On December 2nd, Sinochem Group convened a cadre meeting of key posts in Beijing, mobilizing and deploying institutional restructuring and relevant personnel appointment and dismissal of the Group Companies. Mr. Frank Ning, Chairman of Sinochem Group attended the meeting and delivered a speech. Mr. Zhang Wei, President of Sinochem Group, announced the decision regarding the institutional restructuring and relevant personnel appointment and dismissal. The Group’s headquarters would adopt the “big department” form, set up 9 first level departments, 34 secondary level departments, and 4 sharing centers (not included in the functional department sequence). The Group headquarters reduced 11 first level departments and 45 secondary level departments with the reform going on. At the same time, five SBUs of energy, chemical, agriculture, real estate and finance service were created.
According to the decision made by the Group’s Leading Party Group, optimizing and adjusting the setup of the headquarters functional departments were the efforts to forge Sinochem Group into an innovative petrochemical and fine chemical industry enterprise, a diversified investment holding company that covers agriculture, real estate and finance. The principles followed were “Small Headquarters, Big Business” and strategic control oriented headquarters, adjusting the authority-responsibility relationship between the Group’s headquarters and SBUs, reshape and optimize headquarters functions. The adjustment of the functional departments at the headquarters would proceed in a way to be guided by strategy, characterized by synergistic interaction and steady progression. Meanwhile, targets were set to make strong the five SBUs and enhance market flexibility and competiveness of first line business. The principles to attain the above strategy were “unified planning, phased implementation, to be in place in a gradual manner,” Building and strengthening the SBU in phases, stimulating and strengthening vitality of the SBUs, making them the backbone force of the Group to boost the Group’s strategy and business expansion.
Mr. Frank Ning elaborated systematically on the background, start point and goal of this reform in his mobilization speech.
With regard to the adjustment of the functional departments, Mr. Frank Ning pointed out that the new functional departments had to inject new cultural concepts, had to change concepts, and reshape their managerial functions. They were required to co-solve problems with SBUs, and co-accomplish tasks. They needed to truly face the market, reduce the authority mentality. In the end, the Group headquarters should become an umbrella-shaped organization with a reformed system, guiding strategic direction and creating financial and financing environment for SBUs. All these efforts were meant to enable SBUs to play their role to the full and achieve better business performances.
With respect to the establishment of the five business departments, Mr. Frank Ning stated that the function division between the Group headquarters and business departments should be more distinct. Business departments should finally become an independent legal entity, a listed company, becoming the true engine for the company’s development. Only when the business departments do well could the Group headquarters truly realize transition from managing assets into managing stock equities, and turns into a professional company.
Finally, Mr. Frank Ning indicated that the adjustment and integration of departments was not meant to reduce departments, or to reduce people, but an effort to face more to the market, to be more competitive, to stimulate employee’s enthusiasm, to take into consideration the interests of our nation, share-holders, clients and employees while making contributions to our society. Next, Sinochem Group would continue today’s train of thought and direction, and do well in business, making the company to possess a healthier and bigger development platform.