ChemChina Announces Strategic Investment by Blackstone

    BEIJING & NEW YORK, September 10 /CNW/ - China National Chemical
Corporation ("ChemChina"), a leading international diversified chemical
company, and The Blackstone Group today announced a strategic partnership to
build a global leader in the specialty chemical industry. The Blackstone Group
will invest up to US$ 600 million into China National Bluestar (Group)
Corporation ("Bluestar"), a wholly-owned subsidiary of ChemChina, for a 20%
stake. Antony Leung and Ben Jenkins, a former director of Celanese, will join
the board.

    Commenting on the deal, Mr. Ren Jianxin, Chairman, ChemChina stated, "We
are excited to have Blackstone as a long term partner. Given Blackstone's
extensive and successful experience in the global chemical industry, notably
past ownership of Celanese Corp. and Nalco Company, this investment will
assist Bluestar in its growth and expansion.

    Antony Leung, Blackstone's Chairman of Greater China, stated, "We believe
that continued economic growth will drive long term growth in China's chemical
sector. It is a privilege to invest alongside a superb management team in a
leading company in one of China's key industrial sectors."

    Ben Jenkins, Head of Blackstone Asia Pacific Private Equity, added,
"Bluestar's focus on innovation and technology has made it the leading
specialty chemical company in China. We are looking forward to using our
global network to accelerate and extend growth of the Company both in China
and abroad."

    UBS AG acted as financial advisor to ChemChina, and Merrill Lynch acted
as financial advisor to Blackstone on this transaction.

    The transaction is subject to final regulatory approvals.

    About ChemChina

    ChemChina, a large State-owned enterprise, was established in 2004
following the restructuring of certain enterprises directly subordinate to the
former Ministry of Chemical Industry. After three years' development, it has
become a leading chemical group in China. ChemChina has 92 production and
operation enterprises, and 24 scientific and research and design institutes.

    About Bluestar

    China National Bluestar (Group) Corporation is a core part of ChemChina's
subsidiary companies. Bluestar was founded twenty three years ago by Mr. Ren
Jianxin with a group of seven individuals taking a loan of RMB 10,000 in
Lanzhou. Bluestar is a leading manufacturer of new material and specialty
chemical products. For detailed information, please visit

    About The Blackstone Group

    The Blackstone Group is a leading global alternative asset manager and
provider of financial advisory services. Its alternative asset management
businesses include the management of corporate private equity funds, real
estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt
funds, proprietary hedge funds and closed-end mutual funds. The Blackstone
Group also provides various financial advisory services, including mergers and
acquisitions advisory, restructuring and reorganization advisory and fund
placement service.

For further information:

For further information: ChemChina Xi Yuxin, + 86 10 6445 2283 or The Blackstone Group New York: John Ford, +1 212
583 5559 or China: Cai Jinqing, + 86 10 6566 2256 or Tim Payne, + 852 3512 5000

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