Sinochem

Sinochem Corporation

Company type	State-owned enterprise
Industry	Chemicals, fertilizers, oil exploration and extraction, real estate, financial services
Predecessor	China National Chemicals Import and Export Corporation
Founded	1950 (1950)
Headquarters	Beijing , China
Area served	Worldwide
Key people	Ning Gaoning (former chairman)
Products	Chemicals, fertilizers, petrochemicals, synthetic rubber, plastics, agrochemicals, petroleum products
Owner	State-owned Assets Supervision and Administration Commission of the State Council (SASAC)
Parent	Sinochem Group (98%)

Sinochem Corporation () is a state-owned Chinese multinational conglomerate specializing in the production and trade of chemicals and fertilizers, as well as oil exploration and extraction for both civilian and military applications. Its primary fertilizer subsidiary, Sinofert, oversees the entire value chain from manufacturing and international sourcing to distribution and retail sales. Sinochem ranks among the globe’s largest enterprises in the chemical and petroleum industries.

Established in 1950, Sinochem Group originated from China National Chemicals Import and Export Corporation, which was historically the largest trading company in China. The corporation operates under the governance of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), with its main office located in Xicheng District, Beijing.

The company’s principal business areas encompass energy, agriculture, chemicals, real estate, and financial services. It stands as one of the four dominant state-owned oil companies in China, the foremost supplier of agricultural inputs—including fertilizers, seeds, and agrochemicals—and a leading enterprise in chemical services.

Globally, Sinochem oversees more than 300 subsidiaries, including publicly traded companies such as Sinochem International (), Sinofert (), and Franshion Properties (). It also holds the largest share in Far East Horizon (). In June 2009, Sinochem Group established Sinochem Corporation to prepare for a potential initial public offering.

As an early entrant among Chinese firms on the Fortune Global 500 list, Sinochem has been featured 25 times, achieving a rank of 139th in 2016. In 2023, it reported revenues amounting to US$143.2 billion and assets totaling US$223.9 billion, despite recording a net loss of US$3.666 billion during that year.

Corporate structure

Sinochem’s main business involves distributing petrochemical products alongside operations in synthetic rubber, plastics, and agrochemical sectors. It manages upwards of 100 subsidiaries both within China and internationally, covering industries from petroleum trading to real estate development. Transitioning from a fully state-owned entity, Sinochem became a joint-stock company in 2009; Sinochem Group retains a 98% stake while publicly listed shipping company COSCO owns 2%. This corporate restructuring was intended to transform Sinochem into a market-driven enterprise.

History

Founded in 1950, Sinochem holds the distinction of being China’s largest trading company and its first multinational conglomerate.

China Import Co., Ltd.

On March 10, 1950, the Chinese government created China National Import Corporation to centralize domestic trade activities, stabilize supply-demand dynamics, and support industrial recovery efforts. This organization was China’s inaugural state-owned foreign trade enterprise.

China Import & Export Co., Ltd.

On January 8, 1951, China National Import & Export Co was established by consolidating personnel from China National Import Corp and its affiliated units. By March 1 of that year, it assumed import-export duties for certain Hong Kong entities, focusing on circumventing Western trade embargoes and expanding commerce with capitalist nations.

In 1952, the company inaugurated its first overseas branch in East Berlin. Throughout the 1950s and 1960s, it secured essential materials such as rubber, petroleum products, and fertilizers to fuel China’s industrial growth. Initially concentrating trade mostly with socialist countries like the Soviet Union and East Germany, it later broadened its commercial relations to include regional partners such as Singapore and Japan.

China National Chemicals Import & Export Co., Ltd.

Following MOFTEC's organizational changes on 1 January 1961, China National Import & Export Co was rebranded as China National Chemicals Import & Export Corp.

China National Chemicals Import & Export Corp.

On 12 June 1965, MOFTEC implemented a standardization of foreign trade enterprise names, leading to the renaming of China National Import & Export Co to China National Import & Export Corp on 16 July.

By 1994, the company had established overseas branches in more than 20 countries.

In 1999, it became the first central state-owned enterprise in China to engage a foreign consulting firm by hiring McKinsey & Company to improve its management practices and internal controls.

Chairman Liu Deshu introduced the "1-2-3" strategy in 2001, which emphasized enhancing market competitiveness ("one ability"), expanding both domestic and international markets along the industrial chain ("two expansions"), and concentrating on three core sectors: petroleum, fertilizer, and chemical products ("three core areas").

Sinochem Group

With approval from relevant state authorities, the company adopted the name Sinochem Corporation on 10 November 2003.

In August 2009, Sinochem expanded its global footprint by acquiring Emerald Energy, a UK-based oil firm.

Sinochem announced plans for a ¥35 billion initial public offering in November 2011; this IPO was set to be the largest in China that year and ranked sixth historically. The proceeds were intended to support the development of an oil refinery in Quanzhou, Fujian province.

Ning Gaoning replaced Liu Deshu as Sinochem Chairman and Party Committee Secretary in 2016. The following year, Ning introduced the "in science we trust" initiative focusing on innovation, industrial transformation, and strategic investments. This approach included appointing chief scientists and CTOs at every organizational level. Under Ning’s guidance, Sinochem prioritized petrochemicals and chemicals while cautiously diversifying into agriculture, real estate, and finance sectors. The company shifted its emphasis toward technological advancement and capital investment rather than acquiring fixed assets. Ning stepped down in 2022.

As of 2024, Sinochem remains one of the leading global enterprises in petroleum and chemical industries.

U.S. investment prohibition

In August 2020, the United States Department of Defense designated Sinochem among several companies supported by the People's Liberation Army. Subsequently, in November 2020, Donald Trump issued an executive order prohibiting American individuals and companies from holding shares in firms identified by the Department of Defense as linked to the Chinese military, including Sinochem.

Subsidiaries

• China Foreign Economy and Trade Trust (wholly owned)