Saudi Basic Industries Corporation (SABIC) and China Petroleum & Chemical Corporation (SINOPEC) announced today the inauguration of their new petrochemical complex at Tianjin, China. The two companies formed SINOPEC SABIC Tianjin Petrochemical Co., Ltd, last year as a 50/50 joint-venture to build and operate the new facility. The million-ton ethylene cracker, along with eight down-stream units and all utilities have been tested and are ready to begin production by the first quarter of next year.
Built at a total cost of RMB 18.3 billion Yuan (US $2.7 billion), the complex will produce 3.2 million tons annually of various chemical products, as well as other downstream products such as polyethylene, ethylene glycol, polypropylene, butadiene, phenol, and butene-1.
SABIC’s Chairman, Prince Saud Bin Thenayan Al Saud, said: “We have developed great synergy between the two companies based on our shared goal of providing high quality petrochemical products to the domestic Chinese market. This project will benefit us both greatly. ”
SINOPEC’s Chairman Su Shulin said: “The joint-venture ethylene project in Tianjin is another achievement of the constantly developing cooperation in recent years between our two global companies. It has set a new standard of collaboration between the two parties. Sinopec will, together with SABIC, jointly strengthen our current cooperation and maintain long-term strategic partnership—to make the JV an outstanding platform for the expansion of future cooperation and the development of our friendship with SABIC.”
In addition to the immediate expansion of local production, the complex will upgrade the chlorine-alkaline industry in Tianjin and promote economic development of New Binhai District and Tianjin municipality. Initial estimates indicate the JV project will support an annual GDP increase of more than four percent in Tianjin and trigger investment of an additional RMB 100 billion Yuan (US $14.8 billion) in downstream and associated industries.
ENDS
Notes to Editors
About SABIC
SABIC ranks among the world’s top five producers of commodity chemicals and plastics, and is a major global developer and supplier of thermoplastics engineered to meet customer needs. Additionally, SABIC has operations in steel production and fertilizers, and increasing brand presence in high-value performance chemicals.
SABIC recorded a net profit of SR 22 billion (US $ 5.86 billion) in 2008. Sales revenues for 2008 totalled SR 151 billion (US $ 40.2 billion). Total assets stood at SR 272 billion (US $ 72.5 billion) at the end of 2008.
SABIC has significant research resources with six dedicated Technology & Innovation centers in Saudi Arabia, Europe, the USA and India. The company operates in more than 40 countries with 33,000 employees worldwide.
The company has over 60 world-class manufacturing and compounding plants in locations across the Middle East, Asia, Europe and the Americas.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.