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Sinochem, ChemChina to jointly restructure

By Zhong Nan | chinadaily.com.cn | Updated: 2021-03-31 22:01
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People leave the office building of Sinochem in Beijing, on May 9, 2017. [Photo/IC]

With the approval of the State Council, Sinochem Group Co Ltd and China National Chemical Corp Ltd, or ChemChina, will undertake a joint restructuring, according to a statement released by the State-owned Assets Supervision and Administration Commission on Wednesday.

Under such a joint restructuring plan, the equity interests of both centrally-administered State-owned enterprises will be owned by a newly-incorporated company. It will be established and wholly owned by the commission on behalf of the State Council.

This joint restructuring will create synergy, build up a world-class chemical company and promote the high-quality growth of China's chemical industry, according to a statement jointly released by Sinochem and ChemChina late Wednesday.

The new conglomerate will operate in a wide array of business sectors covering life science, materials science, basic chemicals, environmental science, rubber and tires, machinery and equipment, industrial finance and other businesses.

The new company will endeavor to broaden and deepen the synergies among such sectors, achieve breakthroughs in key materials and technologies, provide high quality agricultural materials and comprehensive agricultural services, promote carbon neutrality, and become an innovation-driven company in these areas, the corporate statement said.

Sinochem and ChemChina said the joint restructuring will boost the growth of the chemical industry, optimize resource allocation, strengthen innovation and stimulate business growth in China.

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