SINOPEC Issued its Global Lubricant Market Strategies for the First Time

BEIJING -

On Oct. 28, 2009, SINOPEC Corp. held its first global lubricant distributors’ conference in Beijing, attended by over 100 partners from more than 30 countries. The conference showed SINOPEC Lubricant’s opportunity, strength and aspiration to enter into the world market, and indicated SINOPEC Lubricant’s global market strategies for this new stage.

(Photo: www.newscom.com/cgi-bin/prnh/20091029/CNTH035 )

Mr. Zhang Jianhua, Senior Vice President of SINOPEC Corp. said, “SINOPEC will gradually shift from trading and export to an integrated business model of investment, production, marketing and management, to become a global business operation.” This indicated a significant change in SINOPEC’s operation model in its overseas markets from the lubricant business.

At the conference, SINOPEC Lubricant explained its market architecture in the Americas, Europe, and Southeast Asia to its global distributors. The strategic project, called “Golden Triangle,” will be launched in three phases: first is to open up the market in the Asia-Pacific region, then to establish overseas plants, and finally to set up global marketing and service networks. SINOPEC’s “Golden Triangle” strategy draws much attention from the global energy giants that predominate the world market.

The world-class SINOPEC has become China’s top lubricant brand, thanks to its brand image of “high technology, high quality,” and is China’s largest automobile OEM supplier and lubrication service supplier for industrial and mining establishments. As China becoming the world’s manufacturing center, the export volumes of “made-in-China” machines and equipment increase, which creates new opportunities for SINOPEC Lubricant to enter into global markets. In the past 6 years since 2004, SINOPEC has developed its lubricant business in over 40 countries and areas, with an overseas sales volume increasing by 45% every year.

Mr. Song Yunchang, Chief Executive, SINOPEC Lubricant Company under SINOPEC Corp. said that as the globalization of the world’s economy develops, the degree of concentration of lubricant brands will be even higher in world markets in future. Therefore, SINOPEC will strengthen its international production and logistics systems for lubricant products to find more developing space and new markets. Now, SINOPEC’s exported products have 12 categories with over 100 trademarks including engine oils, gear oils, hydraulic oils, grease lubricants, turbine oils, insulating oils, and compressor oils, serving in various industries such as automobile, machinery, power, metallurgy, mining, construction, and shipping.

SINOPEC is trying the best to become a global energy and chemical company with strong international competitiveness, and SINOPEC Lubricant, the world’s fourth largest lubricant brand, will be an important component of these international market strategies. With great support from SINOPEC’s overseas offices, SINOPEC Lubricant will continue to improve its overseas supply networks, and expand from Asia to Europe and the Americas, finally forming a global market distribution network for production, logistics and marketing.

For more information, please contact: Yanli Zhao Tel: +86-10-6583-6038 x236 Cell: +136-0122-5828 Email: zhaoyanli@mrgchina.com

Source: SINOPEC Corp.

Yanli Zhao, +86-10-6583-6038 x236, Cell +136-0122-5828, zhaoyanli at mrgchina.com