On July 22, Su Ertian, Chairman and Chief Executive Officer of Global New Material International, conducted a special research at subsidiary Zhejiang Hongzun Technology Co., LTD. Chairman Su inspected the operation of the 100,000-ton synthetic mica project at the production site and presided over a special meeting for middle and senior management team. The research focused on key tasks such as safety and environmental protection, capacity ramp-up, quality improvement, cost control, market expansion and management team building to accelerate the transition of the project from engineering construction to stable production and efficient operation.

Strengthen upstream support and enhance industrial synergy within the group

After completing the strategic acquisition of SUSONITY, Global New Material International is accelerating the integration and coordinated development of its three business segments: pearlescent materials, synthetic mica, and cosmetic active ingredient. It is accelerating its transformation from a supplier centered on pearlescent materials to a multi-category, international new materials industry platform.

In the overall industrial layout of GNMI, Zhejiang Hongzun 100,000-ton synthetic mica project not only undertakes the task of expanding capacity, but also shoulders the important mission of enhancing the self-reliance capability of key raw materials, improving the resilience of the global supply chain, and supporting the innovation of downstream products. It is an important strategic fulcrum for GNMI to extend its industrial chain upstream and consolidate its long-term competitiveness.

“Hongzun has a high starting point and a heavy responsibility.” Su Ertian pointed out that Zhejiang Hongzun should not only provide a stable, high-quality and competitive supply of raw materials for the group’s internal business, but also develop independently for the global market, benchmark against international advanced manufacturing levels and the quality requirements of key customers, continuously enhance stable manufacturing, cost control, technological innovation and reliable delivery capabilities, and strive to build a modern new materials manufacturing base.

From “project building” to ” result delivering”, we aim for stable operation

The factory building, equipment installation, and the ignition and wiring are just the first steps of project building; The process from ignition to production is the key stage for a project to move from “completion of the project building” to “delivering result”. Su Ertian stressed that the current focus of Zhejiang Hongzun’s work must be fully shifted to production and operation, with stable quality as the foundation, capacity ramp-up as the main line, cost reduction and efficiency improvement as the handle, and market demand as the traction, to quickly convert project investment into actual operating results.

He asked the management team to focus on five aspects: First, whether the product quality can be sustained and stable; The second is whether the production capacity can be released safely and orderly; Thirdly, whether the cost is competitive in the market; Fourthly, whether market development can be effectively linked with capacity release; The fifth is whether the management can develop a sense of responsibility and synergy, and be capable of fighting tough battles. Quality determines customer trust, capacity determines scale foundation, cost determines competitiveness, market determines growth space, and team is the fundamental guarantee for the implementation of all work.

“Equipment can be bought, factories can be built, but a mature management team cannot be bought in a short time.” The key to how far Hongzun can go in the future lies in whether management at all levels can grow rapidly, go deep into the site, lead the team well, and truly transform the capacity of the project into quality, cost and market competitiveness advantages, Su Ertian pointed out.

Strengthen the management foundation and form an efficient and coordinated operation system

Regarding the key tasks for the next stage, Su Ertian put forward five requirements:

Firstly, strengthen safety and environmental protection responsibilities. Adhere to local management and hierarchical responsibility, and shift the focus of management down to every workshop, every team and all posts to ensure the bottom line of safe production, environmental protection and compliant operation.

Secondly, establish a standardized production system. Establish clear standards in relation to processes, equipment, energy consumption, output and efficiency, and improve the entire process management mechanism from identifying problems, analyzing causes to closed-loop rectification.

Thirdly, strengthen quality management throughout the entire process. Implement quality control throughout raw materials, production, testing and delivery to ensure that data is accurate, processes are manageable and responsibilities are traceable, and there is zero tolerance for fraud.

Fourthly, establish an all-staff business awareness. Break down business indicators such as output, quality, cost, energy consumption, inventory and delivery to all departments, teams and posts, and  reflect problems with data and evaluate work by result.

Fifthly, accelerate the construction of a talent echelon. By combining internal training with external recruitment, build a composite management team that is proficient in both technology and production and operation, and capable of solving problems and leading teams.

Su Ertian stressed that management at all levels should adhere to the principle of seeking truth from facts and strictly prohibit underreporting, false reporting and data fabrication; Adhere to a performance-oriented approach and use business performance as an important basis for evaluating work; Strengthen the overall and collaborative awareness and take the initiative to break down departmental barriers; Adhere strictly to the bottom line of integrity in business and show zero tolerance for acts that undermine public interests for personal gain; Adhere to a fair and impartial approach to personnel selection, evaluate officials based on their character, ability, performance and team reputation, and provide greater development space for outstanding talents who are capable, responsible and willing to work hard.

Focus on emerging applications and expand long-term growth space

Synthetic mica is not only an important base material for pearlescent effect materials, but also has application potential in areas such as high-temperature insulation for new energy batteries, thermal safety protection, and high-end electronic functional materials. As the market demand for high-purity and high-stability functional materials continues to grow, Zhejiang Hongzun needs to meet the internal demands of the group while accelerating product grading, application research and development, and market validation, and promoting the effective connection between capacity building and customer development, technology reserve and product upgrading.

Su Ertian said GNMI will continue to support the development of Zhejiang Hongzun in terms of technology research and development, market channels, talent building and resource allocation. Zhejiang Hongzun will continue to be customer demand-oriented, win trust with stable quality, expand the market with cost competitiveness, open up space with continuous innovation, build a good reputation with reliable delivery, and strive to build a modern new materials technology enterprise with strong market competitiveness.

This research further clarifies the key tasks for Zhejiang Hongzun in the next stage. Global New Material International will continue to strengthen its upstream key material supply availability, steadily advance the application expansion of synthetic mica in existing and emerging fields, and continuously enhance the group’s industrial synergy capabilities and long-term development resilience.

Zhou Fangchao, Jin Zengqin and Bai Zhihuan, Executive Directors and Vice Presidents of Global New Material International, and heads of various departments of Zhejiang Hongzun Technology attended the discussion.