(Yicai Global) July 11 -- Chinese petrochemical giant China Petrochemical (Sinopec Group) will join hands with its listed subsidiary China Petroleum and Chemical (Sinopec) to invest CNY10 billion (USD1.5 billion) to form a joint venture to invest mainly in strategic emerging sectors.
The formation of Sinopec Capital will help investors accelerate their capital deployment in new energy, new materials, energy conservation, environmental protection and smart manufacturing and fuel Sinopec's own business development and industrial upgrade, the announcement said.
Sinopec will make a capital contribution to the joint venture Sinopec Capital together with its parent company Sinopec Group, they said in an announcement China Petroleum and Chemical released yesterday.
Sinopec Capital's registered capital is CNY10 billion, of which Sinopec will contribute CNY4.9 billion and Sinopec Group CNY5.1 billion, both in cash, the announcement stated.
Sinopec has the right of first refusal on investments related to its primary business, the announcement added.
Editor: Ben Armour