Sinopec Corp. eyes integration of lube business
The Economic Observer reported that Asia’s top refiner China Petroleum and Chemical Corp. (Sinopec Corp.) has taken initial steps to integrate its lubricant business to counter the expected effects of high oil prices, sluggish economy and increasing competition.
Sinopec Corp. would focus more on the professional operation of the company’s lube business, rather than the regional operators. It will divide distributors into industrial and vehicle sections to drive down operational costs, said Li Liangyao, vice general manager of Sinopec Lubricant Company, a subsidiary of Sinopec Corporation.
Sinopec Lubricant Company would take over lube sales operations from provincial companies of Sinopec Corp. and these companies would focus on lube sales at gas stations. “We could only complete around 70% to 80% of annual target if status quo of economic situation continues in the second half of 2012,” said Li.
Statistics show that China produced 8.2665 million tons of lubricant in 2011, 302,500 tons less than the 2010 production. (September 17, 2012)