Sinopec's Refining Industrial Low-cost Strategies

The petrochemical industry has become national economic supporting industry. It has effects of importance to development of China national economic. Since China was admitted into WTO, the threats coming from the world oil and petrochemical Multinational Corporation have continually been grown;it is an important part of the national industry policy to improve China petrochemical industrial competitive power. So the research to China petrochemical industrial competitive power has a great practical significance. By comparing the world oil refining industry, the paper analyzes the present operating situation of China oil refining industry. Using associated economic or principle on management and with the aid of analysis tools of SWOT, the paper researches economic environment of domestic and overseas and discusses about the reasons why the oil and refining industry overall made a loss in 2005.Economic globalization has been the inevitable tendency of the world economic development. This provided development opportunity for the outing of the China oil refining industry, at the same time this brought serious challenges. Then manager must overcome the traditional economic abstraction, adjust operation strategy and relocate. By anglicizing, the paper gave a series of reasons why the technique of China oil refining industry dropped back, management are not scientific and the scale are diseconomy. We must take effective measures and reduce cost from the links of primary materials supplying, producing, scale, human resource, capital operating and marketing system in order to make full use of opportunity , overcome the threats, give full play to the strength of China oil refining industry and improve the competition ability.Lastly, the paper give some advice and show China oil refining industry must adjust structure, optimize resource collocation, promote technology progress, strengthen core business, reduce cost, raise efficiency and improve the competition ability. The low cost strategy is inevitable choice of oil refining industry.