Beijing, February 28, 2002 – China Petroleum and Chemical Corporation ("Sinopec Corp.") (SEHK: 0386, NYSE: SNP.N) and Pacific Century CyberWorks Limited ("PCCW") (SEHK: 0008, ADR-NYSE: PCW) today signed an agreement in Beijing to form a joint venture focused on providing IT services in China.
Named Petro-CyberWorks Information Technology Company Limited ("PCITC"), the venture is 55 percent-owned by Sinopec, with the remaining 45 percent interest held by PCCW. Capital contributions to the joint venture will be made in cash by the parents.
Based in the Zhongguancun Science Park, Beijing, PCITC's role is to fully support and facilitate the daily operations, while promoting the quality of the existing information system and infrastructure of Sinopec. To accomplish this, PCITC will leverage the resources and competitive advantages of its parents.
Sinopec is one of Asia's largest integrated energy and petrochemical companies, with listings on the stock exchanges of New York, Hong Kong, London and Shanghai.
To boost its competitiveness, Sinopec has expanded its use of Enterprise Resource Planning (ERP) systems, applying advanced IT to several aspects of its business, including its allocation of resources, process control, product distribution, procurement, online sales of petrochemical products, and IC fuel cards.
PCCW, the flagship of the Pacific Century Group, is one of Asia's leading integrated communications companies. PCCW provides key services in the areas of: integrated telecommunications; broadband solutions; mobility and connectivity; narrowband and interactive broadband (Internet Services); business e-solutions; data centers and related infrastructure.
PCITC is expected to facilitate Sinopec's strategy of boosting its own competitiveness through the use of IT, as well as serving to strengthen PCCW's presence in China's telecommunications market.
PCITC will operate mainly in the areas of:
- Design and development of ERP systems, logistics and supply chain management systems, and customer relationship management systems;
- Provision of technology enhancement and process control;
- Design, manufacture and maintenance of IT-related products;
- Design and undertaking of information network, systems integration projects and e-commerce development.
The joint venture is expected to benefit from PCCW's expertise in systems design and development, as well as its experience in project management and operation systems maintenance.
With the parents' support, PCITC can strengthen its cooperation with large-scale local and overseas computer companies, while fully supporting Sinopec's IT development and daily operations. PCITC also aims to expand into the process manufacturing sector, and become a prominent IT solutions provider and systems integrator in this sector, both locally and abroad.
According to Sinopec Corp. Chairman Li Yizhong, PCITC's function is in line with China national strategy to enhance the competitiveness of China's industries through the use of IT. It is also designed to upgrade Sinopec's operational expertise, moving towards the goal of "digitalization of petrochemical industry." At the same time, Sinopec can leverage PCCW's technical expertise and strength in communications technology to promote Sinopec development at the highest levels.
PCCW Chairman and Chief Executive Richard Li said: "We are very pleased to work closely with a powerful industry leader and one of China most forward-looking companies. We are confident in our ability to provide the best-possible IT services to Sinopec's infrastructure, while continuing to expand further into China's IT and telecommunications market."
At the signing ceremony were Sinopec Corp. President Wang Jiming and Vice President Cao Xianghong.
Top management present from PCCW included Commercial Group Managing Director Aloysius Lee, and Consulting Services & Global Business President Tommy Chung.
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Download photos of the Sinopec-PCCW contract signing ceremony.