In the morning of Jan. 4th, 2018, following Mr. Wang Zhengquan, the Chairman of GNG Group, the management board visited the exhibition hall of CNCEC, the members include Yao Guangwen, Li Shouren, Zhang Hao, the Project Manager of Liaoning Wolf Petroleum Equipment Co., Ltd., Yue Bin, and Deputy General Manager of Dalian Hesheng Holdings Group Co., Ltd., Liu Shiqun. Under the guidance of Liu jiaqiang, the Deputy General Manager of CNCEC, we visited the exhibition hall of CNCEC, and during the visit he told us the history and current situation of CNCEC which summarized as follows:
Carrying the high quality main business assets of the old CNCEC, the new CNCEC is not only the engineering company with the most complete qualifications, the most complete functions and the most complete business chain, but also the pioneer and leader in the area of industrial engineering in China. CNCEC is an industrial engineering company with the characteristics of the earliest specialized operation, the highest marketing degree, and the highest combination operation degree. The scope of business covers the construction engineering, infrastructure engineering and overseas engineering contracting; contract for chemical, petrochemical, pharmaceutical, electric power and coal industry engineering, and the related engineering and process technology research and development, investigation, design and service. CNCEC consists of nine survey and design companies, nine construction companies and a foreign power plant company, and it is also a collection of survey, design, construction and investment, and an international engineering construction group corporation with relatively intensive knowledge technology. CNCEC ranks among the top 500 companies in China, ranking 155 in 2005, 137 in 2006, 131 in 2007 and 126 in 2008. CNCEC has been continuously ranked as one of the top 225 contractors in the world by the authoritative American magazine, Engineering News-Record (ENR), since 1995. CNCEC has been ranked 12th in China Construction Times in the list of top 60 Chinese contractors in 2007. CNCEC has two subsidiary companies with Design Integrated Qualification Class-A, and seven subsidiary companies with Qualification Class-A. The company has eight Industry-wide Engineering Survey and Design Qualifications Class-A, 31 General Construction Contracting Qualifications Level-1 and 50 Construction Contracting Qualifications Level-1.
After the visit, leaders from GNG Group and CNCEC held a high-level meeting; with the general manager Yu Jinbo as the representative, the CNCEC entertained the leaders of GNG Group. At the meeting, Chairman Mr. Wang introduced the 2 million tons Ethane cracking Ethylene Project in Jinzhou City to CNCEC. The experts of CNCEC expressed that for the above project, the chemical reaction chain is short, the equipment is simple, and has the incomparable cost advantage compared with the traditional ethylene method. Mr. Wang hoped that the CNCEC could also participate into this project, because their participation would upgrade the project’s level and strengthen the government and investors’ confidence. The vice general manager Liu Jiaqiang from CNCEC said that as a state-owned enterprise, there were many restrictions for them to enter into the investment area, the main focus for state-owned enterprises at present was to protect the national asset from losing. So, making investment decision was very difficult, especially for the engineering project investments. But if we could turn the ethylene project into an integration of industry and city project, then it would consistent with the current policy of CNCEC. The newly appointed general manager Mr. Ling of CNCEC Fund Department has given the following views on the current project financing issues: Looking from the political and economic environment, the state-owned big enterprise occupies a large number of resources, but trapped in the system of limitation, the operating efficiency is not high, even though the private enterprises operating efficiency is high, but do not have enough resources. The combination of industry and finance is the effective measure to solve this problem, and is also the trend of the future. CNCEC has followed the tendency to set up its found department, and the found department has higher flexibility in making investment decisions compared with entities. At present, its major business is to provide serves for the company’s strategic development, but it also can provide service for other companies properly.
Yu Jinbo hopes that GNG Group can make a comprehensive feasibility study on the project by using the top technology and rich project experience of CNCEC. Finally, the leaders from the two groups expressed their willingness to exchange views on this project continuously, they would set up a working team in charged by specific persons to make the subsequent evaluation and discussion for the project, and hoped they could cooperate on the above ethylene project and other projects.
