Ning Gaoning, who is also the chairman of the two companies, made a public statement for the first time in response to the much-anticipated merger of China National Chemical Corporation and Sinochem. "The merger of the two companies is underway, and many internal studies and procedures are required. The necessity is very strong, and we will actively promote this matter." Ning Gaoning, entrepreneur representatives and Chinese and foreign representatives held at the State Council Information Office on September 2 The reporter said at the meeting.
It is understood that both Sinochem Group and China National Chemical Corporation are on the Fortune Global 500 list, ranking 109th and 164th respectively in 2020. The combined revenue of the two companies last year was about one trillion yuan.
According to official website information, Sinochem Group was established in 1950, formerly known as China National Chemical Import and Export Corporation, and is now an important state-owned backbone enterprise supervised by the State-owned Assets Supervision and Administration Commission of the State Council. It has established five major business departments in energy, chemical industry, agriculture, real estate and finance. More than 300 operating organizations carry out professional operations, and hold a number of listed companies such as "Sinochem International", "Sinochem Fertilizer" and "China Jinmao", with nearly 60,000 employees worldwide.
China National Chemical Corporation is a state-owned enterprise established on the basis of enterprises under the former Ministry of Chemical Industry. It is the largest chemical enterprise in China. It has new chemical materials and special chemicals, agrochemicals, petroleum processing and refining products, rubber tires, chemical equipment and scientific research. Designed six business segments, with approximately 148,000 employees.
In June 2018, Ren Jianxin, the former chairman of ChemChina, retired, and Ning Gaoning, chairman of Sinochem Group, concurrently served as chairman and party secretary of ChemChina. Since then, the "informatization" merger is expected to continue to heat up. On January 5 this year, Sinochem Group announced that the main assets of its agricultural sector will be injected into Syngenta Group, a subsidiary of China National Chemical Corporation, which was established in June 2019. At the same time, China National Chemical Corporation transferred all of its shares in Syngenta Co., Ltd. and 74.02% of Adama Co., Ltd. shares to Syngenta Group. Both state-owned enterprises stated that this move is aimed at further deepening the reform of state-owned enterprises and optimizing the allocation of resources. This is also an important measure to further strengthen cooperation between the "two industrializations".
In July this year, Ning Gaoning said in an interview with a reporter from the Economic Information Daily that through Syngenta’s leading R&D and production capabilities, as well as the modern agricultural service platform (MAP) under construction nationwide, it will make full use of domestic and international Two markets, two resources, to realize the connection between advanced agricultural technology and the huge potential of China's agriculture, improve the efficiency of China's agriculture, and ensure food security.
The advancement of the merger of the “Industrialization and Industrialization” is a microcosm of the acceleration of the professional integration of central enterprises this year. According to the deployment arrangements made by the SASAC at the beginning of the year, this year, the main responsibility and main business will be more prominent in the continuous promotion of weight loss and fitness. At the same time, it will focus on promoting the specialized integration of equipment manufacturing, chemical industry, offshore equipment, overseas oil and gas assets, and regional integration of coal and power resources, research and start the integration of refining and chemical businesses, and continue to focus on coal and other capacity reduction work.
Peng Huagang, Secretary-General and Spokesperson of the State-owned Assets Supervision and Administration Commission of the State Council, said at a press conference of the State Council Information Office a few days ago that in the second half of the year, the professional integration of central enterprises will be further actively promoted, especially those involving grain reserves, oil and oil processing, and offshore industries.
Source: Chemical Network
