Jiexiu JuYuan Carbon Co.,Ltd was established on April 1st,1996, as a member unit of China Carbon Industry and key enterprise of production of graphite electrode, the company always insists on the business principle that creates the brand by quality, and gain profit by reputation since the time of its establishment, pays attention to improvement of product quality, takes note of accumulation and sustained development, there now has formed the multifunctional production line of graphite electrode from calcinations to forming, roasting, impregnation, graphitization and machining, with the varieties of the products being about 10 sorts(graphite electrode of 100－800 general power, high power, standard ultra-high power, ultra-high power). We are the largest-scaled company in Shanxi province, and output of high-power graphite electrode stands on the second position in China and ultra-high power’s stands on the sixth position at home. At present, the company has advantaged production condition and complete facilities, with complete breeds of the products and outstanding effectiveness of operation, having already owned strong market competitive power and good state of grow. Stopping to the end of June, 2005, our total capital had achieved to 134, 260,000yuan in RMB including 73,240,000yuan on fixed assets and 61,020,000yuan on current assets, in the first half of year, we realized sales revenue 41,000,000yuan and net profit 8,500,000yuan.

Ⅰ Extensive use of products, and the company has distinguished policy advantages and industry competitive edge

The produced graphite electrode is listed to mechanical category which is encouraged to develop by the state, belonging to basis raw materials, also the main materials for electrosmelting of steel, smelting iron of metallic silicon, brown fused alumina, yellow phosphorus. The demanded amount is large at home or oversea, Its high-end products for smelting steel---high-power or ultra-high power graphite electrode, still the best sellers in the markets, it is expected to that the state of short supply will last in the next few years. In Sep.,2003, the company was listed a company that get the import and export authority by Department of foreign Trade and Economic Cooperation of Shanxi province. It creates 1,600,000yuan in RMB of export for earning foreign currency, it is to forecast that the amount of export will be 4,500,0000yuan in whole year; meanwhile, we can enjoy 13% of free allowance, in addition, have not any quota limit, it is a support object of national industry, with distinguished policy advantages.

Ⅱ Full guarantee for supply of raw materials and obvious price edge

Located in Jiexiu city with developed coal industry, the company produces collateral materials---raw cola and breeze, which are not rich in resources but also low in price, The production of graphite electrodes to 30,000 tons per year of raw coal and coke required 2,020,000 tons per ton lower than the price of 240yuan outside the province, this year to reduce the cost of up to 5,200,000yuan.

The two graphitization production line mainly process depending on electricity, in order to guarantee the supply of electricity and reduction of cost, we have signed 30-year contact of power utilization with Power Plant of Fenxi Mine Group and Lingshi ZhongKai Power Plant, as the annual power consumption being 70,000,000w, the unit price will save 0.1yuan compare with the price of network electric, then the cost annually can reduce 7,000,000yuan.Which has obvious edge in the industry.

Ⅲ Achieving to leading level in the industry on technical skill

The company made a decision that carry out complete reconstruction of equipments and technologies by self-financing of 35,000,000yuan in RMB for production lines according to the supply state of high-power, ultra-high power graphite electrode at home and overseas and the predication of tight product in markets in the next five years in June, 2004, till the end of 2005, there successfully finished “Five Large Battles” of 3,500ton extrusion molding, gasification roasting, bitumen hydraulic impregnation, intra-graphitization and NC machine tool processing, smoothly put into production, and built the perfect quality detection test centre in whole Jiangxi province, all the equipments and technics achieve to domestic advanced level. We realize upgrading and updating on product, that it, from general graphite electrode to high-power, ultra-high power graphite electrode; to continuously extend sales markets that from the type of domestic sales tends to international markets sales. At present, all the products have been far sold to more than 20 provinces, cities, also exported to Russia, Italy, Poland, Japan, Africa, Southeast Asia and so on, besides, we sign long-term business contact with them.

Ⅳ Reveal the advantages of quality and brand

We still insist on the management and administration strategy that “quality first, customer first” since the time of its establishment, strengthening management and quality inside and expanding market and seeking for development outside, paying attention to improvement of quality level and raising of brand benefit at all points. All the products are in accordance with the standards of YB4088, 4089, 4090—2000 or higher them. We won Quality Management System Certificate which was issued by CCEMS in 2002, then formally registered “JUYUAN” trademark. And in 2003, the company was awarded “Excellent Demonstration Enterprise of Product Quality, Service Quality and Customer Satisfaction Project”, “The standard of Level-AAA of Quality Reputation” by Bureau of Quality and Technical Supervision in 2004; “Contact-abiding by and Credit-preservation Enterprise” by Jiexiu city, Jinzhong city and Shanxi province Industrial and Bureau in succession from 2002---2005, “Level-AAA Credit Enterprise” by Provincial Agricultural Bank. Solid quality and good reputation, which makes the company win distinct economic benefit and good social returns.

Ⅴ Stardardized operation system and high total enterprise quality

The company integrates enterprise standardization and flexibility of private enterprise, we properly set up organizations and management department at all levels according to the requirements of “Company Law” and modern enterprise management policy. The director board is the highest right organization, there under it has president, general manager and supervisor, also builds more than 12 departments (Corporate Dept., Financial Dept., Supply and Marketing Dept., Quality Detection Dept., Worldwide Bureau, etc) and four branch factories. They take different task respectively, with coordination and sound mechanism. Qu Guoming, graduated in Fudan University, whom is our chairman once acts as a head of youth league, minister of propaganda and other duties in large-scaled state-owned enterprises, having accumulated rich experience on leading and administration. We stick to the philosophy that Science and technology are the primary productive forces and pay attention to talents”, and administer the company by hiring experts and hi-tech talents in those units such as Jinlin Carbon, Lanzhou Carbon, Shanxi Carbon, etc. There employ about 420 workers including 25 middle-level, high-level technicians, 21 high-class management persons and 36 students, stardardized operation system and high total enterprise quality, which lays a solid foundation for enterprise’s rapid development.

Ⅵ Gradually perfect about environmental protection facilities, polluting emission totally reaches the mark

The company opens the work of environmental protection(from address selection to environmental evaluation to measurements)as the top priority in the early days of its establishment at the same time. It won Jinzhong Environment Qualified Certificate in 2002; especially in the latter half of 2004, also turn to environmental protection by combining technical reconstruction, which not only make the system of environmental protection be much perfect but also the raw materials and wastes be recycled, then strongly improve enterprise’s economic benefit and enhance sustainable development capacity.

Ⅶ Have bright development prospect in domestic or foreign markets, accurate positioning and distinct location competition advantages

The production of graphite electrode is a newly-emerged industry which develops after liberation of PRC, especially for the 1980s, with high content of technology, promising market, and wide development prospect and other characteristics.

⑴International Trade Analysis

①At present, the main countries like America, Germany, Japan, etc produce graphite electrode with advanced technologies. However, they require large quantity of high-power or ultra-high power graphite electrode of China since there lacking resources and high cost of labor forth and other factors, plus China has strong price edge as to electrode.
②Compare with Africa’s, Southeast Asia’s, etc, China’s graphite electrode has district advantages on technology and raw materials.
③Presently, the world's steel-making furnaces, only 30% of the steel electrode, as technology advances, the proportion of EAF is 5% -10% of the rate of increase at the same time led to the requirement to high-power, ultra-high-power graphite electrode.
④At present, because China’s most of carbon enterprises(Jilin Carbon, Lanzhou Carbon) have stopped producing 100—400 middle- sized, small-sized electrodes since the production of the large task of large-sized electrode, which makes them be shortage in international markets.

⑵ Domestic Market Analysis

①In the previous years, Most of enterprises select general electrode(low price, high piece yardage and easy to operate furnace) which smelt iron by taking industrial silicon, brown fused alumina, yellow phosphorous, but presently, as the cost keeping strengthens, more and more enterprises realizes that it is worthwhile to select high-power electrode(thought have a bit higher price, low piece yardage, then can reduce cost). So that high-power electrode is in high demand.
②At present, there has two or three domestic enterprises have been changing, plus heavy history burden and high cost, besides, without any price edge aim to competition of high-power electrode. While the small-scaled factories are not able to produce high-power electrode since the equipments and technologies are out of date. Therefore, a sort of phenomenon is occurred that neither large-scaled one nor small-scaled one can finish the production of the lacking electrode in the markets. And our company has finished the changes from large-scale to power by means of technical reform, then have strong advantages of occupation of high-power electrode markets.
③At present, China’s Steel industry has been on the condition that to transformation to steel leading countries and steel powerful country, but the production of excellent plate and iron steel must select ultra-high power graphite electrode, it will cost10,000yuan more for per ton with the same specs by importing from foreign markets, so that domestic markets ask for many high-power graphite electrodes. For instance, the projects of 50t stainless steel of Tai Steel which is about to put into production and special steel of Antai Group which is also about to put into production, both of them need to use ultra-high power graphite electrodes. The company is negotiating with them for cooperation.