Personnel Adjustment Of Li Fanrong'S New Appointment Or Acceleration Of Integration Of "Two Modernizations"

A news of personnel transfer once again aroused the attention of all walks of life on the topic of "integration of industrialization and industrialization".

On April 24, according to Caijing, citing multiple sources, the leading group of the new company after the merger of China National Chemical Group Co., Ltd. (hereinafter referred to as Sinochem Group) and China Chemical Industry Group Co., Ltd. (hereinafter referred to as Sinochem) has determined that Ning Gaoning will continue to be the first leader, and Li Fanrong from CNPC will be the second.

The 21st century economic report confirmed that Li Fanrong had left CNPC.

Up to now, Li Fanrong's new position has not been officially announced. According to the official website of CNPC, he is still the general manager and Deputy Secretary of the Party group; On the official website of Sinochem Group, Yang Hua is still the general manager of the company.

The long journey of integration of industrialization and industrialization

On March 31, this year, SASAC announced that Sinochem Group and SINOCHEM were jointly reorganized, and the long-awaited "merger of Sinochem and SINOCHEM" was finally launched.

In recent years, the reorganization and integration among large-scale central enterprises in China has been constantly carried out. In order to reduce the competition in the same industry, enhance the overall competitiveness, and become a powerful country with capital, there have been "North South vehicle" reorganization, Baosteel and WISCO merger, and "North South ship" merger.

Sinochem and Sinochem Group are two large state-owned enterprises whose names are easy to be confused, and their businesses often overlap. In 2016, Sinochem announced its intention to acquire Syngenta, a Swiss agrochemical giant.

In the face of a huge cross-border acquisition with a scale of more than 40 billion US dollars, it is difficult for China chemical to digest on its own. The rumors about the merger of the two chemical industries have also been widely discussed, but since then it has been explicitly denied by many parties.

In June 2018, Ning Gaoning, the chairman of Sinochem Group, also served as the chairman of Sinopec. Ren Jianxin, the former chairman of Sinochem, announced his retirement, which was also regarded as the substantive action of the merger of Sinochem and Sinochem, which was rumored to have taken effect for many years.

Sinochem is a state-owned enterprise established on the basis of the former Ministry of chemical industry. It is also the largest agricultural chemical enterprise in China at present. It originated from the personal enterprise Bluestar Cleaning established by Ren Jianxin. After that, Sinochem was formally established in 2004 after Bluestar Cleaning A-share listing and many mergers and acquisitions.

Up to now, China's chemical business covers new chemical materials, petrochemicals, special chemicals, rubber and other sectors, ranking No. 164 in the Fortune Global 500 list in 2020.

Sinochem Group is an important petrochemical industry operator in China with a wide business layout.

Sinochem Group, formerly known as China National Chemical Import and Export Corporation, is an important state-owned backbone enterprise supervised by SASAC. Up to now, Sinochem Group has set up five business units of energy, chemical industry, agriculture, real estate and finance, holding shares of Sinochem International (600500. SH), Sinochem fertilizer (00297. HK), China Jinmao (00817. HK), etc., and ranked 109th in the Fortune Global 500 list in 2020.

In January 2020, Sinochem and Sinochem Group successively announced that they would inject the assets of their agricultural chemical sector into the newly established Syngenta Group Co., Ltd. (hereinafter referred to as Syngenta group); In June of the same year, Syngenta group, which experienced many changes, was officially established, and the agrochemical sector under the two companies completed business restructuring.

In September 2020, Ning Gaoning, chairman of the board of directors of the two companies, stated for the first time that the merger and reorganization of the two companies is in progress, and the merger is very important.

"Ning Li Pei" promotes business integration of industrialization and industrialization

At the round table meeting of the state owned assets supervision and Administration Commission of the 2021 China development high level forum held in March this year, Ning Gaoning, director general of the two chemical industries, pointed out that the next step reform of state-owned enterprises should have more in-depth objectives. It is also risky to be efficient, innovative and competitive, which is a pressure and a driving force for state-owned enterprises.

Born in November 1958, Ning Gaoning, 63 years old, has military and overseas study experience and is famous for its excellent capital operation ability and enterprise management ability.

In 1987, Ning Gaoning entered China Resources Group, and since then has successively held the positions of general manager of China Resources venture, deputy general manager of China Resources Group and chairman of China Resources Group; From 2004 to 2016, Ning Gaoning served as chairman of COFCO group; In January 2016, Ning Gaoning became the chairman of Sinochem Group; In 2018, he also served as the chairman of China Chemical Industry Co., Ltd.

When he was in charge of China Resources Group, COFCO group and Sinochem Group, Ninggaoning promoted the business development and strategic transformation of the group company through frequent capital operation, and realized the large-scale growth of the company's assets.

Li Fanrong, who served as the second leader of the new company after the merger of the two chemical industries, had worked for CNOOC for a long time, just like Yang Hua, who succeeded him.

Born in 1963, Li Fanrong joined CNOOC after graduating from Jianghan Petroleum Institute (now Changjiang University). He has successively served as general manager of CNOOC development and production department, deputy general manager of CNOOC, President and CEO of listed CNOOC.

In 2016, Li Fanrong was transferred to the post of deputy director of the state energy administration; In February 2020, Li Fanrong was transferred to PetroChina as the general manager.

According to standard & Poor's global rating, the only state-owned enterprise directly under the central government in China's chemical industry will be born after the merger, with total revenue of more than 1.0 trillion yuan in 2019 and a total profit before tax, interest, depreciation and amortization of 75.5 billion yuan; The newly established company will undertake many policy roles before the two modernizations, such as agricultural modernization, ensuring food supply, accumulating rubber and oil and other government strategic reserve functions.

CICC research report pointed out that after the merger, the pattern of the global chemical industry will be reshaped, and it is expected that the new company will enter the top 40 of the world in terms of revenue.

On April 9 this year, Yang Hua, general manager of Sinochem Group, investigated Yangnong group and Yangnong shares in Yangzhou, proposing that the newly established company after the merger of Sinochem and SINOCHEM will focus on life science, material science and environmental science, and build a high-end comprehensive chemical enterprise.

Business synergy effect is obvious

At present, Sinochem and Sinochem Group's agrochemical sector have taken the lead in completing the merger, and their complex business portfolio will gradually achieve business integration, and the petrochemical industry may become the focus of business integration after the merger of the two.

Sinochem Group is known as the "fourth barrel oil" in China. Sinochem energy, whose main petrochemical business, has revenue of 443.5 billion yuan in 2019, accounting for about 75% of Sinochem Group's total revenue, and is the main source of funds for the latter.

Quanzhou Petrochemical Company of Sinochem energy has a crude oil processing capacity of 15 million tons / year and ethylene and its derivatives production capacity of 1 million tons / year. It has more than 1000 gas stations; Sinochem has a ethylene production capacity of 1 million tons / year and a total crude oil processing capacity of 20 million tons / year. However, it is distributed in five refineries with a small business scale. The environmental protection and safety management level of its subordinate enterprises have been criticized by the Ministry of ecological environment.

Liu Zitong, an analyst with Zhuo Chuang information, told reporters of the 21st century economic report that after the merger, the upstream, midstream and downstream industrial chains will be connected, and the subsidiaries will exchange resources to cope with the giant competition in the chemical industry while maintaining a certain degree of independence.

The synergy effect of China chemical industry and Sinochem Group in rubber tire industry is very obvious. China Chemical's rubber subsidiary, which is the largest tire and rubber manufacturer in China, is mainly engaged in the manufacture of rubber tires. It has several subsidiaries such as Pirelli and Aeolus tire; Sinochem Group has a large number of high-quality assets in natural rubber resources and rubber additives production. Trainee reporter Peng Qiang reports from Beijing

(Editor: Li Qingyu)

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