December 2014 Issue 21 The 50 th Anniversary of Diplomatic Relations Between China and France Bureau Veritas and French Companies in China MICHELIN Playing an Active Role in CSR TOTAL Engaged Chinese Energy Enterprises in Business Alliances and the Go Out Policy AUCHAN Still Enjoys Great Market Development Space in China
CARBON CONTENTS BRAND IS TALKING MICHELIN Playing an Active Role in CSR OPENING SPEECH 04-07 France & China Will Continue to Strengthen their Economic Cooperation Bureau Veritas contributing to Sino-French Cooperation and Friendship 14-25 TOTAL Engaged Chinese Energy Enterprises in Business Alliances and the Go Out Policy AUCHAN Still Enjoys Great Market Development Space in China NEWS BOOTH 10-11 News in Brief MOVE FORWARD WITH BUREAU VERITAS 中 国 CHINA 绿 GREEN 色 碳 汇基 金 会 FOUNDATION 28-35 Bureau Veritas Helps Saint-Gobain to Build the Most Energy-Saving Automotive Glass Plant in China Characteristics of EU Pressure Equipment Directive CHIN A CHIEF EDITOR Wenjiang LI, Jonas ZHANG EXECUTIVE EDITOR Jessie WAN ART EDITOR Polly TENG, Roy YE For free subscriptions to this magazine, Please contact us: MARKETING.IANDF.CN@CN.BUREAUVERITAS.COM +86 (21) 2319 0042 2014 Bureau Veritas - All rights reserved BUREAU VERITAS WECHAT BUREAU VERITAS OIL&GAS CONSTRUCTION INSPECTION CERTIFICATION TRAINING
OPENING SPEECH BV EXPRESS ISSUE 21 FRANCE & CHINA WILL CONTINUE TO STRENGTHEN THEIR ECONOMIC COOPERATION In 2003, as the Political Counselor of the French Embassy in China (Beijing), I came to China for the first time and left after two years; and in 2010, as the Consul-General of the Consulate General of France in Shanghai, I came to China again. China was keeping rapid development over the past ten years and there were many changes. What struck me the most was that China paid increasing attention to the development of quality rather than the measuring standard of quantity-driven a decade ago. China and set up their branches in China, including AUCHAN, BUREAU VERITAS, L OREAL, SAINT-GOBAIN, SCHNEIDER ELECTRIC, etc. At present, the number of French companies in Shanghai is more than 1000. In addition, the scale of some French companies in China have exceeded those in France, for example, now Carrefour has set up 240 supermarkets in China, which exceed the number in France. Another example is the number of PSA group plants in China that has also exceeded those in France. French industrial enterprises have also been recognized by more and more Chinese people. Like French companies entering into China, many Chinese companies also began to step towards French market so as to seek the development and breakthrough with relation to technology, market, brand, etc. As far as I know, at present, hundreds of Chinese enterprises have established their branches in France and there are some successful cases like Shanghai Jahwa and OMEY. Nowadays, like many developed In the past, when mentioning of countries, China is being more France, most of Chinese people 04 / 05 BUREAU VERITAS Emmanuel LENAIN Mr. Emmanuel LENAIN Consul General Consulate General of France in Shanghai focused on the welfare of its people and is paying increasing attention to the environment, economic innovation, social responsibility and world peace. Meanwhile, China has also done the deed in these aspects and has achieved good results. As the first western country to establish diplomatic relations with China, France had established good political relations with China since 1964. However, in terms of economic cooperation, French trade relationship with China only rested on large public project cooperation for a long time, e.g., purchasing airplane, nuclear power plant, high-speed train system, etc. In the wake of the increasingly mature French-Sino relation, economic cooperation between France and China became wider and wider. In the 1990 s, many well-known French companies began to do business with first thought about luxury goods and romantic life style. There are indeed many luxury brands in France and French people also really enjoy life; however, what France owns is far more than the above-mentioned. France is also one of the major industrial powers in the whole world and has many globally-renowned industrial enterprises, e.g., AIR LIQUIDE, ALSTOM, AREVA, TOTAL, etc. These companies have developed and have grown continuously in China and have established offices, branches and factories and even R&D centers in China. According to the statistics, at present, there are 30 French enterprises having established R&D centers in Shanghai, which engage Chinese researchers and jointly research to develop the products that are the best fit for China market and Chinese consumers. So far, After the experience of accumulation for half a century, I believe that France and China will continue to strengthen their economic cooperation and this friendly cooperation will yet develop and extend towards wider fields. Also, French companies will develop from first-tier cities like Beijing, Shanghai, Guangzhou to more Chinese second and third-tier cities with Chinese enterprises and jointly meet the next golden development epoch of China. B V
OPENING SPEECH BV EXPRESS ISSUE 21 BUREAU VERITAS CONTRIBUTING TO SINO-FRENCH COOPERATION AND FRIENDSHIP This year marks the 50 th anniversary of the establishment of China-France diplomatic ties, and more than 20 years since Bureau Veritas has resumed its operations in China. Over these decades, we have been an independent business observer of the fascinating surging Chinese economic development. First, in connection to the exportation from domestic manufacturers to fill the shelves of western countries international investors in their development programs in China, from Power generation to Retail or from Petrochemical to Automotive with specialized and dedicated professionals. Our road map aims at serving our clientele both international and domestic to the benefits of local stakeholders. As such, we will keep on growing our footprint with new offices next year in order to accompany the expansion of our clients, and we will keep on adding expertise, technical center, accreditation, license to serve you here in China and there around the world. China has become Bureau Veritas second home and our first footprint in terms of headcount with more than 10 000 employees across our 8 lines of activities in 55 cities. Our teams through our inspection, certification and testing services are everyday contributing to make a safer world with increased quality products, and sustainable assets. 50 years later, isn t the Bureau between France and China is progressively narrowing with more Chinese business leaders investing in France to access its market and the vast European markets. The world is increasingly getting smaller, even a village as some say, more competitive, intertwined, and the new normal growth of Chinese economy have led many industry leaders to tend to diversify their portfolio including going more out internationally. At the same time, the economy landscape is rebalancing with an increasing role to be played by internal consumption and the service sector in order to become the second breath of the so far export and high domestic investment driven economy. This second breath is resulting into more domestic market opening and more business cross pollination. State owned or private giants or future giants could be a source of inspiration for many of us and certainly a formidable opportunity for cooperation to extend for another 50 years the strong retailers, then progressively to assess Veritas story like others great economic ties and friendship between the products even more complicated, leading companies that you may our two countries. 06 / 07 BUREAU VERITAS Romain PETIT Mr. Romain PETIT Executive Vice President, North Asia Bureau Veritas, Industry & Facilities Division and even more embedding technologies to satisfy the needs of demanding global consumers. Our technical assessment and advising roles have also enabled us to assist and support French, European and discover in this magazine a good illustration of the mutual benefit of a strong diplomatic ties? True, the trade balance deficit with China on the French side remains substantial but the bilateral investment balance I would like to thank Mr. LENAIN and the French business leaders for sharing their views and experience on this new issue of BV EXPRESS. Sincerely, B V
Industry and Facilities Division in China offers Testing Inspection and Certification and Technical Consulting Services to local and international Clients in management system certification and training, construction and facilities, industrial equipments and facilities, oil and gas, power and utilities, railway and rail transit, transportation and logistics and more... Guangzhou 2-5F, No.1288, Waima Road, Huangpu District, Shanghai 200011 TEL + 86(21)2319 0001 FAX + 86(21)6886 1421 Room 1602-1604, 16 F, Heye Plaza, No.486, Kangwang Zhong Road, Guangzhou 510140 TEL + 86(20)8307 3800 FAX + 86(20)8130 0803 + 86(20)8890 4079 Room C6,12F, Shangmao Century Plaza, No.49, South zhongshan Road, Baixia District, Nanjing 210005 TEL + 86(25)8689 3166 FAX + 86(25)8689 3166-208 Room 18D1, Kings Tower, No.1156, Binhe Road, New and Hi-tech Development District, Suzhou 215011 TEL + 86(512)6831 2912 FAX + 86(512)6807 8583 Hangzhou 22F, Tower B, Global Trade Center, No.36 North, Third Ring Road East, Dongcheng District, Beijing 100013 TEL + 86(10)5968 3888 FAX + 86(10)5968 3666 Room 603, Building C, HuaxingTimes Plaza,No.478, WensanRoad, Hangzhou 310012 TEL + 86(571)8715 3780 FAX + 86(571)8715 3979 Room 1315, Modern Interna Tower, No.115-1, Minzu Avenue Nanning 530022 TEL + 86(771)5586 807 FAX + 86(771)5595 710 33F,Tianjin City Tower, No.35, Youyi Road, Hexi District, Tianjin 300061 TEL + 86(22)5891 3888 FAX + 86(22)8835 1023 Harbin Room 1906, Hong Lin International Building, No. 266, Sanduan of Furong Zhong Road, Changsha 410056 TEL + 86(731)8577 7303 FAX + 86(731)8577 7302 Room 512, Baoli Technological Building, No.93, Zhongshan Road, Xiangfang District, Harbin 150036 TEL + 86(451)8239 3091 / 3092 FAX + 86(451)8239 3097 Room 1210, Building 1,NO.1498,Jiangnan Road, Ningbo City,Zhejiang Province,P.R.C Ningbo 315040 TEL +86 (574) 2768 0810 FAX +86 (574) 2768 0881 ~ 300457 Hong Kong Room 1009, The ATRIUM, No.99 Down East Street, Jinjiang District, Chengdu City,Sichuan Province,P.R.C TEL + 86(28)8667 8838 FAX + 86(28)8667 7863 Room15-2, Building 2, One Central Midtown No.18, Jinshan Road, Chongqing 401147 TEL + 86(23)6789 6861 FAX + 86(23)6789 6862 Room 1905B, 19F, Senmao Building, No.147, Zhongshan Road, Dalian 116011 TEL + 86(411)8360 4677/4450 FAX + 86(411)8360 7302 Room 23-25, 10F, Pacific Trade Centre, No. 2, Kai Hing Road, Kowloon Bay, Kowloon, HongKong TEL + 86(852)2815 2092 FAX + 86(852)2545 3287 Lanzhou Room 2605, No.116, Lanshi Business Building, Dunhuang Road, Lanzhou 730050 TEL + 86(931)2342 377 FAX + 86(931)2342 377 Luoyang 3F, Luoyang Peony Hotel, No.15, West Zhongzhou Road, Luoyang 471000 TEL + 86(379)6468 0089 FAX + 86(379)6468 0113 No., 266071 Room 1401, Fengtian Ginza, No. 19, Youhao Street, Shenyang110013 TEL + 86(24)3197 9226 FAX + 86(24)3197 9226 518067 (BV-BOSUN) 33F, Tianjin City Tower, No.35, Youyi Road, Hexi District, Tianjin 300061 TEL + 86(22)5891 3888 FAX + 86(22)8835 1023 Room 2301, A3 Building, Lingjiaohu Wanda Plaza, No.5, Tangjiadun Road, Jianghan District, Wuhan 430015 TEL + 86(27)8808 9336 FAX + 86(27)8808 9337 Room 608, Block B, No.36, Oak block, Fenghui Road(S), High Tech District, Xi'an 710065 TEL + 86(29)8720 9927 FAX + 86(29)8720 9753 BUREAU VERITAS Created in 1828, Bureau Veritas is a global leader in Testing, Inspection, Certification and Technical Consulting, delivering high quality services to help clients meet the growing challenges of quality, health, safety, environmental protection and social responsibility. As a trusted partner, Bureau Veritas offers innovative solutions that go beyond simple compliance with regulations and standards, reducing risk, improving performance and promoting sustainable development. Bureau Veritas core values include integrity and ethics, impartial counsel and validation, customer focus and safety at work. Bureau Veritas is recognized and accredited by major national and international organizations. Room 620, No.132 Wu Yi Zhong Road, Fuzhou 350064 TEL + 86(591)8385 3966 FAX + 86(591)8385 3966 Nanchang Room 1408, Jiangxin International Plaza, No.88, West Beijing Road, Nanchang 330046 TEL + 86(791)8630 4797 FAX + 86(791)8630 4797 oo 518031 361012 Bureau Veritas has more than 65,000 employees in 1,330 offices and laboratories located in 140 countries. Bureau Veritas entered China in 1882 and has currently more than 10,000 employees in 100 offices and laboratories located in 55 cities. Bureau Veritas
CARBON NEWS BOOTH BV EXPRESS ISSUE 21 JUL AUG SEP OCT NOV 14 01 11 12 16 18 10 / 11 BUREAU VERITAS On Jul 14, Bureau Veritas signed a strategic cooperation agreement on chemical and physical testing, product certification, inspection subcontract, training business, personnel qualification authentication and business promotion with Ningbo Special Equipment Inspection Center. Before this cooperation, Bureau Veritas has launched the strategic cooperation with many special equipment inspection and research institutes. 15 In the past, Neway, the largest valve manufacturer around the world, invited Bureau Veritas to help ensure the functional safety of its products during the whole life cycle from design to scrapping. Nowadays, Bureau Veritas has helped Neway s six categories of products successfully pass all items of continued certification and expanded certification completely and acquire SIL3-level functional safety certificate. SAI (Social Accountability International) officially issued SA8000:2014 Standard on its official website (www.sa-intl.org), which meant that the upgrade and certification of SA8000 (SCR Standard) formally entered into the countdown stage. As a globally leading certification body, Bureau Veritas will also timely release the newest standard update, certification requirements and other news to customers. 15 The Draft 1.0 of FSC China Forest Management Standards has been issued and is now being consulted for public opinion for two months. As a sole Asian certification body designated by FSC, Bureau Veritas successfully performed the field testing of FSC s International General Indexes (IGIs) in Guangxi, which provided the first-hand experience for the formulation of FSC China Forest Management Standards. On August 11, Bureau Veritas awarded an ISO 9001 certificate to Volvo Car China, marking successful acquisition of all ISO 9001 certificates for its China Operations. Lars Danielson, Senior Vice President Volvo Car Group & CEO Volvo Car China, was presented the certificate from Arnaud Torcheux, Vice President, Bureau Veritas Certification Business Line for Asia during the Volvo Car China ISO 9001 Certificate Awarding Ceremony. On August 20, Forbes released its 2014 list of the World's 100 Most Innovative Companies:Bureau Veritas ranks in 50 th position and also the first in Testing, Inspection, Certification and Technical Consulting area. It is a recognition that Bureau Veritas has demonstrated remarkable innovation and creativity in the world. The World s Most Innovative Companies List is developed annually by Forbes Magazine. On Sep. 12, the 2 nd Theme Park and Attractions Summit & Award 2014 has been successfully held in Shanghai. Bureau Veritas was awarded "Highly Recommended Consultants Company" Award. At present, Bureau Veritas is participating in the Shanghai Large Theme Park project management. 18 CHIN A BOMA China and Bureau Veritas released jointly the finished version of Preventive Maintenance Guide (PRM). Bureau Veritas is the sponsor to compile, technically correct, print and release the chinesization of Preventive Maintenance Guide. Bureau Veritas and Sinosteel MECC formally reached service cooperation about Russia customs union certification. Bureau Veritas will provide Russian clearance certification and project consulting for Sinosteel MECC. Bureau Veritas, the world-renowned inspection and certification service provider, has awarded the first batch of Safety Instrumented System (SIS) Functional Safety Engineer certificate to the engineers from more than ten companies including CNOOC. After a period of systematic training and rigorous testing and screening, a total of 11 engineers obtained the qualification certificate. 20 27 24 25 中 国 CHINA 绿 GREEN 色 碳 汇基 Linyi City (Shandong province) successfully held the Symposium on Forest Certification for New Generation Planted Forests and Small-scale Farming from Oct 27 th to Oct 28 th. Given its status as the most experienced player in forest certification for smallscale farming, Bureau Veritas was invited to present a keynote speech at the event. Bureau Veritas will help promote and develop joint forest certification. 金 会 FOUNDATION On Nov 18 th, 2014, the Bureau Veritas and U.S. Green Building Council (USGBC) successfully held their Global Strategic Partnership & Bureau Veritas China Headquarters LEED Gold Award Ceremony at Bureau Veritas China Headquarters in Shanghai. China is one of this partnership s most important and first region and it has been confirmed that a nationwide effort to promote the green building concept will commence in 2015. Coinciding with the extension of Bureau Veritas Certification s current COFRAC accreditation to undertake Type Certification of wind turbines and components to include the GL Guidelines, Acciona awarded Bureau Veritas Certification to provide the Type Certification of the AW 125/3000 IEC III a wind turbine according to GL guideline 2003/2004. ACCIONA designs and manufactures wind turbines with a capacity of 1.5 and 3MW. B V
BUREAU VERITAS THE WORLD S LEADING PROFESSIONAL PROJECT MANAGEMENT ASSISTANCE & SUPERVISION SERVICES PROVIDER FOR CONSTRUCTION INDUSTRY Project Management Assistance Services Permitting Application Assistance Tender Management Design Management Schedule, Quantity & Cost Monitoring / Management Quality Assurance / Quality Control (QA / QC) Construction Site Environmental, Health & Safety Management Testing & Commissioning Supervision Construction Supervision Licenses Grade A for municipal works Grade A for building Grade A for petrochemical Grade A for power utility installation Grade A for equipment supervision Grade B for mechanical & electrical installation Web:www.bureauveritas.cn Mail:hugo.der@cn.bureauveritas.com charles.luo@cn.bureauveritas.com Tel:+86 (21) 2319 0229 2319 0240 Fax:+86 (21) 6875 7502
BRAND IS TALKING BV EXPRESS ISSUE 21 MICHELIN PLAYING AN ACTIVE ROLE IN CSR Interview with Mr. Philippe VERNEUIL, President of MICHELIN (China) Investment Co, Ltd. This year marks the 25 th anniversary of MICHELIN presence in China. Since the beginning, MICHELIN has been making continuous efforts to develop, manufacture, market and sell innovative and high quality products and services to meet the specific needs of Chinese consumers. The newly-opened Shenyang new factory, with an investment totaling nearly CNY 9.2 billion We are also playing an active role in the communities through educational programs to increase public s road safety awareness and environment protection. Mr. Philippe VERNEUIL said when interviewed by BV EXPRESS. MICHELIN China has invested approximately CNY 18.4 billions in all domains - RDI, Manufacturing, Marketing, Communication, Distribution, Government Relations and local communities and People. We sell in China tires for passenger cars, trucks and buses, earthmovers, airplanes and farm equipment and offer MICHELIN maps and guides, and lifestyle products. its auto and transportation industry, China has become one of the most important strategic markets for MICHELIN Group. Looking forward to the future, we are full of confidence in achieving continued success in China. The newly-opened Shenyang new factory, with an investment totaling nearly CNY 9.2 billion, is another solid display of our long- 14 / 15 BUREAU VERITAS [BV EXPRESS]: When did MICHELIN enter into China? How about MICHELIN s development history and current situation in China? Philippe VERNEUIL: MICHELIN entered Greater China in 1988 with the establishment of a sales office in Hong Kong, and set-up a representation office in Beijing in 1989. Our 1st manufacturing presence was established in 1996 in Shenyang (Liaoning province).this year marks the 25 th anniversary of MICHELIN presence in China. MICHELIN China employs 7500 people, operates 4 plants located in Shenyang and Shanghai and supported by a RDI center in Shanghai and 8 regional sales offices. Over the past 25 years, [BV EXPRESS]: What s the role of MICHELIN China branch in MICHELIN s global developing strategy? What s the position of China market to MICHELIN s global business? Philippe VERNEUIL: China is a very big economy which holds a huge potential for growth as it is not yet a very rich one. With rapid growth of term commitment to China. I know that Bureau Veritas provided process installation safety & risk management service for our Shenyang new factory project during construction phase, which helped us achieve our goals of safe & effective construction. Over the next decade, we anticipate a strong growth of the total tire market of China that would become as large as the combined North American and European markets.
BRAND IS TALKING BV EXPRESS ISSUE 21 [BV EXPRESS]: In 2013, MICHELIN invested a new large-scale RDI center with 100 personnel, what is the special appeal of China to MICHELIN? Philippe VERNEUIL: Since 1889, MICHELIN has constantly innovated in its 125 years course to enhance the sustainable mobility of people and goods. Today, it is setting the benchmark across every tire and travel-related services market, while leading the industry a better way forward. MICHELIN is a company driven by sustained innovation, thus we attach great importance to R&D part. The MICHELIN Group invests CNY 4.9 billion each year on R&D. In the past three years, the MICHELIN Group has invested around CNY 15 billion on R&D. To respond to the very demanding Chinese consumers and customers needs, we are strengthening our RDI center in China. In 2013, we invested in a new RDI center with over 100 personnel, located in our headquarter in Shanghai. [BV EXPRESS]: What s your opinion on CSR and what s MICHELIN s attitude towards CSR in China? Philippe VERNEUIL: As a responsible corporate, MICHELIN keeps its long term commitment to community and social development. We are playing an active role in the local communities through educational programs to increase road safety awareness and environmental protection. The 12 th MICHELIN Challenge Bibendum is an example of our active role in corporate social responsibilities (CSR). We have built a special education school in Sichuan after Wenchuan Earthquake and took part in the compilation of the Guidebook for the Exercise of Corporate Social Responsibility in China together with Bureau Veritas. Beside these, MICHELIN advocated series CSR activities in recent years. Like the MICHELIN Challenge Bibendum, the Green Life on Wheels China Private Cars & Drivers Environmentality Survey in 2013, the 5 Pillars [BV EXPRESS]: What is MICHELIN s strategic plan in the coming years for China market? Philippe VERNEUIL: Over the next decade, China will see the greatest potential for mobility growth and it will continue growing. So the Chinese market is one of the most important markets for the MICHELIN Group and our strategy is quite aggressive. It is supported by 5 pillars: 1 Close to our consumer and customer: To be more and more responding to the specific demand of Chinese market, we have programs to develop consumer and customer intimacy. 2 Product: We will continue our customeroriented R&D to meet diverse needs of the Chinese customers by providing an extensive product portfolio with innovative technologies. 3 Manufacturing: We will continue to invest to keep up with pace of our sale growth. We plan to double our production volumes over the next years. 4 Distribution: We are going to continue to provide our consumer and customer the professional services and double the size of TYREPLUS network. 5 People: We are developing programs to attract, develop and retain people in order to have more and more Chinese people in leadership positions in MICHELIN China and also in the Group. And we will play an active role in corporate social responsibilities such as 2014 MICHELIN Challenge Bibendum held in China. Our strategy is to deploy a program to make better life through sustainable mobility. Because our purpose worldwide and in China is to give people A better way forward. B V Green Life on Wheels China Auto Drivers [BV EXPRESS]: Could you introduce some details about the cooperation between MICHELIN and Sichuan province? Environmental Behavior Survey in 2012, the Turn Your Journey Green campaign in 2009, the Green Meters in 2007 and so on. Philippe VERNEUIL: For years, Sino-French relation is under sound development. 2014, the 50th anniversary, provides huge opportunities [BV EXPRESS]: What do you think about the Sino-French Diplomatic Relations? ABOUT MICHELIN MICHELIN, the leading tire company, is dedicated to sustainably 16 / 17 BUREAU VERITAS The 12 th MICHELIN Challenge Bibendum and creates favorable environment for communications and cooperation in several fields between Sichuan and France. As a French company, 2014 is also the 25 th anniversary of MICHELIN China. We hope MICHELIN will seize this opportunity to start several cooperation with China local companies and Sichuan officials. Now, China is under rapid growth period, as well as Sichuan economy. In order to promote sustainable development of social and economic of Sichuan, MICHELIN has transferred its attention to Sichuan. In this case, MICHELIN group decided to point Chengdu, Sichuan s capital and economic center to hold the 12 th MICHELIN Challenge Bibendum, from November 11 to 14, 2014. Philippe VERNEUIL: MICHELIN is honored to be a member of the Sponsors Committee of the Institut Français and thereby officially associated with the commemoration of the establishment of diplomatic relations between France and China. Organized under the high patronage of the President of France, the series of exhibits, colloquia, meetings, performances, concerts and other events that will take place throughout the year in China, and France will highlight the multiple facets of the two countries bilateral relations. More specifically, they will showcase initiatives and developments in the areas of science, technology, economics, trade, academics, the environment, health, tourism, sports and culture. improving the mobility of goods, automobiles, bicycles/ motorcycles, earthmovers, farm equipment and trucks. It also offers electronic mobility support services on ViaMichelin.com and publishes travel guides, hotel and restaurant guides, maps and road atlases. Headquartered in Clermont-Ferrand, France, MICHELIN is present in more than 170 countries, has 111,200 employees and operates 67 production plants in 17 different countries. The Group has a Technology Center in charge of research and development with operations in Europe, North America and Asia. (www.michelin.com) MICHELIN established its first Mainland China representative office in Beijing in 1989. Based on a century s innovation spirit, MICHELIN brings advanced technologies and high-quality products to China. At the end of 1995, MICHELIN Shenyang Tires Co., Ltd. was incorporated. In 2001, MICHELIN (China) Investment Co., Ltd. was incorporated in Shanghai. Currently, MICHELIN has four production plants in China, with 7,500 employees. In addition, it has set up sales offices in Shanghai, Guangzhou, Chengdu, Shenyang, Xi an, and Hong Kong with its sales network covering the whole country.
BRAND IS TALKING BV EXPRESS ISSUE 21 TOTAL ENGAGED CHINESE ENERGY ENTERPRISES IN BUSINESS ALLIANCES AND THE GO OUT POLICY Interview with Bertrand DE LA NOUE, General Representative of TOTAL in China The prolonged history of the partnership 18 / 19 BUREAU VERITAS between TOTAL, one of the pioneer companies investing in China, and Chinese energy enterprises can be traced back to the year 1979 when the China ocean exploration project was launched (Bohai Bay). 35 years later, TOTAL is doing business with more than 20 subsidiaries and 5000 local employees in China within the major fields containing exploration and production, refining and chemicals, marketing and services. It provides a full range of assistance and support to the massive energy demand in China while engaging Chinese energy enterprises in the business alliances and the Go Out policy. [BV EXPRESS]: Would you please describe how TOTAL s business expands starting from its entrance in the China market till now? Bertrand DE LA NOUE: It has been 35 years since TOTAL joined the landmark ocean exploration project on Bohai Bay, then acting as a market player in China. Currently, TOTAL s line of business includes oil exploration, drilling and refining, petrochemical industry, specialty chemicals, marketing and services as well as the newly-developed solar energy. We faced many challenges during our development in China, mainly because the It has been 35 years since TOTAL joined the landmark ocean exploration project on Bohai Bay, then acting as a market player in China oil and natural gas industry is a strategic industry, with strong state-owned champions and protected by tight regulations and limited market access. But it did not prevented our expansion, and operating through jointventures with Chinese partners, TOTAL never ceased to enlarge its business range while bringing the local industry innovation and access to external market. [BV EXPRESS]: Would you please specify how TOTAL handles its relationship with the state-owned monopoly oil and natural
BRAND IS TALKING BV EXPRESS ISSUE 21 20 / 21 BUREAU VERITAS TOTAL Supplied more than 8% of the Chinese LNG imports on average, with 5 million tons of LNG already delivered between 2010 and 2014 gas enterprises such as CNPC, Sinopec and CNOOC? Bertrand DE LA NOUE: TOTAL has developed many joint-ventures with CNPC, Sinopec, CNOOC and Sinochem. Note that we are not competitors, but in a highly regulated market like China, it is important to team up with the major players. Besides our collaborations in domestic market, we are also involved with them in world projects in Africa, Middle East, North America and South America. In China, for example, we created jointventures to develop the natural gas project in Inner Mongolia with CNPC, to explore shale gas resources with Sinopec, to market oil products with Sinochem and signed a LNG cooperative agreement with CNOOC, that supplied more than 8% of the Chinese LNG imports on average, with 5 million tons of LNG already delivered between 2010 and 2014. [BV EXPRESS]: Over the last decade, Chinese oil and natural gas enterprises have been pushing forward the Go Out strategy. Being the multinational oil giant, would you please define their current situations in the worldwide marketplace? Is TOTAL ready to Go Out with them? Bertrand DE LA NOUE: CNPC and Sinopec are among the top 10 in the Fortune Global 500 and well developed both domestically and overseas. They rank in the leading oil and natural gas companies in the world and have been proved to be more and more successful with the implementation of the Go Out policy. TOTAL is very proud to have accompanied Chinese enterprises from the beginning in their Go-Out policy. For instance, we have partnered with CNOOC in Africa in countries such as Nigeria and Uganda, with CNPC in the Middle East as well in the Russian Yamal project and joined forces with Sinopec in Canada. The giant Libra oilfield project in Brazil which started end of last year, is another example of our alliance with CNPC and CNOOC. [BV EXPRESS]: Would you please explain how TOTAL will help with the ever-raising oil consumption situation in China whose oil consumption ranks the second place worldwide? Bertrand DE LA NOUE: China will be the largest energy consumer soon, and its energy demand should grow by another 50-60% by 2030. Of course oil demand will continue to grow, but in the energy mix, gas and renewable energies will have the strongest growth. TOTAL will not only continue to work with our Chinese partners on oil and gas exploration in China, mainly for non conventional hydrocarbons or on offshore projects, but also develop imports of LNG and through our subsidiary SunPower, contribute to the huge development of solar energy in this country. [BV EXPRESS]: Would you please specify TOTAL s market strategy in China for the future three years? Bertrand DE LA NOUE: Our strategy has remained to continuously reinforce our partnerships with Chinese companies, and at the same time, look for new opportunities to develop our business. We are not only working on large projects in exploration and production, but also on coal transformation into chemicals, we have built new chemical and lubricant plants which should allow us to grow our market share, and are continuously expanding our marketing activities. In all of these projects, partners like Bureau Veritas could help us by providing high quality assurance and project management services. TOTAL welcomed the Chinese president Xi Jinping in France earlier this year [BV EXPRESS]: Environment pollution has long been attributed to the oil enterprises' business activities. Would you please tell us what TOTAL is doing to balance its responsibilities and to ensure adequate energy supply as well as environment protection? Bertrand DE LA NOUE: Energy security and environment protection are global hot topics, but should not be always antagonized. We need Energy, and we need to protect our environment. And it is true that small mistakes in our industry can have dear impact on the environment. Thus, we have to comply with very strict and comprehensive procedures and with local and international regulations in countries where we operate. The knowledge and skills of Bureau Veritas employees in that aspect could be very precious to our industry. [BV EXPRESS]: We celebrate the 50 th anniversary of the establishment of diplomatic relationship between France and China this year. What is your viewpoint regarding its development in the future? Bertrand DE LA NOUE: As a French company with enduring commitment in China, TOTAL has participated in this 50 th anniversary and is pleased of its success and large impact in China. We felt particularly honored to welcome the Chinese president Xi Jinping in France earlier this year for a very successful state visit, and high-level exchanges have been numerous throughout the year. Moving forward, we have to capitalize on this trend and develop more our bilateral relations. This implies also opening up further on Chinese side to allow French companies to do more business here. TOTAL, as the biggest French company, will of course play its full role in promoting our friendship and this demand for further opening up. B V ABOUT TOTAL With operations in more than 130 countries, TOTAL is a toptier international oil company and a world-class natural gas operator, refiner, petrochemical producer, and fuel and lubricant retailer. Our nearly 99,000 employees leverage their global acknowledged expertise so that together they can discover, produce, refine and distribute oil and gas to provide products and services for customers worldwide. We are also broadening our offering by developing energies that can partner oil and gas --- today, solar energy and tomorrow, biomass. TOTAL s consolidated sales in 2013 were 189.54 billion. As the first international energy company to enter China s offshore oil and gas exploration and refining business, TOTAL currently employs nearly 5,000 people and owns more than 20 companies in China. The company is actively presented in the entire value chain of China s energy industry - ranging from upstream to downstream and chemicals, establish win-win partnerships by sharing technology and know- --how, as well as developing business opportunities with Chinese partners both in China and globally.
BRAND IS TALKING BV EXPRESS ISSUE 21 AUCHAN STILL ENJOYS GREAT MARKET DEVELOPMENT SPACE IN CHINA Interview with Mr. Olivier SOULE DE BAS, General Manager of AUCHAN (China) Investment Co. Ltd. [BV EXPRESS]: Could you please briefly introduce AUCHAN s primary business and current situation in China? Olivier SOULE DE BAS: AUCHAN is a market-oriented company for many years and have four different business scopes: hypermarket, supermarket, real estate commercial center (Immochan), and E-business. E-business is a new creative business as well as the developing target business of AUCHAN. AUCHAN came in China in 1997, and after investigation, started the first hypermarket in Shanghai in July 1999. Now we have 61 comprehensive hypermarkets in 28 provinces, cities and autonomous regions in China, occupying accumulatively about 2280,000 m 2 square meters. Every day, more and more people come to AUCHAN for shopping. 22 / 23 BUREAU VERITAS As a French enterprise in China, AUCHAN has always been sticking to the management idea of option, low price, service to build the friendly, likable, dedicated image in the field, regarding sustainable development as the foundation and precondition of longterm development. In the interview with BV EXPRESS, Mr. Olivier SOULE DE BAS, General Manager of AUCHAN (China) Investment Co. Ltd., said, at the same time of expanding storefront market, AUCHAN pays more attention on stores optimization and upgrading. In order to adapt to the trend of Chinese urbanization, AUCHAN meets customers changing needs with competitive price and vigorously develops e-commerce to fulfill the present network needs in China. AUCHAN has been growing up and developing with China in the friendly and close cooperative relationship. [BV EXPRESS]: What were the biggest challenges AUCHAN faced in developing in China? How has AUCHAN China overcome them? Olivier SOULE DE BAS: The biggest challenge for AUCHAN is how to integrate supermarkets with different Chinese culture. China is a country with vast territory and abundant resources, and customers in different regions have different needs; for example, Beijingnese customers have totally different needs from Taiwanese, Shanghainese or Guangdongnese. This is the largest challenge for us in China. Therefore, AUCHAN (China) has a rule in China, which is that all of the foreigners working in AUCHAN have to learn Chinese and understand Chinese culture, which exerts important influence on AUCHAN s development in China. Besides, we will employ the third party organization to assist us to develop in China; for example, in the process of building supermarkets, we invite Bureau Veritas to provide us with Inspection & In-Service Verification, Green Building LEED Certification consulting, and other services, so as to ensure that our supermarkets can fulfill safe, healthy and environmental requirements for China and the world.
BRAND IS TALKING BV EXPRESS ISSUE 21 24 / 25 BUREAU VERITAS AUCHAN Wuxi supermarket is the first hypermarket to gain LEED certification in China [BV EXPRESS]: In the dual pressure of rapid development of local supermarkets and online supermarkets, 118 foreign supermarkets in China are closed in the first half of this year. Why AUCHAN (China) is continuing to open new supermarkets in China? Olivier SOULE DE BAS: Firstly, we feel relieved for the rapid development of local supermarkets and online market, as the new competition can bring more. The pressure they brought can prompt our self-improvements, enhance professional qualification and scope. As for how to open new supermarkets continuously, we believe that AUCHAN still has great market development opportunities in China at present, and online market is not enough; therefore, we hope to show our modesty and willing to stay in China market through continuously opening new supermarket and developing new forms such as shopping malls. Moreover, I think AUCHAN (China) still has large space to improve, which is reason for our continuous expansion of new market in China. [BV EXPRESS]: This year, AUCHAN China began expending into shopping center / shopping mall, whether this will be the next step in the development strategy of AUCHAN China? Olivier SOULE DE BAS: This year, at the same time of developing online supermarkets, we have also started to open up shopping malls to expand business, such as Suzhou, Wuxi or Ningbo Xinxi, all of them are different from the previous large supermarkets. Online market is not enough, and customers can purchase some stuff through computers or cell-phones, but there still have some stuff which customers still tend to experience and purchase in supermarkets. [BV EXPRESS]: These years, AUCHAN China HO and AUCHAN Wuxi supermarket achieved Green Building LEED certification, From this we can see that AUCHAN China paid much attention to Sustainable Development and Corporate Social Responsibility (CSR). Could you please introduce us the sustainable development strategy of AUCHAN China and how will AUCHAN China do to implement this strategy in China? Olivier SOULE DE BAS: AUCHAN emphasizes sustainable development. Therefore, we have not only applied LEED certification for AUCHAN (China) headquarter office buildings, but also applied LEED certification for AUCHAN Wuxi supermarket, which has become the first hypermarket to gain LEED certification. From now on, for every AUCHAN supermarket, we will build and manage according to LEED standards. I hope that Bureau Veritas can provide us with more support in the aspect of LEED certification, as green architecture is very favorable for our groups longterm development. Bureau Veritas, as international inspection group, has kept friendly cooperation relationship with AUCHAN, and I m sure we will continue to cooperate. [BV EXPRESS]: What s the development strategy of AUCHAN in the next 3 years? Olivier SOULE DE BAS: We will reinforce the direct purchase of fruit, vegetables and local specialties, so as to provide customers with fresh products with good quality and reasonable price, counteracting the inflation of fresh vegetables since AUCHAN will forge private brand products authorized by Disney ABOUT AUCHAN this year. We will strengthen investigation of price, including physical stores and e-commerce websites, to make AUCHAN China keep strong price competitiveness both online and offline. Moreover, we will customize MCP to provide more options for customers and forge private brand products authorized by Disney in the process of cooperating with Disney, so as to provide products and interesting packaging for customers. [BV EXPRESS]: How do you view Sino-French diplomatic relations? As a French company in China, whether AUCHAN (China) has benefited from the The first hypermarket of AUCHAN opened in Lille (Northern France) in 1961. It was the first time to combine More Choices, Lower Price, Better Service in business, therefore AUCHAN became the world s pioneer in hypermarket business. At present, AUCHAN is one of the most famous hypermarket chains in the world. The turnover has reached 62.1 billion in 2013, AUCHAN has 1,591 hypermarkets and supermarkets in 16 countries, employs more than 302,000 persons. It s considered as one of the main commercial groups in France at present, and it s the 152 th of The World s Top 500 Enterprises. The first hypermarket of AUCHAN in China - Shanghai ZhongYuan Store opened on 18 th, July 1999 in YangPu District. It covers an area of 20,000 square meters: the construction area is 15,000 square meters and the business area is 11,400 square meters. AUCHAN has started stable & continued development in China since 1999, Shanghai ChangYang Store, Shanghai MinHang Store, Su- Zhou Store, WuXi Store, Hangzhou Store, BeiJing Store, ChengDu Store also opened successively. Now there are 61 hypermarkets in China, more and more hypermarkets will open soon. good Sino-French diplomatic relations? Olivier SOULE DE BAS: AUCHAN China has benefited a lot in the favorable relationship between China and France. During many years of development of AUCHAN, many Chinese come to AUCHAN and establish friendly cooperative relationship with us; as China is developing rapidly, many French people come to China and have got good career opportunities. We are glad to see this trend; favorable Sino-French diplomatic relationship can not only promote intercultural communications between two countries and people, but also accelerate exchanges of both countries in commerce. B V
BUREAU VERITAS OIL & GAS SERVICES Created in 1828, Bureau Veritas is a global leader in Testing, Inspection, Certification and Technical consulting, delivering high quality services to help clients meet the growing challenges of quality, health, safety, environmental protection and social responsibility. The Oil & Gas Business Line of Bureau Veritas provides professional services to the projects of offshore and onshore oil & gas fields, LNG terminals, pipelines, refineries, coal chemical, petrochemical, etc., compliance with law, regulations, standards, specifications, and client requirements. The services include design review, independent analysis and technical consulting, conformity inspection & certification, mandatory inspection, certification & assessment, supplier assessment, shop inspection, AIM, process safety management & consulting, NDT, etc. With about 20 years experience in the Oil & Gas sector in China, Bureau Veritas offers client with One-Stop Shop offer which consists of providing integrated and customized solutions, reducing risk, improving performance and promoting sustainable development. CONTACT US Shanghai Tel: +86 21 2319 0335 Beijing Tel: +86 10 5968 3898 Tianjin Tel: +86 22 5891 3888 EX.3810 Shenzhen Tel: +86 755 2685 2703 Chengdu Tel: +86 28 8665 0763 Web: www.bureauveritas.cn (China) www.bureauveritas.com (Global) Mail: webchina@cn.bureauveritas.com
MOVE FORWARD WITH BUREAU VERITAS BV EXPRESS ISSUE 21 28 / 29 BUREAU VERITAS BUREAU VERITAS HELPS SAINT - GOBAIN TO BUILD THE MOST ENERGY - SAVING AUTOMOTIVE GLASS PLANT IN CHINA Bureau Veritas Construction Business Line Senior Project Manager, Xiaoxin LIU Bureau Veritas Construction Business Line Senior Project Engineer, Wanlin LI ENERGY - SAVING AUTOMOTIVE serve the carmakers in China. This GLASS PLANT investment was a huge stride for the Group s development strategy Saint-Gobain Sekurit, as part of the in Asia and emerging market. Saint-Gobain group, is the top three automotive safety glass solution providers in the world in automotive PROFESSIONAL PROJECT glass manufacturing field. For more MANAGEMENT TEAM than 50 years, Saint-Gobain Sekurit At the beginning of the project, has provided high quality, high-tech Bureau Veritas signed a project and functional automotive glass for management services contract global automotive industry. with Saint-Gobain Hanglas CLFG Saint-Gobain Sekurit has started Qingdao Glass Co., LTD, providing its investment in China since 1995. design review, bidding management, construction management Based on the development needs of the Chinese market, it established and supervision for the project. its third foreign-owned automotive In the design review stage, Bureau glass plant in Qingdao -- Saint- Veritas provided review of design Gobain Central Sekurit (Qingdao) drawings for customer to ensure the design is compliant with Co., Ltd. The plant is located in Huangdao Development Zone, close national norms and meets the to the Saint-Gobain Hanglas CLFG construction standards of Saint- Qingdao Glass Plant. The project Gobain plant. At the bidding stage, was constructed in two phases, Bureau Veritas was responsible with the first manufacturing line for the preparation of bidding came on stream mid-2012, and documents and construction contract, provided technical support second manufacturing line came on March 2013. The construction area for the bidding stage for Saintof the plant in Phase One is 28,000 m 2 Gobain, and assisted the contract, including office, manufacturing shop, auxiliary room of public and business negotiations. In the management phase, as the project utility, fire-water pond, groundwater pumping stations, and 35KV management contractor, Bureau Veritas managed and controled the substation. With this leading-edge construction quality, scheduled plant, boasting the latest environmental and energy-saving technol- and engineering change, as well as provided construction supervision ogy, Saint-Gobain Sekurit, will reinforce its position to services for Saint-Gobain. competitively
MOVE FORWARD WITH BUREAU VERITAS BV EXPRESS ISSUE 21 Project Management Services Design Review Bidding Management Construction Management & Supervision CHALLENGES BRING ABOUT method ensured the ground load BREAKTHROUGH and intensity; at the same time, it 30 / 31 BUREAU VERITAS The project construction of Saint- Gobain Central Sekurit (Qingdao) Plant, boasting the latest environmental and energy-saving technology, has many difficulties. Firstly, there are large number of production processes and equipment in the project, the equipment are with huge volume and have close contact with the plant buildings. Secondly, the project requires a higher ground bearing capacity, with maximum load of 20KN/m 2. Thus there are high requirements on the construction quality of the ground. Finally, the construction began on February, 2012, and it is expected to come on stream on March 30, 2013, the huge plant construction has only 17 months duration. In addition, the broken glass underpass is located in weathered rock area, blasting need to be implemented, making the excavation very difficult. In response to these engineering difficulties, Bureau Veritas has put forward a series of solutions. Firstly, Bureau Veritas recommended that Saint-Gobain ground should adopt steel fiber reinforced concrete instead of reinforced concrete. This significantly shortened the duration, reduced the project cost, and effectively avoided the emergence of floor surface cracks. Secondly, Bureau Veritas recommended Saint-Gobain to optimize the steel structure of the plant. The amount of steel used was saved, and the project cost was reduced. The welded joints were changed into bolted joints as well, which reduced the workload of onsite welding in installation process and the workload of inspection, effectively shortening the construction period. Finally, Bureau Veritas has reviewed the schedule of the general contractor, held several seminars to discuss schedule, put forward suggestions for optimizing schedule and construction organization, and urged the construction unit to reasonably arrange the processes to reduce or avoid the mutual interference of different professional processes and input sufficient labor and equipment resources, all these measures effectively guaranteed the construction duration. SUCCESSFUL PROJECTS WILL DEFINITELY GENERATE SUCCESSFUL EXPERIENCE Bureau Veritas has accumulated a lot of valuable experience from the smooth progress of the construction of Saint-Gobain Central Sekurit (Qingdao) Plant. Good communication, high level professional technic and management skills, professional attitude to customer service and rationalizing suggestions are the integral and essential elements of the construction project. First of all, as the management service contractor of the project, Bureau Veritas has worked together with Saint- Gobain project teams, maintained good communication, was aware of the expectations of the owner in the first time, reflected the problems encountered by the project in time, and discussed and developed relevant solutions with the owner from the professional point of view. Secondly, relying on high level professional technic and management services, Bureau Veritas has made executive planning since the implementation of the project, anticipated the risk and developed effective countermeasures, which actively excluded difficulties for customers. Thirdly, Bureau Veritas team has always been adhering to the philosophy of customer-concerned service, thinking for the customers difficulties and solving their problems. Finally, relying on professional technical ability, the Bureau Veritas team has analyzed the features of the project and the local geography and provided customers with a number of rationalization proposals, which not only shortened the construction period, but also saved a lot of money for customers, reducing their costs. These are crucial to ensure the smooth progress of the project. ONLY SUCCESS CAN EARN CUSTOMER S TRUST In the joint efforts of Saint-Gobain project team, Bureau Veritas site management team and the general contractor, the project has achieved the set goals in construction duration, quality, safety, cost control and other aspects. The project has produced the first qualified automotive safety glass as scheduled in September 2012 after the first manufacturing came on. The president of Saint- Gobain in Asia Pacific Area highly praised the work of the project in the Asia Pacific Headquarters meeting, considering that this project has created history in Saint-Gobain new projects; and in the commissioning ceremony, the work of Bureau Veritas has also been given full recognition and praise. Given to the contribution to Phase One project, Bureau Veritas was still invited by to provide bidding, management and supervision services for the Phase Two project, at the same time, Bureau Veritas has signed a long-term cooperation framework agreement with Saint-Gobain. B V
MOVE FORWARD WITH BUREAU VERITAS BV EXPRESS ISSUE 21 32 / 33 BUREAU VERITAS CHARACTERISTICS OF EU PRESSURE EQUIPMENT DIRECTIVE Bureau Veritas Inspection Department, Terry WANG & Cici LIU I. CHARACTERISTICS OF PED SYSTEM EU PED takes the main parameter of pressure as the starting point of the design, the pressure equipment including vessels (including heat exchangers, condensers, etc.), pressure piping, safety accessories, pressure accessories and the assemblies of the four types of equipment. The Pressure Equipment Directive (PED) covering boiler, pressure vessel, pressure piping, safety accessories and pressure accessories proposed by EU, was enforced in 2002. The system taking EU PED as administrative regulations and European harmonized standards EN as technical standards was finally formed. The EU Pressure Equipment Directive PED 97 / 23 / EC is comprised of 21 chapters, and 7 appendices. PED is the administrative regulation formulated by the government, EN is the technical standard prepared by the European Committee for Standardization. Administrative regulation is mandatory, while technical standard is selective. The binding point of mandatory administrative regulation and selective technical standard is the Essential Safety Requirements, ie ESR in PED. II. PED AUTHORIZED INSPECTION The institution to assist the government to review and regulate the products and quality systems of the manufacturers is The Third Party. PED has two kinds of socalled Third Party : one is Notified body, referred to as NB or NOBO, which is responsible for conformity assessment, the European Approval Materials, welding procedure qualification, welder assessment and so on; the other is Recognized Third Part Organization, referred to as TP, which is in charge of the assessment of NDE personnel and qualification of welders, welding procedure qualification and verification test. NOBO can double as TP. PED pressure equipment is divided into six classes by risk. The pressure is below 0.5bar, the device has no obvious danger, which is not belong to the jurisdiction of PED. The pressure is greater than 0.5bar, but the danger of the equipment caused by the pressure is very small, there is no need to make conformity assessment. The danger caused by pressure is small, the risk of the equipment is Class I, no participation of NOBO. The danger caused by pressure is medium, the risk of the equipment is Class II, NOBO only checks the manufacturing. The danger caused by pressure is high, the risk of the equipment is Class III, NOBO checks the design and manufacturing. The danger caused by pressure is extremely high, the risk of the equipment is Class IV, and NOBO enhances the design and NOTE: PED: Pressure Equipment Directive ESR:Essential Safety Requirements EU: European Union NDE: Non - Destructive Examination TP:Recognized Third Part Organization NB / NOBO:Notified Body
MOVE FORWARD WITH BUREAU VERITAS BV EXPRESS ISSUE 21 manufacturing. assessment modes (A to H) and the pressure equipment in its life- PED product. Bureau Veritas, as the 34 / 35 BUREAU VERITAS PED determines the Risk Class of the pressure equipment according to the following steps: 1 Determine the type of device is container, steam or pressure pipe. 2 Determine the medium is gaseous or liquid state. 3 Determine the group of the media: Group I: Easy to explode, flammable, toxic, and oxidizing; Group II: Others, including water and steam. 4 Determine the Class according to the potential energy (container is represented by PV product, pressure pipe is represented by the product of P and DN) and the corresponding table. 5 Determine the assessment mode based on the products Risk Class. Assessment mode can be selected, for the products defined as low assessment mode, you can select the higher assessment mode, the manufacturer may choose one of the following two assessment modes: First, receive the conformity assessment not in the form of quality assurance system, NOBO checks the product itself. Second, establish a quality assurance system to do conformity assessment, NOBO mainly checks the quality assurance system, then checks the product itself. There are seven PED conformity six additional patterns, with a total of 13 procedures. The diversity of the assessment mode is due to the diversity of the types of the pressure device, diversity in production mode (single, batch, quality assurance system, no quality assurance system) as well as the diversity of the class of risk. For each class of risk, establish one or more fairly stringent conformity assessment procedures based on the nature of the production (single or batch) and whether the quality assurance system is established. Essential Safety Requirements (ESR) is one of the important review content in PED audit. ESR is divided into four parts, including design, manufacturing, materials and special requirements of equipment exposed to fire. The core of the ESR is to ensure the safety of the users of pressure equipment, and is also the legal means carried out by the government to ensure the safety of the people using the pressure equipment. The manufacturer must ensure the safety of the produced pressure equipment, carry out risk analysis or hazard analysis of the pressure equipment, and design the pressure equipment properly, which have appropriate safety margin according to different failure modes. The manufacturer must consider various loads (pressure, temperature, wind, seismic forces, etc.) under the intended use conditions; Consider all foreseeable operating conditions (corrosion, erosion, fatigue, etc.) to ensure the safety of time; Under the potential dangerous situation in case the pressure equipment has been misused or used improperly, the manufacturer must provide the necessary protection measures. The inspection party must conduct some qualitative and quantitative audits according to PED directives. In addition, besides the requirements specified in the directives, the followings should be paid specially attention to: 1 The selection of material must follow the three types as follows: materials according with the coordinative criteria, materials included in EN, and materials published by manufacturer for special identification. 2 The materials for equipment administered by PED are required to make the impact test with 20 C ISOV-shape notch. 3 The qualification for non-destructive test personnel, joining technology and joining personnel is conducted by the third party. III. CONCLUSION The third party inspection is the core link to guarantee the conformance of basic safety requirements for enterprises. The reform and innovation and the enhancement of comprehensive strength of the inspection body are the most important to guarantee the quality inspection of leader of globally-renowned inspection and certification service, provides enterprise with PED service, which ensures the smooth launch of their international projects. The sound qualification, perfect global service and time-honored brand have made Bureau Veritas accumulate rich experience in PED service. In the STANRI 300MW subcritical CFB project, Bureau Veritas as the authorized third-party inspection body provided PED certification and inspection for 300MW pressure vessel including the boiler proper, four pipes and other external pipes, deaerator for high-low pressure heater as well as valves for Dongfang Boiler and 17 suppliers. With respect to this project, the design review team of Bureau Veritas China has the sound qualification and enjoys Bureau Veritas global resources; in the meanwhile, this team is able to finish independently the design review for enterprise product and approve the design document so as to greatly reduce the time for drawing review. On the other hand, Bureau Veritas good communication and convenient and efficient service guarantees the smooth execution of oversea services for the assembly on project site and after-assembly final inspection. B V [ References ] Pressure Equipment Directive PED 97/23/EC