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      Sinopec to combine business sectors

      2012-04-18 10:03 chinadaily.com.cn     Web Editor: Zhang Chan comment

      Sinopec Group, one of the three oil giants in China, recently convened a special meeting about adjusting its lubricant sales, 21st Century Business Herald reported Tuesday, citing staff members from Sinopec.

      Sinopec has decided to introduce an integrated system of manufacturing, sales and research in place of the old top-down sales model to achieve flat, efficient and professional management, said an employee from Sinopec Lubricants.

      It is an opportune moment for equity carve-outs to seek lubricant businesses independent from Sinopec, said Fu Chengyu, chairman of Sinopec Group.

      Sinopec announced to have started reshuffling its businesses as early as February, according to its spokesman Huang Wensheng.

      Currently, oil logistics and refining have become the first two sectors to be combined, said Huang.

      "In mid-2012, Sinopec will finish consolidating its eight subsidiary construction companies into a new group," said a source close to Sinopec, "the new group will be able to gain more advantages in choosing from bids since parts of the eight companies specialize in technical designing and technology transfers while others target construction."

      The balance sheets of the eight companies have been merged to meet what is required for an IPO in Hong Kong, the source added.

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