CHINESE PETROCHEMICAL FIRM TO RESTRUCTURE, OTHER HONG KONG STOCK

One of China's key petrochemical producers soon will make a public offering of stock in some of its units. Shanghai Petrochemical Complex (SPC) is the biggest of nine Chinese state enterprises hoping to list its shares on the Hong Kong stock exchange. Based in Jingshan, Shanghai province, SPC manufactures synthetic fibers, plastics, and refined products, mainly for local consumption. It also exports petrochemical feedstocks.

Jan. 19, 1993

One of China's key petrochemical producers soon will make a public offering of stock in some of its units.

Shanghai Petrochemical Complex (SPC) is the biggest of nine Chinese state enterprises hoping to list its shares on the Hong Kong stock exchange. Based in Jingshan, Shanghai province, SPC manufactures synthetic fibers, plastics, and refined products, mainly for local consumption. It also exports petrochemical feedstocks.

Plans call for restructuring the company into a public shareholding entity and determining a procedure for asset valuation. Noting stiff competition among China's state owned enterprises, SPC hopes the restructuring will boost its productivity and give it a competitive edge.

SPC is China's sixth biggest petrochemical producer, with 63,000 employees. It was established in 1972 with an initial capitalization of about 8 billion yuan ($1.45 billion).

It has throughput capacity of 106,000 b/d of crude oil and capacities to produce 450,000 metric tons/ year of ethylene, 300,000 tons/year of plastics, 350,000 tons/year of petrochemical fibers, and more than 1 million tons/year of refined products and other petrochemicals.

The company posted pretax profits of 1.3 billion yuan in 1990 and 1.49 billion yuan in 1991.