Hengli Petrochemical's former Singapore unit to cease operations
Hengli Petrochemical International, the former Singapore trading arm of sanctions-hit Hengli Petrochemical (Dalian) Refinery, plans to cease operations, four industry sources said.
The operation is likely to wind down in late May, three of the sources said.
Hengli Petrochemical International employed about 100 people and traded mostly oil and petrochemical derivatives before the parent company was placed under U.S. sanctions, two of the people said.
Some staff have been told they were being made redundant while some are to be moved to other parts of the Hengli group that were not under U.S. sanctions, some of the sources said.
The sanctions on Hengli Petrochemical (Dalian) Refinery were imposed by the U.S. Treasury last month over alleged purchases of Iranian oil, which Hengli denies.
Shortly after the U.S. move, Hengli Group restructured the Singapore unit's ownership, reducing Hengli Petrochemical (Dalian) Refinery's holding from 100% to 5%, with Dalian Changxing International Trade, a local Chinese government entity, assuming the 95% stake.
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