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Chairman’s New Year Address for 2019
Happy New Year!
The 40th anniversary of Wanhua had just been celebrated, and we reviewed the magnificent development in the past four decades while looking forward to the bright future with both challenges and hopes. Now we are at the dawn of 2019. At the moment of bidding farewell to the old and ushering in the new, on behalf of the management, I would like to express my appreciation and best wishes to all of our colleagues and the leaders, colleagues’ family and friends, who have supported our development in the past.
The past 2018 is an extraordinary year. It is also unforgettable. On June 13, General Secretary Xi Jinping visited the Yantai Industrial Park and made an important speech. He hopes that everyone will continue to work harder and more eagerly, and to keep striving to move forward toward the established goals.
His speech greatly encouraged all the Wanhua colleagues to try our best to accomplish our goals. We must keep his words in mind and work harder to make Wanhua become a world-class enterprise.
In 2018,"the Year of Deepening Safety Management" was established as the management theme, focusing on further improving intrinsic safety design and management, as well as the process and labor discipline management. This significantly improved the employees' safety awareness and skills, and further strengthened our safety management.
The production and operation management of Yantai Industrial Park was further enhanced. The refined management of Ningbo Industrial Park was comprehensively improved. The production and sales of BorsodChem in Hungary reached another record. Meanwhile, the Phase II of the Yantai Industrial Park, a million-ton ethylene project, was approved by the State Council and officially commenced. The America and Meishan projects were announced, contributing to the completion of company's global layout design.
Many scientific and technological innovations were achieved in 2018. Self-developed TBA dehydration, TDI, catalyst and other new plants were successfully commissioned. HCL oxidation, PDH, MDI, PC, ADI and other plants were further improved to achieve remarkable results. The functional solutions, such as aldehyde-free wood-based panels and water-based resins were promoted, which gained huge customer recognition and generating favorable social and economic benefits.
For marketing, multiple strategies were adopted to counter the changing market actively. Marketing organization structure was optimized, while the coordination of the products and business support was strengthened, which further improved the customer satisfaction.
Our talent management also achieved great results. More than 1,100 excellent talents joined Wanhua. The development of the talent echelon has been continuously improved, while the training of engineers and the job-skills certification have been steadily advanced, which significantly improved the staff capabilities.
On August 16, Wanhua Chemical's major asset restructuring project was unconditionally approved by the listed company mergers and acquisitions reorganization committee of China Securities Regulatory Commission, and the overall listing was successfully completed. Wanhua finally became a real public company of diversified ownership, which laid a solid institutional foundation for the company's long-term development.
Here, I would like to express my sincere thanks to all the seniors, colleagues and friends who have made positive efforts and outstanding contributions to Wanhua in the past four decades!
Despite we have accomplished impressive achievements over the past four decades, we are facing a more complex external environment and higher development requirements at the new starting-point for building a century-standing enterprise. In 2019, we must follow the work ideas of "improving foundation, reforming, controlling costs, and designing the future", improving organizational efficiency and the ability of sustainable development, in order to lead us to a better future.
Safety management is the foundation of Wanhua's long-term development. But safety improvement is always on the road. Therefore, after “the Year of Safety Management” in 2017 and the “the Year of Deepening Safe Management” in 2018, the management theme of 2019 will be defined as “the Year of Improving Safety Management”. We hope that through the implementation of the three-year action plan for safety management, the intrinsic safety and the skills of all employees will be continuously improved to achieve an overall improvement in the company's safety management capabilities and performance.
We must follow the trend of the industry and consumption upgrading process in China, integrate various resources with greater efforts to realize the low-cost expansion of advantageous production capacity as soon as possible. We must also further promote the industrialization process of self-developed products; develop more new and high-end fine chemicals to seize the commanding heights of the future market.
Facing the complex and volatile economic situation in the world, our strategy is to constantly improve our operational excellence. The purchasing department should improve the ability to integrate upstream raw material resources. The manufacturing department should focus on creating a digital factory and solid lean management, and produce "good products" for customers. The marketing department should be oriented to customer needs by offering creative and dedicated service in order to cultivate loyal customers.
We will reform the company's organizational structure, and create a simple and efficient regulation and process system to meet the company's growing needs. We will also reform the company's incentive system to better reflect the performance-oriented philosophy. Meanwhile, we will recruit more top talents, further implement the “Silver Hair” project, and build Wanhua University to build a talented highland in China's chemical industry in order to accomplish our strategic goals.
After running through decades and decades, we’ve accomplished great achievements. Looking from far distance, we can find it came from a very high point.
To enter the global top 20 chemical companies in five years and finally becoming a World’s Top 500 Enterprise with first-rate global leading competitiveness is our development goal. I firmly believe that as long as we inherit and carry forward the spirit of Wanhua, earnestly practice Wanhua's core values, and keep moving forward step by step, our grand blueprint will be realized soon!
Wish all of our colleagues and friends happiness, health, peace and success in the coming New Year!
Chairman: Zengtai Liao
December 31, 2018