Saudi Basic Industries Corp (Sabic) signed a cooperation deal with China Petrochemical and Chemical Corp (Sinopec Group) to explore opportunities in new petrochemical projects.
Polycarbonate facility
The agreement sets the foundation for a joint investment to build a new polycarbonate production complex with an annual production capacity of 260,000 metric tonnes, Sabic said in a statement. The new facility will be located at the Sinopec Sabic Tianjin Petrochemical Co., or SSTPC, complex in northern China's Tianjin city.
Long-term cooperation
The Protocol of Cooperation was signed by Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, and Fu Chengyu, Chairman of the Sinopec Group and the Sinopec Corporation. Mohamed Al-Mady, SABIC Vice Chairman and CEO, was also present at the signing ceremony.
"SABIC and Sinopec's aspirations are now focused on establishing long-term strategic cooperation that contributes towards enriching Saudi Arabia's and China's economies in the areas of scientific research, technology and innovation, engineering and product marketing" said Prince Saud
Operational in 2015
"When the plant is fully operational in 2015, Sabic will become one of the world's largest producers of polycarbonate, significantly boosting Sabic's market share," Sabic said.
"The protocol of cooperation, which covers marketing, allows Sabic to supply polycarbonate as feedstock to the company's other plants in China and the Pacific region."
Laying the groundwork
Prince Saud added that the new project, along with the first joint venture with Sinopec, with an annual production capacity of three million tons, will strengthen SABIC's competitiveness. It could even lay the groundwork for further joint ventures between the two companies, offering more opportunities for two-way exchange of technologies and sharing of markets.
