Sinopec's Hou Qijun Unveils Ambitious Transformation Plan Amid Global Oil Crisis
Hou Qijun, chairman of Sinopec, China's largest oil refiner, is pushing for a transformation of the company to address declining fuel demand, overcapacity in petrochemicals, and the global oil crisis.
He has revamped Sinopec into four profit centers: oil, gas and new energy, refining and chemicals, finance and strategic new business, and a segment combining global trading with its vast marketing teams for fuel, natural gas, and chemicals.
Hou's overhaul aims to give greater authority to these business units, which he believes will help the company adapt to market changes more effectively and overcome what he calls the 'big company syndrome'. Fuel sales have dropped to 2017 levels, and Sinopec faces an uphill battle to maintain its domestic market share.