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07-04-2008

Sabic/Sinopec: Strategic Agreement

Saudi Basic Industries Corporation (SABIC), Riad/Saudi Arabia and China Petrochemical Corporation (SINOPEC), Beijing/China, signed a strategic cooperation agreement to expand the scope of partnership at Tianjin industrial complex, China, currently under construction. The complex is expected to be completed in September 2009 with investments exceeding USD 2.5 billion. The overall production capacity of the complex will be approximately 4 million metric tons of different petrochemical products including 1.2 million tons of ethylene and other products such as poly propylene (PP), butadiene, phenol, and butene-1.

The agreement is designed to expand the heads of agreement (HOA) signed by the two companies in January 2008.

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