Sinopec Corp. is the largest producer and distributor of petrochemicals in China with petrochemical production sites located throughout China's eastern, central and southern areas featured by dynamic economy growth and strong market demand. It produces and distributes a great variety of petrochemical products, including intermediates, synthetic resin, synthetic fiber monomers and polymers, synthetic fiber, synthetic rubber and chemical fertilizer, etc. The Company integrates its petrochemical production with its refining business. Chemical feedstock (e.g. naphtha) is mainly supplied by the Company’s refineries. In view of the robust demand of China's domestic market, the Company distributes most of its petrochemical products in domestic market.

By end 2010, the capacity (including newly-built and expansion facilities in 2010), output and market share of the Company's major chemical products are as follows:

Sinopec Corp. has 13 ethylene plants (including 4 joint venture companies) with a total capacity of 9.375 million tpa by the end of 2010 and realized production was 9.0592 million tons. Among them, 6 plants have built a capacity of over 0.6 million tpa for ethylene production, including Sinopec Shanghai Petrochemical Co., Ltd., Sinopec Beijing Yanshan Company, Sinopec Qilu Petrochemical Co., Ltd., Sinopec Yangzi Petrochemical Co., Ltd., BASF-YPC Co., Ltd. and Sinopec Fujian Refining and Chemical Company. The ethylene production capacity in Sinopec Maoming Company, Zhenhai Refining and Chemical Company, Shanghai Secco Petrochemical Co., Ltd and Sinopec Sabic Tianjin Petrochemical Co. Ltd. exceeded 1.0 million tpa.

Sinopec Corp. has 29 synthetic resin plants with a total capacity of 12.6636 million tpa. In 2010, the output of synthetic resin was 12.9487 million tones, representing a domestic market share of 25.72%. The capacity of polyolefin (PE+PP) facilities for 5 major synthetic resin products reached 11.1136 million tpa. The output of polyolefin in 2010 was 11.2903 million tones, with a domestic market share of 36.9 %.

Sinopec Corp. has 5 synthetic rubber plants with a total production capacity of 0.93 million tpa. In 2010, 0.9672 million tons of synthetic rubber were produced, acquiring 40.5% of the domestic market share.

Sinopec Corp. has 15 synthetic fiber monomers and polymers plants with a total capacity of 9.2554 million tpa. In 2010, the output was 8.8635 million tons, accounting for 23.18% of the domestic market share.

Sinopec Corp. has 8 synthetic fiber plants. The capacity of polyester fiber, acrylic fiber, polyamide fiber and polypropylene fiber totaled 1.5333 million tpa. In 2010, the synthetic fiber production was 1.3928 million tons and the domestic market share was 4.6 %.

Sinopec Corp. has 7 urea plants with a total capacity of 3.634 million tpa.  The urea production in 2010 was 1.2234 million tons, accounting for 3.17 % of the domestic market.

Summary of Production of Major Chemical Products

Note: 100% production of joint ventures was included.

In 2010, the Chemicals Segment's operating revenue was RMB 15 billion, with a year-on-year increase of 8.9%.

Chemical Products
Sinopec Chemical Sales Company is the largest company specialized in chemical products sales with advantages in integrated operation of domestic and foreign trade. Four regional branches in Beijing, Shanghai, Guangzhou and Wuhan were respectively in charge of local marketing and sales. Main products include synthetic resin, synthetic rubber, synthetic fiber monomers and polymers, and synthetic fiber, synthetic fiber feedstock and organic chemical feedstock, and so forth. In 2010, sales volume exceeded 36 million tons.

Sinopec Chemical Sales Company always adhered to the concept of “integrity, discipline, cooperation, win-win”，oriented by market, concentrated on clients, catered to market need and customers, constantly improved marketing network, cultivated corporate brand. The Company actively served Sinopec’s chemical producing subsidiaries and its downstream users, dedicated to providing high-quality product and service, and increased value via good service. The Company also actively dealt with international competition and adapted to chemical market cycle changes, jointly promoted sustainable, effective and sound development of the petrochemical industry.