Home / Knowledge / News / Textiles / Sinopec gears up for competition from US petrochem firms
Sinopec gears up for competition from US petrochem firms
26
Mar '13
To be able to withstand the challenge from low priced petrochemicals from the US in future, Asia’s biggest retailer, Sinopec Corp, earlier called China Petroleum and Chemical Corp, is gearing up to reduce its petrochemical production costs and enhance its product mix, a top official of the company said.
 
Sinopec’s petrochemical business is suffering due to heavy reliance on naphtha as a key feedstock. 
 
Meanwhile, a surge in US’s production of shale gas, which too can be used as a feedstock for production of petrochemical, is drawing several investors to the US petrochemical industry, Sinopec vice chairman and president Wang Tianpu informed media while announcing the firm’s results.
 
The US petrochemical producers are largely shifting away from using naphtha as the main feedstock, and are making large investments in plants operating on ethane, made from shale gas. US shale gas incorporates several components, which help petrochemical producers to substantially cut their costs, something that was not visualised by Sinopec earlier.
 
Sinopec’s petrochemical business is already struggling to sustain competition extended by low-cost imports from the Middle East and the company is now striving to reduce its use of naphtha to cut costs, Mr. Tianpu said.
 
Also, the company is trying to develop more and more products with improved value propositions and to aggressively boost its coal-to-chemical business, so as to make its petrochemical business more competitive, he added.
 
Stirred by a fall in its earnings from upstream and chemical businesses, the net profits of the firm for 2012 plummeted 12.8 percent.
 
The company’s operating profit for 2012 totalled to just 367 million yuan or US$ 59.1 million, against 2011’s 25.3 billion yuan. Besides other factors, the fall is also attributable to economic slump in China, which caused the product prices to fall sharply.
 
China is the biggest importer of petrochemicals in Asia.
 

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 5th Dec 2016

EC proposes new tax rules to support e-commerce in EU

The European Commission (EC) has unveiled a series of measures to...

Apparel/Garments | On 5th Dec 2016

Traders to intensify adoption of digital payments

Adoption of digital payments in their existing business format would...

Textiles | On 5th Dec 2016

US textile & apparel exports down 6.44% in Jan-Sept ’16

The exports of textile and apparel from United States were down 6.44...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search