China-south Korea energy and chemical * joint venture was born in wuhan

- Jul 16, 2019-

On July 3, 2019, china-rok petrochemical integration joint venture company was inaugurated, marking the commercial operation of china-rok petrochemical integration joint venture project.

The project is a joint venture between China and South Korea in the domestic energy and chemical industry.


Sinopec and SK group of South Korea have been maintaining friendly cooperative relations. At the end of 2013, the two sides established a joint venture company for the ethylene project of wuhan with an annual capacity of 800,000 tons, and started the formal commercial operation in January 2014. In the past six years, good production and operation performance has been achieved.

Salomon, an international * evaluation agency, estimates that the performance of ethylene plants in enterprises has the leading level.

While increasing production, the company has achieved six consecutive years of safe and environmentally friendly production without accidents. On the basis that the emission index of major pollutants is higher than the national standard, the total emission volume has been greatly reduced, and the production increase and emission reduction has been achieved.

Over the past six years, more than 18,000 people have visited the garden-style joint venture, which is evergreen all the year round, with egrets strolling and water draining to raise fish.


On the basis of this successful cooperation, sinopec and SK senior leaders vigorously promote the joint venture project of wuhan refinery integration.

In June 2017, sinopec and SK signed a letter of intent to merge wuhan petrochemical's refining business with china-rok petrochemical to achieve integrated operation.

On April 29 this year, sinopec and SK signed the joint venture contract of refining and chemical integration and capital increase agreement.

The new joint venture (sinopec 65% : Korea sk35%) received its business license on May 31.

June 14, completed the ministry of commerce filing and production safety license changes;

On July 1, it officially entered into commercial operation.


Wuhan petrochemical is one of the top ten industrial enterprises in hubei province, and China and Korea petrochemical is one of the top twenty industrial enterprises in hubei province.

The joint venture between wuhan petrochemical and China and South Korea will form a sino-foreign industrial joint venture of hubei province *, which is also a joint project of China and South Korea in the domestic energy and chemical industry *.


The integrated joint venture will reduce operating costs and improve management efficiency.

The new joint venture company will share advanced technologies, successful management experience and practices of both parties.

In addition to increasing the registered capital, the south Korean side also sends a number of managers to senior management positions in the joint venture company to jointly manage the new joint venture with Chinese managers.

The new joint venture company will conduct management according to the mode of "three integrations and one division", namely, the institutional integration, institutional integration, management integration and production operation management division of the two parts of oil refining and chemical industry.


China-south Korea petrochemical general manager guan introduced that china-south Korea refining and chemical integration cooperation is conducive to optimize the use of resources, reduce operating costs and improve management benefits.

The two sides will uphold the principle of equality and mutual benefit, give full play to the advantages of integration, create greater value for shareholders, make new contributions to local governments and write a new chapter of china-rok cooperation.


Vice President of sinopec * LeiDianWu said, China and South Korea petrochemical refinery, is conducive to give full play to the joint venture in oil refining and chemical business management advantages, reduce the coordination, reduce operating costs, improve the overall ability to resist risks, in line with the national policy for the mixed ownership, conform to the development trend of integration in refining and petrochemical industry and the common interests of both sides.

It is hoped that xinhanghan petrochemical can concentrate and concentrate, develop and innovate, be pragmatic and enterprising, continuously improve the company's comprehensive strength and core competitiveness, and actively promote the company's operation and development to a new level.


It is understood that the new joint venture company will share advanced technologies, successful management experience and practices of both parties.

The two parts of oil refining and chemical industry will be integrated in terms of organization, system and management, and will be separately managed in production operation.

In addition to increasing the registered capital, the south Korean side will also send a number of managers to senior management positions in the joint venture company to jointly manage the new joint venture with the Chinese side.


After the joint venture reorganization, the enterprise production and operation costs will be significantly reduced.

In the past, wuhan petrochemical and China and South Korea petrochemical, part of the material supply, market transactions.

After the joint venture is the internal mutual supply, the cost significantly reduced.


Introduction to wuhan petrochemical


Wuhan petrochemical company is a very large oil refinery enterprises directly under China petrochemical group company, is the * petrochemical production base, by the China petroleum and chemical co., LTD., wuhan branch and China petrochemical group assets management co., LTD., wuhan branch of two parts, authorized by the China petrochemical group in China and South Korea petrochemical exercise of shareholders' rights.


Founded in 1971 and put into production in 1977, the company covers an area of 239 hectares, and has 1,900 employees on the job with total assets of about 10 billion yuan.

The comprehensive supporting capacity of oil refining is 8 million tons/year, with 23 sets of main production units, mainly producing gasoline, kerosene, diesel, polypropylene, liquefied gas, sulfur, petroleum coke and other chemical products.


During its 41 years of operation, wuhan petrochemical company has increased its assets by 493 times and processed more than 135 million tons of crude oil.

In 2018, 8.61 million tons of raw oil were processed, 5.137 million tons of refined oil were produced, and 874,000 tons of polypropylene, sulfur, coke and other refined products were sold.


Introduction to china-rok petrochemical


Sinopec and South Korea's SK group have carried out cooperation in the fields of crude oil trade and refinery project investment.

In 2013, the two sides established china-south Korea (wuhan) petrochemical co., ltd. on the project of 800,000 tons ethylene in wuhan, which officially started commercial operation in January 2014.

Sin-china petrochemical 800,000 tons ethylene project is a key project of sinopec during the "11th five-year plan", driving the industrial output value of hundreds of billions of yuan downstream, and generating more than 100,000 jobs, filling the gap of no large-scale ethylene project in central China.


By the end of 2018, China and South Korea petrochemical company had accumulated profits of more than 10 billion yuan and paid taxes of about 7 billion yuan, becoming a successful example of bilateral economic and trade cooperation.

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