ChemChina Group successfully merged with Australian Qenos Holding Corporation by buying out all shares of the company. At present, Wen JiaBao, the Premier of the State Council, is visiting Australia for economic cooperation.

The signature ceremony has already been placed on his visiting agenda and will be held at the Capitol Mansion in Australia on April 3, 2006. This purchase has played a very important role to accelerate the economic cooperation between Australia and China, and it is highly supported and stressed by two governments and related departments.

Compared with the construction of a new production line at a similar scale to Qenos, it has a visible cost advantage and a favorable market performance to buy out Qenos, which greatly benefits to improving Chinese chemical industrial chain and enhancing Chinese players’ international management.

The purchase success will provide ChemChina with a unparalleled market channel in Australia, meanwhile, ChemChina will introduce the advanced company concepts and invaluable management experiences from Exxon Mobil and Orica in company management, production management and HSE (healthy, safety, environmental) production.

Moreover, ChemChina also makes good use of professional research teams and equipments of Qenos to combine their achievements and experiences with domestic technology research institutes, so as to help the company command introduced technology and re-innovate.

Mr. RossMccann, the CEO of Qenos reckoned, “as one of the largest chemical enterprises in China, ChemChina thinks highly of this acquisition and takes it into her global strategic development. Likewise, it brings with a good opportunity to boost Qenos business."