North Asia

China

Inco has operated a marketing representative office in Shanghai, People's Republic of China since 1994. However, it is only since 1997 that we have maintained an operational presence in China. That was the year we entered into a joint venture with the largest local nickel producer, Jinchuan Nonferrous Metals Co., Ltd. to launch Jinco Nonferrous Metals Co., Ltd. Located in Kunshan, a town near Shanghai, Jinco produces Incomond® nickel salts for the domestic Chinese as well as international markets.

In 2004 we developed another joint venture, Inco Advanced Technology Materials (Dalian) Co., Ltd. Located in Dalian, a coastal city of over five million people in the Liaodong Peninsula in northeastern China, the Dalian plant produces nickel foam, needed for rechargeable nickel batteries and also used in hybrid electric vehicles.

We are further expanding our nickel foam supply presence in China in 2005. We have successfully acquired substantially all of the assets representing the nickel foam business of Golden Champower New Materials Corp., located in Shenyang, the capital city of Liaoning Province. These assets became part of our newest joint venture, Inco Advanced Technology Materials (Shenyang) Co., Ltd.

  2004 PERFORMANCE HIGHLIGHTS

• Achieved an exemplary safety record at Dalian. During construction of the plant, not a single lost-time accident was reported in over 580,000 hours worked.
• Maintained a top safety record at Jinco. Since 2000, Jinco has reported zero lost-time injuries.
• Initiated a leadership development program at Dalian to train employees.

  2005 GOALS

• Continue to maintain exemplary safety record.
• Pursue ISO 9000, ISO 14001 and OSHAS 18000 accreditation for Dalian nickel foam plant.

SUPPORTING OUR EMPLOYEES

By March 2005, we employed 539 people in China. As we do at our operations around the world, we are working hard to promote a culture that embraces respect and diversity, offers opportunity and promotes health and safety at our Chinese workplaces.

Training New Leaders

A new leadership development program, based on the Acton and Clydach refineries' model, is being implemented at our operation in Dalian, China. Staff members from all over our Chinese operations are involved in the program, which offers instruction in orientation, quality awareness, environment, health and safety, and first-aid. “The biggest challenge for the human resources department is how to create efficient training programs for employees with different backgrounds and cultures and educate them on the company's culture,” says Belinda Xu, Human Resources and Administration Manager at Dalian.

Martin Davis, Training Manager, Inco Europe, and leader of the Dalian training initiative, is confident such challenges can be met. “It's an exciting time for Inco in China,” he says. “I've been impressed by the ability, commitment and enthusiasm of everyone I've met.”

To date, 20 participants have graduated from the program.

Safety: Outstanding Achievement

Inco Advanced Technology Materials (Dalian) Co., Ltd. produces nickel foam needed for rechargeable batteries and also used in hybrid electric vehicles. Here, Inco Chairman and CEO, Scott Hand, tours the Dalian facility in 2004.

Click for a larger view

Since construction of the Dalian foam plant began in November 2003, not a single lost-time accident was reported in over 580,000 hours worked. “This is a huge achievement for the plant,” says Peter Goudie, Executive Vice-President, Marketing at Inco. “The Inco team along with the project engineers in China have done an outstanding job to achieve these results. This has come about through hard work and a dedicated focus on safety every day by those involved.”

Safety: Everyone's Job

At Jinco, safety is part of everyone's job description. That's a reality supported by the operation's track record. From 2000 to date, Jinco has reported zero lost-time injuries. Safety, as well as health and the environment, is a priority for us,” says Golden Shen, Safety Supervisor at Jinco. “We make sure any hazards or risks are reviewed before we begin any work.” To make sure safety remains a top priority, the plant has several environment, health and safety groups who regularly review safety performance, ensure compliance to regulations and standards, and look for opportunities for improvement.

PROTECTING THE ENVIRONMENT

At both our Dalian and Jinco operations, environmental stewardship is an ongoing priority. At Jinco, we were recognized as one of Kunshan's top 10 environmental performers in 2003 in the city's industrial zone.

Currently, Jinco is ISO 14001 Environmental Management certified. It is our plan to achieve the certifications at our Dalian operation for ISO 9000, ISO 14001 and OHSAS 18000 in 2005.