On 4 June, Pirelli’s largest single shareholder, ChemChina announced that it had set up ChemChina (UK) Ltd., as a wholly owned subsidiary of ChemChina Petrochemical Co., Ltd. According to the company, this business serves as “a London-based trading platform that will effectively complement its sister company ChemChina (Singapore) Pte. Ltd. to build around-the-clock trading networks covering various fields”.
Explaining the new company’s function, company representatives added: “Engaged in crude oil trading, storage, crude oil and fuel oil shipping, and crude oil procurement for ChemChina’s refinery companies, ChemChina (UK) Ltd. has its businesses running in North America, South America, West Africa and the Mediterranean, developing collaboration with oil companies of the oil-producing countries, international energy giants and oil products companies across the world.”
Meanwhile, ChemChina (UK) Ltd. is also seek “diversified development and expanding”. One such opportunity could be a future re-float of the two divested Pirelli business units (car tyres and commercial vehicle tyres) that has been outlined in the two firms takeover briefings. However, the is a lot of open sea to traverse before this will be enacted, if indeed this actually is a future purpose of ChemChina (UK) Ltd.