Sinochem Group and ChemChina Held A Joint Signing Event at CIIE




Sinochem Group
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In the afternoon of November 5, Sinochem Group Co., Ltd. (Sinochem Group) and China National Chemical Corporation Ltd. (ChemChina) jointly held the signing ceremony at the 3rd China International Import Expo (CIIE) in Shanghai. Mr. Frank Ning, Chairman of Sinochem Group and ChemChina, delivered a speech and released trading results. Mr. Yang Shihao, Deputy General Manager of Sinochem Group, presided over the signing ceremony. Mr. Zhong Ren, Deputy General Manager of Sinochem Group and Mr. Hu Xuteng, Deputy General Manager of ChemChina, introduced the cooperation between the two companies and their partners respectively.

Mr. Frank Ning said at the signing ceremony that we are amid an extraordinary period, in which international economic and trade disputes coupled with the blow of COVID-19 pandemic, contributing to the mixed uncertainties. However, I’m glad to see us gathering here to explore cooperation and development potentials with. It’s not easy. Undoubtedly, this is because China is currently the most stable, predictable and growing economy. In fact, however the international situation or society changes, we should believe in the power of business, companies, enterprises, innovation and the market. I reckon that we remain optimistic about future economic development and globalization.

According to Mr. Frank Ning, our presence today has again proved that real cooperation, value and product creation, and business value enhancement come from the mission and motivation of companies. This signing once again mirrors our confidence in the future. Sinochem Group and ChemChina are planning for strategic restructuring to create an innovative company. The new company will create better industrial chain and supply chain management, a larger market scale, and more innovation and R&D, becoming a  comprehensive company with growing momentum. We are confident in it regardless of the general environment. Driven by mutual trust and benefit, Sinochem Group and ChemChina will work with our partners towards further development. The CIIE is a platform for us to enhance friendship and explore new ways of cooperation through communication and exchanges. May we embrace long-lasting friendship, smooth cooperation and shared development on this platform.

Sinochem Group and ChemChina signed a number of agreements with their partners at the 1st CIIE and the 2nd CIIE for advancing industrial upgrading and high-quality development through the introduction of high-quality products and technical cooperation. This year, making full use of the CIIE as a global event, the two companies optimized and smoothed the industry chain and the supply chain for advancing their high-quality development. They signed cooperation agreements with 34 partners and purchased more than 20 kinds of commodities from 17 countries and regions. Sinochem Group mainly procured high-end chemicals and high-quality crude oil, in an amount greatly increased over last year; ChemChina continued to engage in both procurement and sales, and organized its five overseas subsidiaries to attend the CIIE.

Mr. Frank Ning said that by attending the CIIE for three consecutive years, Sinochem Group and ChemChina have truly felt the unique value the CIIE brings for the exchanges and cooperation between Chinese and foreign enterprises. In the future, the two companies will further leverage the CIIE as an important platform to strengthen the exchanges and cooperation with the world’s advanced enterprises and R&D institutions in the comprehensive chemical industry, thus boosting the resumption growth of global economy with their global partners by serving better products and technologies for domestic and foreign consumers.

Sinochem Group procured crude oil, methanol, plastics, boric acid, polyurethane products, digital services, etc. at the 3rd CIIE from well-known enterprises in more than ten countries and regions, including Saudi Arabia, Kuwait, Turkey, Malaysia, Singapore, India, Japan, the United States, Germany, France, Switzerland, Taiwan (China) and Hong Kong (China). In the field of energy, Sinochem Group has been cooperating well with Saudi Aramco and Kuwait Petroleum for years. The crude oil purchase agreements signed in the 1st CIIE and the 2nd CIIE have been executed smoothly. Sinochem Group signed new annual agreements with them at the 3rd CIIE. This year also saw Sinochem Group signing agreements with a number of international energy companies such as Vitol, Trafigura, Freepoint, Mitsui and ConocoPhillips. These initiatives will enhance the cooperation between Sinochem Group and oil enterprises from major oil-producing countries and international energy companies to ensure stable crude oil import resources. In the chemical industry, Sinochem Group signed agreements with large-scale multinational companies such as Honeywell, BASF, Chi Mei Corporation (Taiwan), Dow Chemical Company, PCHEM (Malaysia) and ITOCHU, covering a wide range of new chemical materials and petrochemical products such as plastics, polyurethane, methanol, styrene and ethylene glycol, and launched cooperation in digitalization and intelligence. This move will enable Sinochem Group to bring together more excellent suppliers in the petrochemical industry chain and build a more diversified “circle of business partners” and industrial “ecosystem” globally.

ChemChina continued to be engaged in both procurement and sales. In terms of procurement, ChemChina signed agreements with five foreign companies for crude oil, fuel oil, chemicals, natural rubber and ilmenite ore. Its partners include Mercuria (Swiss), Kao (Japan), Wogen (British), Southland Rubber (Thailand) and Halcyon Agri (Singapore). In terms of sales, ChemChina actively organized five overseas enterprises to participate in the CIIE and signed eight sales and cooperation agreements to sell silicone chemicals, feed additives and high-end tires to domestic companies, including Highmade (Shandong), Huitian Rubber, Zhejiang Runhe, Xinyaqiang Silicon Chemistry, Wanhua Chemical, Zhongneng Vehicle (ZNEN) and Guangdong WEALWELL Technology.

After the signing ceremony, several media including Xinhua News, People’s Daily, China Daily and Yicai raised questions on how Sinochem Group and ChemChina transform into technology-driven chemical companies, how Sinochem Group understands and implements the requirements of the central government’s “dual circulation” development pattern, and how companies overcome the impact of the Covid-19 pandemic.