Blackstone 600 Million US Dollars Investment Bluestar: Part 4

Bluestar growth strategy logic

We believe that the Bluestar Group in the China National Chemical Corp. New materials industries from the navigator who went to the integration of the strategic logic mainly in the following points:

1. Seen others do not see market opportunities.

Chemical new materials industry is an emerging chemical sub-sectors, the extent of its development of a country is an indicator of the degree of modernization, is a national industrial strength, and an important indicator of the level of science and technology. With China's rapid economic development and improve the living standards of the people gradually, and many end products of the new chemical materials increasing demand. However, in 1996 the past, many Chinese chemical products new material from foreign imports, which is very expensive. Foreign companies have been on the implementation of China's technological blockade and long-term plans to occupy the Chinese market.

2. Saw other people do not see the value of the resources.

Chinese enterprises from nearly 30 years of history has shown that the production of import substitution products for the Chinese market, many Chinese enterprises is an effective growth strategy. Such enterprises in the international market is later, but it is the forerunner of the Chinese market. As latecomers, which can be imported from the forerunner of technology, equipment, learning through the forerunner to form their own ability as a forerunner, they launched the first in the Chinese market products is conducive to the occupied market position. As for the competition with foreign companies, when these companies not to invest and build factories in China, China's local enterprises probability of winning very big.

Although China's state-owned enterprises to introduce some of the production equipment, but for various reasons, failed to start production or potential long way from being realized. These idle production resources in the predicament lies in the hands of state-owned enterprises, most people can hardly see their potential value. Ren Jianxin is a beginning, not found above market opportunities and the value of these resources, but in the successful integration of Ministry of Chemical Industry Xinghuo Chemical Plant before or after the time that the prospect of new chemical materials and the potential of state-owned enterprises, and the formation of the fully enter the chemical industry new materials industry strategy.

3. Government resources and give full play to the role of financial resources.

The previous stage, Bluestar Group to rely on their own struggle and the strength of the market has developed from small to large, rarely used government resources and financial resources to the extent that many people believe that Bluestar Group is a private enterprise. When Ren Jianxin themselves the Bluestar Group, was founded in 1995 return to China Haohua Chemical Industry (Group) Corp.'s time, a lot of people think Ren Jianxin made a wrong choice. When thinking of the mainstream, state-owned enterprises only through reform of the shareholding system or privatization, the only way out.

At this stage, government resources and financial resources in the growth of Bluestar Group is playing an important role. First, Bluestar Group in the industrial cleaning market performance and results, the Department of Chemical Engineering major leaders agreed Ren Jianxin to Bluestar moved at the request of Beijing;, in the Department of Chemical Engineering, vigorously supported by Bluestar Group launched a "Bluestar Cleaning Co. , Ltd.. "and publicly listed in 1996, in Beijing Bluestar Group to invest in R & D and production base, the government sector is also the result of support. Beijing built more solid base of the Bluestar Group in China in the industrial cleaning market leader position by the end of 1995, Ren Jianxin entered the Ministry of Chemical Industry Xinghuo Chemical Plant is the name of the Department of Chemical Engineering and head of a working group, to play a personal role Ren Jianxin, and the subsequent integration of the assets provided the necessary support.

In subsequent reorganization of state-owned enterprises throughout the country in the process of integration, because Bluestar Group of the successful rescue Xinghuo Chemical Plant performance and various local governments have entered the local Bluestar offered great support.

In 2000, after Bluestar Group to integrate the high quality assets of the main "Bluestar New Chemical Material Co, Ltd." Publicly listed, a Bluestar Group's following the "Bluestar Cleaning" after the second listed companies. Owned by the two listed companies and the financial resources at this stage in the process of growth has played a very important role.

4. Played in the original capacity at the same time, and formed a new enterprise capabilities.

Have stated above, Bluestar Cleaning the market in the industrial enterprises the ability to extend to the area of new chemical materials, such as the introduction of technology and development capabilities, and customer relationship marketing capabilities, joint venture and cooperation, and so on.

At this stage, Bluestar Group has formed a new enterprise capabilities, and its ability to integrate the acquisition strategy and organization of the match capacity is the main content. Bluestar Group has a strong ability to integrate the acquisition of replicable, and it is their salient features. We only have a rough understanding of what many enterprises merger integration process, we can clearly see that this replication features, but mainly focused on the integration of Jiangxi Xinghuo Chemical Plant modeled on the case.

Match strategy and the organization is new enterprise capacity, the specific performance of new material in the chemical business reached a certain size, its independence from the groups, from the introduction of the new "Bluestar New Chemical Materials" professional company responsible for the management, so that enter the new chemical materials were organizational guarantee for the implementation of the strategy, strategy and organizations to form a good match.

Source: 英才 Zhu Xuechen Oct. 2, 2007

Link:
Blackstone 600 Million US Dollars Investment Bluestar: Part 1
Blackstone 600 Million US Dollars Investment Bluestar: Part 2
Blackstone 600 Million US Dollars Investment Bluestar: Part 3
Blackstone 600 Million US Dollars Investment Bluestar: Part 4