belarus Joint Working Panel, SINOMACH and China Merchants Group officially pointed out the urgency and necessity for modifying the presidential

Construction of supporting facilities in 2015: The preliminary design for 12,500 square meters of office building and 8,000 square meters of plant had been completed and accredited by the state; site clearing and leveling had been completed, and construc-tion contractor decided; construction shall be started in early 2016 after the frozen-soil period ends.

Objectives for infrastructure construction in 2016: By the end of 2016, seven accesses and one leveling (access to traffic, electricity, water, drainage, telecommunication, cable TV and gas, natural land leveling) and supporting infrastructure in the starting area (phase 1) will be completed, and the 12,500 square me-ters of office building and 8,000 square meters of standard plant put into use. Design for the infrastructure in the 8.5 km2 of development area (excluding the 3.5 square kilometers of starting area), and for the 71,000 square meters of residential area shall be completed, and construction partially implemented.

decree to the two governments, and jointly formed a Chinese panel for making recom-mendations to modification of the presiden-tial decree. The panel shall discuss with its Belarusian counterpart chaired by Nikolai Snopkov, Deputy Head of the Belarus Presi-dent Administration, about the details of the modification.Currently, the two sides have reached a consensus on major modifications.

The modified presidential decree will spe-

cifically establish China-Belarus Industrial Park as a China-Belarus Special Economic Zone (SEZ), entitled to special economic policies, flexible economic measures, and special economic management system. It shall be given the functions of a free trade zone and bonded area, where corresponding policies will be implemented. Integration of production, manufacturing, trade and business will be implemented. The financial sector shall be introduced, and innovation exercised in integration of industries and financing. Admission for industrial access shall be relaxed, and investment environ-ment further improved.

23Events

700Companies

1000Participants

Held 23 investment promotion events, attracting over 1,000 participants from

more than 700 companies

A total of 62 governmental and corporate delegations from China were received at the Park, including over 500 corporate

delegates

Inspections by 42 industrial and corporate organizations from 14 countries

1918


China's Gross Import and Export Value Reached RMB 24.59 Trillion in 2015

Amongst the complex and challenging situation, the foreign trade of China still demon-strated some positive changes and highlights, as mainly reflected in the following aspects:

Thanks to the vigorous promotion of “pursuing steady growth, readjustment of structure” by the State Council, in 2015 the value of import and export in China’s general trade reached RMB 13.29 trillion, down by 6.5%, accounting for 54% of the total import and export, up by 0.3% from the previous year; exports increased by 2.2%.

First, trade pattern became more reasonable.

Second, headway was made in diversification of trading partners.

Third, private enterprises showed greater vitality in foreign trade.

In 2015, the EU, U.S. and ASEAN were the top three trade partners of China, with bilateral trade volumes at RMB 3.51 trillion, 3.47 trillion and 2.93 trillion respectively. In the same period, China improved its business performance in ASEAN, India and other emerging mar-kets. Its bilateral trade with ASEAN decreased slightly by 0.6%, and with India grew by 2.5%, generally outperforming the overall import and export.

In 2015, the import and export value of private enterprises reached RMB 9.1 trillion, down by 0.2%, accounting for 37% of gross import and export, up by 2.5%; and their export value increased by 3.1%.

Fourth, the export structure was further optimized.In 2015, China’s export of electromechanical products reached RMB 8.15 trillion, up by 1.2%, accounting for 57.7% of total exports, up by 1.7% as compared with the last year. In the same period, the total value of exports in the 7 labor-intensive categories, including textiles, clothing, bags, footwear, toys, furniture and plastic products reached RMB 2.93 trillion, down by 1.7%, accounting for 20.7% of total exports, wherein export of toys, furniture , bags and plastic products continued to grow.

2015 marked a difficult and complicated year for the trade of China. The plummet in global bulk commodity prices and significant decrease in commodity import growth were an im-portant reason for the decline in its import in 2015. In addition, weak external demand also took its toll.

According to the data released by the

General Administration of Customs on

January 13, the total value of goods

imported and exported in 2015 amounted

to RMB 24.59 trillion, down by 7% from

2014. Among it, exports reached RMB 14.14

trillion, down by 1.8% and imports RMB

10.45 trillion, down by 13.2%. The trade

surplus reached RMB 3.69 trillion, up by

56.7%.

RMB 3.69 trillionUp by 56.7%

Down by 1.8%RMB 14.14 trillion

Exports

Down by 13.2%RMB 10.45 trillion

Imports

The trade surplus reached

In 2015 the Gross Trade Volume of China to Countries Along the "Belt and Road" Grew by 25%

China Sets 2016 GDP Growthat 6.5%-7%

On February 23, Silk Road Think Tank Association Conference was launched

in Shenzhen. At the meeting, Ou Xiaoli, an inspector in the Department of Western De-velopment of the National Development and Reform Commission (NDRC) disclosed the latest developments in the “Belt and Road” Initiative.

Ou said that China has signed memoranda of cooperation or concrete agreements with 34 countries along the “Belt and Road”, including inter-government and inter-de-partment cooperative documents, with more memoranda and agreements under intensive negotiation. He disclosed that as of now, in

On March 5, 2016, China announced an economic growth target of between

6.5% and 7%. This was the first time since 1995 for China to set its GDP target within a range.

In the government work report at the Nation-al People’s Congress on Saturday, Chinese Premier Li Keqiang announced the goal. In addition, according to China’s Thirteenth Five-Year Plan on National Economic and Social Development released, China has

most of the cases, response to the “Belt and Road” Initiative from the international com-munity was active and positive, but there were indeed different voices. In the process of actually promoting the Initiative, there is a particular emphasis for China to gear its strategies to the development strategies of countries along the “Belt and Road”.

Wei Jianguo, former Vice Minister of Com-merce and Vice Chairman of the China Cen-ter for International Economic Exchanges (CCIEE), revealed at the meeting that in 2015 alone, the import and export trade vol-ume of China to countries along the “Belt and Road” reached $ 995 billion, up by 25%

from the previous year. Its investment in 49 of the 65 countries in the region reached $ 15 billion, up by 18%; by the end of 2015, China had signed 3,987 cooperation agree-ments with 60 of the countries for infrastruc-ture construction, including high-speed rail-way, ports, airports and roads, involving a total of $ 92.6 billion in funds. It established 77 overseas cooperation zones in 23 of the countries; 946 Chinese companies totally in those zones had provided nearly 200 thou-sand jobs and $ 900 million in fiscal reve-nue. Moreover, 23 countries had proposed plans for establishing 36 industrial zones.

plans for its GDP to grow at least by 6.5% annually from 2016 to 2020 on average.

Li Keqiang said in the report that in this year efforts would be made to further promote structural reforms, especially reform of the supply front. The NDRC said that efforts would be made to help the steel and coal in-dustries extricate from their predicament and get restructured and upgraded. The report also clearly pointed out that in this year ur-ban employment shall be increased by over

10 million and registered urban unemploy-ment rate shall be restricted to within 4.5%. Steady growth was mainly aimed at protect-ing employment and improving people’s livelihood. The growth rate of 6.5% to 7% shall ensure relatively adequate employment.

In 2015, China’s GDP grew by 6.9%, and consumption contributed to 66.4% of its economic growth.

2120


On December 12, 2015, Ecuadorian President Correa attend-ed the Completion Ceremony for Samanes National Park Construction Project (Phase 1), undertaken by China CAMC Engineering Co., Ltd. (CAMCE). President Correa spoke highly of the social benefits of the project, and expressed ap-preciation for the contributions of CAMCE to the project.

Inspection

Ecuadorian President Correa Attends the Completion Ceremony for Samanes National Park Construction Project (Phase 1)

On February 15, Ivan Canelas, the governor of Cochabamba Province of Bolivia and his del-egation inspected the Dam Construction Project of Misicuni undertaken by CAMCE.

During the inspection, Ivan Canelas spoke highly of the work of CAMCE and expressed his appreciation for the contribution of CAMCE to Misicuni Region and Cochabamba Province. He also encouraged the project team to maintain its vigor, so as to complete construction of the dam at an earlier date. Currently, 115 meters for the first dam slab had been completed (the total length being 189 m).

A Delegation Headed by Governor of Cochabamba Province of Bolivia Inspects Misicuni Dam Construction Project Undertaken by CAMCE

Governor of Zaire Province Inspects Cuimba Agro-industrial Farm Project in Angola Undertaken by CAMCEOn February 13, a delegation led by JoséAndre, Governor of Zaire Province, and Jony, May-or of Cuimba City inspected the Cuimba Agro-industrial Farm Project in Angola undertaken by CAMCE.

JoséAndre spoke highly of the efforts made by CAMCE in promoting local employment and introducing advanced agricultural technologies and management, and expressed his appreci-ation for the contributions made by CAMCE to the Zaire Province and to Cuimba City.

On January 24, China Machinery Engineer-ing Corporation (CMEC) signed a contract with Kipeto Energy Limited (KEL) for Ki-peto Wind Power Project in Kenya.

The project is CMEC’s first wind power project in Kenya, as well as in the entire Africa. It will adopt 60 1.7 MW wind tur-bines manufactured by GE, thus promoting CMEC’s drive to deepen strategic partner-ship with GE.

The project is part of the key entries in the strategic cooperation memorandum of understanding signed by SINOMACH in September 2015 with GE. It was agreed in the memorandum that the two sides would join hands to promote clean energy projects in Africa, to help sub-Saharan Africa achieve the goal of doubling the population with access to electricity and to support the “Belt

CMEC Signs Contract for Kipeto Wind Farm Project in Kenya

Signing of Contract

and Road” Initiative of the Chinese govern-ment and “Power Africa” program of the U.S. government.

Mainly relying on the platform for interna-tional engineering projects established by its subsidiary CMEC, SINOMACH had since the 1990s implemented via joining hands with GE a series of large-scale energy cooperation proj-ects at home and abroad, covering Asia, Africa and Latin America. Currently project teams of the two sides were working together to follow projects for development. In Africa alone, the projects were worth more than 2.7 billion US dollars, as was the case of Kipeto Wind Power Project.

As the bridgehead on the African continent for China’s “Belt and Road” Initiative, Kenya has become the crossroads where the national strategies of China and those of the

United States meet in Africa. Kipeto Wind Power Project has also become the outcome of intersection between the national strate-gies of China, the United States and Kenya. It is a typical example of joint development of a third-party market by large enterprises from China and the United States, to the benefit of the African people and economic development in Africa. The successful sign-ing of the project constituted yet another milestone in CMEC’s drive to implement the national “Belt and Road” Initiative. It is also of great significance for CMEC to tap the market of new energy resources in Africa.

2322

PROJECT PROGRESSFOCUS POINTSSPECIAL PLAN PROJECT PROGRESS TRADE AND SERVICES

On December 1, 2015, CAMCE and Masvingo Government signed in Harare, the capital of Zimbabwe, a business contract for Masvingo Sewage Pumping and Treatment Plant Upgrad-ing Project. The project site is located in Masvingo City, and the contract is worth $ 73.5 mil-lion. The project includes upgrade of the existing sewage treatment plant, sewage pumping stations and pipelines in the city, and construction of a new sewage treatment plant, a new sewage pumping station and other related facilities and sewage pipelines. The project is ex-pected to take 33 months in construction.

Recently, China IPPR International Engi-neering Company Limited (IPPR) success-fully won the bid for implementing the aid project of fruit and vegetable cannery (EPC) in Cuba. The company was authorized to implement the project by the Executive Bu-reau of International Economic Cooperation of Ministry of Commerce and is currently negotiating with Cuba on specific issues re-lated to contract implementation.

Located in Ciego de Ávila Province, the project involves transformation of the toma-to plant of the original vegetable cannery, construction of a tomato processing line with a processing capacity of 300 tons / day (mainly for tomatoes, but capable of mango and guava as required by the season) and a production line for stand-up pouch packag-ing with a production capacity of 25 / min.

According division of work between Chi-

CAMCE Signs Contract with Masvingo of Zimbabwe for Upgrading Sewage Pumping Station and Sewage Treatment Plant in Masvingo

IPPR Winning the Bid for Cuban Fruit and Vegetable Canneries (EPC) Aid Project

na and Cuba in the project, IPPR will be responsible for design, supply, installation and commissioning of the tomato processing line, the stand-up pouch packaging produc-tion line and related equipment, and for pro-posing basic conditions and other technical requirements for installation of production lines and related equipment, as well as ap-propriate technical parameters.

The project is the first aid project of China to Cuba to be implemented in the pattern of EPC. The completion of this project is of great significance to improve the existing production conditions of the fruit and veg-etable cannery in Cuba, increase its capac-ity, strengthen exchanges and cooperation between China and Cuba and consolidate friendly bilateral relations.

Completion

El Paso Hydropower Project in Chile Undertaken by CNEEC Completed

CNEEC Coal-Fired Power Plant in Indonesia Completes Safe Operation for 168 Hours

Power Transmission System Improvement Project LOT-3A & LOT-3B Undertaken by CAMCE in Kenya Awarded Completion Certificate

On January 11, completion ceremony was held at the project site for the El Paso 3×20 MW Hydropower Project in Chile under-taken by China National Electric Engineer-ing Corporation (CNEEC), a subsidiary of CMEC. At the ceremony the proprietor spoke highly of the design, electrical and

At 12:00 of January 16, No. 1 generator unit of the 2x150 MW Sumsel Coal-Fired Power Plant (SUMSEL-5) successfully completed safe operation for 168 hours. At the same time, 100% load FCB operation for the unit was also successfully conducted at 13:08, January 18, at the first attempt. So far, all tests for No. 1 generator unit of Sumsel (SUMSEL-5) were all completed except for the performance test.

During the safe operation period of 168 hours, the Unit showed stability in boiler

On December 29, 2015, Power Transmission System Improvement Project LOT-3A & LOT-3B in Kenyan was awarded completion certificate by SMEC, the project supervisor, which confirmed December 31, 2015 as the date for the completion and handover of the project.

mechanical equipment and technical services provided by CNEEC. The El Paso 3×20 MW Hydropower Project will enhance the capa-bility of Chile in independent power supply, improve its national electricity security, and lay a solid foundation for Chile to attract in-vestment in the future.

combustion, and excellent technical perfor-mance in turbine vibration and production indicators. All major systems and key pa-rameters were within the designed scope, to the unanimously praise of the proprietor and supervisor. In addition, the 100% load FCB operation, a relatively difficult operation, was completed at one attempt.

Currently, No. 2 generator unit has been in-tegrated to the grid and engaged in trial op-eration at 85% of the load. The project team will go all out to do the follow-up work, so

as to ensure handover of a high-quality and high-level power plant, and contribute to progressive development by CNEEC at the power market of Indonesia.

2524

PROJECT PROGRESSFOCUS POINTSSPECIAL PLAN PROJECT PROGRESS TRADE AND SERVICES

Recently, the two marine containers developed for the oil project in Brazil by CNEG, the first set of marine containers for export, were shipped smoothly.

Those were the first set of marine cryogenic pressure containers ever exported by CNEG. Petrobras the proprietor set extremely strict requirements for quality assurance, and very detailed quality control points. The project was executed in strict accordance with ASME Standards and marine engineering specifications, and subjected to tripartite supervisory in-spection in the manufacturing process by Bureau Veritas (BV), Dalian COSCO (COSCO), Petrobras (TUPI BV).

Recently, China SINOMACH Heavy Industry Corporation (SINOMACH

Heavy Industry) underwent a period of intensive equipment shipping, ushering in an auspicious start for a new year. The first batch of equipment including 7 devices pro-cured by a central enterprise for a motorway in Sri Lanka was shipped to Sri Lanka. The partnership reflects the advantages of the Group joining hands with central enterprises. It will be beneficial for SINOMACH to pur-sue in-depth development in Sri Lanka. At the same time, the first three LRS226H ful-ly-hydraulic pneumatic tyre rollers exported by the Luoyang Branch to Africa were suc-cessfully shipped to Tianjin Port.

Against the backdrop of continually slack-

First Set of Marine Cryogenic Pressure Container for Export Smoothly Shipped

SINOMACH Heavy Industry Ushers in New Year Busy Shipping Equipment

er demand for construction machinery, SINOMACH Heavy Industry continuously improved its product quality and grades; meanwhile, it made preparations in advance, requiring all bases to start planning in the

second half of the previous year to stock the hot-selling products, laying the foundation for meeting the sales objective of the entire year.

After more than three months spent fol-lowing up, quoting and submitting ser-

vice programs, SINOMACH Heavy Industry obtained the equipment turnkey contract from a large construction company of Niger at the beginning of this year. The contract includes supply of construction machinery and heavy vehicles, and construction of a service center and an after-sales program. It has signed the supply contract for the first phase of the project, involving a total of 100 sets of equipment, at the worth of over 6

On the morning of December 11, 2015, SINOMACH Heavy Industry

signed an agency agreement with BELAZ, a Belarusian corporation. According to the contract, it will launch promotion and marketing of Belaz series with the brand of “SINOMACH-BELAZ” in the future. This will further improve the industrial distri-bution of heavy mining equipment for the company.

Belaz is one of the world’s largest profes-sional manufacturers of mining automobiles, taking up about one third of the global

SINOMACH Heavy Industry Receives Two Orders in the New Year

SINOMACH Heavy Industry Signs Agency Agreement with BELAZ

million euros. Execution of the contract will benefit the entry into the mainstream mar-ket in Africa of brands under SINOMACH Heavy Industry and help its accumulation of experience in general equipment contracting. Construction of the service station and pro-vision of the service program will enhance the competitive edges of SINOMACH in the face of grim export situation.

At the same time, after several visits to the production base and tests of our products, a

corporation from Singapore placed an order with SINOMACH Heavy Industry, for seven auto cranes, with the total contract amount reaching nearly RMB ten million. This proj-ect has laid a good foundation for the auto cranes of the company to enter the markets of Singapore, Malaysia and other countries.

market for mining transport vehicles. Its 450-ton dump truck currently has the world’s largest tonnage among dump trucks.

2726

TRADE AND SERVICESFOCUS POINTSSPECIAL PLAN PROJECT PROGRESS TRADE AND SERVICES

On January 19, the test was completed at Lamphun Hydropower Station in Laos

for China’s largest pressure regulating valve, produced by Tianjin Research Institute of Electric Science Co., Ltd. (TRIED). The pressure regulating valve is expected to be integrated to the grid for power generation soon.

In 2014, TRIED signed a contract for “Speed regulator, pressure regulating valve and the ancillary equipment for Lamphun Hydro-

On December 16, 2015, Donation Cer-emony of Agricultural Production

Materials for Cuimba Agro-industrial Farm Project in Angola Undertaken by CAMCE was held successfully. On behalf of the company, the project team donated 500 ki-lograms of maize seeds, 10 tons of fertilizer and some farm machinery to the government

of Cuimba, to support local agricultural development. Present at the donation ceremony there were officials at all levels from Cuimba City and Zaire Province.

At the ceremony, the mayor of Cuimba thanked the company on behalf of the government, and expressed the hope that the company could turn the project into a success and bring enormous changes to the City of Cuimba.

On February 8, an opening celebra-tion was held for CMEC Serbia

Branch. Establishment of the branch will not only benefit implementation of the construction of Phase II project for KOSTOLAC-B Power Station under-taken by CMEC and help CMEC meet the requirements of local regulations, but also boost the local economy and employment, promote localized man-agement and development for CMEC and lay the foundation for its long-term development in the Serbian market in the future.

China's Largest Pressure Regulating Valve Produced by TRIED Tested in Lamphun, Laos

Donation of Agricultural Production Materials for Cuimba Agro-industrial Farm Project in Angola Undertaken by CAMCE Held Successfully

CMEC Serbia Branch Opens

power Station” with CNEEC. Lamphun Hydropower Station is located on the lower reaches of the Lamphun River in Oudomxay Province in Lao People’s Democratic Re-public. Its installed capacity of 36 MW will be furnished by three generator units. Its firm power is 5.11 MW, annual power output on average 141.7 million kWh, and utilization hours of installed capacity 3,937 hours.

For daily regulation of the generator units, the project adopts linkage control system

with speed regulator and pressure regulat-ing valve in place of surge shaft, to ensure regulation quality during rejection load op-eration. Aside from reducing the cost of the proprietor by 50%, the practice also shortens production cycle and guarantees security and reliability. It is capable of meeting the urgent needs of hydropower stations with constant-ly pressurized diversion pipes.

2928

TRADE AND SERVICESFOCUS POINTSSPECIAL PLAN PROJECT PROGRESS TRADE AND SERVICES

VOL.35NO.1 Mar. 2016

no.1 mar. 2016 · rated as class a in central enterprise performance appraisal ... cern to previous...

Documents