Hengli Petrochemical International, the former Singapore trading arm of Hengli Petrochemical (Dalian) Refinery, has dismissed some employees, according to a news report by Bloomberg, citing industry sources.
On 24 April, US Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned China-based independent teapot refinery Hengli Petrochemical (Dalian) Refinery, a unit of Hengli Petrochemical, saying it purchased billions of dollars’ worth of Iranian oil.
Some workers were laid off while others were offered positions in other entities, sources said.
According to a Reuters report citing four industry sources, the company plans to cease operations and is expected to wind down operations by late May.
Last month, Hengli reportedly restructured the ownership of the Singapore entity, cutting the sanctioned refinery’s stake from 100% to 5% and transferring the remainder to a Chinese government-linked firm.
Related: Hengli shifts ownership of Singapore trading arm in wake of US sanctions
Related: US sanctions China’s second-largest teapot refinery for purchasing Iranian oil
