Jiang Jiemin, general manager of CNPC, said CNPC is on the way of constructing itself into a comprehensive energy company and the incorporation of CTIEI, approved by China’s cabinet, is just the time.

Jiang added, the strategic incorporation would help the oil titan strengthen its chemical technologies, raise the value added of downstream products, extend its industrial chain and boost its capacity in developing chemical fiber and textile industries.

Sources from CNPC also commented that the CTIEI’s strong power in the fine chemicals field could help the oil giant outperform its peers in the chemical industry.

Although the marriage is believed to create a win-win situation, some analysts pointed out, the low profit margin in the polyester and chemical fiber industry may prompt CNPC to sell less lucrative polyester companies after the incorporation. (Edited by Zhu Zhu, )