Sinopec Corp., a state-owned refiner in China, 0386.HK600028. SS claimed that in order to increase petroleum retail operations in Thailand, its Hongkong subsidiary bought a 49% share in Susco Dealers Company Limited.
Sinopec Hongkong Co Ltd stated in a statement that the investment combines the Chinese refiner's fuel supply base, its brand, and the Thai company's retail network. Sinopec did not specify the amount of the investment.
According to the statement, the joint venture will also investigate expanding into new and low-carbon energy sectors like electric vehicles, hydrogen fuel, and biofuels.
In Hong Kong and surrounding Asia-Pacific markets, Sinopec Hongkong supplies and trades refined gasoline products.
Susco Dealer, a division of petroleum wholesaler and retailer Susco Public Company Ltd SUSCO.BK, focuses on providing fuel in Bangkok, the capital of Thailand, including jet fuel filling at its primary airports.
In an effort to strategically restructure the petroleum and petrochemical sector, the central government created Sinopec Group in July 1998 on the foundation of the former China Petrochemical Corporation. In August 2018, it was additionally incorporated as a limited liability corporation. With a registered capital of 326.5 billion yuan and the chairman of the board of the Sinopec Group acting as its legal representation, the Company is a very sizable petroleum and petrochemical group. Beijing-based company exercises the investor's rights to the linked state assets held by its fully owned subsidiaries, controlled firms, and shareholding corporations, including the power to receive asset returns, make significant decisions, and appoint managers.