Presentation Creating colors for the world Shenghua Group

Presentation Creating colors for the world Shenghua Group Deqing Huayuan Pigment Co. , Ltd. http: //www. hyrox. co. in/

Outline n n n n Mission History Status Sales network Manufacturing & QC Sustainable development Product highlight Our customers 2

Mission n Supply iron oxide pigments with stable quality, competitive price and excellent service. 3

History n 1993: Established with 50 employees 4

History n 1994: the first red line started to operate 5

History n 1995: the first yellow line started to operate 6

History n 1998: Certified by ISO 9002 (converted to 9001: 2008 in 2010) 7

History n 1999: start to produce iron oxide black 8

History n 2001: transformed to share-hold company 9

History n 2002: acquired Hangde Chemicals 10

History n 2003: set up independent blending plant 11

History n Setting up thermo electrical power plant in early 2004 12

History n Certificates: ISO 14001(2004), CE(2010) 13

Status n n n Area: 233, 000 m 2 Employees: 1053 3 Production plants: Huayuan, Hangde, Dechang Turnover 2010: USD 115 million Largest iron oxide manufacturer in China & Asia 14

Status n Overview 15

Status n n Numbers of Chinese iron oxide producers: 140 Hyrox capacity: 120, 000 mts 16

Status n n Hyrox Export in 2009: 88080 mt Represents 21% of Chinese IO export 17

Status n Turnover 18

Sales network n Sales department in China 19

Sales network n n n 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 20

Manufacturing n n Total production line: iron oxide red: iron oxide yellow: iron oxide black: compound ferric green: Total annual capacity: iron oxide red iron oxide yellow iron oxide black 17 8 6 1 2 120, 000 mt 77, 000 mt 35, 000 mt 8, 000 mt 21

Manufacturing 22

Manufacturing n Blender for color consistency 23

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 24

Manufacturing Iron oxide brown (Blended colors): 600, 610, 663, 686, 841 Iron oxide orange (Blended colors): 960, 2040 Compound ferric (Blended colors): green 5605, 835 25

Manufacturing n n Micronized iron oxide red/yellow Heavy density iron oxide yellow Tobacco grade iron oxide red/yellow Customized service: n Customized blending available n Minimum blending quantity: 4 mt 26

Manufacturing 27

Manufacturing 28

QC n n n Standards Raw material control Production control Color control Consistency assurance Identification & tracing back 29

QC n n n Quality assurance system: ISO 9001: 2008 Product standard according to ISO 1248 Test method according to ISO 787 for paint & coating application Test method according to EN 12878 for construction application Customized test methods available: i. e. pigment dispersion 30

QC n Raw material control n n Raw materials/subsidiary materials suppliers control process: File HY. CX 82005, 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. QB 9807 -A 31

QC n Production control n Raw material ratio n Reaction condition n Inspection n Intermediary inspection Semi-finished products Final inspection for finished products 32

QC n Color control: n Each lot of semi-finished products are marked and recorded into computer n Blending ratio is suggested by computer and determined by qualified inspector n Blending volume: 5~20 mt per batch n Colour difference report / Strength report of each batch by spectrophotometer 33

QC n Consistency assurance (1): n n n 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 34

QC n Consistency assurance (2): n n n n n 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 35

QC n Identification & tracing back n Principle: Product identifying and traceability (HY. CX 82007, process 4. 8) n Samples from customers will be kept forever n Samples of each shipment will be kept for 12 months 36

QC n Quality Center 37

Sustainable development n Sewage system (US$4. 5 million investment) 38

Sustainable development n New technology waste water treatment 39

Sustainable development n Safety policy n Offer safe working environment n Safety rules and regulations n Committee for safety n Employee safety training n Emergency system 40

Sustainable development n Social accountability certificate SA 8000 (GB/T 28001) 41

Sustainable development n n Favorable environment n Stable political situation n Strong support from local government Ideal geographic location n No natural disaster n Convenient transportation n Abundant raw material 42

Product highlight n n Color consistency Improved physical and chemical properties Batch-to-batch reports Customized test method applicable 43

Our customers n n n n Monier (Roofing) PPG (Paint & Coating) CPS (Universal tinting system) Clariant (Leather & Plastic) Mundat (Tipping paper) ITACA (Ceramic) Parex Davco (Color concrete) Natural Reflection (Mulch) 44

Thank you n Please kindly accept our gratitude for your valuable timey. It will be our greatest honor to be at your service. 45