China’s Hengli says Singapore trade JV with Sinochem in voluntary liquidation

SINGAPORE: Privately controlled Chinese refining and petrochemical manufacturer Hengli Group said on Tuesday (Aug 22) that Sinochem Group and itself were winding up their Singapore-based joint venture Hengli Oilchem due to business and strategic considerations.

Hengli Oilchem (HOPL), the joint venture between Hengli and China’s state-run Sinochem, said last week it began a voluntary liquidation following the shareholders’ decision.

“It has come to our attention that some of our customers do not fully understand the distinction between a shareholders’ voluntary liquidation and a compulsory liquidation, and thus wrongly concluded that HOPL and its related companies in the Hengli Group may be in financial difficulties,” Hengli said in a statement.

“This is of course not true,” Hengli added.

Hengli Oilchem, 79 per cent owned by Hengli and 20 per cent by Sinochem, officially launched its Singapore operation in June 2018.

Sinochem did not immediately respond to a request for comment.

Hengli’s main trading arm is Hengli Petrochemical International set up in Singapore in 2017, which trades crude oil, refined fuel and chemical products.

Back in northeast China’s port city Dalian, Hengli operates a 400,000 barrels per day refinery and petrochemical facilities including 11.6 million ton per year polyester making feedstock PTA.

The group is adding a new chemicals park that makes some energy transition products next to the refinery complex.