Sumitomo buys 25% of CEPSA China chemical unit

14-Apr-14

CEPSA and Sumitomo have entered into an agreement for the Japanese company to acquire 25% of CEPSA Quimica China, until now 100% owned by CEPSA, as per hydrocarbonprocessing.com. The plant that CEPSA Quimica China is building in Shanghai is currently undergoing the final phases of construction. Upon completion, the plant capacity will comprise 250,000 tpa of phenol, 150,000 tpa of acetone and 360,000 tpa of cumene, it will also make CEPSA the second largest producer of phenol in the world. This raw material is mainly used in the automotive and construction industries to manufacture plastics and phenolic resins. The move is expected to give a boost to a petrochemical factory construction project in Shanghai, in which CEPSA has been involved since 2011. "Welcoming a partner like Sumitomo is, for us, a major opportunity, as their company has built up vast industrial experience in the Asian region and is a leader in the commercialization of various products," said CEPSA chief executive Pedro Miro. "We are convinced that our business activities in China will experience a major boost and that this agreement will allow us greater flexibility to adapt our operations to the requirements of Chinese and Asian markets." The plant that CEPSA is building in Shanghai through its subsidiary CEPSA Quimica China is currently undergoing the final phases of construction. The agreement will combine Sumitomo's Asian market trading capabilities with CEPSA's experience in the petrochemical sector, in which it has been active for over 40 years through its subsidiary CEPSA Quimica."