Sinopec official website stated that as of now, Sinopec Lubricant Branch Company has completed the business handover contract with 18 provincial and municipal oil companies, and has established 11 new sales offices and employees of lubricants sales subsidiaries in Fujian, Guangdong, Jiangsu, and Shandong. Conduct business training and cultural integration. At present, the integration of the lubricant sales business has basically been completed. Lubricant Subsidiary achieved sales growth of 6% year-on-year in July, with medium-to-high end products increasing by 24% year-on-year.
In early April of this year, Sinopec initiated the integration of the lubricants sales business, handing over the related customers and market management functions of the lubricants business to the Great Wall Lubricant Company from various provinces and municipal oil companies, and eliminating the distribution of Great Wall Lubricants by provincial and municipal oil companies. The functions were undertaken by the Lubricant Company at the top five sales centers in the country. This means that the Great Wall Company will largely depart from its reliance on Sinopec's sales network and become a separate accounting entity with its own profits and losses.
The Sinopec lubricants business, which started with the production of national defense lubricants, took place ten years ago. In May 2002, Sinopec integrated a number of its lubricant brands and businesses and established a specialized lubricants subsidiary. It stepped out of the first step in the development of marketization, but at the time, lubricant sales channels were still based on its traditional Refined oil sales company.
It is generally believed that the recovery of sales channels may only be a prelude to the overall listing of Sinopec lubricants. There are market rumors that Fu Chengyu approved the listing of its lubricant product business early this year.
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