(Yicai Global) May 10 -- China has completed the merger of Sinochem Group and China National Chemical, two state-owned industrial giants, to form the world’s largest chemicals producer.

Sinochem Holdings will be a subsidiary of the State-owned Assets Supervision and Administration Commission and have 16 listed arms, the Beijing-based company said on its website on May 8. ChemChina’s former chairman, Ning Gaoning, will head the new firm.

Sinochem ranked 109th in last year’s Fortune Global 500. Besides chemicals, its businesses include real estate and finance. China National Chemical, better known as ChemChina, is the country’s largest agrochemicals company. It was 164th in the Fortune 500.

The combined entity has production bases and research and development facilities in more than 150 countries and regions around the world, along with 220,000 staff. Some of its listed units include Yangnong Chemical, Pirelli, and China Jinmao Holdings Group.

Whether it can compete with international rivals over the next 10 years depends on the firm’s management model, which should mobilize and inspire employees and improve efficiency, Ning said.

Sinochem Holdings will benchmark itself against international peers, aiming to become a global player based on size, technology, strong innovation capabilities and its industrial chain, the firm added.

Editor: Emmi Laine, Xiao Yi