Huafon Group: Practicing the responsible care and shaping the core competitiveness

Company Profile
Huafon Group, founded in 1991, is currently China’s largest polyurethane resin and fiber-based material manufacturer with production bases in Wenzhou, Shanghai, Fujian, Liaoyang and Chengdu. It is mainly engaged in the R&D and production of new chemical materials such as polyurethane resin for shoes and leather, elastic fibers and microfiber synthetic leather. Its business fields also include warehousing and logistics, real estate, energy and others. The Group has a national R&D center and two provincial R&D centers. It has become the drafter and formulator of microfiber synthetic leather and spandex filament industry standard.
Challenge
As we all know, the chemical industry is closely related to human life. Its heavy pollution and emission of hazardous substances are common problems in many chemical companies. If these problems are not handled properly, they will have a huge negative impact on human survival and natural environment. How do chemical companies do a good job in production safety, reduce their environmental impact and build good relations with surrounding communities? All these problems will affect their own healthy and sustainable development.
Solution
Since its inception, Huafon has adhered to the approach of innovative and scientific development and broken the development model of traditional private enterprise to promote technological and managerial innovation. As a company in the chemical industry, Huafon has made positive commitments and practiced its responsible care.
Making all-staff commitment to improve EHS management system
In 2006, Huafon participated in BASF “1+3” CSR Project, and in October, 2007, it became one of petrochemical enterprises to implement “Responsible Care” commitment at the National Responsible Care Promotion Conference. Taking its Spandex Company as the pilot and demonstration unit, Huafon has actively promoted the principles of responsible care and implemented the related work. The company took the initiative to integrate social responsibility into its business strategy and incorporated the safety, environmental protection and energy conservation into its performance management. It cleared its objectives, conducted assessments at all levels and linked the reward and punishment with performance. In terms of serious safety or environment accident, the company implemented one-vote veto system. It ensured the concept of responsible care was reflected in its various production ,business activities and decision-making processes. After Huafon had made responsible care commitment to society, each employee from management to all the other positions in the company made their commitments to responsible care and EHS. In addition, the company carried out EHS knowledge contest each week, organized EHS philosophy exam and introduced the EHS management concept of “I am responsible for my position and border work is managed” to all positions.
Promoting clean production and recycling of waste through technological innovation
Since it started to create an environment-friendly enterprise in China, Huafon Spandex Company has increased it input in environmental protection and energy-saving facilities, and intensified its efforts in energy-saving and water-saving technological transformation. It has carried out 31 clean production projects, promoted the use of clean raw and auxiliary materials and strengthened the construction of emergency response system so that it can gradually make its indicators meet the standard of environment-friendly enterprise. Specifically, since its inception, the company has explored and made technological transformation of motor frequency conversion, which has been widely applied to the blower motor of boiler, the motor of spinning equipment, the motor of air conditioners and other, and has become an important power-saving measures. In terms of environmental protection in the production, the company invested more than 8 million yuan in the alternative solvent project and by May 2008, and it replaced 100% of DMF with the pro-environment DMAC. In terms of waste recovery and recycling, the company developed the plan for zero-discharge of waste water. In the recycled water deep treatment project, it invested more than 4 million yuan and adopted the advanced membrane technology to extend the use of recycled water to circular cooling system and boiler water system. In the end, it realized its objective of zero-discharge of waste water.
Offering environmental open day for the transparency of environmental information and the perception of communities
Since March 2008, Huafon has regularly invited the residents of surrounding communities, NPC deputies and news reporters to visit the company in turns, where they are informed about pollution and emission information, make on-site visits, and discuss environmental protection. Besides, it also released its annual report on responsible care through the media, set up a special column on its website, and disclosed its pollutant treatment process and monthly targets of waste water and gas emission. Through announcement, propaganda showcase and other channels, it has disclosed its environmental information in public and accepted social supervision.
Enhancing safety management to reduce labor loss rate per million working hours
Upholding the principles of full-process and all-round safety production with the involvement of all staff around the clock, Huafon has made continuous efforts in organizing safety training, intensifying safety awareness among all employees, popularizing safety knowledge and introducing the management philosophy of “I am responsible for my position”. The company has improved safety management systems and strengthened the identification and control of risks. While conducting monthly company-wide safety inspection, all of departments and positions carried out weekly and daily self-examination at each shift, and made timely rectification of safety problems. In addition, the company has refined accident category, strengthened accident management and carried out the competition of “Zero-accident team in 1,000 days”.
Strengthening emergency management to improve emergency response capability
In accordance with the requirements of responsible care and in combination with its actual situation, Huafon has established emergency response centers in two plants in Dongshan and Shencheng, where the company installed 24-hour monitoring systems and fire alarm systems and takes three shifts with four groups. On this basis, Huafon has set up emergency response teams in each plant, and required its subsidiaries to prepare and improve Emergency Manual to regulate emergency response procedures. Its subsidiaries have also achieved linked response to emergency through sending the manuals to fire departments and villagers surrounding the plant.
Being a GoldenBee enterprise to spread responsible care principle
In June, 2008, Huafon hosted the “Safety Production Management System and CSR Workshop” under the support of China Business Council for Sustainable Development (CBCSD). The leaders of China Petrochemical Association and the representatives from BASF, Shell, Dow Chemical, Otis Man and other world’s 500 enterprises attended the workshop and exchanged their experience in the management of environmental protection, safety and occupational health. Besides, after being involved in BASF’s “1+3” CSR Project, Huafon promised to replicate this model and promoted more enterprises to fulfill social responsibility through its supply chain.
Achievement
Huafon Group has proved by its practice the effect of promoting clean production and being a green enterprise, which can not only reduce its environmental impact, energy consumption and emission, but also create economic benefits for the company. Each year, Huafon can save a total of 6 million kWh of electricity through the technological transformation of motor frequency conversion, about 1,500 tons of coal through the transformation of stratified combustion in coal bucket, and about 0.4 million kWh of electricity through the transformation of pumps in circulating water system. The company started the construction of zero-emission recycled water project, which would be completed and put into operation in June 2009. Through this project, the company may save about 700,000 tons of water and reduce the discharge of waste water by 600,000 tons, and produce more than 3 million yuan of economic benefits each year. In 2008, Huafon Spandex achieved energy consumption of 0.46 ton of coal per 10000 output value, lower than the value in Level-I clean production standard (0.5 ton), and water consumption of 28 tons per ton of filament, much lower than the value in Level-I clean production standard (40 tons).
　　
In July 2008, Huafon Spandex Company passed the on-site inspection of “National Environment-friendly Enterprise” sponsored by the Ministry of Environmental Protection. In the meanwhile, the Company also achieved the honorary titles like “Zhejiang Province Green Enterprise”, “Environment-friendly Enterprise in China’s Fiber Industry”, and “National Harmonious Enterprise with Model Labor Relations”. In 2008, Huafon carried out the activities “environmental open day” in which over 70 people were organized to visit the company and made exchanges. The residents responded to these activities so well that they praised Huafon Spandex is a responsible enterprise. Upon the random checks by environmental protection department, it achieved 100% of satisfaction among the people of surrounding communities. Huafon has formed a system for this activity and it will keep doing it in the future.
In 2008, Huafon achieved the sales revenue of 4.082 billion yuan, profits of 356 million yuan and taxes of 330 million yuan. It has been ranked for several consecutive years as one of Top 500 Chinese large enterprise groups with competitiveness, Top 500 Chinese manufacturing enterprises, Top 500 Chinese private enterprises and Top 100 Chinese petrochemical enterprises. It has also won the honors of “China Famous Brand” for its polyurethane resin and spandex products.
Prospect
Huafon Group has creatively put forward its core cultural concept of “common objective, business, interest and development”. Taking this as a guide, it will handle the relations with employees, customers, investors, communities and environment in a scientific and harmonious manner and form the mechanism for common growth, mutual benefit and win-win outcome.