STATE-OWNED Sinochem Group yesterday denied a media report that it was bidding for a stake in Chilean lithium producer SQM being sold by Canada’s PotashCorp.

“Up until now, neither Sinochem Group nor our subsidiaries have had such intentions or plans,” the company said.

The Financial Times reported Monday that Sinochem, a Beijing-based chemicals and oil conglomerate, was among four Chinese bidders for a US$4 billion stake in Chile’s Sociedad Quimica Y Minera (SQM), one of the world’s largest lithium producers. It cited people familiar with the process.

Lithium is a key raw material for batteries in electric vehicles, which are enjoying a massive rise in popularity in China.

The other Chinese bidders named by the Financial Times were Ningbo Shanshan, Tianqi Lithium and GSR Capital.

Ningbo Shanshan also said that it was not participating in a bid to acquire equity in SQM, while Tianqi Lithium and GSR Capital did not respond to requests for comment.

PotashCorp was in September reported to have hired Goldman Sachs and BofA Merrill Lynch to explore selling its 32 percent stake in SQM.

Meanwhile, Ning Gaoning, chairman of the Chinese conglomerate, said Monday that Sinochem is reviewing its struggling oil exploration business and plans expansions into material and life sciences over the next decade in a major strategy shift.

Media reports said last week that Sinochem had retained three banks to work on a possible listing of its oil refining, fuel marketing, and trading and storage assets while the upstream oil business might be sold to the government.

“Based on current market conditions, we are re-evaluating our strategy in the upstream oil and gas business,” Ning said.

Sinochem has tapped Morgan Stanley, CITIC Securities and BOC International to work on the possible Hong Kong listing to raise capital and revive the company, previous reports said.

Sinochem aims to build itself into a conglomerate using petrochemicals as the foundation but led by material science and life sciences, a change from previously “scattered resource allocation and lack of focus in core businesses,” said Ning.

The new business strategy comes as Sinochem is anticipated to merge with China National Chemicals Corp., or ChemChina, under a restructuring to join the companies.

(SD-Agencies)