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    Company News
    Announcement on Obtaining the Approval of the Joint Restructuring of Sinochem and ChemChina
    Source: 中國化工集團 Date: 2021-03-31

    On March 31, at the approval of the State Council, Sinochem Group Co., Ltd. ( “Sinochem”) and China National Chemical Corporation Ltd. ( “ChemChina”) will undertake a joint restructuring. Under such a joint restructuring plan, the equity interests of both Sinochem and ChemChina will be owned by a newly-incorporated company (the “New Holding Company”), which will be established and wholly owned by the State-owned Assets Supervision and Administration Commission on behalf of the State Council. Sinochem and ChemChina will become the wholly-owned subsidiaries of the New Holding Company. This joint restructuring will create synergy, build up a world-class chemical company, and promote a high-quality development of the chemical industry in China.

    The global chemical industry is highly concentrated, of apparent scale effect and dominated by large enterprises. In recent years, global chemical giants have undergone consolidation to create large-scale chemical companies which play a leading role in chemicals R&D and products innovation. This joint restructuring will assist the development of the chemical industry in China. The New Holding Company will further optimize resource allocation, strengthen innovation and stimulate business growth.

    After the joint restructuring, the New Holding Company will commit to the value of “In Science We Trust, Upon Knowledge We Act”, adhere to global and market-oriented operation, and strive to build a company “led by life science and materials science, supported by basic chemicals and environmental science, driven by science and technology, and featured by sustainable development”. The New Holding Company aims to create greater value for the customers, shareholders and employees, promoting sustainable development of the society.

    The New Holding Company operates in a wide array of business sectors covering life science, materials science, basic chemicals, environmental science, rubber and tire, machinery and equipment, city operation, industrial finance, etc. Particularly, the New Holding Company will endeavor to broaden and deepen the synergies among such sectors, achieve breakthrough in key materials and technologies, provide high quality agricultural materials and comprehensive agricultural services, promote carbon neutrality, and become the innovation-driven respected leader of such sectors.

    Sinochem and ChemChina will proceed with the joint restructuring in compliance with relevant laws and regulations.


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