Equipment and materials
Company Profile
China Petroleum & Chemical Corporation (“Sinopec”) is China’s largest producer and supplier of oil and petrochemical products, specializing in the exploration and production of oil and natural gas, oil refining and distribution, production and sales of chemicals. It ranked 17th in the 2007 Fortune Global 500 and 1st place among China Top 500 companies.
China Petrochemical International Co., Ltd ( “Sinopec Int’l”,), a wholly-owned subsidiary of Sinopec majoring in international businesses, was incorporated in 1983, with a registered capital of USD 182 million as of 2006.
Sinopec Procurement Division undertakes the management of Sinopec’s procurement and supply system, and centralized purchasing.
In March 2006, the two entities were reconstructured into one division that consolidated the triple functions of procurement management, centralized purchasing and international businesses.
In 2007, Sinopec Procurement Division (Sinopec Int’l) accomplished a turnover of USD 10.6 billion in centralized purchasing, USD 19.4 billion in E-procurement (online trading), and USD 4.61 billion in total import and export (excluding crude oil and fuel businesses). It was awarded as the biggest international trading company in China by the Ministry of Commerce for 7 consecutive years since1999.
Sinopec Procurement Division (Sinopec Int’l) is the largest purchaser in China, responsible for Sinopec’s global purchase worth of USD20 billion of bulk materials and key equipments. It enjoys strong market sway and price negotiation advantages and employs over 1600 market-savvy purchasing specialists in respective areas of equipments, chemicals, steel, electrics and instrumentation.
Sinopec Procurement Division (Sinopec Int’l) takes pride in its global-wide marketing network, with 17 domestic branches and subsidiaries across China, and 7 overseas sub-companies located respectively in the US, Japan, Germany, Russia, United Arab Emirates, Ecuador and Hong Kong (China).
Sinopec Procurement Division (Sinopec Int’l) boasts a strong global network of suppliers and forges strategic partnerships with 33 world-leading manufacturers and producers in the industries of steal, coal, petrochemical equipment, and chemicals. Strategic suppliers offer Sinopec stable and prioritized resources, reasonable pricing, reliable quality and in-time service, a staunch boost to the timely delivery of Sinopec’s construction and production projects over the years.
Sinopec Procurement Division (Sinopec Int’l) has established and implemented a strict set of quality controls across the board. Quality inspection and monitoring have been woven into every corner and key point of the purchasing and supply process.
Sinopec E-commerce web is China’s largest E-procurement platform, with an annual transaction volume of over USD 13 billion, more than 120,000 material categories, and over 20,000 active suppliers. 80% of Sinopec’s procurement volume were conducted on the E-platform, which allows transaction methods of ask and put, competitive bidding, and tendering. The principles of “openness & transparency, process control and monitoring, everything on record, and all traceable” have ensured sunshine purchasing.
Chemicals export is a key component of Sinopec’s operational strategy. Sinopec Procurement Division (Sinopec Int’l) has secured long-term cooperation with more than 150 end-users and distributors, such as Dupont, Proctor & Gamble, and Michelin, across more than 100 countries and regions. Export hit a record high of USD 937 million in 2007, with an annual growth rate of 30% over the past 5 years. Its main export products include petroleum coke, paraffin wax, base oil, PET, PVC, soda ash, caustic soda, and fertilizer, etc.
Along with the rapid growth of China’s equipment manufacturing industry, the equipment and materials export of Sinopec Procurement Division (Sinopec Int’l) has taken off in recent years. Main export categories include drilling rigs, workover rigs and pumping units; OCTG, line pipes, and oil tank plates; static equipments such as reactors, heat exchangers; rotary equipments like compressors, pumps, turbines and generators. Exports have reached destinations in the US, Canada, Brazil, Russia, India, Thailand and the Middle East with a total volume of USD 185 million in 2007. Cooperation has been established with leading petroleum, chemical and engineering companies, such as BP, Shell, LG, TECHNIP, SNC-LAVANIN and AKER, in terms of their China sourcing and procurement.
Upholding the business philosophy of “openness, competitiveness, regulation and integrity”, Sinopec Procurement Division (Sinopec Int’l), while in pursuit of enhancing procurement management, strengthening purchasing, and expanding international businesses, would like to invite leading international oil and chemical companies to join together hand in hand and usher in a new and brighter stage of development in the 21st century.
