A merger was launched recently between Lanzhou Refining Company and Lanzhou Petrochemical Company in Gansu Province to create the largest petrochemical enterprise in western China, according to a local source.

The newly launched Lanzhou Petrochemical Company, with a total assets and sales revenue of over 10 billion yuan (US$12.04 billion), will serve as one of the major suppliers of crude oil, finished oil products, and chemical products in the western part of the country.

The original Lanzhou Refining Company and Lanzhou Petrochemical Company were both listed among the State's 156 key projects during the First Five-Year Plan (1953-57), and have generated up to 20 billion yuan (US$24.08 billion) tax revenue for the country ever since they were put into operation in 1958.

According to Ren Chuanjun, senior vice-president of China Oil Holdings Company, the merger of the two companies produced an oil giant which can better face the challenges and grasp the opportunities upon the country's entry into World Trade Organization. And, the merger can help make full use of the two companies' advantages and reduce cost of oil refining.

(China Daily)