Luan An Chemical’s integration process has begun; five state-owned enterprises including Tianji have completed the transfer of their shares!

Thread Content

As the two newly established large-scale specialized groups in 2018, the progress of asset integration at Shanxi Lu’an Chemical and Shanxi Gas Group remains a topic of constant interest to the market. The Shanxi capital circle has noted that recent progress has been made in the transfer of assets within Shanxi Lu’an Chemical Industry. Five subsidiaries of the Lu’an Group, including Shanxi Tianji Coal Chemical Group, Shanxi Lu’an Taihang Lubricant Co., Ltd., Shanxi Lu’an Coal-based Synthetic Oil Co., Ltd., Shanxi Lu’an Hengrong Chemical Co., Ltd., and Shanxi Lu’an Daon Fine Chemicals Co., Ltd., have all seen changes in their ownership structures recently, with all of them being transferred from the Lu’an Group to Lu’an Chemical Industry. http://img.yf116.cn/image/img/20180521/917473346711.jpg As is well known, as a high-end coal chemical industry integration platform that Shanxi Province is striving to develop, Shanxi Lu’an Chemical intended, from its inception, to consolidate the state-owned shares of companies in the coal chemical sector and related industries such as coal-based clean energy companies, coal-based synthetic oil companies, Tianji Group, and Taihang Lubricant Company. The goal was to create production bases for fine chemicals and fully synthetic lubricant base oils on a scale of millions of tons, thereby fostering world-class, high-end chemical enterprises with global competitiveness. Today, more than three months have passed since the establishment of Shanxi Lu’an Chemical Industry. Some of Lu’an Group’s key coal chemical assets, such as Tianji Coal Chemical Group and Taihang Lubricants, have also completed the transfer of their shares. According to sources in Shanxi’s capital circle, Shanxi Lu’an Guozhuang Coal Industry, which is held 70% by Lu’an Group, is also planned to be transferred free of charge to Shanxi Lu’an Chemical. Of course, the asset integration process at Lu’an Chemical is still far from being completed. For example, Shanxi Lu’an Coal-based Clean Energy Co., Ltd., which is responsible for overseeing the construction of the Lu’an 1.8 million tons per year integrated demonstration project for the clean utilization of high-sulfur coal for oil, chemicals, and heat production (the well-known 180 Project), has not yet completed the shareholding changes. However, Shanxi Zhongsheng Hesheng Coal Chemical Equity Investment Partnership, which was previously a shareholder, has withdrawn from the project.