Three sources “close to the matter” have shared with Reuters their expectation that Sinochem Holdings will retain its stake in Pirelli despite Italy’s Golden Power Decree restrictions. One commented that China may view an exit from Pirelli as a “reputational setback” at a time of “tenser relations” with Western countries.
As reported yesterday, Italy’s government is looking to ensure tyre maker Pirelli isn’t unduly influenced by its largest shareholder. A piece of legislation named Golden Power may help to this end, and in light of activities linked to this rule, Pirelli has postponed an upcoming shareholders’ meeting.
According to people familiar with the matter, Italian officials are attempting to limit the influence Sinochem has on Pirelli. Reporting this development, Bloomberg shares that officials are speaking with Pirelli investors about a range of options related to corporate structure.
On 16 February, Marco Polo International Italy S.r.l. (Marco Polo) stated that “Sinochem does not have any plan to sell its stake in Pirelli”. Marco Polo is Pirelli’s largest shareholder, holding a 37.01 per cent stake in the tyre maker. The ownership of Marco Polo belongs to China National Tyre & Rubber Co., Ltd (CNRC) under Sinochem Holdings.
Sinochem Holdings recently announced that Ning Gaoning will no longer serve as chairman and party secretary. Li Fanrong became the new top leader of the large state-owned enterprise. The reason? According to industry insiders, Ning Gaoning is about to turn 64 years old and therefore his departure is probably best categorised as official retirement. It is reported that under normal circumstances, the retirement age of the top leaders of China’s central enterprises is 63 years old. From this perspective, Ning Gaoning has already out-worked normal tenure.
A significant leadership change has taken place within the company closely linked with Pirelli, Aeolus and Prometeon Tyre Group. During an executive meeting that Sinochem Holdings held this morning for middle and senior management, a representative from the Chinese Communist Party announced that Ning Gaoning is no longer chairman of the company’s board, nor is he secretary of Sinochem’s leading party group. Li Fanrong takes over both positions.
Sinochem Holdings, the entity who through its China National Tire & Rubber subsidiary has a controlling stake in Pirelli and Aeolus Tyre as well as a substantial shareholding in Prometeon Tyre Group, has signed a strategic cooperation agreement with China Cosco Shipping intended to “guarantee the security and stability” of its industry and supply chain.
The restructuring of Sinochem Group Co., Ltd. and China National Chemical Corporation Ltd. (ChemChina) has resulted in the establishment of a new entity, Sinochem Holdings Corporation Ltd. (Sinochem Holdings). As of 8 May 2021, both Sinochem Group and ChemChina became wholly-owned subsidiaries of the new state-owned enterprise, which is said to be the world’s largest chemical conglomerate.
On 31 March, Pirelli & C. S.p.A. received a notification letter from China National Chemical Corporation Ltd. (ChemChina) stating that ChemChina had received a notice regarding its restructuring and that of Sinochem Group Co., Ltd., (Sinochem Group) from the State-owned Assets Supervision and Administration Commission (SASAC), a commission of the State Council of the People’s Republic of China.
On 23 January 2020, Pirelli & C. S.p.A. received a notification letter from its largest shareholder, China National Chemical Corporation Ltd. (ChemChina), informing the firm that it is undergoing “strategic restructuring”. The restructuring notice covered both ChemChina and Sinochem Group Co., Ltd.
An addition to the executive silverware cabinet: During last week’s Fortune China CEO Summit, Sinochem ChemChina and Pirelli chairman Ning Gaoning was the recipient of a Fortune CEO Lifetime Achievement Award.
Ren Jianxin has retired as chairman of ChemChina. His successor has been named as Ning Gaoning (Frank Ning), who concurrently serves as chairman of Chinese state-owned petrochemical and fertiliser company Sinochem. Ren’s replacement by the chairman of ChemChina’s rival is considered by many a precursor to a merger between the two firms, an arrangement that would create a group with annual turnover in excess of £100 billion.
Sinochem International Corporation subsidiary Sinochem International (Overseas) Pte Ltd. has Bought a 51 per cent stake in Singapore-based natural rubber producer GMG Global Ltd. for SG$ 267.98 million (£106.4 million). GMG operates natural rubber business in Africa and elsewhere with plantations in Cameroon and Ivory Coast and processing facilities in Indonesia. Amongst other things Sinochem International expects the deal to help position it for growth in the global rubber market. China contributes to over 20 per cent of the world’s natural rubber consumption but only produces 7 per cent of the production.
World Trade Association (WTA) is an international tyre wholesaler, based in Coral Springs, Florida.
The company deals in all brands of passenger car, high performance, light truck and truck tyres and has more than 30 years’ experience dealing in the global marketplace, shipping tyres all over the world.
WTA is also the worldwide distributor for the Hanksugi Japan range of truck tyres, which are available in both bias-ply and radial construction. They are produced in Shanghai, with the manufacturing process controlled through the Sinochem International Company Limited.
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