Communicator

SINGAPORE, March 19 (Reuters) - - In a significant development in China's refining sector, state-run Sinochem Group has agreed to sell one of its bankrupt oil refineries to Hongrun Petrochemical, an independent refiner based in Eastern China. This sale marks a notable shift in the landscape of China's petrochemical industry and highlights the ongoing consolidation in the country's refining sector.

Hongrun Petrochemical, a private refiner located in Weifang city, Shandong province, has emerged as the successful bidder for the Changyi Petrochemical facility. The auction, which concluded on March 14, 2025, saw a winning bid of approximately 2.98 billion yuan ($411.82 million) for the refinery.

The Changyi Petrochemical plant, situated in Shandong's key refining area, boasts a processing capacity of about 160,000 barrels per day. However, the facility has been inactive since 2024, making it one of three Sinochem plants in Shandong declared bankrupt by local courts last year due to outstanding debts and taxes.

Sinochem acquired the struggling Shandong refineries, including Changyi Petrochemical, in a state-coordinated merger with ChemChina in 2021. However, the refineries have faced financial difficulties, leading to their bankruptcy declarations in 2024. Hongrun secured the refinery at a significantly discounted price, reflecting current market conditions.

The acquisition of Changyi Petrochemical by Hongrun Petrochemical has several key implications for the company. Hongrun is expected to inherit Changyi's crude oil import quota, enhancing its ability to secure feedstock. The deal may also include forgiveness of Changyi's outstanding tax obligations, reducing financial liabilities. Most notably, the acquisition will substantially boost Hongrun's crude processing capacity to nearly 20 million tons per year, or approximately 400,000 barrels per day, positioning the company for growth in China's competitive refining sector.

Sources reveal that Sinochem is currently in negotiations with two other private refiners in Shandong regarding the potential sale of its remaining two bankrupt facilities: Huaxing Petrochemical and Zhenghe Petrochemical.

#sinochem  #hongrun  #changyi  #refinery 

Shenyang Chemical, a Sinochem Group subsidiary, and production site have been added. 

#shenyang #bluestar  #sinochem  #causticsoda  #chloralkali #china 

Bluestar (Beijing) Chemical Machinery Co., Ltd., a producer of electrolysis technology and a special equipment manufacturing technology, has been added.

The company has developed three core products:

1. Complete electrolysis equipment.
2. Solar thermal energy storage products.
3. Biomass resource utilization equipment.

Bluestar Beihuaji is the only domestic supplier of complete chlor-alkali equipment that integrates basic design, detailed design, core equipment manufacturing, and installation services. It is one of the four major global suppliers of ion membrane electrolyzers, with an annual production capacity of 1 million tons of caustic soda equipment and 3 million tons of electrodes. The company provides ion membrane electrolysis equipment with an annual capacity exceeding 18 million tons of caustic soda to more than 140 chlor-alkali producers worldwide, with business covering 18 countries across Europe, Asia, America, and Africa.

Thanks to increasing international and domestic market demand for new energy, Beihuaji's solar thermal power storage products have gradually become a leading domestic supplier of solar thermal energy storage products after years of development and market promotion, participating in multiple domestic and international solar thermal projects.

#solarenergy  #energystorage  #chloralkali #caustic  #electrolyis  #china  #beijing  #bluestar  #sinochem #bluestar  #chemchina 

Bluestar (China National Bluestar (Group) Co., Ltd.), a subsidiary of Sinochem, has been added.

#sinochem #bluestar  #chinanationalbluestar  #china  #chemicalcorporation 

Sinochem Hongrun Petrochemical (Weifang) Co.,Ltd and sites in Qinqzhou and Binhai have been created. 


#sinochem  #hongrun  #petrochemical  #shandong  #binhai  #quingzhou  

Sinochem Hongrun Oil Storage & Transportation Co., Ltd. has been added.

#sinochem #hongrun  #oilstorage  #crudeoilstorage  #weifang  #shandong  #china  #tankfarm 

HONGRUN PETROCHEMICAL (HK) COMPANY LIMITED has been added.

#hongrun  #sinochem  #petrochemical  #hongkong 

Sinochem Hongrun Petrochemical Co., Ltd. has been added.

#sinochem  #hongrun  #hongkong  #china  #petrochemical  #weifant  #shandong