Sinopec Group Establishes Lubricant Unit in Internal Reform StepAibing Guo
China Petrochemical Corp., Asia’s biggest refiner, established a limited liability company for its lubricant business as it seeks to reorganize units including oilfield services and fuel retailing before listing them.
Sinopec Lubricants Co., the Beijing-based unit, will take charge of the lubricant business in China and overseas, China Petrochemical, known as Sinopec Group, said in a statement on its website today. The unit, set up as a division of the group in 2002, controls a third of the market for middle to high-end lubricants in China and sells its products in 50 countries.
The restructuring of the business follows the group’s listed arm China Petroleum & Chemical Corp. disclosing rules on June 30 to screen potential private investors to sell a 30 percent stake in its fuel retailing business. Sinopec Group is seeking to become the holding company of professionally-run, listed units, Chairman Fu Chengyu said in March.
“The independent operations of the unit will provide more room for future growth,” the group said in the statement.
Sinopec Engineering Co. was the first unit to be reorganized and listed in Hong Kong in 2012.
Shares of listed units Kingdream Plc and Sinopec Yizheng Chemical Fibre Co. have been suspended since last month as both companies are waiting for the parent to announce a “major event,” according to stock exchange filings.