Entity

The Sinopec-SK (Wuhan) Petrochemical joint venture is a major partnership between China’s Sinopec Group and South Korea’s SK Group, established in 2013 and launched operationally in 2014. Formed to advance petrochemical industry cooperation, the JV represents the largest energy and chemicals collaboration between China and South Korea, focusing on production and management efficiencies in a modernized framework. The company is situated in Wuhan, Hubei province, and has played a prominent role in integrating advanced process technologies with operational expertise from both partners.

The shareholder structure consists of Sinopec holding a 65% majority interest and SK Group holding the remaining 35% through its SK Geo Centric subsidiary. The JV was created with around 3.3 trillion won in combined investment, with SK contributing significant management and technical know-how. Strategic goals included leveraging both parties’ assets and technology platforms to maximize efficiency and product output in Wuhan’s competitive petrochemical sector. The partnership was intended to support Sinopec’s sprawling refining and chemical base, while giving SK significant insight and access to the Chinese chemicals market.

As of September 2025, SK Group announced its intention to divest its entire 35% stake in the Sinopec-SK Wuhan JV. The sale is motivated by a wider strategic pivot at SK, which is now prioritizing sectors such as AI, battery technology, and semiconductors, rather than commodity chemicals where margins have come under pressure due to oversupply. Negotiations are underway between SK Geo Centric and Sinopec, as well as other Chinese investors, for a transaction valued at around 819 billion won (approximately $594 million), expected to be near book value. This exit signals a significant shift for SK, closing a high-profile chapter in China’s JV petrochemical history.