The Chemical Industry
Legal services in the chemical industry are complex, cross many fields and involve unique issues. With JunHe’s integrated operating model, we provide legal services that cover the entire chemical industry according to the client’s needs and the specific features of a project. This includes domestic and overseas investments, finance, mergers and acquisitions, construction, product sales and dispute resolution. With outstanding professional skills and vast experience, JunHe’s lawyers integrate international practices with Chinese investment, construction and management customs to provide practical and innovative legal advice and suggestions to our clients.
The chemical industry includes sub-sectors such as petroleum refining, fine chemicals, new chemical materials, modern coal chemicals, chemical fertilizers, cosmetics and daily chemical products. The industry is regulated by two administrative departments, namely the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT). The laws and regulations that govern the industry include Company Law, Foreign Investment Law, Contract Law, Administrative Law, Land Administration Law, Urban and Rural Planning Law, Construction Law and Tendering and Bidding Law. Special attention also needs to be paid to the regulations and rules relating to work safety, fire control, hazardous chemical management, environmental protection, health and epidemic prevention and the prevention and treatment of occupational diseases.
JunHe's lawyers provide legal opinions and suggestions to Chinese and foreign clients on a variety of matters including M&A investment, M&A financing, anti-monopoly issues, loans, general M&A issues and project approval/verification. Our lawyers provide clients with comprehensive and specialized legal services regarding planning, land, bidding, project construction and engineering contracting, as well as legal services for daily operations and the product sales of chemical enterprises.
JunHe Provides the following services for the Chemical Industry:
Legal advice on the issues related to examination, approval, filing and registration procedures in China;
Due diligence on the assets or equity to be acquired by foreign investors in China;
Cooperate with international law firms to provide legal advice to Chinese clients regarding laws in the target company's country;
Cooperate with law firms in the target country to perform due diligence on the target company;
Legal advice regarding the investment and transaction structures involved in chemical projects;
Legal advice regarding financing plans involved in chemical project transactions;
Assist in drafting, amending and negotiating investment agreements, joint venture agreements, articles of association and other legal documents;
Legal services for the establishment and operation of joint ventures between companies;
Legal services for bidding, project contracting, completion and other matters involved in the initiation of chemical projects;
Legal services for the sale of chemical products and
Legal services for dispute resolution involving engineering, sales and other issues in chemical industry projects
Recent Representative Cases
As the Chinese legal counsel for Fujian Zhongsha Petrochemical Company, (a joint venture established by Fujian Energy and Petrochemical Group and Saudi Basic Industries Corporation (SABIC)), JunHe provided legal services for the development and construction of the Fujian Gulei 1.5 million tons per year ethylene and downstream deep-processing complex project.
This project is based in the Zhangzhou Gulei Development Zone, Fujian Province, and has a total investment of approximately RMB 44.8 billion (about USD 6.4 billion). It is expected to be completed in 2026.
Represented Shell Group on the 52.1 billion RMB Huizhou Phase III Ethylene Project in a joint venture between Shell Petrochemicals Company Limited and CNOOC.
JunHe has served as Shell Group's Chinese legal counsel since 2019 and provided legal services for the project's preliminary investment agreement and related matters. The total investment in the project is approximately RMB 52.1 billion.
Advised a multinational chemical company on its investment to establish a large chemical project in China.
JunHe provided legal services to a prominent multinational chemical company on its large coal chemical joint venture (JV) project with a major Chinese coal group in western China. JunHe assisted in the company’s investment in the construction and operation of several large chemical enterprises and terminal warehousing and logistics center projects in East and North China. The legal services provided by JunHe included the pre-development, examination and approval of the project, the negotiation of the JV agreement, the establishment of the JV and legal assistance throughout the implementation of the project.
Represented China National Tire & Rubber on its acquisition of an Italian company
JunHe provided legal services for China National Tire & Rubber Company Limited (China National Tire), a subsidiary of China National Chemical Corporation Limited, on its acquisition of a 100% stake in the Italian listed company Pirelli. The investment was in the amount of several billion Euros. As China National Tire’s legal adviser for the acquisition, JunHe used the firm's platform-based management to assign different professional teams to the project. We provided a full range of legal services for the overseas acquisition business, the domestic and overseas syndicated loans, the global and Chinese anti-monopoly declarations, and the acceptance of the investments by the Silk Road Fund.
Represented Blue Star New Chemical Materials in its major Asset Replacement and Equity Acquisition
JunHe assisted Blue Star New Chemical Materials（600299.SH）in its asset replacement and share purchase of Bluestar Adisseo Company, which amounted to RMB 10.6 billion. This was the first state-owned company listing on the A-share market after it had acquired an overseas company through the ‘Go Out’ strategy. It was also the first successful restructuring case which took place by concurrently selling substantial assets and reorganizing material assets.
