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Product category: Oil, Gas, Petrochemical Industry News
News Release from: SABIC
Edited by the Processingtalk Editorial Team on 01 February 2008

Sabic and Sinopec JV in ethylene
derivatives

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This 50:50 JV company will invest in a 1M tonne per year ethylene derivatives complex (600,000tonnes of polyethylene and 400,000tonnes of ethylene glycol) to be set up in Tianjin in China

The complex will receive all its ethylene feedstock from an ethylene cracker owned by Tianjin Petrochemical Company, a branch of the Sinopec Corp The total investment will be around USD1.7 billion, with the complex scheduled to be completed by September 2009

The Heads of Agreement was signed at a ceremony in Beijing today by Sabic Chairman, Prince Saud bin Abdullah bin Thenayan Al-Saud, and Sinopec Chairman, Su Shulin.

Prince Saud noted: "The new joint venture with Sinopec will further strengthen the links between our two companies.

This will be the first Sabic joint venture in China and we hope this will lead to more joint ventures and a strong relationship with Sinopec in the important Chinese market".

Sabic already has a strong relationship with Sinopec, and Chinese engineers from Sinopec are currently helping to construct a world-scale polyolefins complex for Sabic affiliate Yanbu National Petrochemicals Company in Yanbu, Saudi Arabia.

China is an important market in the Sabic global strategy".

"This Heads of Agreement is a key milestone towards realizing Sabic's goal of establishing a manufacturing centre in Asia" said Mohamed Al-Mady, Sabic Vice Chairman and CEO: "This facility in Tianjin will serve customers in the world's fastest growing market, and is an important component in the Sabic corporate strategy of being among the world's top petrochemical companies by 2020".

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