The world's largest chemical company is born! Sinochem Group and ChemChina are reorganized and landed!
According to news from the official website of the State-owned Assets Supervision and Administration Commission of the State Council today evening, after being submitted to the State Council for approval, Sinochem Corporation (hereinafter referred to as "Sinochem Group) and China National Chemical Corporation (hereinafter referred to as "China National Chemical") implemented a joint reorganization.
Immediately afterwards, Sinochem Group also announced the joint reorganization news on its official website, saying that the two companies have implemented joint reorganization and newly established a new company with the State-owned Assets Supervision and Administration Commission of the State Council performing the responsibilities of investors on behalf of the State Council, Sinochem Group and ChemChina as a whole Included in the new company. In the future, Sinochem Group and ChemChina will actively and steadily advance this joint reorganization in accordance with relevant laws, regulations and requirements of regulatory agencies.
After the establishment, the new company's business scope covers eight major fields, including life sciences, material sciences, basic chemicals, environmental sciences, tires and rubber, machinery equipment, urban operations, and industrial finance.
It is understood that the domestic and overseas listed companies under the "Two Chemicals" include: Sinochem International, Luxi Chemical, Yangnong Chemical, Sinofert, China Jinmao, Far East Horizon, Adama, Adisseo, Haohua Technology, Egypt 17 companies including Ken and Pirelli.
It is worth noting that after the reorganization of the two Fortune 500 central enterprises, a giant company with assets of more than one trillion yuan and 200,000 employees will be formed.
The scale of the new company's assets will reach trillions!
According to the company’s official website, Sinochem Group was founded in 1950, formerly known as China National Chemical Import and Export Corporation, and is now an important state-owned backbone enterprise under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council. Headquartered in Beijing, it will be ranked among the Fortune Global 500 in 2020 Single 109th. The group has established five major business divisions: energy, chemical, agriculture, real estate and finance, professionally operated more than 300 domestic and foreign business organizations, and controlled "Sinochem International" (SH, 600500) and "Sinochem Fertilizer" (HK, 00297) Many listed companies such as "China Jinmao" (HK, 00817) have nearly 60,000 employees worldwide.
According to the official website of China National Chemical Corporation, 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 company in China. It ranks 164 in the Fortune Global 500, with 145,000 employees and 87,000 employees located outside of China. . The company’s business segments include new chemical materials and specialty chemicals, agrochemicals, petroleum processing and refining products, rubber tires, chemical equipment, and scientific research and design. It has production and R&D bases in 150 countries and regions around the world, and has complete marketing. Network system.
It is worth noting that the scale of assets and revenue of the new company formed after the reorganization of the two Fortune 500 companies will reach more than one trillion yuan and the number of employees will reach 200,000, making it a real giant company.
According to Wind data, the 2019 annual report shows that China National Chemical's total assets are 844.962 billion yuan and revenue is 454.346 billion yuan.
According to data from Sinochem's official website, as of the end of 2018, the company's total assets were 489.7 billion yuan, and the year's revenue was 591.1 billion yuan.
The reorganization has already begun last year!
In fact, the reorganization of the two giant central enterprises started as early as last year.
At the beginning of 2020, a number of controlled listed subsidiaries of the two companies announced at the same time that ChemChina is planning a strategic reorganization with Sinochem Group. The specific content of the reorganization plan and its implementation are subject to relevant approval and regulatory procedures.
Before the group plans to reorganize, the subsidiaries of the two companies have been integrated first. On the evening of January 5, 2020, Sinochem Group and the four listed agrochemical subsidiaries of China National Chemical announced that they would transfer the assets of the four companies to Zhongnong Science and Technology to complete the integration of the "two" agricultural sector business, and Zhongnong Science and Technology It will also be renamed Syngenta Group Co., Ltd.
On June 18th, Syngenta Group, the world's largest agrochemical company, announced its formal establishment, marking the end of the merger of the "Two Chemicals" agrochemical sector.
On September 2 of the same year, at the Entrepreneur Meeting held by the State Council Information Office, Ning Gaoning, Chairman of Sinochem Group and Chairman of China National Chemical Corporation, said when asked by reporters, “The merger of the two enterprises is in progress. There is a strong necessity and will be actively promoted."
This is the official first public response to the "merger of the two countries."
At that time, the industry analyzed that the strategic reorganization of the "two industrializations" had begun in the agricultural chemical sector, and the next focus and highlight was the restructuring of the industrial chain. The main businesses of the "two industrializations" mostly overlap. The upstream and downstream industries of multiple business modules such as energy, petroleum and petrochemicals, and rubber are related. Only when the business is truly synergized can it be bigger and stronger.
Ning Gaoning said that Sinochem and China National Chemical Corporation, one is an old foreign trade company, and the other is a subsidiary of the former Ministry of Chemical Industry. Facing the current international and domestic situation and changes in market demand, as well as the demand for product and technology improvement, the two companies are facing a situation of transformation. In the future, it will be benchmarked against high-quality international large-scale chemical companies, not only in terms of scale, but also in innovation to reach the world's advanced level.
"At present, Sinochem Group and ChemChina together, the sales of original and high-tech products are less than 30%, and this ratio needs to be gradually increased." Ning Gaoning said, Sinochem Group put forward the slogan of "Science First" , No new technology, no investment, no new product, no investment, no longer needless mergers and acquisitions and scale expansion, but completely based on technological innovation and progress as the main development standard. At the same time, benchmarking against large and good chemical companies in the world, hope that the future will not only be scale, but also reach the world's advanced level in innovation.
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