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China BlueChem’s ERP System Succeeds in Testing

(Hainan, 5 December 2006) - China BlueChemical Ltd. (“China BlueChem” or the “Company”) announced that it has completed testing of its ERP system and launched the system successfully, the Company is looking at a strengthened foundation for optimal operation management.


The Company started planning the ERP system project in August 2005 and the actual works began in the following October with Accenture responsible for implementation. The launch of the system has made possible integrated management of China BlueChem’s operational and financial information. The system can automatically generate various statements which allow sharing of information and resources, and as such optimize operational flows. It has enabled the Company to consolidate work processes and systemize management, changing the arbitrary work approach of staff members and raising work efficiency and quality. Management can inquire, monitor and analyze different data through the system, facilitating decisions making and analysis. With strict authorization provisions incorporated, the system has optimized the Company’s internal management framework and accordingly its internal control. The establishment of equipment management system realizes the synchronization and computerization of equipment and inventories, hence enhancing the equipment management standard. The Company expects the ERP system to help it build a team well versed in operational aspects as well as in enterprise resources management.


Mr. Yang Yexin, CEO and President of China BlueChem, said, “Adopting the ERP system represents a major step forward for China BlueChem in standardizing management operations. Looking forward, the Company will continue to enhance its system, upgrade its equipment database and improve data quality. It will also continue to strive for better performance in aspects such as environmental protection, project management, overall budgeting and performance appraisal, etc. We will also strengthen operational training to all staff to perfect the system execution and at the same time synchronize and consolidate the ERP system with the existing OA system and the WPKS. We will focus on other continual efforts include optimizing workflow and authorization management, upgrading of functions and blueprints to extend the coverage of the data tabulation tools. Depending on the strategic and management requirement, we will promote the adoption of ERP among subsidiary companies continually.”


About China BlueChemical Ltd.


China BlueChem is one of the largest and most efficient nitrogenous fertilizer producers in China in terms of production volume and energy consumption. It is the only company in the CNOOC family that engages in the production of mineral fertilizers and synthetic chemical products. Its production facilities are located in Hainan and Inner Mongolia, China, with a total designed annual production capacity of 1,840,000 tonnes of urea and 800,000 tonnes of methanol. Besides, China BlueChem has also secured long-term natural gas supply for its Hainan Plant. 






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