SABIC receives Chinese government approval for joint project with Sinopec

13-Aug-09

Saudi Basic Industries Corporation (SABIC) has received official approval from the Chinese National Development and Reform Commission (NDRC) to participate in a 50:50 joint venture with China Petroleum & Chemical Corporation (Sinopec) in the Tianjin petrochemical complex currently under construction in Tianjin, China. This approval follows a strategic cooperation agreement signed by both partners on June 21, 2008 in Jeddah, Saudi Arabia to study the feasibility of adding a new product (polycarbonate) that uses raw materials produced at the complex and based on SABIC technology. Investment outlay of over US$3bln is expected in the complex, scheduled for completion in September 2009. Capacity will include 3.2 mln tons of various petrochemical products, including I mln tons of ethylene and other downstream products such as polyethylenes, ethylene glycol, polypropylene (PP), butadiene, phenol and butene-1.