Sabic aims final accord with Sinopec by year end
Saudi Basic Industries Corp (Sabic), the world’s largest chemical maker by market value, aims to sign the final accord with Sinopec, Asia’s largest oil refiner, on a US$1.7 billion ethylene derivatives plant by the end of this year, sources reported.
The two parties signed a frame agreement on January 31 to launch a 50:50 joint venture in northern China’s Tianjin, with a designed annual polyethylene- and glycol-making capacity of 600,000 tons and 400,000 tons respectively when the JV commences production at the end of 2009.
“China is a growing market, an important market for Sabic,” sources cited Mohamed al-Mady, chief executive of Sabic, as saying. “We have plans to make investments in China and to increase our investments.”
Analysts said Sinopec will also benefit from the deal amid the surging demand for ethylene derivatives in the domestic market. China is expected to account for 25% of global chemical demand by 2015.
Tags: Sinopec, Tianjin