A joint venture between China Petrochemical Corporation (Sinopec Group) and South Korea's SK Holdings was launched on July 3, marking the beginning of the largest ever joint project in the energy and chemical industry between the two countries.
Sinopec Group and SK Holdings have been close partners for years and established Sinopec-SK Wuhan Petrochemical Company Limited in Hubei province at the end of 2013 for a 800,000-ton ethylene project of Sinopec Group's Wuhan Petrochemical.
The company started operation in January 2014 and has performed well. Its ethylene facilities are at internationally leading levels, according to a renowned international assessment institution, Solomon Consulting.
Sinopec Group and SK Holdings signed a letter of intent to merge Sinopec Group's petroleum refining businesses in Wuhan into Sinopec-SK (Wuhan) Petrochemical Company Limited in June 2017.
The joint venture contract of refining-chemical integration and the capital increase agreement were signed on April 29 this year. The joint venture is expected to lower costs and improve management efficiency.
After the amalgamation, Sinopec-SK (Wuhan) Petrochemical Company Limited became the largest Sino-foreign joint venture in the energy and chemical industry in Hubei province.
Wuhan Petrochemical and Sinopec-SK (Wuhan) Petrochemical Company Limited will share advanced technologies and successful management experiences. In addition, their organization, working systems and management will be integrated.
(Executive editor: Hao Wen)