OREANDA-NEWS. July 14, 2014. China Petroleum & Chemical Corp., the country's largest refiner, Wednesday said it was establishing a new subsidiary to house its lubricants business as part of an effort to bring private capital into the division.

The move comes as the state-controlled company, known as Sinopec, attempts to restructure its operations following a landmark reform blueprint that Chinese leaders issued late last year. The framework called for state-owned enterprises to bring in private investors in a bid to improve returns and efficiency.

Sinopec had created a division for its lubricants in 2002 but the company said that the new subsidiary would allow the business to bring in private investment.

"The incorporation of Sinopec Lubricant Co. creates a mechanism through which external capital can be channeled into Sinopec Corp.'s lubricant business to accelerate its development," the company said in a statement. Sinopec is Asia's largest manufacturer and distributor of lubricants, according to the statement.

The lubricants business, one of the fastest growing industries in China's energy sector, is being driven by the rapid rise in automobile purchases. For example, lubricants comprise the largest part of global oil major Royal Dutch ShellPLC's business in China, Shell officials have said.