PPresentationresentation Creating colors for the world Creating colors for the world

Shenghua Group Deqing Huayuan Pigment Co., Ltd.

http://www.hyrox.com.cn

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Outline Mission History Status Sales network Manufacturing & QC Sustainable development Product highlight Our customers

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Mission

Supply iron oxide pigments with stable quality, competitive price and excellent service.

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History

1993: Established with 50 employees

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History 1994: the first red line started to operate

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History

1995: the first yellow line started to operate

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History 1998: Certified by ISO9002

(converted to 9001:2008 in 2010)

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History

1999: start to produce iron oxide black

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History 2001: transformed to share-hold company

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History

2002: acquired Hangde Chemicals

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History 2003: set up independent blending plant

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History Setting up thermo electrical power plant in

early 2004

History

Certificates: ISO14001(2004), CE(2010)

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Status

Area: 233,000m2

Employees: 1053 3 Production plants:

Huayuan, Hangde, Dechang Turnover 2010: USD115 million Largest iron oxide manufacturer in China

& Asia

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Status Overview

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Status Numbers of Chinese iron oxide

producers: 140 Hyrox capacity:120,000mts

HYROX, 17. 00%

Rest of Chi na, 83. 00%

Total Chi nese I ron Oxi de Capaci ty

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Status Hyrox Export in 2009: 88080mt Represents 21% of Chinese IO export

HYROX, 21. 00%

Rest of Chi na, 79. 00%

Total Chi nese I ron Oxi de Export (2009)

Status

Turnover

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Sales network

Sales department in China

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Sales network

Sole distributors in each specific market with sub-distributors network

Close to end users Ready-to-ship stock system by

distributors Frequent joint visit to end users Easy-to-access local website

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Manufacturing

Total production line: 17iron oxide red: 8iron oxide yellow: 6iron oxide black: 1compound ferric green: 2

Total annual capacity: 120,000mtiron oxide red 77,000mtiron oxide yellow 35,000mtiron oxide black 8,000mt

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Manufacturing

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Manufacturing

Blender for color consistency

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Manufacturing

Iron oxide red (Basic types):

101, 110, 120, 130, 140, 160, 180, 190

Iron oxide yellow (Basic types):

311, 313, 586, 810

Iron oxide black (Basic types):

318, 330, 740, 750

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Manufacturing

Iron oxide orange (Blended colors):

960, 2040

Compound ferric green (Blended colors):

5605, 835

Iron oxide brown (Blended colors):

600, 610, 663, 686, 841

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Manufacturing

Micronized iron oxide red/yellow Heavy density iron oxide yellow Tobacco grade iron oxide red/yellow Customized service:

Customized blending available Minimum blending quantity: 4mt

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Manufacturing

Manufacturing

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QC

Standards Raw material control Production control Color control Consistency assurance Identification & tracing back

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QC

Quality assurance system: ISO9001:2008 Product standard according to ISO1248 Test method according to ISO787 for paint

& coating application Test method according to EN12878 for

construction application Customized test methods available:

i.e. pigment dispersion

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QC Raw material control

Raw materials/subsidiary materials suppliers control process: File HY.CX82005, process 4.6

Qualified contractor/subcontractor control process: File HY.82005-A, process 4.6

Purchasing control process :File HY.82006, process 4.6

Raw materials/subsidiary materials inspection rule: File HY.QB9807-A

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QC

Production control Raw material ratio Reaction condition Inspection

Intermediary inspection Semi-finished products Final inspection for finished products

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QC

Color control: Each lot of semi-finished products are

marked and recorded into computer Blending ratio is suggested by computer

and determined by qualified inspector Blending volume: 5~20mt per batch Colour difference report / Strength report of

each batch by spectrophotometer

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QC Consistency assurance (1):

Administration evaluation process Administration planning process Contract evaluation process Files and data control process Raw materials/subsidiary materials suppliers control process Qualified contractor/subcontractor control process Purchasing control process Product identifying and traceability Working procedure control process Technology and technique control process Equipment control process Inspecting and testing control process

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QC

Consistency assurance (2): Inspecting/measuring/testing equipment control process Inspecting and testing status control process Off-grade product control process Rectifying and preventing method control Conveying, storage, shielding, packaging and delivery

control process Quality record control process Inner quality system verify process Training process Service control process Statistics control process

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QC

Identification & tracing back Principle: Product identifying and

traceability (HY.CX82007, process 4.8) Samples from customers will be kept

forever Samples of each shipment will be kept for

12 months

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QC

Quality Center

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Sustainable development

Sewage system (US$4.5million investment)

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Sustainable development

New technology waste water treatment

Main item requirementbeforeprocessing

afterprocessing

pH 6~9 3.59 6.51SS ≤ 70mg/L 85.6 36COD ≤ 100mg/L 159 36.5Colour ≤ 50 50 18Total Fe++ mg/L 795 18.4N.NH3 ≤ 15ppm ≈ 500 6Tested by local Environmental Protection Bureau

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Sustainable development

Safety policy Offer safe working environment Safety rules and regulations Committee for safety Employee safety training Emergency system

Sustainable development

Social accountabilitycertificateSA8000(GB/T 28001)

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Sustainable development

Favorable environment Stable political situation Strong support from local

government Ideal geographic location

No natural disaster Convenient transportation Abundant raw material

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Product highlight

Color consistency Improved physical and chemical

properties Batch-to-batch reports Customized test method applicable

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Our customers

Monier (Roofing) PPG (Paint & Coating) CPS (Universal tinting system) Clariant (Leather & Plastic) Mundat (Tipping paper) ITACA (Ceramic) Parex Davco (Color concrete) Natural Reflection (Mulch)

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Thank you

Please kindly accept our gratitude for your valuable timey. It will be our greatest honor to be at your service.