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07-13-2009

Sabic/Sinopec: Chinese Government Approves Joint Project

Saudi Basic Industries Corporation (Sabic) announced that it has received an official approval from the Chinese National Development and Reform Commission (NDRC) to participate jointly 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 parties on June 21, 2008 in Jeddah, Saudi Arabia. The agreement stated that both parties would enter into a 50/50 joint venture at Tianjin and would study the feasibility of adding a new product (polycarbonates) that uses raw materials produced at the complex that are based on Sabic technology.

The complex is expected to be completed in September 2009 with investments around USD 3 billion. The complex’s overall production capacity is rated at approximately 3.2 million tons of various petrochemical products, including one million tons of ethylene and other downstream products such as Polyethylenes, Ethylene Glycol, Polypropylene (PP), Butadiene, Phenol, & Butene-1.

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