By Chen Aizhu
SINGAPORE (Reuters) -The former head of trader Mercuria’s Beijing operation is joining China’s largest private oil refining and chemical group Rongsheng Holdings in a senior position, according to four sources with direct knowledge of the matter.
An internal memo from Mercuria confirmed that Li Xinhua was leaving the company, but did not elaborate.
The sources said that Li, 54, will be assistant to Xiang Jiongjiong, the president of Rongsheng Holdings. Li will oversee Rongsheng’s coal and petrochemical businesses and co-lead its Singapore-based oil trading, said the sources, who declined to be named as the move has not been officially announced.
Rongsheng did not immediately comment.
Li is a 17-year veteran of Geneva-based Mercuria, a global top-four commodities and energy merchant.
In his new role, Li is expected to help grow and manage Rongsheng’s expanding business in what two of the sources described as a time of challenges, including overcapacity in China’s refining industry, a lacklustre global petrochemicals market and geopolitical uncertainty.
Rongsheng’s Singapore trading desk is populated by former senior Chinese state oil traders, and the firm recently hired an ex-PetroChina trader to lead its Canadian crude oil trading.
After joining Mercuria in 2008 from Chinese state-run Sinochem, Li was instrumental in growing its China oil business, especially in dealing with the country’s independent refiners.
“During his tenure, Xinhua has been a key player in the company’s growth and transitions. He proactively developed the independent refiners’ market in Shandong, setting a solid foundation for the company’s oil trading business,” Mercuria’s internal memo said.
Li’s new boss, Xiang, is the son-in-law of Rongsheng’s founder and chairman, Li Shuirong, who built the business from a small textile factory in the late 1980s.
Rongsheng controls China’s largest private refiner, Zhejiang Petrochemical Corp, and was the first Chinese private refiner with a substantial investment from Saudi Aramco.
Li will be replaced by Wang Tiezheng, a senior iron ore trader, as head of Mercuria’s Beijing office, Mercuria’s memo said.
Mercuria did not immediately respond to emails seeking comment.
(Additional reporting by Siyi Liu in Singapore. Editing by Tony Munroe, Mark Potter and Louise Heavens)
