Sinopec and BASF jointly held IPS site coordination meeting between 2nd and 4th February. Mr.Wang Jiming, vice chairman and president of Sinopec, Dr.Kreimeyer, member of Executive BOD of BASF, representatives of PMC contractor, EPC contractors and subcontractors, BASF-YPC Company Limited management and relevant persons of Integrated Management Team(IMT) totaling 150 persons attended the meeting.

The meeting was held at critical moment of IPS project. In the meeting, progress of IPS construction was reviewed, outstanding issues and concerns were analyzed, the target dates of mechanical completion at the end of this year and commercial operation in the first quarter of next year were reaffirmed, the milestones for each plant were clarified, measures for improvement and assurance were studied, therefore, solutions were found to lay a solid foundation to ensure the achievement of the two targets.

Mr.Wang Jiming, Dr. Kreimeyer and other participants from parent companies listened to the report made by Mr.Tang Min, Chairman of BASF-YPC Company Limited and Dr.Blumenberg, President of BASF-YPC Company Limited on operation of the Company and they had a site tour to have a clear picture of progress in each plant.

On 3rd February, Mr.Wu Wenxin, Project Director of IMT, gave a report on IPS construction. Subsequently, sponsors of EPC contractors, subcontractors, representatives of BASF-YPC Company Limited and IMT held workshops for respective plants. On 4th morning, each group reported the result of its workshop with focus on concrete measures to ensure the progress.

In the general session on 4th afternoon, Dr.Kreimeyer, on behalf of BASF, confirmed that it is an important, critical and fruitful meeting and expressed his gratitude to all participants for their hard work. He also made it clear that IPS project is the largest and the most important investment in the history of BASF. It is of great significance to all parties involved to achieve the mechanical completion at the end of 2004. All parties involved have common interests in this project. All parties are required to keep good partnership and make concerted efforts to realize our target with safety, of high quality, on time and within budget.

Mr.Wang Jiming delivered a speech. He praised that the meeting is productive with abundant contents. He reiterated the key milestones for utilities and process plants. He raised requirements on behalf of Chinese owner: streamline the management system of the project; expedite the completion of engineering work, improve the engineering service on site; accelerate the procurement of equipment and materials, give strong push on delivery in time; strengthen site construction organization and mobilize workforce quickly to mitigate the slippage; strictly exert control on safety, quality, progress, cost and contract; initiate production preparation and optimize commissioning plan to ensure the successful startup at one goal; strengthen the support and coordination of Chinese parent company.