(Yicai Global) July 4 -- Sinopec-SK Wuhan Petrochemical, a joint venture between a unit of South Korea's largest refiner SK Innovation and China's state oil major Sinopec, has started operating Central China's biggest oil refinery in Wuhan, as well as the first one for the South Korean partner in China. 

The new management took over the reins yesterday, Hubei Daily reported. 

Sinopec-SK paid Sinopec about KRW2.2 trillion (USD1.9 billion) for the refinery in a deal inked in April. Sinopec holds a 65 percent stake in the project and SK holds 35 percent of the equity. 

SK Global Chemical and Beijing's Sinopec set up Sinopec-SK in 2013 to produce ethylene with an annual capacity of 800,000 tons. The JV posted over CNY10 billion (USD1.5 billion) in net profit late last year. In 2017, the firm started eyeing expansion in the areas of oil refining and chemicals. 

The integration oil refining and chemical businesses will reduce operating costs and optimize resource allocation, thus creating greater value for the firm's shareholders and the local economy, Guan Zeming, general manager of the JV, told the local newspaper.

The Wuhan refinery kicked off in 1977. The unit has processed more than 135 million tons of crude oil over the past 41 years. Last year, it achieved CNY42.6 billion (USD6.2 billion) in revenue and CNY10.5 billion in net income attributable to the parent.

Editor: Emmi Laine