The unit will hold assets worth more than 100 billion yuan ($12.4 billion) with some 130,000 employees, a statement on the Website of the State-owned Assets Supervision and Administration Commission (www.sasac.gov.cn).
One of the targets of this new unit is to clear and dispose of bad assets, said Chen Ge, director of the enterprise reform department of Sinopec Group, and spokesman for Sinopec Corp was quoted saying on Sinopec News (www.sinopecnews.com.cn). Another major target is to maintain and increase the value of non-listed state assets, he added.
These include all unlisted refineries, sales and research units as well as property assets and enterprises like crude and gas production firm New Star and refinery Yangzhou Petrochemical. Sinopec Group is also keen to trim back on social provisions it had responsibility for under a more centrally-planned economy.
Many state firms have in recent years severed ties with schools and hospitals they ran in the past, as the government has pushed market-oriented reforms, but many are still struggling with pensions and medical care.
(The unit will) resolve historical problems and focus on disposing of relevant assets, withdrawing from some businesses and separating out the business sections from social sections, the statement quoted General Manager Chen Tonghai as saying.