China’s Sinopec is restructuring its business as weakening fuel demand and growing petrochemical overcapacity put pressure on its traditional operations.
New chairman Hou Qijun is reorganising the world’s largest refiner around four profit centres, covering oil, gas and new energy; refining and chemicals; new materials; and technology services.
The company is also increasing investment in new energy and advanced materials, planning to spend more than 30 billion yuan ($4 billion) annually through 2030.
The shift comes as China’s rapid expansion of petrochemical capacity has squeezed margins across the sector, forcing producers to reconsider investment and improve competitiveness.